Rapid Rise in Resort Rates?

[norasusan]

We live in Orlando and are annual passholders. For the past five years we've book a three night stay at one of the deluxe resorts over July 4th and New Year's Eve holidays. Neither of us wants to fight traffic or worry about drunk drivers traveling to another destination.

Over July 4, 2013 we stayed at Wilderness Lodge at a discounted passholder rate. We noticed that the hotel seemed empty, so we asked a mousekeeper if they were busy. She replied that she was surprised at how slow they were.

We want to book over this New Year's Eve, but the resort prices are ridiculous. For example, to stay at the BC or YC is $619 per night. Wilderness Lodge is $535 per night. The Poly is over $850.

My first question is why has Disney jacked up the cost? There is still availability at every resort.

Second, why would Disney prefer low occupancy instead of pricing the rooms reasonably and selling out? Not only are they losing the revenue from rooms, they're also losing food, merchandise, and entertainment revenue.

We simply refuse to pay what they're asking this year, so we will most likely stay home.

Could someone more knowledgeable help me understand this business decision?

Thanks!

 

[TJA]

I wish I knew....people will say that resorts are filled enough with people paying higher prices so why lower them. However, when we go to Disney at peak time (Easter) there is always still availability in our resorts. In fact, we were upgraded at 2 resorts last Easter due to low occupancy. However, parks were busy, well, MK was super busy and the other parks were so-so. So I don't know if that means people are staying off-site and going to mainly MK....In any event, Disney knows what it's doing I guess as much money is made. But I see your point and I do agree, 100%.

 

[Sue M]

I agree. And we go in value season and I feel rates have gone ridiculously high. We wanted to stay at WL this January but rates even with discount were crazy. Last time we stayed at WL was 2 years ago. We got a decent AP rate. Prob. The last 40% that was offered for AP!!! Woods view for under $200.

I was so disappointed in skyrocketing rates, I really love WL in winter time. But we decided to book POFQ. NOT paying those rates for WL

If I can't stay deluxe anymore, good thing I'm happy with the POR resorts! And more $ in my pocket!

 

[Ofinn]

I wish I knew....people will say that resorts are filled enough with people paying higher prices so why lower them. However, when we go to Disney at peak time (Easter) there is always still availability in our resorts. In fact, we were upgraded at 2 resorts last Easter due to low occupancy. However, parks were busy, well, MK was super busy and the other parks were so-so. So I don't know if that means people are staying off-site and going to mainly MK....In any event, Disney knows what it's doing I guess as much money is made. But I see your point and I do agree, 100%.

I think the majority of people that visit WDW stay offsite. Have you ever driven around Orlando and seen the number of hotels there are?

I do agree rates are getting ridiculous. Even with a good 35% discount the rates are so much higher than three years ago. I don't like the values or mods so I'm afraid in a few years I will be priced out. Next year we are doing some cruises, and Universal. I got a Club level room in March at Royal Pacific resort for 268.00 a night, and this is peak season. I think Universal has kept their resort rates in line with what people are willing to pay for a deluxe resort. We'll see if that changes when the new Harry Potter section opens up.

 

[Eastern]

I remember paying $300 per night for Contemporary Resort Tower and thinking how expensive it was (and that was rack rate at the time, before I knew about discounts)

 

[jake20]

yea,
and its not just the resorts.. the ticket prices are even worse.. Used to pay $65 for a one day ticket just a few years ago.. now its $95

Used to get the Wilderness Cabins in November for like $170/night with the old 40% off pin code.. Now the cheapest I could get them for is $257 a night.

A few years ago I was able to get 3 - weekday annual passes for $537.. Now it costs almost $700..

There isnt even a FL resident discount for single day passes .. thats rediculous

 

[Eddy]

I rented points and am going to stay at a value studio at AKL for 3 nights for $300. I don't understand why anyone would pay that much Disney is charging I would just stay at a value resort than pay that much, it would make more sence to try and set a price and fill resort

 

[IWISHFORDISNEY]

I thought it was just me feeling this way. I have priced multiple small trips over the years we usually go for spring break, star wars weekends for a long weekend and then in October. I got a bounce back for the Poly or we would not have been there. The discounted rate was over $400 and that is just crazy rack rate was $900 or better for club level garden view. I will not pay that. I really dont care for the mods or values so we may have to find some new places to visit. I dont get it either. Why not fill the hotel then leave rooms empty due to pricing. The food people will buy would make them a fortune.

 

[sandyplayer]

I am sure the Disney financial people work out a best case scenario for filling the resorts and making the most money. The fact is, people are willing to pay. As many people say they wouldn't pay that much, there are people like me who will.

We own our own business. We just can't take the time off from work to visit Disney more than once every few years. Our kids play tons of sports and are competitive and do not want to miss. We don't take our kids out of school. So we are limited. We visited Disney four years ago. We are going next year. I don't know any person who visits with the frequency that the people on these boards visit. Scratch that, I know one family. That's it. Most people I know are financially comfortable, yet would not visit Disney more than once every four or five years.

Last time we stayed at Poly and booked for 750 a night. Yes. 750. Ridiculous. We didn't care. It was our once in a lifetime trip to Disney with kids who were at the "Magical Disney" stage. We wanted to fall asleep watching the castle change colors. We are booked club level at BWI next summer.

So people pay these rates because we don't go once a year (or more, I am always amazed at the people who have been 50 or more times!) This will be our last trip while the kids are little. So we do it differently. But that's the nice thing about Disney, it has the less expensive places for those who can indulge often, and the splurge places for those who need to make it special every five years.