Is Disney finally seeing consumers say they're pricing themselves out of peoples ability to pay?

[HMANSION LOVER]

On this past Tuesday or Wednesday Disney reported earnings. Revenue was DOWN at all parks worldwide so it would seem YES!

 

[LSUmiss]

Yup. They want to fill those rooms with upper middle class/upper class people. More likely to not look at price and sign on the line. Buy whatever they want. Buy up the after hours events. Join DVC on a whim. All while keeping crowds down which even betters the overall experience. The price hikes are not complete.

I don’t know why ppl get so hung up on the demographics of the ppl they think wdw wants in the parks. Disney wants to increase the amount spent per person & possibly decrease the amount of ppl in the parks. That doesn’t necessarily mean this will only come from a certain group of ppl.

 

[stewart715]

On this past Tuesday or Wednesday Disney reported earnings. Revenue was DOWN at all parks worldwide so it would seem YES!

No...park revenue was up 7%...consumer spending up 10%. It was overall attendance that was down...and it was unpaid attendance that was the reason for it; paid attendance was up as well.

 

[stewart715]

I don’t know why ppl get so hung up on the demographics of the ppl they think wdw wants in the parks. Disney wants to increase the amount spent per person & possibly decrease the amount of ppl in the parks. That doesn’t necessarily mean this will only come from a certain group of ppl.

People who have more money are more likely to part with said money. They want every person in the parks to spend money. They don’t want more people to simply pay the ticket or AP price and then come in with their own food and water and purchase nothing. They may not care about demographics specifically but the type of customer they are after largely falls in middle to upper and upper class.

 

[LSUmiss]

People who have more money are more likely to part with said money. They want every person in the parks to spend money. They don’t want more people to simply pay the ticket or AP price and then come in with their own food and water and purchase nothing. They may not care about demographics specifically but the type of customer they are after largely falls in middle to upper and upper class.

I don’t think that’s necessarily true. Perhaps ppl with a lot of money but I don’t think that fits ppl who make $150k. That’s hardly “rich”.

 

[stewart715]

I don’t think that’s necessarily true. Perhaps ppl with a lot of money but I don’t think that fits ppl who make $150k. That’s hardly “rich”.

I don’t think they are rich but certainly upper middle, as I suggested. I don’t think most six figure households are afraid to spend money at the parks.

But the bottom line is, if they can keep raising prices while decreasing attendance and keeping revenue growing, they’re going to do so.

 

[Searc]

I don’t think they are rich but certainly upper middle, as I suggested. I don’t think most six figure households are afraid to spend money at the parks.

But the bottom line is, if they can keep raising prices while decreasing attendance and keeping revenue growing, they’re going to do so.

Afraid to? No. Don't want to because the majority of the merchandise is low quality crap? Yes. I won't pay for things that used to be free or have a reasonable cost, either ~ EMM and the dessert parties, I'm looking at you.

So yeah, count me in the financially comfortable but won't spend willy nilly in the parks group.

 

[LSUmiss]

I don’t think they are rich but certainly upper middle, as I suggested. I don’t think most six figure households are afraid to spend money at the parks.

But the bottom line is, if they can keep raising prices while decreasing attendance and keeping revenue growing, they’re going to do so.

I guess what I’m saying is that it still can seem overpriced or not worth the value to ppl no matter the income. I know a few ppl who make close to 500k a yr & they think wdw are ridiculous & will spend far less than we do. Perceived value of something is not tied to how much you make.

 

[suemom2kay]

They were Villains DAH specific so you likely won't be able to get in September, except at the outlet store, unless it gets extended.

https://disneyparks.disney.go.com/b...ise-available-at-disney-villains-after-hours/

Oh haha.... I knew about those ones after all. But, did not attend.

 

[stewart715]

There’s a difference between won’t spend and can’t spend.

Jeez, blowing it out of proportion much? I’m not saying they are looking for people to spend like idiots, but they are looking for the people to come in, buy a couple shirts, sit down for a meal and enjoy their day.

Clearly they don’t like the people who stay offsite at a steep discount to their resorts and then pack ham and cheese sandwiches and eat on the benches outside of Mouse Gear and don’t spend a single penny on property outside of their tickets.

And while there are many people like your 500k friends who do the latter, the majority of those people simply CAN’T spend the extra money; not WON’T.

Out of 10 upper class families, maybe 6 will spend money in parks.

Out of 10 lower class families, maybe 1 will spend money in parks.

They don’t value anyone’s dollar any less, but if they increase the price of entry and roll their dice with upper class folks, consumer spending goes up (which ironically it has 10% YoY after price increases).

 

[LSUmiss]

There’s a difference between won’t spend and can’t spend.

Jeez, blowing it out of proportion much? I’m not saying they are looking for people to spend like idiots, but they are looking for the people to come in, buy a couple shirts, sit down for a meal and enjoy their day.

Clearly they don’t like the people who stay offsite at a steep discount to their resorts and then pack ham and cheese sandwiches and eat on the benches outside of Mouse Gear and don’t spend a single penny on property outside of their tickets.

And while there are many people like your 500k friends who do the latter, the majority of those people simply CAN’T spend the extra money; not WON’T.

Out of 10 upper class families, maybe 6 will spend money in parks.

Out of 10 lower class families, maybe 1 will spend money in parks.

They don’t value anyone’s dollar any less, but if they increase the price of entry and roll their dice with upper class folks, consumer spending goes up (which ironically it has 10% YoY after price increases).

I guess that hasn’t been my experience. Where are you getting your 6 out of 10 figures? I think you’re making a lot of assumptions. I don’t personally know anyone who makes below 150k (other than the young ppl in my family) & no one spends like you say. I think that’s a misconception. My resentment comes from that fact that you’re saying that ppl who make more money are more likely to spend their money like idiots on something that has no value.

 

[Captainkidd76]

I guess that hasn’t been my experience. Where are you getting your 6 out of 10 figures? I think you’re making a lot of assumptions. I don’t personally know anyone who makes below 150k (other than the young ppl in my family) & no one spends like you say. I think that’s a misconception. My resentment comes from that fact that you’re saying that ppl who make more money are more likely to spend their money like idiots on something that has no value.

That's kind of odd considering the majority of people don't make even close to that.

 

[stewart715]

I guess that hasn’t been my experience. Where are you getting your 6 out of 10 figures? I think you’re making a lot of assumptions. I don’t personally know anyone who makes below 150k (other than the young ppl in my family) & no one spends like you say. I think that’s a misconception. My resentment comes from that fact that you’re saying that ppl who make more money are more likely to spend their money like idiots on something that has no value.

Sorry, that’s not what I’m saying.

Just because you spend some money at Walt Disney World doesn’t make you an idiot. Who said that? And why is it the case?

Spend like I say? Huh? What are you even talking about? I said buy a couple shirts and sit down for dinner? Where is said post where I said people spend foolishly?

Seriously, don’t know what you’re talking about. All I said is they don’t want people who spend NO money.

But people who simply don’t have the money to spend, simply cannot spend the money. You can’t get water from a dry well.

They want people in the parks who can part with some money. They increase their odds of increasing consumer spending.

 

[Farro]

I guess that hasn’t been my experience. Where are you getting your 6 out of 10 figures? I think you’re making a lot of assumptions. I don’t personally know anyone who makes below 150k (other than the young ppl in my family) & no one spends like you say. I think that’s a misconception. My resentment comes from that fact that you’re saying that ppl who make more money are more likely to spend their money like idiots on something that has no value.

Hi, I make less than $150,000 a year. Nice to meet you!

 

[stewart715]

And also, I have no idea where this $150k number came from. The park guest they are looking for certainly makes less than that.

 

[LSUmiss]

Hi, I make less than $150,000 a year. Nice to meet you!

That's kind of odd considering the majority of people don't make even close to that.

I actually meant households not individuals. But, I don’t think it’s that odd to have friends & family similar to you.

 

[LSUmiss]

And also, I have no idea where this $150k number came from. The park guest they are looking for certainly makes less than that.

Someone said the $150k number earlier.

 

[stewart715]

Someone said the $150k number earlier.

Gotcha.

And I agree, household, I know few who make less than that. But unfortunately that is not the majority of the country.

I'm not sure where everything I was saying got lost in translation but I never suggested fortunate people spend foolishly. All I'm saying is it seems like they are (if I had to guess) after the $100k+ household as their target customer.

They simply want people who are going to spend more than the cost of admission at their parks. And as business, I totally understand that.

You simply can't disagree that $100k+ households are more likely to spend (in any amount) at the parks vs those under that threshold. It doesn't make them foolish to buy a Mickey Glow Wand and a 2019 Food & Wine shirt. It makes them fortunate.

Disney always welcomes the foolish spenders but that certainly was not who I was referencing.

 

[HopperFan]

Clearly they don’t like the people who stay offsite at a steep discount to their resorts and then pack ham and cheese sandwiches and eat on the benches outside of Mouse Gear and don’t spend a single penny on property outside of their tickets.

I disagree that Disney doesn't like the offsite guests who stay at deep discount. Disney highly depends on them. Disney hotels can only provide approximately 1/3 of park capacity so Disney needs those offsite guests. As someone who often stays offsite, so travels out those gates to the parking lot ... MANY of those guests are weighted down with packages, bubble wands etc. Staying offsite for many means more spending money and parking fees (and parking has a high profit margin). I am one who likes to pack my lunch on some trips to certain parks ... mostly MK because the food there stinks but ironically I do it more when I stay at a Disney hotel than I do when coming from offsite ... why? ... my offsite hotel is so much less than my Disney hotel I have the extra in my budget to eat at Disney prices. Many of those picnic folks spend plenty on snacks, merchandise and upsells. Saving $50-75 a day by eating a sandwich goes a long way.

If offsite guests stopped coming in the parks Disney would belly up.

I don’t know why ppl get so hung up on the demographics of the ppl they think wdw wants in the parks. Disney wants to increase the amount spent per person & possibly decrease the amount of ppl in the parks. That doesn’t necessarily mean this will only come from a certain group of ppl.

I don't think Disney cares about your "demographics" .... they only care that you want to come, fill the parks & restaurants and will spend lots of money. They want the guest who will spend thousands on a vacation. It might be the family who scrimped and saved and goes every few years or it might be the one who has no issue spending that amount of money and it's one of 4 vacations that year. Demographics don't matter only the end $$ amount spent.

I don't think they care one bit about decreasing the number of people in the park. I don't know what their endgame is but for now they are doing everything they can to fill those parks. For every one they lose they replace two-fold.

 

[SDSUrulez]

And when you compare Universal's $170 price ticket for one day at their two parks vs. Disney's $189 price for one day at all four parks, two water parks, and golf. Universal is exorbitantly overpriced.

This is very flawed.... No one is doing all of the activities in one day.. Disney knows this. At most you are going to 3 parks and that is stretching it. I think the difference is when you start looking at passes or week long tickets.