The Future Of Magical Express

According to the article, Disney's Magical Express is taking the load off of baggage handling facilities at the airport. If ME were to suddnely stop, the airport may have to build new baggage handling facilities. This will take a chunk of change.

How much to hotels near the airport pay to run their shuttles into the airport?

The casual observer will think that ME was a marvelous invention. It is greed on the part of others that prevents such cutting edge technology from becoming widespread.

Disney hints:
http://members.aol.com/ajaynejr/disney.htm
 
No, not greed. The airport has expenses to cover, and more importantly is providing a service (delivery of passengers to Disney's service) of value that warrants compensation.
 
I guess it depends on your feelings about DME when you read the article. I still see it as a great service that is helping the airport out while Disney is helping their guests.

The airport authority had the opportunity before the program even started to state how much per passenger they wanted. They didn't anticipate the demand so who do you blame?

Disney is helping with the baggage handling and traffic issues at the airport. If the airport needs more money they need to state that and starting dealing with how it can benefit everyone.
 

There is no requirement for all decisions that may ever affect a service offering be made before all parties involve have an opportunity to review the results for the introduction of the service. Demand isn't the issue here -- value is. Just as Disney raises prices for things that guests present high demand for, so should the airport. The reality is that Disney is getting a windfall to some extent from DME, in terms of folks, like my wife and I and our two guests next year, who, in the absence of DME, would have rented a car and spent at least one day at Sea World. (We have four days left on our 10 day passes, and we need five days of admission, so it made a lot of sense to spend one day at Sea World. With DME, we'll put the four days left away for a future year and buy new five or six day passes from Disney.) So Disney clearly should pay more if their getting more value from DME than was evident in the beginning.
 
Passengers pay a fee when they leave the airport. Franchise fee for rental cars, taxis and towncars. That money contributes to the cost of running the airport. Is it greed on the part of Disney to think that DME guests should not be paying their share?

I think DME is a great service but there isn't any reason why the airport shouldn't be getting an appropriate fee from Disney. The airport might even offer a discount if DME is really relieving pressure on the airport infra-structure but going from $7.50 for a rental down to .50 is a huge discount.

I have no idea what the airport shuttles pay in franchise fees but I doubt it has the impact on the airport finances that DME is having.

SW is on the committee since the airlines have to pay extra if the airport needs more money to pay its bills.


seashoreCM said:
According to the article, Disney's Magical Express is taking the load off of baggage handling facilities at the airport. If ME were to suddnely stop, the airport may have to build new baggage handling facilities. This will take a chunk of change.

How much to hotels near the airport pay to run their shuttles into the airport?

The casual observer will think that ME was a marvelous invention. It is greed on the part of others that prevents such cutting edge technology from becoming widespread.

Disney hints:
http://members.aol.com/ajaynejr/disney.htm
 
/
http://www.orlandosentinel.com/news...,7101079.story?coll=orl-news-headlines-orange

Disney, airport reach deal on shuttle

The Magical Express will continue through 2011, but will relocate to the B side of the terminal.

Beth Kassab | Sentinel Staff Writer
Posted March 16, 2006


Orlando International Airport and Walt Disney World officials agreed Wednesday to a plan that will keep Disney's popular Magical Express shuttle and baggage service -- which has attracted national attention -- running through 2011.

An analysis by an airport consultant found that the first-of-its-kind service caused the airport to miss out on $204,000 to $1.1 million last year because the free Disney shuttle impacted rental-car and other transportation revenues.

To even out the financial impact and ease concerns about overcrowding at the airport, the Greater Orlando Aviation Authority voted to approve several key terms for the future:

Disney's per-passenger fee will increase from 50 cents to 75 cents beginning next year. From May through December of 2005, Disney paid the airport more than $500,000 and carried more than 1.1 million passengers. The fee could reach $1.50 in 2010.

Magical Express will relocate from the terminal's A side to the B side, where more bus parking spaces are available. Six spaces will be assigned to Magical Express.

If the service exceeds 2.2 million passengers, Disney will begin a second operation on the opposite end of the terminal's B side.

Disney's uniformed greeters -- minus their original oversized Mickey Mouse gloves -- will be allowed back on the terminal's second level to help passengers find their way. Last year, airport staff confined Disney's greeters to the first level.

Disney cannot establish any other similar shuttle and baggage services at other airports within 100 miles of Orlando International.

The agreement was several months in the making after Disney and OIA publicly clashed over the political and financial impacts of the service, which has drawn the interest of airports across the country.

"What we were able to do was say, 'Look, we have reached a bad situation from which everyone needs to recover,' " said Jeffry Fuqua, chairman of the airport authority. "Because the public loves the service, we need to try to make it work. On the other hand, we had issues for the airport that needed to try to be addressed."

The service began in May as a pilot program and was scheduled to end in December. Disney was under pressure to work out a deal so that it could begin to market its vacation packages for next year.

Walt Disney World President Al Weiss said he met with Fuqua several times and the two reached an agreement on the basic outline even though Disney's financial analysis of the service differs from the airport's.

"We think the overall deal is the right place to be; it's a fair deal for both the airport and for Disney," Weiss said.

Disney maintains that Magical Express will produce an estimated $3.65 in additional revenue per passenger for the airport once all the new terms are in place.

The airport analysis shows an estimated net gain of 15 cents to a loss of 30 cents per passenger.

Orange County Mayor Rich Crotty said the program brings several benefits to the community, including keeping cars off Central Florida's overcrowded roads.

No one from rental-car companies or other transportation services affected by Magical Express spoke at the meeting except for Owen Fraser of Beeline Ground Transportation.

By his calculations, Fraser said, Beeline is paying the airport $2.77 for the same service that is costing Disney 50 cents per passenger.

"This is not a happy camper," said Fraser, who says he did not know about the impending start of Magical Express last year when he signed a contract to be a minority provider of airport bus, van and shuttle service.

A group of independent limo and van drivers said after the meeting they were concerned that their businesses were not considered in the deal and forecast that they would continue to suffer a downturn as Magical Express grows.

"This thing was open and shut before it even occurred," said Michael McKenzie, who represents the Greater Orlando Livery Association. "They might as well not have had a meeting. It was just a formality."

Beth Kassab can be reached at bkassab@orlandosentinel.com or 407-420-5448.
 
Thanks for the article. I was wondering how it went. I think I may just have to keep the Sentinal in my favoriites!!
 
So Disney will pay 25 cents more to the airport authority for each ME passenger.

That does not guarantee that ME will continue to be free. I would venture to guess that Disney will charge about five dollars round trip per guest. Not too much at first in order not to scare too many people away and thus make passenger loads unpredictable and advance planning more difficult.

If Bee Line Ground Transportation pays $2.77 per passenger, one van carrying 6 people would generate just over $16.50 in airport revenue. A ME bus with more than 22 people at .75 each would generate more revenue.

So Disney greeters will again be allowed to assist passengers coming out of security. The airport has realized the value of letting someone else pay for people to stand around and answer questions and give directions to people who want ME in the first place.

Another question, would other transportation companies be permitted to bow out of Orlando Airport with no further obligations if that portion of their operation was running a loss?
 
I still wonder if the mouse will start to charge for ME. Given that this is part of the larger goal to keep people on site I would think that they would want to keep the it simple and not provide any type of financial dissensentives to use the service. Bickers situation is the reason why they have ME in the first place. (Somewhere a marketing manager is smiling right now!).

As an aside you have to be impressed with Disney's negotiating power in this. It seems that they ended up with a pretty good deal out of this.
 
So when is the relocation to B side supposed to occur??

Soon, or January 2007??
 
Have to say that I'm very happy with the Side B move. I always have so much trouble getting back to Side B when I get dropped off on side A!! I know....it's sad.
I also think that they will keep if 'free' for the forseeable future. Of course, they will make up any difference elsewhere. Room rates could absorb some of the cost if they take a few dollars from them..so rates could go up a bit. Either way, you're going to be paying for transport from the airport to WDW. My cut off point is around $45 for the three of us. If I have to pay more than that, then I use a towncar service.
 
Sounds like an amicable solution to the problem.
 
Sounds like Disney got most of what they wanted. The only thing Disney gave up is the ability to operate out of Stanford and a small increase in the airport fees.

I don't think the increase in airport fees, by itself, will necessitate Disney charging for DME.
 
Now if the Swan and Dolphin would just start participating, everything would be perfect.
 
Well, it's a 50% increase in fees. I agree, though, that it isn't enough to warrant charging passengers -- they were either going to do that anyway or not.

By the way, the airport is Sanford, not Stanford.
 
gduvall said:
Now if the Swan and Dolphin would just start participating, everything would be perfect.


I am sure they would love to participate. I don't think Disney will offer to them.
 
Remember Iger's perspective on WDW: Optimize the utilization of the assets. It's a more responsible perspective than Eisner's "build it and they will come" approach, though perhaps not as exciting. It does mean that Disney's decisions are going to be much more closely aligned to demonstrable, overall benefit to Disney. If they could casually force Starwoods out of the Swolphin, they'd probably try to do that, as they could do far more with the Swolphin than they can get from it with Starwoods operating it.
 
bicker said:
Remember Iger's perspective on WDW: Optimize the utilization of the assets. It's a more responsible perspective than Eisner's "build it and they will come" approach, though perhaps not as exciting. It does mean that Disney's decisions are going to be much more closely aligned to demonstrable, overall benefit to Disney. If they could casually force Starwoods out of the Swolphin, they'd probably try to do that, as they could do far more with the Swolphin than they can get from it with Starwoods operating it.


The rumor is Disney tried to buy Starwood out of the lease. The lease was signed pre Eisner. They couldn't, in part, because Starwood likes having on-property hotels to offer their guests and they placed a high value on being able to offer something other hotel chains can't offer. I was told they had a 10 year exclusive on significant convention facilities and CSR was opened almost exactly 10 years after S/D.
 














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