My latest AP rate theory

[msdis]

Not judging or anything, but does anyone think that by booking at rack rates and hoping for the discount is sending Disney the wrong message? We need a couple nights and are booked off property waiting for discounts. I want Disney to get the right message-no discounts, no reservation. Does everyone plan to stay at rack rates if the discounts don't come out?

 

[Sammie]

Originally posted by msdis
Not judging or anything, but does anyone think that by booking at rack rates and hoping for the discount is sending Disney the wrong message? We need a couple nights and are booked off property waiting for discounts. I want Disney to get the right message-no discounts, no reservation. Does everyone plan to stay at rack rates if the discounts don't come out?

if you book a room you know you will not keep unless you get a specific discount, then yes you are sending the wrong message to Disney.

Disney only discounts rooms if they have to. They would much prefer to book them at regular rack rates. If they see that occupancy is up at certain resorts, then discounts are few if any. There is no way for them to tell that these bookings are people waiting on a discount.

Also if you book something you can not afford unless you get a discount, and no discount is offered, you could find yourself off property if all rooms in your price category are booked.

I only book what I can afford without a discount. If a discount becomes available I change to the room I want discounted. If a current discount is available and the price is in my range I book it. If something better comes out, I see if the new discount can be applied to my current reservation.

Due to the economy and the war affect on bookings, Disney may opt to close buildings and floors rather than have more rooms occupied at lower rates. There comes a point where too many rooms at discounted rates costs more to operate than the profit made by the discounted rate.

 

[RobMax]

Originally posted by Sammie
if you book a room you know you will not keep unless you get a specific discount, then yes you are sending the wrong message to Disney. I only book what I can afford without a discount. If a discount becomes available I change to the room I want discounted. If a current discount is available and the price is in my range I book it. If something better comes out, I see if the new discount can be applied to my current reservation.

This is great advice!

Originally posted by Sammie Due to the economy and the war affect on bookings, Disney may opt to close buildings and floors rather than have more rooms occupied at lower rates. There comes a point where too many rooms at discounted rates costs more to operate than the profit made by the discounted rate.

Yea, that's true, but there is also a breakeven usage/unit point driven by fixed costs that has already forced Disney to offer many discout rates to the public (more than normal). I have to assume that WDW is signaling that they have some concern about achieving "on site" BEU. This is also backed up by the recent reduction in forecasted earnings that is in part based on the reduced attendance from last year. This is a cascading effect caused by a forcast that includes history from last year and reduced projections. It may not be tomorrow, but I do believe WDW will focus promotional strategy on their loyal customers (as Sammie mentions earlier in the thread).

AP especially a good segment to target because these people all ready have the conviction (desire + means) to return and are much easier/cheaper to retain/recruit than new or less loyal members (as much 1/8th the cost of recruiting a new customer).

One things for sure. Whatever they decide, it will be interesting. WDW need to do something to get the company back on the growth curve in its parks division. I for one can't wait to see what these experts in upper mgt decide - expect it to be innovative!

 

[DisneyFreaks]

I think you're wise going ahead and buying your passes minus the one. I think that's what I'm going to do too. Hopefully if what I have read in this thread is correct the AP's should appear very soon. I don't want to miss out on a good discount. If they aren't much better than the currant codes then at least I know we did as well as we could. From posts I have read about paramount travel the passes come within a couple days so we would still have time to get the last one before we leave for our trip should we need to. I'm glad I could help out with the ticket information. Good luck and have a wonderful vacation!