So just why is Disney raising ticket prices so early

[brunette8706]

I have no issue with people saying negative things... but I also have a right to dispute those arguments and ask for clarification on statements. I may have been a bit blunt in earlier posts but I do stand by them. I still do not understand the 10 month argument, but most likely I never will as I simply don't see a difference since the increase was going to happen in 2 months anyways. I simply will see it as good timing on Disney's part and a good business decision. It comes down to:

1) Raise prices in August like normal. OR

2) Raise prices in June and use the increase in ticket sales to pad revenues and profits.

Many people do not plan the way we do on these boards. Especially in the summer months you will have many "day of" ticket sales. These increased sales are a great time to increase your revenues. It simply makes sense in my mind.

Disney has increasing costs, just like the rest of us do. Tickets are most likely one of their highest revenue generators (in fact, their quarterly increases this year compared to last year are due to increased ticket sales according to the reports). If ticket sales are UP, then that shows there is a demand there. It only makes sense to increase the prices there compared to other areas. If sales dramatically decrease, then Disney will see they have hit their price ceiling for this moment in time (though I doubt there will be a dramatic difference).

My guess is that enough people will still see value in a Disney vacation. Cost is just one aspect of value, but each person will weigh the different parts differently. So, where increased costs may decrease value greatly for one person, it may not be a huge deal for another.

Honestly, neither side is "wrong" as there really is no right vs wrong in these sorts of situations. It all depends on where the other person is coming from and HOW they look at the situation.

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Disney prices have gone through the roof and we do have a "right" to complain about it. Now this isn't just about Disney's 10 month ticket increase it's more about this:

Ticket price increases every year (even during a recession)
Parking has increased
Strollers have increased to over 30 percent
Disney Dining Plan have increased at the same time menu items have diminished
Disney Holiday Decorations are getting more and more sparse
EPCOT Laser show isn't what it used to be, it has been cut
Restaurants and counter service food prices have increased
Halloween candy for the MNSSHP has been decreased dramatically but they have raised the price of their tickets
Holiday (gouging) surcharges are an EXTRA $4.00 add on during busy times at the parks!

And you asked why people are upset!!??? Give me a BREAK!

 

[flicx]

These threads are always funny. So many people just can't say something negative about Disney. If they increase the prices, there must be a good reason for it...

Bottom line is Disney is a public company. Their job is to make as much profit as they can...PERIOD. Now, there are MANY parts to Disney, however, they've mentioned their profits have gone up due--in large part--to an increase in attendance at their parks (although that was for the 1st quarter for the 2nd quarter they're a little lower because of the earthquake and Easter vacation not being included in the 2nd Quarter this year but the US park operations were UP). You can look all of this up. I'm sort of summarizing but you get the idea.

Do the price increases have to do with inflation and increased costs to operate the parks? Certainly, at least, in part. However, part of it is also seeing how much more they can get without alienating too many people. Not saying it's a bad (or good) thing, it just is.

Now, my problem isn't so much that they're raising prices, rather, that they've risen so quickly over the last few years. If you're doubling the price to get in (essentially) in about 10 years--like Disney has--then the product should either be getting better or be in such high demand they can command such increases. Well, I can tell you they haven't (overall) gotten better in the last 10ish years, however, the demand has been increasing (it seems) so they can continue to get away with these price increases.

A big reason demand has been increasing is because they've been running so many specials to get people in. The problem with that is, the millions of people (like myself now) who no longer stay on property see nothing but the price increase. We get no other benefits and, in fact, other things have significantly increased in price as well (like food). So people who are not staying on-property are really paying more.

This, to those of us who don't stay on property sucks. However, from Disney's standpoint, they'd much rather have us stating on property, which is why they still build more resorts (even if value resorts). People who stay on property spend more money as they don't leave to go off-property as much so everything they spend is spent at Disney.

So, I totally understand why they increase the prices. Whether I agree with it (or not) is irrelevant. I wish they'd stop with the price increases but I doubt that'll happen.

I guess my point of this rambling post is, I think it's funny reading the posts from the, "Disney can do no wrong," people and their convoluted justifications to the price increases. It's really just a simple capitalism situation. Nothing more. Nothing less. Disney doesn't care about you or I like we'd like to believe they do. They only care about how much money we spend with them and how much profit they can make off that money. Anything they can to to increase these numbers is fair game to them. Until people start telling them to stop by not going, they will continue the increases.

Interesting post rickster,I just wonder if ticket prices double again in 10 years what impact that will have!

 

[brunette8706]

No, Disney advertises itself as a special vacation full of memories and dreams. They give examples on how much it will be, but they don't make it seem like everyone and anyone can afford it every year.

And I am really getting tired of the "OMG this is the second price increase this year" and "How dare they raise their prices after only 10 months" statements. Usually the increase happens in August... they just pushed it up this year. The changes were going to happen, it's just that the timing was different.

If you do not agree with the increase, then do not go. Simple. Tell Disney you do not agree with your wallet. However, there are still many people who think the cost is fine for the value. We will continue to go for the time being because we do not agree it is too much as of yet. Disney, to me, is not a vacation I do every year. It is a vacation I take time and save for so I can go all out.

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Disney DOES advertise as a value place to go on vacation. They use words such as "ONLY" as in Prices at a Value resort start at ONLY $99.00 a night. They also have commercials that that do the same. They are trying to tell the public how cheap they are and YES YOU TO CAN AFFORD a DISNEY VACATION. Of course we all know it's smoke and mirrors.

 

[brunette8706]

But, I thought attendance was down? My problem..quality has decreased, while prices have increased.

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BINGO

 

[flicx]

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Disney prices have gone through the roof and we do have a "right" to complain about it. Now this isn't just about Disney's 10 month ticket increase it's more about this:

Ticket price increases every year (even during a recession)
Parking has increased
Strollers have increased to over 30 percent
Disney Dining Plan have increased at the same time menu items have diminished
Disney Holiday Decorations are getting more and more sparse
EPCOT Laser show isn't what it used to be, it has been cut
Restaurants and counter service food prices have increased
Halloween candy for the MNSSHP has been decreased dramatically but they have raised the price of their tickets
Holiday (gouging) surcharges are an EXTRA $4.00 add on during busy times at the parks!

And you asked why people are upset!!??? Give me a BREAK!

I'm right with you brunette.I see the cuts and watch the prices escalate and just shake my head.If they use the 10 month increase as a standard the 100 dollar a day tickets will be here real soon!

 

[jayandstacey]

Agree with GadgetRick.

What matters to Disney is how much total profit is made. That total is over your entire visit.

In the early decades, the total profit went up as Disney captured more and more days. Hotels were built, parks added - and so prices didn't need to rise too much, as a $300 trip became a $1000 trip became a $3000 trip (inflation adjusted, of course.)

Over the last decade, Disney's not been able to expand the days, or the income sources. They've captured your food, lodging and entertainment expenses, even to some degree your travel expenses. And they've pushed the average stay to the maximum, probably about 6 days.

So they can only increase profit by increasing prices or increasing capacity. Increasing capacity costs LOTS of $$$. They've done a little of that with the cruise ships. Raising prices, OTOH, is easy.

So they continue the decade-long march to increase prices until they find the break point, then go back and begin to increase capacity again. We may never see the day when WDW has a significant expansion to their capacity - they're to the point where even a whole 'nother theme park only adds maybe 15-20% to the WDW capacity.

So raising prices it is - until some of us volunteer to not show up.

 

[brunette8706]

I'm right with you brunette.I see the cuts and watch the prices escalate and just shake my head.If they use the 10 month increase as a standard the 100 dollar a day tickets will be here real soon!

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Hi FLICX!

Yeah, Disney in my humble opinion will outprice themselves. Maybe sooner than later. My question is, "What if people stopped going to Walt Disney World"? Then what? LOL!

 

[brunette8706]

Agree with GadgetRick.

What matters to Disney is how much total profit is made. That total is over your entire visit.

In the early decades, the total profit went up as Disney captured more and more days. Hotels were built, parks added - and so prices didn't need to rise too much, as a $300 trip became a $1000 trip became a $3000 trip (inflation adjusted, of course.)

Over the last decade, Disney's not been able to expand the days, or the income sources. They've captured your food, lodging and entertainment expenses, even to some degree your travel expenses. And they've pushed the average stay to the maximum, probably about 6 days.

So they can only increase profit by increasing prices or increasing capacity. Increasing capacity costs LOTS of $$$. They've done a little of that with the cruise ships. Raising prices, OTOH, is easy.

So they continue the decade-long march to increase prices until they find the break point, then go back and begin to increase capacity again. We may never see the day when WDW has a significant expansion to their capacity - they're to the point where even a whole 'nother theme park only adds maybe 15-20% to the WDW capacity.

So raising prices it is - until some of us volunteer to not show up.

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Good point, I totally agree!

 

[flicx]

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Hi FLICX!

Yeah, Disney in my humble opinion will outprice themselves. Maybe sooner than later. My question is, "What if people stopped going to Walt Disney World"? Then what? LOL!

Let's just hope their management team doesn't think they are to big to fail like General Motors and others did!

 

[Planogirl]

I agree 100% that Disney is all about profit just like most other companies. I wouldn't expect anything else. However, I don't care about their desire for profit any more than they care about my finances. I only care about whether what they offer seems worth the cost.

Sigh... It's strange because we used to stay in a deluxe resort and we ate at full service restaurants and we never left the property. Now we are staying offsite, eating offsite and spending less and less time on WDW property. This is not only due to economics but that is certainly one factor.

Will Disney push past that line at some point? Again, no one knows. We can only judge for ourselves.

 

[GadgetRick]

Let's just hope their management team doesn't think they are to big to fail like General Motors and others did!

Why? Maybe they'd be bailed out, too...

 

[GadgetRick]

I agree 100% that Disney is all about profit just like most other companies. I wouldn't expect anything else. However, I don't care about their desire for profit any more than they care about my finances. I only care about whether what they offer seems worth the cost.

Sigh... It's strange because we used to stay in a deluxe resort and we ate at full service restaurants and we never left the property. Now we are staying offsite, eating offsite and spending less and less time on WDW property. This is not only due to economics but that is certainly one factor.

Will Disney push past that line at some point? Again, no one knows. We can only judge for ourselves.

Exactly. Many of us who used to do these things all onsite are now doing much of it offsite.

The question is, how long before enough of us do this before they start to feel it and back off of raising prices constantly. I guess it all depends on how long it takes them before they're not getting enough new visitors to offset the loss in revenue by the regular visitors.

 

[goofy4prez]

Personally for me, as a late bloomer to WDW, I am really at the point that I fail to find WDW a must do vacation destination. Truthfully this has nothing to do with affordability, but instead perceived value for what I'm getting for my money.

I own my own business and majored in business & marketing so I do understand the whole science of supply and demand and the ever so important point of equilibrium which is where the supply perfectly meets the demand and the point where seller and buyer are happy. With that said, I believe WDW is beginning to really push that fine line.

I completely understand they need to make a profit and I'm ok with that. However, the rate of increase is like that of a college education; it has far exceeded the cost of inflation over the last few years. I do not mind spending money on vacation (I am at this very moment in a hotel in Hawaii on a two week vacation), but I sure want to feel as though I'm getting something in return.

So what does WDW give me in return? Yes I have had fun and they do offer it, but they continue to not only increase the prices but they continue to cut back along with the price increases. I continue to experience cutbacks in concierege offerings, I see hotel rooms with a premium price (deluxe) that continue to have upkeep issues, I see food prices sky rocket and food quality cut back, and many other issues. For me, it's not about whether I can afford Disney (I can), but whether I want to spend my vacation dollars on WDW or elsewhere;and elsewhere won out this year and may very well next year.

For some of you out there you have been Disney fans for many years; I have only joined the dance in the last few years. I am not at the point where I look in through rose colored glasses. WDW has to be concerned that they are offering family fun at their parks, that is their business and the product they sell. However, I think the almighty $$$ has blinded the decision makers and they are loosing the balance between profit and the public consumer. I personally as a consumer have become insulted by the increases in price along with the cutbacks; they want to increase the prices fine, but don't keep cutting what I get as well. We had planned a two week stay next year after not going this year at either the YC or GF; I'm not so sure we will do this or not. If we go, I may very well stay at a much nicer hotel off property and truly enjoy some excellent restaurants outside of the park. It's a shame for me, I truly love WDW, but I don't think the love is the same from them toward us the consumer.

 

[goofy4prez]

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Hi FLICX!

Yeah, Disney in my humble opinion will outprice themselves. Maybe sooner than later. My question is, "What if people stopped going to Walt Disney World"? Then what? LOL!

A huge hello to you Brunette. By the way, I got a pm from Pirate Jeff!!!!

I agree with you. This is why I did not go this year. We chose Hawaii, and Pigeon Forge this year. While I can afford WDW, I'm not finding the value in it for my money. I would never pay 50k for a Chevy Malibu and that is what WDW is beginning to do; charge BMW prices for a Chevrolet.

 

[k5thbeatle]

.... I would never pay 50k for a Chevy Malibu and that is what WDW is beginning to do; charge BMW prices for a Chevrolet.

Good analogy.

When the Beatles recorded their last album none of them said "This is our last one" while actually recording it. In interviews with each of them years later they all stated that they had this "feeling" that it was the last and they were over. Well, we're going once again this fall...but I have this "feeling" that it'll be our last trip there for a while? We'll probably look to spend our vacation dollars elsewhere for the same reasons mentioned in some of your previous posts. The value is waning.

 

[rt2dz]

Personally for me, as a late bloomer to WDW, I am really at the point that I fail to find WDW a must do vacation destination. Truthfully this has nothing to do with affordability, but instead perceived value for what I'm getting for my money.

I own my own business and majored in business & marketing so I do understand the whole science of supply and demand and the ever so important point of equilibrium which is where the supply perfectly meets the demand and the point where seller and buyer are happy. With that said, I believe WDW is beginning to really push that fine line.

I completely understand they need to make a profit and I'm ok with that. However, the rate of increase is like that of a college education; it has far exceeded the cost of inflation over the last few years. I do not mind spending money on vacation (I am at this very moment in a hotel in Hawaii on a two week vacation), but I sure want to feel as though I'm getting something in return.

So what does WDW give me in return? Yes I have had fun and they do offer it, but they continue to not only increase the prices but they continue to cut back along with the price increases. I continue to experience cutbacks in concierege offerings, I see hotel rooms with a premium price (deluxe) that continue to have upkeep issues, I see food prices sky rocket and food quality cut back, and many other issues. For me, it's not about whether I can afford Disney (I can), but whether I want to spend my vacation dollars on WDW or elsewhere;and elsewhere won out this year and may very well next year.

For some of you out there you have been Disney fans for many years; I have only joined the dance in the last few years. I am not at the point where I look in through rose colored glasses. WDW has to be concerned that they are offering family fun at their parks, that is their business and the product they sell. However, I think the almighty $$$ has blinded the decision makers and they are loosing the balance between profit and the public consumer. I personally as a consumer have become insulted by the increases in price along with the cutbacks; they want to increase the prices fine, but don't keep cutting what I get as well. We had planned a two week stay next year after not going this year at either the YC or GF; I'm not so sure we will do this or not. If we go, I may very well stay at a much nicer hotel off property and truly enjoy some excellent restaurants outside of the park. It's a shame for me, I truly love WDW, but I don't think the love is the same from them toward us the consumer.

 

[hookedonears]

I agree 100% that Disney is all about profit just like most other companies. I wouldn't expect anything else. However, I don't care about their desire for profit any more than they care about my finances. I only care about whether what they offer seems worth the cost.

Sigh... It's strange because we used to stay in a deluxe resort and we ate at full service restaurants and we never left the property. Now we are staying offsite, eating offsite and spending less and less time on WDW property. This is not only due to economics but that is certainly one factor.

Will Disney push past that line at some point? Again, no one knows. We can only judge for ourselves.

As most corporations, Disney has a strategic planning division that evaluates how pricing is going to affect sales. With every price increase, they expect to lose a few people. They also try to calculate how many people they expect to lose with a forecasted local, US and world economies, as compared to how much they will gain from the increase in revenues. With the devaluation of the US Dollar, especially against the Euro, they expect to gain Europeans. I'm sure it's an incredible complicated process.

 

[WDSearcher]

Disney is out of control! Food prices are ridiculous, quality has suffered, surcharges for "holidays" and now...park tickets receive, the second price increase in LESS than a year.

I have cut our Disney visits, this year and next. We have decreased our dining in WDW, and spending on generic merchandise. Our December trip will be spent in Europe...it's cheaper. We are DVC members and have annual passes...for now, but will spend time at Universal with extended family.

TIIC don't get it, Disney is losing the Magic. IMO

And yet ... you have two upcoming trips planned. Maybe you're cutting back, but you're still going. And you've apparently got enough faith in the product to continue putting money into DVC, which would indicate that you will continue to visit in the future. You're still spending money at Disney, which is telling them that what they're doing is just fine with you at some level. They're really not going to get the nuance that you're spending more time at Universal. You have to put your money where your mouth is, same as you expect of them.

If it's not a good value ... if you're mad at Disney for quality and price and all the rest ... if the magic is gone ... sell your DVC, cancel your trips, and tell them why. Otherwise, you're continuing to spend money on something that you yourself say is no longer worth it. And that doesn't really resonate the same way.

 

[NancyIL]

I'm still planning to go to WDW in October and December 2011, and probably April, October, and December 2012. After THAT - I may cut back!

 

[WDSearcher]

Please this idea that disney is a" right"is ridiculous.Never said it was.Expecting a product to go up reasonably over the years isn't unreasonable.Fact is disney has and still continues to raise prices faster than inflation!I love the blindness of some on this site,the easy way people shrug off another increase 2 months early! You ask if I have stopped going, the answer is yes!It is 3 years this year and I don't see it changing soon.I have been a long time patron of disney(30yrs) and think the place is great,however the price increases have slowed my ethusiasm.Used to go annually, like many others on these boards have cut back due to the increases.Price threshold? I've pretty much reached it.

Good. Then you're acting on your displeasure. Hopefully you've written to tell Disney that, since it's unlikely they'll notice otherwise. Crowds are still there, people are still paying the money to go on trips. It's still considered a good value for what you pay to many folks, so if you were going annually for 30 years and now aren't planning on going back, that's significant and should be brought to Disney's attention. If you haven't taken the time to tell the company that you're displeased ... then the fact that you've stopped going won't really pass along to Disney the indignation that you feel. It'll likely get written off as part of normal attrition.

As for the "product going up reasonably" -- it has, actually. It is going up at the same rate as comparable product.

• Before tax, it costs $85 for a one-day / one-park Disney ticket.
• One-day / one-park Universal ticket is $82, and my bet is that it will be at $85 before the summer is over.
• Seven days at Universal -- 7 days, 2 parks -- is $175
• Seven days at WDW with hopper -- 7 days, 4 parks -- is $322

So it costs less than twice a Universal seven-day pass to parkhop at Disney for seven days. Seems equitable to me. You're paying a little under twice as much for double the number of parks. YMMV

If it cost $85 for a day at Disney and $37.50 for a day at Universal then yes ... Disney would be overdoing it. But the parks are $2 apart. They're increasing at the same rate. Which to me, seems reasonable. It's clearly what the market will bear, or the parks would be empty.