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

[maxiesmom]

Funny that you mention this! I'm from Maryland and a few years ago, I was so frustrated with the lack of ability of semi-decent, non-sketchy hotels and the prices that some were asking (like the Hilton $$$$$) that we did a quick trip to Disney instead of Ocean City.

I just posted on another thread about how much it is costing me to go to Mackinaw City next weekend. I ended up booking Saturday to Monday to save money, as the weekends are so much more expensive. And the places to stay are definitely 2 star motels.

 

[Mackenzie Click-Mickelson]

Ha! I'm glad someone can relate. I know so many people that tell me beach vacations are cheaper and they can't believe how expensive Disney is and that I keep going. Beach vacations have never been the cheaper option for us, whether its paying over-the-top hotel rates for a subpar, old and gross hotel, or a beach house rental in the summer. Granted, for some it is cheaper to drive somewhere than fly, but we use a SW credit card and pretty much always fly for free with our points so that doesn't factor in for us.

I think some of that can be what your beach vacation entails and where it is at.

We went to Hawaii and have a lovely time for less than Disney. We stayed in a for rent by owner condo right on the beach for just over $1,000 for 7 days (we added 1 night in Honolulu due to when our flight arrived for just over $120 that night). We went to Pearl Harbor area, we drove around the island, we went and had lunch at Aulani, we went to the Dole Plantation, we had low key days and not so low key days. It was by far one of our favorite vacations.

That said we went to Myrtle Beach and nothing, I mean nothing, can make us ever want to go back and we were there for 3 days 2 nights.

 

[Farro]

And that is exactly what Disney wants you to think.

I'm sure this supposed to be some kind of insult, but I dont get it...for 9 days I can go to all 4 parks everyday if I want for less than $70 a day. I think that's a great deal for us.
A one day ticket to Great America is $58 a day, so yeah, good deal.

 

[NavyDad]

Looking at the lasts quarters results press release it says:

To answer the question from your thread title:

No - I don't think they are seeing that or saying that at all in the full text. It sounds like they are saying that attendance was down at WDW because customers are putting off traveling until SWGE is totally and completely open. It also sounds like they are saying they were able to offset some of the losses with price increases in other areas (which would mean those price increases were effective in their eyes).

To me it seems that Disney is in a major transition phase right now. The whole company and the theme parks division. The company has invested massively over the last decade in acquiring some major IP. The theme parks subsidiary is making massive investments in order to better leverage that IP. It seems like they know its going to be a while before they fully realize returns on these investments so they are looking at other ways to be more efficient in bringing in revenue. Combine all of that with the shifting media environment, investments in streaming services (Disney+ and ESPN+) means a company in flex. I don't think that means the overall company is looking to give us any kind of breaks on theme park costs.

The other thing to remember, which I know has been brought up over and over, is that we on the DIS boards are not the target market and our personal anecdotes don't necessarily translate to the experience of what they call their "average" guest. All of the earnings and shareholder calls I have listened to over the years it seems like the certain customer that all of their marketing is geared to is first time visitors (once in a lifetime trip) that stay between 3-6 days. Over and over they say that they see a diminishing rate of return (money spent per day per guest) when people take multiple trips year after year or stay more than 6 days. Basically there is a sweet spot for profitability that they tailor their business operations to and none of us are in it.

 

[shh]

A lot of vacation spots are quite expensive and I guess you just pay for what experience you like best. I prefer the Disney experience.

Haven't read this entire thread, but I'm active on multiple travel forums - as I'm sure many of you are as well - including theme parks, cruise critic, trip advisor and destination specific forums like the keys, SF, new orleans, etc.

Every single forum has constant threads complaining about skyrocketing costs with simultaneous cutbacks in service and amenities - all recalling how good and reasonable it used to be.

I do some work in the travel and hospitality sector - every company is jacking up prices and maximizing today's market as much as possible. But what goes up will come down - the boom will end with a crash. And deals will then start to flow again.

 

[ML_LovesDisney]

I think some of that can be what your beach vacation entails and where it is at.

We went to Hawaii and have a lovely time for less than Disney. We stayed in a for rent by owner condo right on the beach for just over $1,000 for 7 days (we added 1 night in Honolulu due to when our flight arrived for just over $120 that night). We went to Pearl Harbor area, we drove around the island, we went and had lunch at Aulani, we went to the Dole Plantation, we had low key days and not so low key days. It was by far one of our favorite vacations.

That said we went to Myrtle Beach and nothing, I mean nothing, can make us ever want to go back and we were there for 3 days 2 nights.

Agreed! The Atlantic beaches with the exception of some Florida and Florida Keys beaches are a big no from us. I totally agree with you too, Hawaii can be done on the cheap, we did it in 2016 and it was amazing

 

[Farro]

To compare the cheapest you can get in May 2020 for 9 days park hopper is $602.10 for age 10+, the cheapest you can get for 5 days park hopper is $553.49 for age 10+. We go typically 5 days but if you break that down at 9 days you're at $66.90 and at 5 days you're at $110.70---that is a big difference per day. The figures I used above like I said is the cheapest days in May 2020 buying direct from Disney's website. I also couldn't replicate your $607.34 amount for age 10+ for May 2020 it's possible you purchased before a price increase occurred.

That price is from today, I purchased mine a couple months ago.

 

[Captainkidd76]

I'm sure this supposed to be some kind of insult, but I dont get it...for 9 days I can go to all 4 parks everyday if I want for less than $70 a day. I think that's a great deal for us.
A one day ticket to Great America is $58 a day, so yeah, good deal.

Not in the least bit. You're hardly the only one. We're all guilty of buying into it. And it's not completely false. But even at $70 a day, it's still Disney making hand over fist. That's why AP's cost so much now. They can't force them to stay on property. But by selling the rest of us multi day tickets, we're not going anywhere.

For me, sadly, the real issue is my family and I no longer see the value at WDW. It goes beyond monetary value. Epcot is no longer a 2 day park. Hollywood Studios has done away with some of its best attractions. Animal Kingdom, large as it is, can be done in a day, easy. The only park we find worth spending 2 days in is the Magic Kingdom, but it's gotten so crowded and problematic because of Fastpass Plus (20 minute wait for the Peoplemover, 40 minute wait for It's a Small World anyone?), it's simply not as enjoyable. I won't bring up Universal again. But I will bring up Disney - Disneyland. That park is smaller than the Magic Kingdom with almost the same attendance yet they have a system in place that lets you get any Fastpass you want, and let's you see dozens of other rides without the 40 plus minute waits most of the Magic Kingdom rides see. And Disney California Adventure? I'd say it's better than 3 of the WDW parks. If you've never been or you simply want what should be the magical Disney experience, go to Disneyland.

 

[hereforthechurros]

I agree that Disney prices are getting insane from when we started going in 2010 and we will definitely be going less. BUT on the other side of that, we just did a short trip (3.5 nights) to Ocean City, MD and the expense of that was pretty ridiculous being that it's not even that great IMO. $400 per night hotel for a VERY outdated room with a tiny bathroom, terrible service at the hotel restaurants, and basically paying to just be near a beach. $11.99 for a basic garden salad (no meat). $60 for breakfasts for a family of 4 (2 kids). Very close to what we would spend at Disney on dining realistically.

My Disney package at rack rate for next year (will hopefully rebook with a discount if one is offered), is only $1500 more and it's one and a half more days than we spent in OC! A lot of vacation spots are quite expensive and I guess you just pay for what experience you like best. I prefer the Disney experience.

Am I high or is $1500 a LOT more? For our family that’s a whole other trip!

 

[hereforthechurros]

To answer the question from your thread title:

No - I don't think they are seeing that or saying that at all in the full text. It sounds like they are saying that attendance was down at WDW because customers are putting off traveling until SWGE is totally and completely open. It also sounds like they are saying they were able to offset some of the losses with price increases in other areas (which would mean those price increases were effective in their eyes).

To me it seems that Disney is in a major transition phase right now. The whole company and the theme parks division. The company has invested massively over the last decade in acquiring some major IP. The theme parks subsidiary is making massive investments in order to better leverage that IP. It seems like they know its going to be a while before they fully realize returns on these investments so they are looking at other ways to be more efficient in bringing in revenue. Combine all of that with the shifting media environment, investments in streaming services (Disney+ and ESPN+) means a company in flex. I don't think that means the overall company is looking to give us any kind of breaks on theme park costs.

The other thing to remember, which I know has been brought up over and over, is that we on the DIS boards are not the target market and our personal anecdotes don't necessarily translate to the experience of what they call their "average" guest. All of the earnings and shareholder calls I have listened to over the years it seems like the certain customer that all of their marketing is geared to is first time visitors (once in a lifetime trip) that stay between 3-6 days. Over and over they say that they see a diminishing rate of return (money spent per day per guest) when people take multiple trips year after year or stay more than 6 days. Basically there is a sweet spot for profitability that they tailor their business operations to and none of us are in it.

Hence the large jump in out of state APs this year. Getting that AP $$ up front is great for WDW but no doubt most future AP visits are done on the cheap. People staying off site or bringing in their own food, not doing any TS meals or hard ticketed extras.

 

[maxiesmom]

Hence the large jump in out of state APs this year. Getting that AP $$ up front is great for WDW but no doubt most future AP visits are done on the cheap. People staying off site or bringing in their own food, not doing any TS meals or hard ticketed extras.

Not for my family. So far with APs we have stayed at CSR, the Swan, and the Dolphin. With a stay at the Swan coming in a couple weeks. And during the last stay hit the Disney Studios after hours. And we do multiple ADRs each trip.

 

[ML_LovesDisney]

Am I high or is $1500 a LOT more? For our family that’s a whole other trip!

For a deluxe Disney hotel that is actually updated and nice, Disney meals, something to do every moment, and 1.5 days longer of a trip, to me no, it is not that much more. Everyone has different vacation spending and I don't know if you've ever been to Ocean City, MD, but it's not worth the prices they charge! That's the purpose of my comparison. It's lightyears away from a Disney vacation yet within the realm of similar pricing (i.e. $600 a night for a hotel that is terrible vs. Wilderness Lodge for $450) Disney is more worth that extra spending to me.

 

[piccolopat]

I'm totally fine with that. People should go wherever they want to. My issue is when people claim they can stay at a Disney Deluxe for less money than a Universal Deluxe. 95% of the time, that's simply not true. And in addition, again, you get certain perks from Universal staying Deluxe that you don't get at Disney.

Captain, I am just reading through this very long thread but you've said a few things that really bother me. I would be fine if you said that every time that you've tried to book a Disney Deluxe, your experience has been that comparable Universal hotels were cheaper. I am not OK with you accusing people of lying when you have no proof of that. You can make your point without the accusation and I think others would agree.

 

[GrumpySue]

I think some of that can be what your beach vacation entails and where it is at.

We went to Hawaii and have a lovely time for less than Disney. We stayed in a for rent by owner condo right on the beach for just over $1,000 for 7 days (we added 1 night in Honolulu due to when our flight arrived for just over $120 that night). We went to Pearl Harbor area, we drove around the island, we went and had lunch at Aulani, we went to the Dole Plantation, we had low key days and not so low key days. It was by far one of our favorite vacations.

That said we went to Myrtle Beach and nothing, I mean nothing, can make us ever want to go back and we were there for 3 days 2 nights.

We were thinking of stopping for a few days at Myrtle Beach to break up the ride home from Disney, never been there. Can you tell me why you would never go back???

 

[Captainkidd76]

Captain, I am just reading through this very long thread but you've said a few things that really bother me. I would be fine if you said that every time that you've tried to book a Disney Deluxe, your experience has been that comparable Universal hotels were cheaper. I am not OK with you accusing people of lying when you have no proof of that. You can make your point without the accusation and I think others would agree.

Fair enough, but I didn't accuse anyone of lying. I simply called someone who said they got the GF or or Yacht Club for under $300 of extreme exagerration. No way, no chance, no how.

What really bothers me is when people go on public forums and give false information simply because they have a personal preference. And that happens not just here but any place that people are comparing Disney to ANYTHING. That's not fair to anyone coming here looking for help.

 

[piccolopat]

Fair enough, but I didn't accuse anyone of lying. I simply called someone who said they got the GF or or Yacht Club for under $300 of extreme exagerration. No way, no chance, no how.

What really bothers me is when people go on public forums and give false information simply because they have a personal preference. And that happens not just here but any place that people are comparing Disney to ANYTHING. That's not fair to anyone coming here looking for help.

When you say that 95% of the claims of lower Disney pricing are not true, to me it sounds like you are saying those people lied. When you say that someone who got a GF room for under $300 is guilty of extreme exaggeration, to me it sounds like you are saying they lied (either they paid under $300 or they didn't - not sure how you exaggerate a fact like this). I do agree that facts are more important than someone's allegiance to Disney or anything else regardless of verifiable faults.

 

[Searc]

I'm sure this supposed to be some kind of insult, but I dont get it...for 9 days I can go to all 4 parks everyday if I want for less than $70 a day. I think that's a great deal for us.
A one day ticket to Great America is $58 a day, so yeah, good deal.

You can't compare one day at Great America, but use the multi-day ticket price at Disney. That isn't a valid comparison.

 

[Farro]

You can't compare one day at Great America, but use the multi-day ticket price at Disney. That isn't a valid comparison.

Sure I can. Why not?

We don't go every year for 5 days at a time. We go every 3 or 4 years for 9 nights. The price I keep quoting, $68 a day, is reasonable to us to be able to go to as many parks a day as I want for 9 days. Comparing that to just paying $58 to go to Great America for a day, it's a good deal.

I'm not being fooled by Disney, it is what it is. When you go longer you pay less. That's how we vacation, so it turns out to be a good deal for us.

Like I said earlier, the hotels are outrageous to me. Ticket prices, dining, etc. I'm okay with.

 

[Beer Me]

We were thinking of stopping for a few days at Myrtle Beach to break up the ride home from Disney, never been there. Can you tell me why you would never go back???

I’m not the person who posted re: myrtle beach but I went there a lot when I was younger.

In general, the beaches are crowded and can be dirty, traffic is terrible, a lot of hotels and resorts are worn and dated. The boardwalk area can be seen as kitschy by some but sketchy by others. It’s a haven for rednecks and bikers and party people in general.

And that being said if you get farther north from the busiest part of Myrtle there are some really beautiful sections of beach.

Personally I think it can be fun but my wife hates it so that’s that

 

[Mackenzie Click-Mickelson]

We were thinking of stopping for a few days at Myrtle Beach to break up the ride home from Disney, never been there. Can you tell me why you would never go back???

I agree with the above poster. I'm sure you can totally have fun so don't necessarily take my comment to warn you away lol.

We found it very windy at that time (which is really a mild complaint all things considered), the beach area we were in wasn't really all that great in the areas we were at (but concede there probably are nicer parts like the above poster is saying), the boardwalk area we found to just be meh and maybe a bit too touristy, it was traffic filled, etc.

I think part of that may be because we had really liked the Cape Cod area and found that beach-centric/small town feel vacation more appealing in that area of the country. We did Myrtle Beach as part of an overall road trip stopping 1 day in Nashville, 1 day in Asheville (going to the Biltmore Mansion), 3 days 2 nights in Myrtle Beach and 1 day in Savannah before heading home staying north of Nashville on our way back for the night and I think having the other things softened the blow a bit. If you're just stopping there as a small add on you may find it worth it. I remember a poster goes to Myrtle Beach like every year or every other year and just loves it so obviously YMMV