Magical Express till 2011!!

[missymagic]

I just read this on www.allearsnet.com

Magical Express to Continue into 2011

The Orlando Sentinel reports today that the Orlando International airport and Walt Disney World agreed to terms keeping the Disney shuttle running into 2011. With the new agreement, the Magical Express booth will move from Terminal A to Terminal B. Disney's greets will also be allowed back on the 2nd level of the terminal to assist passengers.

For the full story visit:
http://www.orlandosentinel.com/news...,7101079.story?coll=orl-news-headlines-orange

 

[Hogzilla]

That doesn't necessary mean they won't charge for it in the near future.... just that it will exist.

 

[Blue&Gold]

My parents are Orlando locals and ME is very popular---keeps the tourists off the roads! Apparently, the biggest opposition is from the cab companies and town car folks.
We prefer having the flexibility that comes with having a rental car, but certainly see the value of the service.

 

[sajetto]

It's good to hear that it will still be running whether they charge for it or not. I agree that it is probably a welcome sight to the locals who want the tourists to stay off the freeway

 

[bdb7607]

That's great! We used it in January - loved the ease of it!

 

[MinnieGirl33]

I know from previous Orlando Sentinal articles that under the old agreement Disney has to pay OIA 50 cents per passenger. Combine that with the actual cost of the service (gas, payroll, maintenence, etc.) & I think that one way or another guests will be paying for it whether or not you actually see it listed seperately on your bill or not.

While I do think that it's a been a great promo for a new (free) service, as someone who rents a car I think it's only fair that eventually the costs will only be passed on to those who actually use the service.

 

[1000th happy haunt]

Here's an update. I've highlighted a few important points.

Disney shuttle deal forces drivers to cope
Competitors say they won't survive if Disney doesn't charge for Magical Express.

A deal between Walt Disney World and Orlando International Airport to keep Disney's free Magical Express shuttle running for five more years left industry competitors Thursday grappling with how to cope with the shuttle's impact over the long term.

Until this week the popular service that shuttles tourists directly from the airport to their Disney hotels and separately delivers luggage to their rooms was a pilot program scheduled to end in December.

Other transportation providers were hoping the service would end or, at least, begin charging for the bus ride and baggage delivery.

"I don't think I'll last another six months if they don't start charging," said Leonardo Dale, owner of limousine and sedan service Image Transportation. "From 40 reservations a day we dropped down to three or four. You can't survive on that."

Disney spokeswoman Kim Prunty said the company has no plans to begin charging for Magical Express.

Though the service is free to passengers, Disney along with its contractors Mears Transportation Group and Aircraft Services International Group will pay the airport an estimated $4.4 million next year to run the program. Mears runs the buses; ASIG transports the luggage.

That new revenue from Disney could either add $300,000 to the airport's bottom line over a full year or nick it $600,000, depending on collections from ground-transportation companies.

The service, which launched in May, is shifting passengers away from rental cars, taxis and other car-for-hire companies. In eight months last year, an airport consultant estimated the airport missed out on $204,000 to $1.1 million in rental-car and other transportation revenues.

The Greater Orlando Aviation Authority, which runs Orlando International, approved terms Wednesday that would help lessen the service's financial impact on the airport and extend the program to 2011.

Disney argues it is providing other benefits, such as boosting food and retail sales at the airport, because the shuttles drop off already checked-in passengers two hours before their flights.

In turn, the company reaps the benefits of a captive audience -- visitors who stay on Disney property without transportation to leave and spend money elsewhere. Magical Express transported 1.1 million of those customers from last May to December.

Abe Pizam, dean of the University of Central Florida Rosen College of Hospitality Management, said Magical Express is the new model for other Orlando and national attractions.

"Maybe they'll have a route to I-Drive or Universal," Pizam said. "The writing is on the wall. It first started with Disney, and I'm sure others will see the wisdom of doing the same thing."

Universal Orlando and some International Drive businesses have already made inquiries about replicating the service, but it's unclear how serious those talks are.

In the meantime, other ground-transportation providers are trying to find a way to compete and continue to make money without driving their prices lower.

Michael McKenzie, who represents the Greater Orlando Livery Association, said he is planning to negotiate with airport officials to begin an on-demand luxury-car lane at the airport.

That would allow companies like his luxury town car and limousine service to take walk-up customers. Currently they are only allowed to pick up customers who have reservations.

"I think it's . . . time that they [airport officials] look in terms of how do we accommodate the small businesses also," McKenzie said.

 

[greenban]

Here's an update. I've highlighted a few important points.

Good News, and thanks for posting and updating 1KHH!

I agree, it looks like it may stay free for a bit!

-Tony

 

[Jen D]

We'll see if Disney starts charging... They might run it free a little longer just to shut some of the transportation alternatives down. I do feel bad for the Town Car services. If I were them I'd sell the business and get into grocery delivery instead!

 

[keishashadow]

Figures, we always fly into Term. A.

So, how does one get from A to B?

 

[CarolMN]

I wonder if it will drive car rental prices down. I'd still like to have a car, but I am not willing to pay more than $200 per week for a compact or imtermediate.

Haven't seen any decent car rental prices for quite a while. Last December, I was able to get an intermediate from National for 8 days for $118.35 - including all taxes and fees. Rates now for that same time frame are more than double that.

If the rates don't come down, we'll be doing ME and possibly just renting a car on site for 1 or 2 days max.

Best wishes -

 

[Horace Horsecollar]

Figures, we always fly into Term. A.

So, how does one get from A to B?

Terminal A and Terminal B are really just two sides of the same building. There are four airsides (satellite buildings where the gates are), each with a shuttle train to the terminal. Take a look at this map — http://www.orlandoairports.net/goaa/property/shops.htm — and you'll see that the train arrival locations in the main terminal are almost equally close to Terminal A and Terminal B. There are large signs pointing to Terminal A and Terminal B when you get off the shuttle train.

Because you bypass baggage claim — the best benefit of Magical Express — it doesn't matter if your arrival gate is in an airside on the Terminal A or the Terminal B side.

 

[KLEONARD]

I wonder if it will drive car rental prices down. I'd still like to have a car, but I am not willing to pay more than $200 per week for a compact or imtermediate.

Haven't seen any decent car rental prices for quite a while. Last December, I was able to get an intermediate from National for 8 days for $118.35 - including all taxes and fees. Rates now for that same time frame are more than double that.

If the rates don't come down, we'll be doing ME and possibly just renting a car on site for 1 or 2 days max.

Best wishes -

Carol, I just booked National for an intermidiate. I used the Entertainment book coupon for a 2 level upgrade. I will get a full size for $207.11 including fees and taxes. This is for the first week of May at SSR. This was the best deal I could find for anything above a compact.

 

[keishashadow]

Thanks, as long as they point me where to go we still haven't used it yet.

Terminal A and Terminal B are really just two sides of the same building. There are four airsides (satellite buildings where the gates are), each with a shuttle train to the terminal. Take a look at this map — http://www.orlandoairports.net/goaa/property/shops.htm — and you'll see that the train arrival locations in the main terminal are almost equally close to Terminal A and Terminal B. There are large signs pointing to Terminal A and Terminal B when you get off the shuttle train.

Because you bypass baggage claim — the best benefit of Magical Express — it doesn't matter if your arrival gate is in an airside on the Terminal A or the Terminal B side.

 

[Horace Horsecollar]

We'll see if Disney starts charging... They might run it free a little longer just to shut some of the transportation alternatives down.

Disney isn't trying to shut down the transportation alternatives. Disney has nothing to gain by shutting down local towncar and limo companies. There's now less need for Orlando-area towncar and limo service, but that's just a consequance of Disney's Magical Express (DME), not a goal of DME. The airport rental car companies have undoubtedly reduced their Orlando Airport rental fleets, but Disney couldn't shut them down if Disney wanted to.

Disney launched DME as a complimentary service to provide another significant advantage to staying at Disney-operated on-site resorts. That means higher occupancy and less discounting of room rates. And Disney wants a captive audience. People who arrive at a WDW resort without a car are likely to spend their money on Disney attractions, dining, and shopping, rather than going to Sea World, Bahama Breeze, and the Premium Oulet Mall.

Based on comments in Disney's first quarter financial report, it seems that Disney is achieving the goal of DME. And that goal is an increased profit at WDW, not crushing transportation alternatives.

In fact, people who use a towncar or limo are also a captive audience.

 

[Jen D]

In fact, people who use a towncar or limo are also a captive audience.

True.

 

[shellybaxter]

It was always my thought that Disney would continue to offer the "free" ME service while all the while building the cost into the actual room rates. If they simply started charging they likely would lose a percentage of their users thus enticing fewer people to stay on site and not go anywhere else

 

[Cruelladeville]

I don't see how ME can bankrupt transportation companies--those of us who stay on-property are just a small minority out of all the people who actually come to Florida every year, so I thought that was an odd comment by the towncar company. I liked taking ME, and then renting a car from the Dolphin for a day or two. It's only about $55 per day. You can also have a towncar take you around, if you like that kind of luxury.

 

[Horace Horsecollar]

I don't see how ME can bankrupt transportation companies--those of us who stay on-property are just a small minority out of all the people who actually come to Florida every year, so I thought that was an odd comment by the towncar company.

The Orlando towncar operators are genuinely being hurt my DME. As noted earlier in this thread, that's just a consequence of Disney's Magical Express (DME), not a goal of DME.

A towncar is good option for people who don't need a car when they get to their destination. So, a towncar is a good option for guests at on-site WDW resorts, who can rely on WDW transportation. A towncar is not a good option for WDW tourists staying in Kissimmee or along International Drive or at other off-site locations. So, even though far more people stay off-site than on-site, the Orlando towncar operators have lost their core customer base.

The customer base for the Orlando towncar and limo operators hasn't dried up completely. There are still some people who use towncars to go to non-DME resorts with good transportation, such as the WDW Swan and Dolphin. And there are those people attending conventions at the Orange County Convention Center in Orlando who are staying at hotels within walking distance. There's still the local wedding and special occasion business. And, of course, there are some WDW guests who don't mind paying for a towncar even though DME is free.

However, overall, DME has hurt the Orlando towncar and limo business terribly. If I were a small businessperson who had gone into debt to build a business with a towncar fleet, only to find the customer base largely gone as soon as DME started, I would be very angry at Disney too.

So the towncar operators hope that Disney will begin to charge for DME in 2007, and that guests will abandon DME in favor of towncars. The towncar operators are missing the point. Disney doesn't want guests to abandon DME. Even though there's no direct charge for DME, the bottom line profit of WDW is up, and DME is one of the major reasons.

Although it's possible that Disney will charge for DME in 2007, it's unlikely.

 

[rogerram]

I don't see how ME can bankrupt transportation companies--those of us who stay on-property are just a small minority out of all the people who actually come to Florida every year, so I thought that was an odd comment by the towncar company. I liked taking ME, and then renting a car from the Dolphin for a day or two. It's only about $55 per day. You can also have a towncar take you around, if you like that kind of luxury.

ME can easily put many transportation companies out of business and the others will have to adapt to keep in business, thus lowering rates or other things to survive. There will always be other destinations that need these services. What Disney is doing is what is best for them. Keep people at WDW and try to not give them a way to leave unless they shell out more money to get somewhere else, by car or a cab, etc. Disney could care less if other companies have problems. They are not there to make these others successful. This is just business and they are trying to make the most from this. It stinks for these companies, but that is the way business have always been. It will get worse if Universal figures this out and takes more people on theie service(maybe called Universal Exress, Road to the Universe or whatever they comeup with for a name) who will normally use a towncar service to go to their resorts. I see that happeneing, too.