Parking Increase

[MM32830]

It's obvious most everyone complaining about Disney's ticket prices haven't gone (snow) skiing!

Last year's average ticket price at a Maine ski area was $77.00/day and that's for 7 hours of skiing!

While most areas don't charge for parking, they do charge for extras like lockers. Don't forget the food. Food at ski areas is just as expensive as the parks and certainly not as good!

I guess expensive is all relative.




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Armand

 

[MM32830]

A few years ago I read a book about how Disney's business units operate and one unit that comes to mind is parking.

The parking fees pay for the operating expenses directly related to the parking lots. That includes cast member wages, surface maintenance, paving, striping, trams, security, etc. etc.

Like any business, I suspect the rise in parking fees is directly related to the increased cost of operating the parking lots.

The two other major theme parks in the area (Universal Studios and SeaWorld) were also both charging $12.00. Anybody want to bet that they will be at $14.00 soon?




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Armand

 

[DisNutSam]

I am one that has just about reached my tipping point, and heading over to Universal this summer. I can not understand a company that starts such a great promotion of give a day get a day, then turns around and keeps raising prices. I consider our family to be middle class, which is most of the US, and I don't see how a lot of people can justify the costs in this economy.

 

[wiggles02]

As we were leaving the Poly this past Saturday night, we turned back to take one last look and DH noticed that they were changing the prices on the signs.

 

[ADP]

I have to agree...With the $84 to get into the park and the $14 parking fee...You are looking at $98 for a single guest to enter a Disney World park. Now, I know most people don't do that, but I'm sure some will do it.

I've always said Disney is brilliant in getting guests to do certain things....Raise resort prices so more guests will buy DVC....Raise food prices so more people will buy the dining plan....Now, they are continuing to raise park admission and parking fees so guests will lean towards buying APs and staying on property. It's very manipulative in my opinion, but if guests still pass through the turnstyles, fill their restaurants, and fill their resorts prices will keep going up. The only positive I see out of all this if the parks are full Disney will continue to invest in them making our park experience better.

 

[darrengs]

I also dont agree with the idea that this wont eventually turn people away. There will be a tipping point where Disney is going to suffer a backlash with these increases.

I agree, I have appeared to hit that tipping point. Between Disney's constant service cutting and price increases along with the airlines squeezing I am now planning next years (non Disney) cruise vacation that will leave from a local port.

 

[Gretta]

WE, too, have reached the tipping point. We have been to Disney every year for the past 20 years, sometimes twice per year. Not sure if it started with the airlines and baggage or the higher resort fees or the sevice that wasn't quite what it used to be. But, we were in Disney this past February. We payed the most we had ever paid for air, resort, tickets and food. Upon returning home, we decided we had been outpriced. Last month I booked a cruise on Royal Caribbean for our family yearly vacation. We are looking forward to trying something new!

Gretta

 

[angelmav]

We just got back from our best vacation ever at WDW and I hit that point on many things that simply werent worth the cost. Disney wants you to come, stay and spend several day's/nights at there parks which is different than the six flags or skiing examples. They are reaching a point where you simply cant do that anymore. We stayed offsite this time, but when you add in the parking, food etc, then it becomes alot easier to plan a Florida (or elsewhere) vacation that is alot more reasonable and you feel that what your spending on has value. We had an excellent time, but some things began to feel like a rip off, and when you look at staying onsite and pricing the rooms and plans (with seasonal upcharges) it doesnt get any better. I would like to think that we have future WDW vacations left in us, but it gets harder and harder to pull it off or feel good about all of the things your cornered into spending money for. This is especially the case when considering spending any lengthy time there. I can stand getting fleeced for one day at a six flags, I wouldnt stay for a week or longer paying those prices and thats the point that Disney is getting to both in quality and in cost on certain things.

 

[schoen]

\
I also dont agree with the idea that this wont eventually turn people away. There will be a tipping point where Disney is going to suffer a backlash with these increases.

This is what they need to be careful about. Let's face it, WDW is under no obligation to keep prices at ANY level. If they want to charge 600$ a day for admission and 300$ for parking, that is their right as business owners.

They need to keep their guests happy though, and the people who spend the most money are their repeat guests. They won't continue to have repeat guests if they continue to price things beyond the rate of inflation. A 2 dollar increase doesn't seem substantial, but they are making a ton of money off it, and it is WAY beyond the rate of inflation. They certainly aren't paying their employees more... They do this with a lot of their product (like the strollers)

It is a little off putting, even as a guest who never has to pay for parking or rent strollers. I know they can charge whatever they want... but man-oh-man does this sort of stuff make me think hard about going elsewhere for vacation...

 

[lugnut33]

While I dont agree with this basic statement...I have to ask...

Once poor Disney starts making money again, do you think they will revert to the already ridiculous $12 parking fee or do you think they will continue to try and suck every dime out of their guests pockets.

I also dont agree with the idea that this wont eventually turn people away. There will be a tipping point where Disney is going to suffer a backlash with these increases.

If people aren't going to spend more in the parks then charge them more to get in. That way Disney gets the money whether they spend it in the parks or not!! Makes perfect sense to me, and it also makes me angry.

 

[MM32830]

While reading the messages in this thread, I realize that most likely the majority of posters are probably not business owners.

I own a small business. Bought it in 1992. Bought it out of bankruptcy. Why was it in bankruptcy? The previous owner hadn't raised his prices for over 5 years!

When I purchased the business, the first thing I did was raise all the prices. But I did it with the rest of the local market in mind. One of my employees told me that I will never get the prices I was raising them to. Well, 17 years later I'm still in business and doing very well, thank you.

If you study business economics you will gather a realization that with every price increase you will lose some of your customers but you still will be more profitable than before the price increase because of everyone else that continues to patronage your business and pay the new price.

I now raise my prices every year and I continue to be profitable. I am able to pay my employees a decent wage and I continue to be the leader in my market.

I think the point everyone is missing is that Disney is very good at analyzing pricing structures and the cause and effect of price increases. Are they good at everything they do? Of course not! But I do know they are the leader in their industry and they didn't get there by being stupid.




___________________
Armand

 

[DisneyKevin]

What happens when the percived value falls below the asking price?

Or when folks want to purchase you product but no longer can afford to do so?

I'm sure that if you look about....you'll see many empty buildings that used to house thriving businesses.

The game has changed.

Buy 4 get 3 free again during the winter months

Free dining extended into the holidays

Kids Sail Free extended in length

Kids Sail Free extended to 7 night sailins

50% off sales IN the parks.

These are things we havent seen in a very long time....if ever.

 

[MM32830]

What happens when the percived value falls below the asking price?

Your perception of value will be different than someone else's perception.

Yes, it is possible that eventually Disney could price themselves out of the market but that would only be true if the market didn't follow Disney's lead. No doubt you've noticed when Disney raises their price, Universal and SeaWorld follow suit. When the competition doesn't compete on price, then price is not a factor.

As a business consultant once told me: Companies don't go out of business because their prices are too high; they go out of business because their prices are too low. The thinking behind this is that the low price leader usually has to make several concessions in their operations that they are no longer a good value.

There will always be some who will choose price over quality but there will be far more that will choose quality over price.




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Armand

 

[jcb]

Yes, it is possible that eventually Disney could price themselves out of the market but that would only be true if the market didn't follow Disney's lead. Armand

This is where your point loses me. If Disney defines its market as Seaworld and Universal it is short-sighted. As the premier vacation spot in the world, WDW competes against everything else - not just other Orlando vacation spots. WDW is a big draw, but it has a lot of competitors for vacation dollars.

WDW's prices (especially when matched by Seaworld and Universal) have much greater influence on folks, sort of like me, who are happy to vacation elsewhere. It is getting harder and harder to justify going to WDW with anything close to the frequency I would go if prices were lower.

And even when I go to WDW, it is getting all but impossible to justify staying on site and eating (exclusively) WDW's food. Now, I'm tickled pink (or lime green) at the prospect of spending $2,633 (to save $1,337) for when I want to go to WDW (even though that does not include "free" food (http://wdwnews.com/viewpressrelease.aspx?pressreleaseid=113914&siteid=1 ). But honestly, why would I spend even the discounted amount when I can go, stay offsite and eat in quality restaurants for half of this cost.

It isn't about the price increases - it is about the value.

 

[sc9500]

I went to see Bruce Springsteen last Wed. (Im so Jersey) Tixxs $120 Parking $25
it lasted 3:15 hours...

 

[MM32830]

And even when I go to WDW, it is getting all but impossible to justify staying on site and eating (exclusively) WDW's food. Now, I'm tickled pink (or lime green) at the prospect of spending $2,633 (to save $1,337) for when I want to go to WDW (even though that does not include "free" food (http://wdwnews.com/viewpressrelease.aspx?pressreleaseid=113914&siteid=1 ). But honestly, why would I spend even the discounted amount when I can go, stay offsite and eat in quality restaurants for half of this cost.

It isn't about the price increases - it is about the value.

Like I previously said, there will always be some who will choose price over quality but there will be far more that will choose quality over price.

Is Disney catering to the more affluent? Perhaps. Is this the right thing to do? I don't know but it really doesn't matter what I know or think on this matter. It's all about the direction Disney wishes to take their operations.

That reminds me of my previous career in radio. We sold advertising to local businesses and in radio you have only so many minutes to sell per day. When we were completely sold out we would raise our rates (sometimes very substantially) to create inventory. The smaller businesses could no longer justify (afford?) us and we would now have available minutes to sell to those who could afford it.

Yep, we weren't sold out any more but we were making greater profits because of the higher rates. This is what happens in just about any profitable business.




____________________
Armand

 

[DisneyKevin]

Your perception of value will be different than someone else's perception.

My perception is almost irrelevant.

As I've explained...I live 20 minutes away, have an AP (so I dont pay to park) and my job description includes going to Walt Disney World.

As a business consultant once told me: Companies don't go out of business because their prices are too high; they go out of business because their prices are too low.

While this is a clever play on words, most often companies go out of business becase, for whatever reason, consumers stop buying their product

Hummer did not go out of business because their prices were too low.

The thinking behind this is that the low price leader usually has to make several concessions in their operations that they are no longer a good value.

What happens when the high price leader starts making the same concessions?

There will always be some who will choose price over quality but there will be far more that will choose quality over price.

As you can imagine....between these boards and the travel business, I'm in a position to hear many people's opinion on both price and value.

There will be many people who wont be able to choose price or quality. They simply can not pay what is being asked.

In addition, and even scarier in my opinion is that there seems to be a growing number of folks that are starting to question the quality and the price.

Just drive up 192 or over 535 or up I Drive. There are a large number of empty storefront, restaurants and hotels. These places didnt go out of business because their prices werent high enough. They went out of business because people stopped coming,




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Armand[/QUOTE]

 

[MM32830]

Kevin,

I definintely understand what you are saying. I really like to get the best value for my dollar. And value is not always the cheapest price.

I, too, have an AP, I have APs for Universal and SeaWorld too. The prices I paid for the APs are:

SeaWorld - $150.00 for 2 years ($75.00 per year). Includes parking!
Universal - $109.00 per year
Disney - $440.00 per year

Disney's AP is BY FAR the most expensive AP but I continue to renew it (it's up for renewal in December and I will renew it).

Will I ever find my "tipping point". Most likely. I'm just not sure when.




___________________
Armand

 

[DisneyKevin]

Kevin,

I definintely understand what you are saying. I really like to get the best value for my dollar. And value is not always the cheapest price.

I, too, have an AP, I have APs for Universal and SeaWorld too. The prices I paid for the APs are:

SeaWorld - $150.00 for 2 years ($75.00 per year). Includes parking!
Universal - $109.00 per year
Disney - $440.00 per year

Disney's AP is BY FAR the most expensive AP but I continue to renew it (it's up for renewal in December and I will renew it).

Will I ever find my "tipping point". Most likely. I'm just not sure when.




___________________
Armand

Armand

If you have a residence...or even an address in FL, you should be paying the Resident renewal rate of $369.00 for your Disney AP.

Also...renew by December and get 15 months for the price of 12. (Another indicator in my opinion and proof of the value of the Annial Passholder's dollars)

If we follow the logic of your radio advertising analogy....

Disney makes more dollars by having "day" guests in the park at $79 per day than having annual passholders in the park at $1.21 per day ($440 divided by 365 days).

If Disney raised the annual pass to $1600, would you still see the value?

This would fit the business model of raising prices so that those that do agree to the new price are offsetting the loss of guests that think this is out of line.

It will also cut down on your wait time for Peter Pan and you wont have to worry about getting a seat at Pecos Bill's

 

[MM32830]

Armand

If you have a residence...or even an address in FL, you should be paying the Resident renewal rate of $369.00 for your Disney AP.

Kevin,

I am a Florida resident. I live about 30 minutes from the parks.

I have a Premium AP (includes water parks and DisneyQuest). The $369.00 is for the standard AP.

If we follow the logic of your radio advertising analogy....

Disney makes more dollars by having "day" guests in the park at $79 per day than having annual passholders in the park at $1.21 per day ($440 divided by 365 days).

If Disney raised the annual pass to $1600, would you still see the value?

Nope, THAT would definitely be my tipping point!

This would fit the business model of raising prices so that those that do agree to the new price are offsetting the loss of guests that think this is out of line.

It will also cut down on your wait time for Peter Pan and you wont have to worry about getting a seat at Pecos Bill's

Yep, that sure would!





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Armand