Soon to be charging for ME?

[Mickey's Best Girl]

I just returned from the World today and while I was there I booked the bounceback offer that was in my room. While I was talking with the CM she asked if I would be using ME transfers from MCO..... yes. She mentioned that she would apply that to my res. now while it's still free. She implied more than once that there would be a charge for ME in the future. Has anyone heard anything regarding this either way? Or was the CM just assuming the change was coming due to the huge increase in stroller rentals, lockers rentals, etc.

 

[ShellyLynn3630]

Would'nt suprise me at all. Probably not anyone really.

 

[zulemara]

it wouldn't surprise me, however I doubt that a front line CM has that information.

 

[DVC_Chris]

I know a portion of DVC member's dues goes towards paying for ME, so I doubt that they would start charging. If they do charge for it, I do not think it would be substantially different from the Mears system that it replaced, except for the flight check in at the resort, and prettier buses. I also think they make more money by not charging for it than they would by charging. This way people are "trapped' on Disney property, and cannot easily go off property to eat, shop, or visit other theme parks. Charging for it would decrease the size of their captive audience.

 

[tjkraz]

it wouldn't surprise me, however I doubt that a front line CM has that information.

I agree.

I'm sure Disney has profited from DME but they could still charge a token fee and add a few more dollars to the coffers. The last news story I could find related to DME cited about 2.2 million guests transported annually. Just charging $2-3 per person would add several million to the bottom line and still not put Disney in any real danger of losing business to rental cars, taxis, town cars, etc.

For the time being they seem satisfied to wrap-up these fees in hotel rates and market the service as "free". That could be the one aspect that keeps it complimentary indefinitely.

 

[schmitty]

If they started charging it would be because they have to. Lots of people are upset that Disney has this free service and takes potential customers away from them.

 

[Disco]

Maybe they were referring to the new train system that will be put in. I've been wondering what would happen to ME once that has been built.
Can someone refresh my memory? Mears was converted into ME, right?

 

[denegate]

I don't believe Mears was "converted" but I know Mears is the contract-holder for ME. I do believe Mears still exists as an entity itself also. I could be wrong though.

 

[jlewisinsyr]

I don't believe Mears was "converted" but I know Mears is the contract-holder for ME. I do believe Mears still exists as an entity itself also. I could be wrong though.

Correct Mears is the operator of Disney's Magical Express via contract, Mears is a seperate entity that outside of the contract with Disney has no relationship with them.

 

[anthony2k7]

I agree.

I'm sure Disney has profited from DME but they could still charge a token fee and add a few more dollars to the coffers. The last news story I could find related to DME cited about 2.2 million guests transported annually. Just charging $2-3 per person would add several million to the bottom line and still not put Disney in any real danger of losing business to rental cars, taxis, town cars, etc.

For the time being they seem satisfied to wrap-up these fees in hotel rates and market the service as "free". That could be the one aspect that keeps it complimentary indefinitely.

I bet they'll push it a bit more than just a $2-3 token fee. They could just charge $10 for parking but they dont because they know they can push it a bit more than that.

The lowest I'd expect would be $5 per person making it $20 per average group - people would still look at that and think it was the cheap option over a rental car.

The worrying thing is what is next? Charging for every use of a resort bus as well? could happen going by current trends within Disney.

Actually I've probably already mentioned what could be next in this post - charging parking for resort guests, maybe $5? They'll still sell it as a benefit for staying on site whilst making more money as well.

 

[Disco]

Correct Mears is the operator of Disney's Magical Express via contract, Mears is a seperate entity that outside of the contract with Disney has no relationship with them.

Good to know...
I wasn't sure if Mears was bought up by Disney or if they still existed.

 

[tjkraz]

If they started charging it would be because they have to. Lots of people are upset that Disney has this free service and takes potential customers away from them.

DME has been around for more than 4 years now and some groups have been upset since Day One. Really all that matters is that Disney can strike a deal with the port authority to use airport facilities. Disney pays a per-head fee for airport access. As long as they continue to agree on fees there are no financial hurdles.

Rental car companies may now have lower revenue than they did pre-2005, but they've adjusted and moved forward. Small independent town car and cab companies have either adjusted or went out of business long ago.

I bet they'll push it a bit more than just a $2-3 token fee.

Oh, I agree. It probably would be more than just a couple of bucks.

Still I don't view it as a foregone conclusion that they will start charging for DME. I think Disney gets a lot of mileage (no pun intended) by promoting it as a benefit to staying on-site. Room rates are so high now that I think they're better off charging (for example) $353 per night with free DME rather than $350 with DME fees.

They could start turning these add-on services into their own profit centers (parking fees, bus fees, DME fees, exercise room fees), but then the value of staying on-site begins to fade as the fees pile on. Hotel bookings would undoubtedly suffer and they'd be left with flat revenues and unhappy customers.

 

[DC7800]

Room rates are so high now that I think they're better off charging (for example) $353 per night with free DME rather than $350 with DME fees

The one issue I have with this perspective is that to whatever extent DME charges" may be reflected in room rates, those persons to whom DME is not offered (those arriving by train) or whom have no use for it (those driving) still pay the same rate. Of course, if DME were discontinued tomorrow Disney wouldn't lower room rates a penny, but providing this service does incur a significant cost to Disney, so in some manner we're all paying for it whether we can use it or not.

Before someone says anything, yes, technically anyone can use DME from the airport to WDW - you do not have to fly in to be eligible. But that's not the point, and regardless, its impractical.

 

[jlewisinsyr]

The one issue I have with this perspective is that to whatever extent DME charges" may be reflected in room rates, those persons to whom DME is not offered (those arriving by train) or whom have no use for it (those driving) still pay the same rate. Of course, if DME were discontinued tomorrow Disney wouldn't lower room rates a penny, but providing this service does incur a significant cost to Disney, so in some manner we're all paying for it whether we can use it or not.

There are tons of costs that get spread around, regardless if a person actually uses the service, from free parking for onsite guests, pools, etc. No doubt DME is a huge expense for Disney, but we already know what people feel in terms of ala carte fees (see airlines), I can only imagine Disney following the same path.

 

[sweetdana]

I believe they know they would lose more than gain. I know I eat more (okay all) onsite and even get the dining plan, because of ME. I know I would skip dining plan, if I did not use ME. I would go to a store on the way to the hotel, and get nearly free breakfast, with pop tarts, and skip snacks at the park with the WAY over priced fruit, and get from a grocery store, fruit snacks and bananas. Go to fast food once or twice and going to places like Med. times, or other nicer places that you do not need 180 days to get RSVP, instead of dinner at Cinderalla's Castle. ... or YES go to breakfast with Dora at the Nick hotel for a night or 2 and maybe go to Universal. All things possible with a rental car.. If price was 10$ per person, each way with 3 in my party would pay for 1/3 - 1/4th the cost of renting a car. I am certain they would lose my dining plan and I would go off site for food at least 1/2 the time. I may even consider shopping off site and visiting other places.. all possible with a car already. I already consider every time I go renting a car, but cannot justify the 250$, saving on food, and ME would do it for me. No way am I alone.

 

[Mouseaholic!!!]

We always get a rental car - we are not fans of Disney Transportation --- our car is so much easier in our situation (and free car rentals with my hotel travel rewards DOES impact that decision).

Bottom line, however. Disney will find a way to charge for anything they can.....raise fees for anything the can.......take away as much as they can (line staff to clean bathrooms --- remember the days of spotless bathrooms....even at the end of the night?).

After all ---- they have to pay that $4 Billion for Marvel.

Don't kid yourselves....when they think they can get away with it...they will. After that....they will raise the fees a few dollars here and there --- like we won't notice.

Just a little list for 2009

* Candelight Processional Dinner Package
* Locker, wheelchair, scooter rentals
* Parking
* Valet parking (+ no longer a perk for DVC)
* MVMCP

Each a modest increase. Taken one at a time, probably a minor change.....now start adding what they have changed.... dumbed down/standardized menus + smaller portions and higher costs, LOW......I'm sure others can fill our these lists far better than I can.

Hey, it's the new Disney way!

 

[kindra657]

We always get a rental car - we are not fans of Disney Transportation --- our car is so much easier in our situation (and free car rentals with my hotel travel rewards DOES impact that decision).

Bottom line, however. Disney will find a way to charge for anything they can.....raise fees for anything the can.......take away as much as they can (line staff to clean bathrooms --- remember the days of spotless bathrooms....even at the end of the night?).

After all ---- they have to pay that $4 Billion for Marvel.

Don't kid yourselves....when they think they can get away with it...they will. After that....they will raise the fees a few dollars here and there --- like we won't notice.


Just a little list for 2009

* Candelight Processional Dinner Package
* Locker, wheelchair, scooter rentals
* Parking
* Valet parking (+ no longer a perk for DVC)
* MVMCP

Each a modest increase. Taken one at a time, probably a minor change.....now start adding what they have changed.... dumbed down/standardized menus + smaller portions and higher costs, LOW......I'm sure others can fill our these lists far better than I can.

Hey, it's the new Disney way!

I agree with your observations and it saddens me. To look back and remember the beliefs Walt stood for and the way he ran business and to look at how the CEOs run things now, it's a shame. If the company continues to lose sight of Walt's vision and dream, I will sell my DVC contracts and stop visiting. I bet the Robert Iger wouldn't mortgage his own house and everything he has in order to build a new park or extend the Disney dream.

The quality of service and cleanliness of the parks made the ticket prices and room prices worth it in my opinion. If I have to save for 3 years to take a nice Disney trip, I'd rather do that than to take a trip every year to six flags or cedar point. I'd rather pay higher prices for better quality and service but I am unwilling to continue to pay higher prices for less quality and less service. NO WAY! I also don't like to feel like I'm being nickle and dimed while on vacation!

 

[DisDreaminMom]

There is such a thing as VALUE versus Perception of Value. Is it a value to go to Disney and stay on property? No. But does free DME and free parking and transportation for resort guests greatly enhance the perception of value? You betcha.

 

[tjkraz]

Don't kid yourselves....when they think they can get away with it...they will.

Well, guests already ARE paying for DME. As another poster mentioned, fees for things like parking lot upkeep, bus/monorail/boat transportation, DME, and many other services are all built into room rates. Whether we use those services or not (our family also usually rents a car) doesn't change the fact that we are subsidizing the perk for others via the room rates or DVC dues paid.

In many ways this is a philosophical debate. Where do you draw the line between guests paying for the services they actually use vs. having services subsidized by ALL guests regardless of whether they are used or not?

Disney is going to charge whatever they want to charge...it's mostly a question of how they structure it. In 2011 they could increase room rates by 3% + begin charging a DME fee, or they could raise room rates by 4% and let everyone continue to fund DME.

 

[kindra657]

There is such a thing as VALUE versus Perception of Value. Is it a value to go to Disney and stay on property? No. But does free DME and free parking and transportation for resort guests greatly enhance the perception of value? You betcha.

When you speak of "value" you must be referring to just the financial bottom line. In my opinion, if we cannot afford to take a nice family vacation, then we need to stay home and save more or do a more local trip.
When I think of value while on vacation I think of the various things my family values such as:
-not worrying about my luggage once I drop it off at the CLE airport...I'll see it in my room
-not having to drive at all while on vacation---not an issue for some but definitely for us!
-prepaying for our food and going out to eat at various on-property restaurants everyday (ddp)
-going back to the resort during the middle of the day without fighting thru parking lot crowds and drama-got a drama story if ya wanna hear it...
-having packages delivered to the resort and not being forced to lug them around all day
-being able to get into the parks an hour early or stay 3 hours later than the off-property guests

I may pay a little more per night for my room, tho we use our dvc points, but to me, there is more value in staying on property vs off property....and if someone is concerned about the bottom line, there are always the value resorts, which include every value listed above for close to off-property rates.

If the company began charging for these values or not giving them at all, then the value would be gone for us and we would either not go anymore or stay off property when we did go.