Prices just hit my threshold :-(

[dlavender]

I think it's coming. They aren't there yet but they sure are trying.

They could do it with a flip of a switch with MDE. If you have a reservation at a Deluxe, swipe your band, unlimited FP. It would be crazy simple for them to implement, tomorrow if they wanted to. But that is not the only demographic they want, or every resort would be Deluxe, and this would have already been put in place. They need the full gamet of the economic spectrum. They are testing the balance of the lower end right now. I don't like the strategy.

 

[BSmithington]

So why are your high earners in line? Again, why are you making them wait? They could easily let them all go to the front. Why don't they do this?

You really aren't getting this. Let's say through the use of tracking my magicband they determine that I spend $150 every two hours. On an incredibly busy day I am stuck in line and can't spend. So to compensate for the lost revenue they add a premium to AP holders and soon to be regular admission tickets to make up the lost revenue.

Basically, if I'm going to let Jane come in today she is going to make up the difference I'm losing on Jack.

 

[3DisneyFanz]

I think it's coming. They aren't there yet but they sure are trying.

I agree. I think the next phase of MDE will include pay for play VIP tours without having to pay a tour guide salary. You pick what you want to experience, they give you a cost and ADRs and FP+ for your customized experience is there. This way the high rollers get their way and the budget minded crew fill the SB lines.

 

[JimmyV]

The increases just occurred, and are not on any 'financial statements' I have seen. I would not expect to see what they intend to do with the expected revenues until this year's 4th quarter earning statements come out at the very earliest- and more realistically after an entire year goes by so as not to generate expectations from stockholders. After a year, they can demonstrate with hard data (rather than expected revenues) the actual increase in revenues from the gate price increases- if there are any- and would then be able illustrate what those revenues are being funneled into. It seems there may be some that have inside information that others are not privy to- or these price increases would have been old news a long time ago had they been 'published' in whatever 'financial statements' you are referring to.

Here you go, for starters.....

There is a guy over on WDWMagic who reads Disney's financials and converts it to plain English for us regular folks. He just posted, and it was a look back at the last 5 years. In Parks & Resorts,

Costs over the last 5 years are up 37%, so above what you thought.

But operating income, over that same period is up 129% from 1.002 Billion to $2.293 Billion.

Disney is not your brother's small business, trying to cover costs and take home a sufficient salary.

He had another post about how Disney will amortize the $3.5 Billion they are investing between now and whenever the DHS expansion opens, and the quarterly impact is nowhere you might think when hearing a number like billions. But it was a couple months ago, and now I don't remember which thread it was, but basically showing how "little" it is for Disney even though to mere mortals it sounds boggling. He also likes to point out that in the last 9 years, Disney has spent $39.7 Billion on stock repurchases.

This price increase has NOTHING to do with covering costs for their new expansion.

 

[AquaDame]

If you're in a Haven suite and you're going to an exotic island (or even Europe for that matter) in my opinion that is a very luxurious vacation.

Even a Haven suite is not the same as sailing Cunard or a true luxury line (I feel like Disney is charging true luxury prices - on their ships as well FWIW).

While I agree it isn't luxury-luxury, it is a lot more delightful (NCL or others) on a lot of levels. IMO and experience, cruising offers a lot of ROI.

I agree, I just don't think using NCL to describe luxury is appropriate given that they are more of a budget line (in my defence he/she hadn't mentioned the Haven suite and I've no idea what it is - the suites aren't a good ROI for us, we'd rather cruise more often/longer).

 

[mickeyluv'r]

Not what I said at all. I'm break it down for you. They will continue to raise the price for a value until they hit a "wall." That wall could be $150 a night or may even reach $250 during a peak time. At a certain price point consumers will back off.

AoA was already around $240 (w/tax) two years ago during peak weeks, when no discount was offered. Looks like rack next Easter is $225 for a Mermaid room (plus 12.5% tax)

 

[dlavender]

You really aren't getting this. Let's say through the use of tracking my magicband they determine that I spend $150 every two hours. On an incredibly busy day I am stuck in line and can't spend. So to compensate for the lost revenue they add a premium to AP holders and soon to be regular admission tickets to make up the lost revenue.

Basically, if I'm going to let Jane come in today she is going to make up the difference I'm losing on Jack.

I am pointing out that they don't have to raise ticket prices to keep big spenders out of lines. They have the infrastructure already to keep big spenders out of lines, yet they choose not to. Interesting.

 

[AquaDame]

I agree. I think the next phase of MDE will include pay for play VIP tours without having to pay a tour guide salary. You pick what you want to experience, they give you a cost and ADRs and FP+ for your customized experience is there. This way the high rollers get their way and the budget minded crew fill the SB lines.

Sounds downright pleasant honestly... of course I don't want to see what the price tag would be.

 

[dlavender]

It's like the economics of a beer at a football game. They know that they can basically charge whatever they want, because they have a captive and willing audience. Same with Disney. They will keep pushing the envelope. However, I fear that they are going to lose a generation of mid America that they used to have as their captive audience. This mid America will one day be part of the future 10% that they so desire. But without that "magic" early, maybe they don't even care about Disney later in life. They wont want to pay the $5000 for a dessert party and studio view. Then Disney has a problem. Like the NFL has an attendance problem today, and slashing prices is a hard strategy to undertake.

 

[BSmithington]

I am pointing out that they don't have to raise ticket prices to keep big spenders out of lines. They have the infrastructure already to keep big spenders out of lines, yet they choose not to. Interesting.

That's a fair point. It's probably coming in the near future. Now they do have to figure out how to keep the family engaged. Hence working with the Four Seasons for people who want Mickey but also the familiarity of Luxury.

 

[dlavender]

That's a fair point. It's probably coming in the near future. Now they do have to figure out how to keep the family engaged. Hence working with the Four Seasons for people who want Mickey but also the familiarity of Luxury.

I don't believe ticket prices are to keep spenders out of lines. They are purely a push the envelope strategy, IMHO. I think we pretty much agree.

 

[BSmithington]

It's like the economics of a beer at a football game. They know that they can basically charge whatever they want, because they have a captive and willing audience. Same with Disney. They will keep pushing the envelope. However, I fear that they are going to lose a generation of mid America that they used to have as their captive audience. This mid America will one day be part of the future 10% that they so desire. But without that "magic" early, maybe they don't even care about Disney later in life. They wont want to pay the $5000 for a dessert party and studio view. Then Disney has a problem. Like the NFL has an attendance problem today, and slashing prices is a hard strategy to undertake.

That's also a great point. I have a young daughter who like most loves princesses. She also hates waiting in gigantic lines. So she could develop a negative perception of actually going to the park.

It's like your football analogy. I had season tickets for many years for the Dolphins. But between parking, traffic, drunk people, crappy food and them sucking it's just not worth it. I'm more comfortable at home. Now they just got me back with the new Club 72. They found a way to correct all the prior gripes except sucking.

 

[dlavender]

That's also a great point. I have a young daughter who like most loves princesses. She also hates waiting in gigantic lines. So she could develop a negative perception of actually going to the park.

It's like your football analogy. I had season tickets for many years for the Dolphins. But between parking, traffic, drunk people, crappy food and them sucking it's just not worth it. I'm more comfortable at home. Now they just got me back with the new Club 72. They found a way to correct all the prior gripes except sucking.

Miami Dolphins, Miami Dolphins, Miami Dolphins #1.
Miami has the Dolphins
The Greatest Football Team
We take the ball from goal to goal
Like no one's ever seen
We're in the air, we're on the ground
We're always in control
And when you say Miami
You're talking Super Bowl

We have some common ground!

 

[dlavender]

That's true, as well. All though, I don't know how they ever are realistically going to temper crowds during peak peak times. Even at $300/ticket on Christmas week, I wager that they will still almost hit capacity. Maybe I am wrong, though.

OFT again, but is it still insane trying to leave that parking lot? Worse layout, ever.

 

[mcd2745]

I am pointing out that they don't have to raise ticket prices to keep big spenders out of lines. They have the infrastructure already to keep big spenders out of lines, yet they choose not to. Interesting.

Well sure they can give those staying in Deluxe front-of-the-line access on their MagicBands so they can get back out there and spend, without raising ticket prices. But what would be the effect on those who don't have that access? You're going to be in lines a lot longer. The result? They've degraded your experience to where you have a very negative perception of it. Very possibly angering you more than the ticket increases would do. I'm sure they've looked at, surveyed, studied, etc. all of this.

 

[dlavender]

Well sure they can give those staying in Deluxe front-of-the-line access on their MagicBands so they can get back out there and spend, without raising ticket prices. But what would be the effect on those who don't have that access? You're going to be in lines a lot longer. The result? They've degraded your experience to where you have a very negative perception of it. Very possibly angering you more than the ticket increases would do. I'm sure they've looked at, surveyed, studied, etc. all of this.

That's a possibility. However, if they really just want the big spenders, and don't really care about the others, then that is what they would do. That's what I was pointing out, I think...

 

[PAcpl]

Even a Haven suite is not the same as sailing Cunard or a true luxury line (I feel like Disney is charging true luxury prices - on their ships as well FWIW).

I agree, I just don't think using NCL to describe luxury is appropriate given that they are more of a budget line (in my defence he/she hadn't mentioned the Haven suite and I've no idea what it is - the suites aren't a good ROI for us, we'd rather cruise more often/longer).

Regent Seven Seas Cruises is arguably the most luxurious cruise line in the world. That being said, I don't think it makes sailing the Queen Mary any less luxurious.

It's not about the value of a line, it's what you experience on it.

 

[Planogirl]

Just so you know Universal had no say so with harry potter in the park. J. K Rowling had complete control of the project.

And to compare Disney world with Universal it's apple's to orange's.

I like Universal and plan to spend a day there but I cant imagine spending more then one day.

Cameron is like this too. I bet that he is constantly involved and has his own specifications.

Speaking of Mish Mashes... Star Wars, Muppets, Pixar, Indiana Jones and so on might be considered that. Not to mention Arendelle among real countries.

 

[Boski]

I posted this in another thread on this subject and its kinda been said by some posters but figured I'd throw it in.

Basically Disney is steadily increasing pricing while cutting cost left and right. You see more and more of it every year. The food quality has gone down, the staff training is going down, the rides break down, lets not do towel animals, etc. Some are big things, some are little things. But it slowly starts to add up where the Disney experience from years ago is not the same as it is now. All the while the prices are going up and up. Disney is probably trying to find their tipping point and toe that line. To where they can cram the most amount of people paying the most amount of money for the least amount of cost. The problem with that is when you try to find that tipping point you might just fall over.

 

[momof2n2]

I posted this in another thread on this subject and its kinda been said by some posters but figured I'd throw it in.

Basically Disney is steadily increasing pricing while cutting cost left and right. You see more and more of it every year. The food quality has gone down, the staff training is going down, the rides break down, lets not do towel animals, etc. Some are big things, some are little things. But it slowly starts to add up where the Disney experience from years ago is not the same as it is now. All the while the prices are going up and up. Disney is probably trying to find their tipping point and toe that line. To where they can cram the most amount of people paying the most amount of money for the least amount of cost. The problem with that is when you try to find that tipping point you might just fall over.

Just like the airlines.
I'm old enough to remember flying the friendly skies - not just the cattle herding flying of today.

I'll be one of the ones who remembers olden days Disney.