So just why is Disney raising ticket prices so early

But, merchandise and dining has become generic..quality has also suffered. Disney is not the unique theme park of yesteryear, and it's sliding into the amusement park category.. We have vacationed at Disney for over 30 years. Changes have come hard and fast this past decade, especially in the last few years. IMO

I must say I agree with you on alot of these statements.I really think since the change in upper management awhile back the "dark years" have started.You know everyone dwells on the profit thing and it is important.However when you make major layoffs in recent years and jack prices faster and faster how healthy is your park.Yeah they made a profit,but with a lower attendance and less staff!I think the price increases accounted for the profit.Anyway my point is this is not a healthy or sustainable means of doing business.What will happen if they keep losing guests ?More and more increases and more staff layoffs?
 
Ok Ok, we get it disney has to make a profit.There is no one here that doesn't know that.However the main discussion I think is going on here is how they have been doing it and how if may affect disney in the future. If they keep up the current increases compared to the rest of the world it will without a doubt become an exclusive club that will price out many many people.
Why is it acceptable for virtually every other company in the world except Disney and the airlines to raise prices????
Sure, people complain when prices go up - but expenses go up. Publicly traded companies have to answer to stockholders. And really, ultimately, a Disney trip is a luxury, not a necessity. It's not a rite of passage. If you (any 'you') want and can afford to go, great. If you don't or can't, aspire to something else. I worked with a man whose ten year plan was to take his family to Walt Disney World. At the end of the ten years they took the money specifically saved for that trip and went on that trip.


rt2dz said:
HGTV pays for it. HGTV is owned by Disney.
Scripps Networks is going to be VERY interested to learn about that change in ownership! :rotfl2:
I stand corrected. Just a marketing/joint venture contract. But, relatively the concept is still the same. Disney is making money of HGTV (and vice versa).
Ah, not according to any marketing or business course I've ever taken. A joint venture is the same concept as one company owning another? Really? :confused3

WDSearcher said:
Even when park tickets were $17, my family had to save for four years to afford a trip.
That's nothing. When tickets were $17, or even $4.85, my family couldn't even afford to save up for the trip. Airfare for eight people was stratospheric, and if we couldn't manage five hours in the car to see the grandparents without fighting, there's no way my parents were spending two whole days listening to, "she's looking at me!"; "he took my radio!"; "stop pulling my hair!"; "don't sit on me!"; "Mo-o-o-o-om!"; "he's touching me!"; and then my Dad's, "JC almighty G.D. it you kids, if you don't stop fighting right now I swear I'm going to turn this car around and we're never taking you anywhere again!" (as he was turning into my grandparents' street four states away).
 
Why is it acceptable for virtually every other company in the world except Disney and the airlines to raise prices????

You forgot oil companies, banks, health care companies and just about every other industry villianized by politicians and the press.

Perhaps we should just all become socialists? I'm sure Disney would succeed quite under that philosophy.
 
flicx said:
However when you make major layoffs in recent years
To the best of my recollection, the downsizing was executives, upper management, early retirement, administrative positions left unfilled... nothing onstage.

and jack prices faster and faster
Do you mean because the prices went up after 'only' 45 weeks instead of the only recently common 52 weeks? Because at least with the one day ticket - the apparent focus of everyone's attention - WDW is staying with the typical dollar increase - which means the percentage increase has actually dropped.
 

You forgot oil companies, banks, health care companies and just about every other industry villianized by politicians and the press.

Perhaps we should just all become socialists? I'm sure Disney would succeed quite under that philosophy.
I don't pay attention to them. I only listen to plain old real people like me :teeth:
 
But, merchandise and dining have become generic..quality has also suffered. Disney is not the unique theme park of yesteryear, and it's sliding into the amusement park category.. We have vacationed at Disney for over 30 years. Changes have come hard and fast this past decade, especially in the last few years. IMO

Who moved your cheese?

I still believe Disney is quite unique compared to any other theme park I've visited. We've become theme park snobs and can't even stand to go to our local so-called theme parks. I want to know more about these other theme parks that you mentioned that are as good to or better than Disney. Even Universal was boring when we visited pre-HP. We didn't go to HP this year and really had no desire when we had such a wonderful vacaction at WDW.

If merchandise is so generic, then explain why nearly every major collectibles maker wants a Disney line for the parks. (i.e. Precious Moments, Jim Shore, Svorowski, etc. etc.) Not to mention, major watch manufacturers such as Timex, Skagen, Citizens, etc. People buy and sell Disney merchandise on ebay, especially collectors including pin and vinylmation collectors. On our trip earlier this month, I purchased a high quality fleece jacket that I enjoy as well as a workout shirt. The ones I purchased were unique IMO as I couldn't find those anywhere else but WDW - not even the Disney store or other companies that carry Disney merchandise.

Dining is something that I may have to agree with you partially with a few notable exceptions such as V&A, California Grill, etc. But my expectation is that most theme park food is for the masses. We enjoyed all but one of our meals on our 10-night trip earlier this month. Although it was nothing truly unique, it was still good to very good.

Although things change, I've been hearing how Disney has been deteriorating for years. I heard that before my first trip in 98. We had a better vacation earlier this month than we did on our first visit in 98. It was more relaxed and filled with just as much 'magic' as ever before. Perhaps it's because we only do a major visit every other year, but we haven't noticed the declines that so many opine about.

To illustrate on a micro scale. We had School Bread from Norway (a unique food BTW). My DW and I commented that it appears to have gotten smaller with less filling in it (although the price is unchanged at $1.99). My parents and son thought it was their favorite treat of the trip. They had never had it before and loved it.
 
I must say I agree with you on alot of these statements.I really think since the change in upper management awhile back the "dark years" have started.You know everyone dwells on the profit thing and it is important.However when you make major layoffs in recent years and jack prices faster and faster how healthy is your park.Yeah they made a profit,but with a lower attendance and less staff!I think the price increases accounted for the profit.Anyway my point is this is not a healthy or sustainable means of doing business.What will happen if they keep losing guests ?More and more increases and more staff layoffs?

But wouldn't lower attendance require less staff?

When looking at Disney's financials, the theme park segment includes resorts, dining and even the cruise ships. Disney continues to expand internationally (Hong Kong, Disney Dream and coming soon - another Asian Disney park and the Disney Fantasy).

And at WDW itself, many if not most guests paid less overall the past few years with the free dining and deep resort discounts. As Disney works to wean guests off these steep discounts, there will be some pain and grumbling by guests who have become accustomed to these discounts. I believe there will continue to be discounts, much like those available pre-free dining. The discounts will probably be smaller and more targeted.

Your posts seem to be "glass half empty" posts. What you see as the "dark side", others see as surviving during a very difficult recession. Even with a recession, Disney continued to add new things at the parks or improve upon existing items to build for the future. Granted, some started pre-recession, but in the past few years, we've seen the addition of Soarin, MS, TSMM, EE, ST2 and the upcoming FL expansion. I thought the MMY show on the castle was truly amazing and innovative. They built two new DVC resorts (VAK-Kidani and BLT), not to mention Aulani in Hawaii. They renovated POFQ and will be doing it at POR and the new mostly family suite Animation Resort will open next year.

Is Disney perfect? No. But it's not the Imperial Empire either.
 
I'm the one bringing it up - and notice I'm only talking about the parks. I do believe that Disney very much does price the parks, in part, to keep the crowds somewhat down - so they can do other things on property.

Think of it this way...let's say the price to go into a park was built into your on-site hotel room night's stay (forgetting about the feasibility of this...just for argument's sake...) - if that were the case, then why would anyone ever go to DTD? or to any other options that bring in some cash for Disney but are not in the parks? I do believe that Disney wants you on property but does not want you in the park every day of every trip - and this is accomplished through pricing.

They DO, however, want the most people possible on their massive property, spending money.

I can't prove it, and maybe it is a joke. But I think it is at least possible.

Well they absolutely want people to go to other places in WDW and spend money elsewhere but they're not trying to price people out of being in the parks. People will go to DTD or to the water parks regardless of crowd levels. Most people tend to show up at the park by 11:30-12:00 and run around there until they get annoyed with the crowds (at around 5:00-6:00) then go do something else (like eat dinner or play in the pool at their hotel). Then the next wave of people comes back after dinner for fireworks or whatever show that park has. This happens pretty much every day, 365 days of the year.

People will do other things (than the parks) regardless of crowd levels. There will be some people who just decide not to go to WDW because of the crowds but, obviously, plenty of people still decide to go.

Again, Disney were trying to do this, you wouldn't have the usual times of the year where they have to close down MK due to crowd levels. They'd price it high enough so less people would come. That isn't happening.

If people aren't going to WDW for the parks (for the most part), they aren't going to WDW and they don't capture any other revenue from those customers.
 
A $300 annual pass would probably draw a lot more visitors and make it extremely popular. Right now, the gate price for a 3-day park hopper is more than $300. Sounds like that great deal on an annual pass wouldn't apply to most WDW visitors or this whole conversation would be moot.
I think the APs are a tremendous value when you consider what you get for the money...especially when you live here. ;)

Now I wish Disney would come up with a two park AP (you get to choose the parks) and include parking. That would be fantastic. I never go to AK or DHS so I spend my time at Epcot and MK. I think those would be in line with Universal's two park Preferred AP which is $219.99 for FL residents. Universal did not raise AP or Florida resident rates with this latest ticket increase.
 
True enough.


Well, you're sort of right on this. ;)

Disney cares about how much money they're making, but they understand that the amount someone spends is directly related to that person's satisfaction with their visit. If it was just about dollars, Disney could (and would) do a lot less and still be several notches above the competition. They understand that with higher satisfaction comes higher spending. And they are always looking for that point on the graph that represents the exact right amount of spending in to get the best return out.

:earsboy:

:::sigh:::

Again, if every person who goes to WDW were to complain to Disney about how their trip sucked but still kept coming back and spending more money, Disney would be concerned about that but would be perfectly happy. Obviously, they must keep customers happy enough to keep returning. However--and I'll say it again--Disney cares WAY more about profit than they do about whether you or I or anyone else is actually satisfied with their time there. They do not care any more (or less) than any other company who operates for profit.

It is not a knock on Disney, it is what it is. They have built this reputation for caring so much--and they've done a GREAT job of this (although not doing as good a job the last few years as they used to). They offer a lot of little things to make people feel special (they've also taken a lot of these things away while raising prices). That is part of the product they are selling.

As someone once said (or something like this), you can buy a Honda or Hyndai or Chevy or other perfectly good car or you could buy a BMW or a Mercedes or a Bentley or some other luxury car. They each will do the same thing--get you from point A to point B. They're each nice (in their own right). However, why is someone going to spend X times more for a BMW rather than buy a Honda? It's the perception that BMW is offering something more than Honda is--and they do offer certain things which Honda doesn't. But, as is the case with Disney, BMW is trying to make a profit and will do everything in their power to make more profit. They will try to not hurt the perception they're giving you more for your money. This is the same thing Disney is doing. Maximizing their profits while trying to make it seem like they're giving you much more for your money.

Are they each giving you more for your money? Well, that's certainly subjective. However, it certainly seems as if enough people (in both cases) feel they are and that's what matters. If everyone stopped buying BMWs because of the price, they'd have to do something to bring customers back. BMW hasn't reached that price level and (apparently) neither has Disney. Will either of them ever reach it? I have no idea. But, again, it doesn't mean I (or anyone else) has to like the price increases or try and paint a pretty picture on them.

I, like many others feel Disney is getting closer to that point where we don't feel we're getting enough for what they're charging us. Not quite there yet (for me anyway) but getting closer.
 
Why is it acceptable for virtually every other company in the world except Disney and the airlines to raise prices????

And everyone is just as unhappy about those price increases. So why can't people complain about Disney raising prices as well? I don't think anyone thought/thinks it was/is acceptable gas is still at $3.50 a gallon (or more in many areas).
 
To the best of my recollection, the downsizing was executives, upper management, early retirement, administrative positions left unfilled... nothing onstage.

Most definitely lost some front line people. And their customer service has suffered since then. I've experienced it myself.
 
I think the APs are a tremendous value when you consider what you get for the money...especially when you live here. ;)

Now I wish Disney would come up with a two park AP (you get to choose the parks) and include parking. That would be fantastic. I never go to AK or DHS so I spend my time at Epcot and MK. I think those would be in line with Universal's two park Preferred AP which is $219.99 for FL residents. Universal did not raise AP or Florida resident rates with this latest ticket increase.

I would so completely get on board with this!!!! We have dropped our Disney seasonal passes and gotten Universal passes, but we'd reverse that situation if Disney did this!!!! We'd choose EPCOT and either MK or DHS.
 
Between the gouging of holiday sur-charges during the busy times of year for restaurants, the rise of ticket prices, restaurants, parking, strollers by some double digits they will soon OUT PRICE THEMSELVES, in my opinion.
First it isn't "gouging" -- that refers to opportunistic price hikes well above normal on essential goods and/or services. As much as we love WDW, going there is not essential.

Second, this argument that they're going to price themselves out of the market "soon" is one I've heard every single year since 1997, when I started going frequently. Have you noticed a significant drop in crowd levels?

Scott
 
Well they absolutely want people to go to other places in WDW and spend money elsewhere but they're not trying to price people out of being in the parks. People will go to DTD or to the water parks regardless of crowd levels. Most people tend to show up at the park by 11:30-12:00 and run around there until they get annoyed with the crowds (at around 5:00-6:00) then go do something else (like eat dinner or play in the pool at their hotel). Then the next wave of people comes back after dinner for fireworks or whatever show that park has. This happens pretty much every day, 365 days of the year.

People will do other things (than the parks) regardless of crowd levels. There will be some people who just decide not to go to WDW because of the crowds but, obviously, plenty of people still decide to go.

Again, Disney were trying to do this, you wouldn't have the usual times of the year where they have to close down MK due to crowd levels. They'd price it high enough so less people would come. That isn't happening.

If people aren't going to WDW for the parks (for the most part), they aren't going to WDW and they don't capture any other revenue from those customers.

OK, I'll concede the point.

While on the one hand the fact that Disney does shut the doors at a certain point is (to me) evidence that the recognize there's an upper limit to how crowded a park can be before customer satisfaction wanes....

On the other hand, the ticket prices VERY MUCH encourage visitors to come back to the parks for a 5th or 6th day (and beyond) on a given trip. Yes, there are enticements like DTD outside the parks - but I suspect that all else being equal, in the park is the best place from a revenue perspective.
 
....
Are they each giving you more for your money? Well, that's certainly subjective. However, it certainly seems as if enough people (in both cases) feel they are and that's what matters. If everyone stopped buying BMWs because of the price, they'd have to do something to bring customers back. BMW hasn't reached that price level and (apparently) neither has Disney. Will either of them ever reach it? I have no idea. But, again, it doesn't mean I (or anyone else) has to like the price increases or try and paint a pretty picture on them.

I, like many others feel Disney is getting closer to that point where we don't feel we're getting enough for what they're charging us. Not quite there yet (for me anyway) but getting closer.

Agreed. Disney does take customer surveys - and cares about customer satisfaction and all that - but only as a predictor / guage of future profit. So I think two things here:
1. Rick, you are right that if a customer survey shows displeasure but the money keeps rolling in....so what? There's no need to fix what ain't broke, and broke is ultimately defined in terms of profit.
2. Searcher, I think you are right in that Disney has a very attuned sense of precisely how customer satisfaction impacts profitability. Any management's job is to protect/enhance profitability...but like the hedonistic paradox, one can't simply count money and expect that's enough to sustain or build profit - there has to be a focus on the means to the end.

So I think Disney does measure and maintain certain levels of customer satisfaction KNOWING that ultimately a dip in that satisfaction will result in an impact to profits. And management can't wait around to prove that again and again, rather, they have to take the experience they have from before and act upon it. In this case, that means that a customer survey might show that satisfaction is down in some area, and they'll go in and fix it - so as NOT to wait for the expected impact to profits.

As an example:

WDW could do a survey on how people feel about the outdoor heat. On hot days, they'll find people complaining. But, you know, there's historically no tie to profitability, or at least there's nothing they can do about it anyway. So why bother asking the question?

Instead, they ask about things that they DO have control over, AND they ask questions they've asked before, so they can see over time how the scores have changed, AND they have a sense or formula showing how those numbers impact profitability.

And so yes, if the surveys show decreasing sat scores, they will use levers to tweak the scores back up, always keep an eye on ROI - the comparison of the cost of the improvement to the impact on profit.

Bottom line: I think you're both right in some measure. Disney will do surveys and make changes in advance of the impact on profitability. But I also think that any survey and resulting investment/enhancement has to tie to profitability in some way.

Note that simple things, like happy CMs or towel animals in your rooms can tie to profitability in a positive way. The product/service doesn't have to directly produce revenue to impact profitability. So the fact the surveys have to tie back to profitability does NOT mean that Disney automatically slides back to become a six flags.
 
:::sigh:::

Again, if every person who goes to WDW were to complain to Disney about how their trip sucked but still kept coming back and spending more money, Disney would be concerned about that but would be perfectly happy. Obviously, they must keep customers happy enough to keep returning. However--and I'll say it again--Disney cares WAY more about profit than they do about whether you or I or anyone else is actually satisfied with their time there. They do not care any more (or less) than any other company who operates for profit.

It is not a knock on Disney, it is what it is. They have built this reputation for caring so much--and they've done a GREAT job of this (although not doing as good a job the last few years as they used to). They offer a lot of little things to make people feel special (they've also taken a lot of these things away while raising prices). That is part of the product they are selling.

As someone once said (or something like this), you can buy a Honda or Hyndai or Chevy or other perfectly good car or you could buy a BMW or a Mercedes or a Bentley or some other luxury car. They each will do the same thing--get you from point A to point B. They're each nice (in their own right). However, why is someone going to spend X times more for a BMW rather than buy a Honda? It's the perception that BMW is offering something more than Honda is--and they do offer certain things which Honda doesn't. But, as is the case with Disney, BMW is trying to make a profit and will do everything in their power to make more profit. They will try to not hurt the perception they're giving you more for your money. This is the same thing Disney is doing. Maximizing their profits while trying to make it seem like they're giving you much more for your money.

Are they each giving you more for your money? Well, that's certainly subjective. However, it certainly seems as if enough people (in both cases) feel they are and that's what matters. If everyone stopped buying BMWs because of the price, they'd have to do something to bring customers back. BMW hasn't reached that price level and (apparently) neither has Disney. Will either of them ever reach it? I have no idea. But, again, it doesn't mean I (or anyone else) has to like the price increases or try and paint a pretty picture on them.

I, like many others feel Disney is getting closer to that point where we don't feel we're getting enough for what they're charging us. Not quite there yet (for me anyway) but getting closer.

First, with respect to the bolded. I don't believe the two are mutually exclusive but are dependent upon each other. I don't view the analogy as BWM vs Honda, but Nordstom vs JC Penney. Businesses in the service industry depend upon satisfied and happy customers as they are more likely to be loyal, refer friends and ultimately spend more with your company. Disney truly wants their guests to be happy and satisfied because that is one of the primary drivers for their continued profitability.

I do agree with your comment that you don't have to be happy about price increases. I know I'm not, but I'm not going to dwell upon those increases either. It's as if many posters in this thread try to justify why Disney shouldn't have increased their prices. I just believe that's a futile exercise, but if it makes those posters feel better, post away.

Further, I think many posters on this thread are focusing solely on the ticket prices and forgetting that Disney uses other promotions to help make trips more affordable for families including free dining, kids play free, 4/3, bounceback, etc. I still believe that many families have actually paid less during the past few years than they would have otherwise paid prior to, say, 2007. Those discounts were never intended to last forever.

Personally, I like it when Disney is more profitable as I believe they will do more to keep me happy and satisfied returning guest through new and better offerings. If they don't make those investments, then yes, we will stop going.

And it's not just WDW that we enjoy. We were among the very first guests who booked a cruise on the new Disney Fantasy for summer 2012. We booked on the first day of booking for Gold Castaway Club members and were rewarded for this loyalty by getting a price that was lower than on Royal Caribbean's Oasis of the Seas for the same cruise itineary leaving on the same day (about $1,800 less than Royal Caribbean). We are even paying less than Carnival cruise's similar itinerary on the Carnival Dream leaving the day after (only about $500 less, but still less than Carnival which is often considered the superstore of cruises). So yes, I am a very happy customer and very glad that Disney has another brand new ship. We are even talking about returning to Disneyland Resort in a couple of years to see all the new changes there, especially Cars Land. Someday, we'd love to go to one of the overseas Disney parks too.


First it isn't "gouging" -- that refers to opportunistic price hikes well above normal on essential goods and/or services. As much as we love WDW, going there is not essential.

Second, this argument that they're going to price themselves out of the market "soon" is one I've heard every single year since 1997, when I started going frequently. Have you noticed a significant drop in crowd levels?
Scott

:thumbsup2 ITA - I've been hearing the same Chicken Little rhetoric since our first trip in 1998.
 
Ah, not according to any marketing or business course I've ever taken. A joint venture is the same concept as one company owning another? Really? :confused3

Let's put aside your snottiness right now (completely uncalled for as the mistake was already pointed out and acknowledged, but if it makes you feel better...) and deal with the actual statement above.

Where on Earth did I say a joint venture is the same concept of ownership? The point was, as I think was stated very clearly, they are using each other to make money. I'm sure you're marketing/business courses covered the fact that you can do that without "owning" something.
 
Disney truly wants their guests to be happy and satisfied because that is one of the primary drivers for their continued profitability.

Plain and simple, yes. Their desire for customer satisfaction is generated by turning a profit. Very straightforward.

I do agree with your comment that you don't have to be happy about price increases. I know I'm not, but I'm not going to dwell upon those increases either. It's as if many posters in this thread try to justify why Disney shouldn't have increased their prices. I just believe that's a futile exercise, but if it makes those posters feel better, post away.

Sigh, we can debate it all we like, the reasons behind the price increases. I find it interesting myself and not a futile exercise. For some people here, increased prices mean less of a chance going back to Disney. So it makes sense to think about the thought behind the increase. Disney's quarterly earnings looked positive to me at least, they were up ten percent over last year. http://articles.orlandosentinel.com...hip-disney-world-attendance-walt-disney-parks

Further, I think many posters on this thread are focusing solely on the ticket prices and forgetting that Disney uses other promotions to help make trips more affordable for families including free dining, kids play free, 4/3, bounceback, etc. I still believe that many families have actually paid less during the past few years than they would have otherwise paid prior to, say, 2007. Those discounts were never intended to last forever.

Precisely the point. Disney offered these discounts to bring people in during an economic recession. People came because they were able to save money by going which probably wouldn't have been the case without the discount. One can assume then that the so called affordable Disney vacation was only made so due to the special offers. Well, if you remove those offers, raise the prices and make cut backs, doesn't it stand to reason that less people will find it affordable anymore?

I guess the bottom line for me is that Disney is not an affordable vacation, even with the discounts. And when the powers that be (Bob Iger and Jay Rasulo) state the days of the discount are going bye bye, I think these prices will continue to rise. If the normal prices aren't what the public are used to, then people will balk at the increases and be leary of paying it. Vacation is a luxury IMO and one of the first things to get cut out of a family's budget during times of hardship (or recession obviously).
 
Further, I think many posters on this thread are focusing solely on the ticket prices and forgetting that Disney uses other promotions to help make trips more affordable for families including free dining, kids play free, 4/3, bounceback, etc. I still believe that many families have actually paid less during the past few years than they would have otherwise paid prior to, say, 2007. Those discounts were never intended to last forever.

I'd love to know how many people unhappy about the change stay onsite. For us, the ticket price practically IS the price of going to Disney. Having toured the DVC resorts and checked out a unit, I know I'm not staying onsite with my current entourage ever, and staying offsite costs us less than many another trip. We're not big shoppers and even in terms of my pin collecting I mostly buy Disney discount or wait to pick up specific pins off E-bay, so that cost is negligible. Only two of us are really into Disney food and even then it's only a snack here and there and maybe a CS lunch or two a week - which, again, on par with or even less than our spending elsewhere.

But since we're not into world traveling, hate cruises, don't ski, don't do amusement parks, and can travel off season for most potentially pricey vacations we want (beachfront in September is just as warm, much less crowded, and costs considerably less), Disney is an usually pricey vacation, and that price is the tickets (youngest is now old enough it's adult tickets times 7, in our family's case).

So for us, and I would guess for a lot of people, a change in the ticket prices is a real sock in the vacation budget, and a definite reason to consider vacationing elsewhere. If it was just hubby and I, or if we were traveling with just little ones then, yeah, there are a ton of deals Disney offers. Not surprising, since that's the group Disney's aiming at. ;) But you gotta stay onsite to take advantage of most Disney deals, so for someone off site, changes in ticket prices are a big deal.

Personally, I'm much more cheered by pertinent cost-per-hour comparisons, for which I thank everyone who posted. :goodvibes
 















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