Marketing strategy

[Kimberle]

Though I've never been an AP holder, I've been reading all the AP threads with interest.....

I don't want to offend anyone, but maybe Disney doesn't want their money.......

Let's face it, Disney is in the business of making money, as much money as possible, just like any other business. If you're a frequest WDW visitor, the annual passes are a great deal. The consumer can save a ton of money both on the passes, and rooms. Thus, less money for Disney......

Now, if Disney "changes the rules", they can "force" AP holders to pay higher prices for their rooms. They know the AP holder is virtually "stuck", either they have expensive passes that they don't use or they pay more for their rooms. Either was "Disney" is a winner.

Of cource they realize the same AP holders are going to be angry and upset. What Disney is "banking on" is that those same holders will change to package deals (more $$ for Disney). I think they (Disney) kindof suspects the holders will stay away for 6 mths, or even a year, but most of them will come grudgely back.

Marketing is never really what it "looks". I remember when I was on the Price is Right. It sure looks like the contestants area "ramdomly" choosen, but I can assure you, there a very selective process in place to assure the type of show outcome they want. (Low "winning/paying" show vs. high "winning/paying".

Again, I don't want to offend anyone, just food for though from an "outside" perspective...... Disney does want "your" money, they just want as much as they can get!!!

 

[cindala]

Well, I for one didn't renew my AP this year, and instead we did the FTP. This way, I can look at the true cost of room only/passes separate or a package deal. I won't be holding anything in my hand that I HAVE to use that will affect the outcome.

But, if you know anything about this board, then you know we are bunch of very creative Disney nuts, who WILL figure a way around any obstacles to get to Disney!

 

[Geoff_M]

I'm already feeling better about buying into DVC. One of the big hang-ups I had against coughing up the money for DVC was the great deals we've gotten in the past using room-only discount codes. But now that WDW seems to have changed course in favor of the packages (we don't care for UPH passes), I feeling like DVC was an even better move!

 

[melindaandrob]

Maybe AP's will be phased out, in favour of park hoppers?!

 

[mikesmom]

I'm in marketing (NOT with Disney) and I have to agree with the OP. Discounts are offered to fill parks and put "heads in beds" when business is slow. If they are not offering as many discounts, they probably don't care if they are getting your money. They are getting somebody's money, and probably at full price. From a marketing viewpoint, if the product can be sold at full price, you don't offer it for less - just doesn't make economic sense.

We've all gotten a little spoiled the last couple of years with the discounts since 9/11 and the slow economy. (and REALLY spoiled with FTP). I can remember a time when at some times in the year you were lucky to get a ressie at WDW at ANY price - discounts were unheard of!! Now when there is a discount, we all hear of it - and fast! I'm sure the Disney marketing people are aware and taking that into account. It's a fairly firm principle of marketing that when you start price cutting and discounting, soon customers don't do regular shopping. They just wait around for a sale, or wait more for a better sale. Sound familiar? I suspect the marketers over there want to put a stop to the trend.

 

[Tigger Woods]

Originally posted by mikesmom
They just wait around for a sale, or wait more for a better sale.

Or go someplace else.

 

[ww52]

I agree with the OP and mikesmom. Things have changed a lot in the five years between this year's trip and the last one we took before this. In our five previous trips, getting a discount of any type was rare - we paid nearly rack rate everytime with just a Magic Kingdom Club discount. It seems over the past few years discounts have become more of the norm - and the internet spreads the word fast. I agree that Disney would want to put a stop to the expectation that the "discounted" price is now the new "normal" price.

But packaging UPH passes is a mistake, in my opinion. The idea may be to keep the audience on site - not roaming off to Sea World and Universal ("we paid for the passes and they expire when we leave, so let's get our money's worth.") But I think it may have the opposite effect - the Swan/Dolphin will do a much better business, as will the "hotel row" sites and even the wonderful (and cheaper) offsite resorts (like Marriott and Radisson). Also people will consider splitting their stay with some days at one of the Universal Hotels. This may backfire on Disney.

 

[dznyntnh]

I wouldn't look for the AP to be phased out, because the purpose of the AP is to give an admission break to a frequent visitor of the parks.

Before I came to these boards, I would never have dreamed they sold that many AP's to people who weren't local.

If you are a frequent enough visitor, you are getting a good deal in purchasing an AP.

The one interesting thing that was mentioned in the essay that appeared on the mousesavers site was how the internet and boards like this one are screwing up the marketing at Disney. When they send a postcard or offer a code for particular market and they get calls form all over the place, because someone posts the code.

I think this is one reason we are going to see a different marketing 'attack' from Disney.

 

[Luv2Roam]

We have been AP holders for only a few years. We had planned on renewing our passes in December for the January trip.
I am glad I have until the end of December to see if we should bother renewing. With the way discount trips may be heading, we may not.
I agree with the OP and general thoughts. But I think Disney is wrong about one thing. The AP's are what keep us returning in between our January trips. Without AP's burning a hole in our pockets, the incentive to return will not be near as strong. But if they can fill our position with someone willing to pay full price, so much the better for them. Oh well.

 

[missypie]

I had never really considered that point before it was made in the mousesavers newsletter. I used a code that, as far as I know, was only advertised in the LA Times for my great rate at DLR, even though I live in Texas.

 

[C.Ann]

Regardless of what the Disney marketing strategy is, if you're holding AP's in your hand it makes more sense financially for the AP holder to just book a room off-site and go anyhow..

By allowing yourself to be held hostage by Disney's marketing whims - waiting and waiting for discount codes that may never come - the only person it makes miserable is the AP holder - certainly not the folks at Disney..

Book off-site, use up the AP's - and don't buy them again...

 

[Michael623]

AP holders still pay nondiscounted prices for food and merchandise. If I have to pay rack tates I will spend much less money on merchandise. Disney breaks even at best. Just discount the freakin rooms already!!!!

 

[DebbieB]

It's probably the same marketing department that turned The Disney Stores into princess & toy stores!

 

[susy]

Good points.

However, if I have an AP Disney hasn't lost anything by giving me a dicounted park ticket. They, in fact, make MORE money off of me because I wouldn't have gone into the park 17 days last year otherwise. Once I am in the park we eat a counter service lunch, a sit-down dinner every day, plus souveniers. We also stayed onsite all of those times and ate breakfast in their food courts or character breakfasts many times, besides the sit-down dinner in the same day.


If they discontinue room only (AP) discounts, I can still buy the AP and stay and eat offsite. There are plenty of rooms at great rates in DTD and it is just a very short drive back to the hotel. There are also very good discunts at hotels like Sherton Safari and Radisson Resort Parkway ,which have onsite restaurants and pool slides.

I wonder how many Mariott points I would have by now, if I would have stayed at the Marriot all those visits?

Oh, well. I start grad school Monday. Then I will be a teacher. Hello Swan/Dolphin !!!!!!!!!!

 

[pointandshoot]

I hear you Susy. Disney will get 25-30 of my vacation days in their parks because of my AP and discounts. Without it, they would only have seen a week's worth of my vacation money.

If Disney can make as much or more money without the discounts, good for them. Some company's have moved to the strategy of no product discounts thinking that the people who are willing to pay full-price are getting it cheaper thus impacting profit. Price vs. volume.

I think you will see discounts but later (or last minute) and for shorter timeframes. Those with flexible schedules will save. I travel to Williamsburg, VA for weekends because it is close. For the past two years, I could get great room rates but only during the month I planned to visit, never earlier.

If I must go to Disney and they want rack, I am sure I will visit less, might stay offsite, and look for other vacation options harder. It is still very competitive for travel dollars.

Chuck

 

[faithinkarma]

One of my biggest problems with paying the full price is that the service is not there any more. I used to believe that although I was paying more than for any other vacation, it was worth it. They started to slip a few years ago, but we could always tell ourselves that we had paid a lot less, and not get too upset.

Now that we have begun to digest the new way of doing things, the price goes back up. We are definitely not getting what we used to get for the same money.

I understand that this is the way it is everywhere these days, but it is so to the nth degree at Disneey.

 

[missypie]

I work with a lot of people who make a pretty hefty salary ... and without fail, all of them say that a trip to WDW is the most expensive vacation you will ever take. I am amazed that so many people spend the money year after year. I guess lots are AP holders, vacation club member, and folks who get discounts. But lots of people who don't do the research and don't get the discounts only take ONE WDW vacation. Is that really who Disney wants to cater to?

 

[DrTomorrow]

missypie,

::Honest curiosity ahead. No nastiness intended::

Why do you put most people in only one of two groups: AP/DVC/Discounters and rack-rate one-trip-in-a-lifetimers? The number of people on DIS and similar boards who sweat the discounts is (IMHO) a very small number compared to the annual attendance of WDW. And I believe that there a lot of people who do annual / biennial trips who purchase packages (via WDTC or through TAs).

There's a tendency to assume that "everybody thinks like me", particularly here on DIS. But keep in mind that DIS folks are at the extreme end of the Disney spectrum - similar to the Dead Heads that used to follow the Grateful Dead from show to show. As Exhibit A I submit the PS Calculator - you can make some reservations 2 years out - WooHoo!.

And note that I am one of those who thinks that a Disney vacation is worth the money - even rack rate. With life as crazy, busy - and uncertain - as it is for DW and I, a week of Disney non-reality is nearly priceless.

 

[dznyntnh]

Originally posted by DrTomorrow

I believe that there a lot of people who do annual / biennial trips who purchase packages (via WDTC or through TAs).

There's a tendency to assume that "everybody thinks like me", particularly here on DIS. But keep in mind that DIS folks are at the extreme end of the Disney spectrum - similar to the Dead Heads that used to follow the Grateful Dead from show to show.

And note that I am one of those who thinks that a Disney vacation is worth the money - even rack rate. With life as crazy, busy - and uncertain - as it is for DW and I, a week of Disney non-reality is nearly priceless.

Very well said. I agree 100%.

I limit my trips to every 18-24 months so that I can save up to do it 'right' and enjoy myself.

 

[missypie]

I think it's great that you are able and willing to take a very expensive vacation every other year. Between folks like you and the "once in a lifetime" folks, Disney must think that's enough to keep the resorts full.