News Round Up

[mcd2745]

another article on the price hike...and the backlash

http://fortune.com/2015/10/07/disneyland-price-hikes/

 

[skier_pete]

Disneyland is discouraging passholders because there's too many of them. It's as simple as that. It's the same things they did when Carsland opened 4 years ago- a HUGE price hike, yet people keep coming. They were trying to reduce APs by 20 %. Customers aren't happy because the crowds are so huge. It failed, there are more than ever.

They're trying to find that perfect price point where they could drop membership by 20-30%.

Disney World is a tougher prospect, but a similar situation. I think there they don't necessarily want to get rid of AP holders, but what they would like is to get the locals to avoid the parks during peak times.

 

[rteetz]

They're trying to find that perfect price point where they could drop membership by 20-30%.

According to Jim Hill that number is closer to 50%

 

[lockedoutlogic]

Well - they have cut back on that - but I would bet the 50th will be BIG deal in WDW. And of all the parks - they won't want MK under piles of construction walls.

I can never figure out what this sentiment is based on...so I'll ask again:

What is this sentiment based on?

 

[lockedoutlogic]

I'll say it again...Eisner left in 2004...the last "celebration" to have any teeth was the year of a million dreams...which was a giveaway program That I bet they LOATHED in Burbank.

Here's what I'm thinking: that concept...or at least the groundwork on strategic planning was laid either as Eisner packed up or in the transition...which was a few years earlier.

Every since? What? 6-7 years now?

Crickets.

The fact is we are in the midst of a 10 year celebration...the theme is "be rich and spend big...magic, dreams, wishes"...and it's been extended indefinitely based on the global and national economy.

Evidence is NOT on the side of a "big 5-0"

Lip service and sweatshop tshirts are.

 

[Eoghann]

I definitely could see them sprucing up Tomorrowland. I don't know this for sure, but any major facility like WDW and each of the parks has to have a "to maintain" budget separate from their "new project" budget. With the hub and Pirates refurbs wrapping up, something will come on the plate for next year. How much longer until they give up on Stich. I've only ever been in there once, do they actually get people in there?

I think the problem with refurbs in the Magic Kingdom has been as much about not wanting to shut down rides and lose the capacity as it has been about budget. The previous park manager was reputedly very reluctant to close anything which is why Splash and Pirates got into such a bad state. That's probably true for Space Mountain too.

There's frequently a queue of people going into Stitch which just goes to show that if you put anything in the Magic Kingdom, people will stand in line for it!

 

[rteetz]

There's frequently a queue of people going into Stitch which just goes to show that if you put anything in the Magic Kingdom, people will stand in line for it!

People that don't know what it is before they do it.

 

[lockedoutlogic]

According to Jim Hill that number is closer to 50%

That's a poo move...that's me being "restrained"

 

[skier_pete]

According to Jim Hill that number is closer to 50%

Don't buy that. You don't raise prices by 20% hoping to get rid of 50% of the customers. You do it hoping to get rid of 15%.

Of course, I wouldn't trust a thing Jim Hill says.

 

[lockedoutlogic]

Don't buy that. You don't raise prices by 20% hoping to get rid of 50% of the customers. You do it hoping to get rid of 15%.

Of course, I wouldn't trust a thing Jim Hill says.

Agree and disagree...

I agree that everything Jim hill says is a waste of oxygen or keystrokes...

But disagree on the pricing designs. Disney is basically a high end consumer product. Few weeks/days are more expensive in person life than those at Disney parks...that includes everyone up to about a 7 figure status...

But as with any consumer product...there is a critical mass point were they fall out of favor once they cross it. There have been countless examples overtime. Once you pass...the bottom drops out.

Disney is very good at knowing how their prey spends and how to manipulate...they are world class there...

I think they could very effectively...to a small margin of error...manipulate the price to get to the filtering out point.
Why do they pay minimum Wage to poll people 24/7/365?

Because their stat people are amazing. They can do things that would blow anyone's mind.

Those Disneyland hikes are impressive. A family of four is looking at a huge outlay increase - even by California standards. The Florida ones are mild in comparison...but straight price gouging nonetheless.

 

[Spacedog1975]

The trouble with raising the price to cut down on consumption (when you're talking about an "unlimited" product) is that a higher price compels consumers who do bite to use it more frequently to get their money's worth. You may lose units sold, but gain an equivalent number of gate entries to balance the difference.

 

[lockedoutlogic]

The trouble with raising the price to cut down on consumption (when you're talking about an "unlimited" product) is that a higher price compels consumers who do bite to use it more frequently to get their money's worth. You may lose units sold, but gain an equivalent number of gate entries to balance the difference.

This is a very true point...

I can see the pools at port Orleans and Caribbean being ghost towns in about 5 years

 

[Eoghann]

The trouble with raising the price to cut down on consumption (when you're talking about an "unlimited" product) is that a higher price compels consumers who do bite to use it more frequently to get their money's worth. You may lose units sold, but gain an equivalent number of gate entries to balance the difference.

Which is why I am unconvinced this really has much of anything to do with capacity. There are so many other levers that can be pulled to help deal with the capacity problem.

Mostly this is about increasing the profit margin.

 

[Spacedog1975]

The capacity will only be addressed with more options for people to spread to. Making AK and HS attractive for visitors rather than piling half the crowd into MK. Avatar will improve that metric, and Pixar & Star Wars will do so as well.

 

[luisov]

More on Disneys next princess Moana

http://www.people.com/article/disney-princess-moana-aulii-cravalho?xid=socialflow_facebook_peoplemag

Glad to see they didn't pick a celebrity. I really enjoy Mandy Moore, Idina Menzel and Kristen Bell, but there's something about Moana that really required a fresh and more natural voice.

 

[rteetz]

Don't buy that. You don't raise prices by 20% hoping to get rid of 50% of the customers. You do it hoping to get rid of 15%.

Of course, I wouldn't trust a thing Jim Hill says.

He wasn't saying that with this price increase they want to cut it by 50% but eventually they want to get down to that.

 

[luisov]

New very cool Toy Story window on Main Street USA at Disneyland:

 

[rteetz]

New very cool Toy Story window on Main Street USA at Disneyland:

All of the Windows they have done have been great.

 

[wareagle57]

New very cool Toy Story window on Main Street USA at Disneyland:

This is amazing. It almost looks like it it's a video screen. They are real props right?

 

[BelleBriarRose]

I really don't think basic supply and demand economic principles work at Disney Parks, because the emotional connection people have there is too strong. They'll pay an arm and a leg to keep the magic in their lives, so increasing prices will only work to a certain degree. I think what they really need is to expand their parks so there's more room for all the disnerds who come to the parks each year and, unfortunately, seasonal pricing would probably also help.