The real reason for Magicbands

[gamerlovesdisney]

Saw this last week on Bloomberg:

Disney Says Wristband Boosts Sales in Disney World Test

By Christopher Palmeri - Jul 11, 2013 9:01 PM PT
Electronic wristbands tested at Walt Disney Co. (DIS)’s Florida resort succeeded in boosting spending by guests, parks division Chairman Thomas Staggs said.
The bands serve as admission tickets, hotel room keys and credit cards. They were tested by 1,000 people at Walt Disney World in Florida, Staggs said in an interview at Allen & Co.’s annual conference in Sun Valley, Idaho, without offering details. Guests spent more on average in part because they had fun with the technology, he said.
Disney, the world’s largest theme-park operator, plans additional trials of the technology, called MyMagic+, before expanding throughout Walt Disney World by year-end, Staggs said. The wristbands help with crowd control, reducing the time guest spend in lines by allowing them to book rides and restaurants in advance. They can also schedule special meet-and-greets with characters like Goofy.
“We’re still in test mode,” Staggs said. “It takes some time to get it all rolled out.”
The wristbands link to a customer database, allowing guests to purchase items in Disney World’s hotels, four theme parks and water parks by waving the devices past a sensor. The radio technology speeds transactions, helping customers make their trips more efficient.
Disney will also use MyMagic+ to offer special promotions and activities that may interest customers.
MyMagic+ builds on Disney’s current Fast Pass program, which allows guests to schedule attractions during one-hour windows, once they are already in the park.
“It allows them to have a prearranged schedule before they start their day so it’s actually an enhanced Fast Pass,” Staggs said. “Fast Pass is getting better.”
Disney, based in Burbank, California, added 2.6 percent to $66.58 yesterday in New York. The shares have advanced 34 percent this year, double the 17 percent gain for the Standard & Poor’s 500 Index.

 

[DWillowBay]

It's a business. The whole purpose is to turn a profit. In the meantime, we all get to have fun and put our bundle of life's bricks down for a while. It's a win-win. I hope it's not a surprise to anyone that whatever business decisions are made, it is to help increase profits. Profits keep the wheel turning. New rides, refurb-ed restaurants, more available characters....etc. That's why your baker bakes bread, it's why your barber cuts hair, it's why Nike says "just do it". Profits.

 

[Cheshire Figment]

Let's see. You had 1,000 people staying at one of two deluxe resorts with a three-day arrival window. Did they compare the spending of these 1,000 people with their last trip, taking inflation and price increases into consideration.

I have a friend who is a very high level technical person in Disney's IT department who likens the My Magic Plus as trying to run a railroad while the locomotive is still under construction. Nothing against the Disney Officers, but do you expect them to currently say the billion plus dollar effort is not working?

 

[DOOM1001]

I can't wait to get my AP wristband,but without a doubt I will NOT be linking any credit or debit card to the wristband,partly because it's possible I may spend more but mostly I just don't trust how secure it'll be.I got a call from my bank about 2 months ago because someone 1000 miles away in Pennsylvania was trying to charge like $300 on my card,luckily they stopped the charge but I'm still baffled as to how they got the card info,I have a totally separate account I use only for making purchases online,I never use the card anywhere if it's going to leave my sight so the only explanation the bank gave is they probably skimmed my card which is someone walking by you with some machine and they scan the info from the card in some way,about a week later I was buying these sleeves for my cards that supposedly prevent that.So if someone got my card info while the card was in my wallet wouldn't it be a lot easier if people are just walking around with wristbands??I just don't feel the need to even risk it so I won't.

 

[wdwfan22]

There has been a lot of talk in the past months about the increase in sales that they expect. Will people buy more if they just have to tap their wrist rather than swipe a card. Disney thinks so.

The nugget I got out of that statement was that they expect it to roll out throughout Disney World by year end. '

That is a FIRST time I have heard a Disney official say an expected time frame for the roll out.

Figures. I'm going January 3 and I was hoping to miss this mess. I bet it rolls out resort wide when I'm there, and I bet it will be a disaster.

 

[bjakmom]

Maybe the extra $ was just the MB+ 'enhancements' they were selling in the test resort gift shops! LOL
One poster here reported that a CM suggested he try the band wraps to make his MB more comfortable. LOL - gotta love a company brilliant enough to sell you an uncomfortable 'ticket' and then sell you options to make it more comfortable.
I just don't get that I will buy more because I tap my band at the register rather than swipe my card. Go figure.

 

[Rileygirl]

Let's see. You had 1,000 people staying at one of two deluxe resorts with a three-day arrival window. Did they compare the spending of these 1,000 people with their last trip, taking inflation and price increases into consideration.

I have a friend who is a very high level technical person in Disney's IT department who likens the My Magic Plus as trying to run a railroad while the locomotive is still under construction. Nothing against the Disney Officers, but do you expect them to currently say the billion plus dollar effort is not working?

Fascinating. I had heard that there are many jobs currently available in the IT department, and the rate of turn over is pretty bad. But my source is not great, and I cant verify it. So, put that under the 'what the bus driver said' as far as factual evidence. Just wondering Cheshire, if your IT guy ever said anything to the effect of mice jumping off the ship in the IT department?

Maybe the extra $ was just the MB+ 'enhancements' they were selling in the test resort gift shops! LOL
One poster here reported that a CM suggested he try the band wraps to make his MB more comfortable. LOL - gotta love a company brilliant enough to sell you an uncomfortable 'ticket' and then sell you options to make it more comfortable.
I just don't get that I will buy more because I tap my band at the register rather than swipe my card. Go figure.

Its very subtle psychology, something that the big D is so phenominal at. Its impact wont be felt with 'test subjects' of such smaller numbers anyways.

But, here is the deal: If everyone has the rfid chip, and ANYONE who wishes to purchase something can do it in milliseconds, then there is NEVER a long line at the cashiers. Does that ever factor into your consideration purchasing a mickey bar, or a donald duck hat? You might think, 'Heck, the line is too big, forget it'. That wont ever "in the IT perfect world' happen again. So, maybe you wont spend more on souvineers, but its hot, and you are considering grabbing a mickey bar, or for some bizzare reason your 16 year old lad wants to try a turkey leg, and there is no lineup at all, or the line is moving lightning fast, wont that factor into your decision making process? I bet for Joe consumer it will. I bet the quick convienience of short to non existent lines at cash registers will make IMPUSLE shopping so much easier.

Also, only resort guests have hotel key cards to use the rfid, or their magic band. Now, what happens with the off site guests - they will really slow things down dont you think? They will be in the parks in big numbers buying stuff. How can we get them on our grid? How can we fix this potential problem?

Why, eventually have credit card information to be 'enabled' on the off site resort guest magic band, when the whole system rolls out. So when the offsite guest goes to book their fp+'s, there probably will be an option to add credit card info to 'make your time in Disney world truly magical' and be able to charge stuff to their magic band. NO bottle neck, no delays. Brilliant. With hotel key cards for charging stuff like in the past, there was no way to bring the off site guest onto the grid. Now, with magic band, the potential is there. Its another reason why FP+ is tied to tickets, and not hotel reservations.

Its the big longterm picture. 3000 test guests in the parks using the magic band will in no way make a measurable commercial impact. The entire population of onsite guests will make a very measurable impact. If the off site guest gets pulled in, the results will be unbelievable, in my opinion.

Nice. Marketing on a whole new level. Gives me goosebumps. Scary brilliant.

Edited to add: This actually will be a very positive impact on guests though. I know they are doing it for the money factor, but short lines, fast lines, no huge waits while someone sends the package to their home resort as the information will be encoded, thats all convienent for us. We cant hate it because its motivated by the almighty dollar, just like I wont hate the hotels for making lots of money by going 'green' and asking guests to reuse the towels. The environment wins there.
(perhaps a little machievelian of me, the ends justifies the means.....bad girl)

 

[bjakmom]

Good point - I didn't think about the effect of the lines going quicker - my experience in May with RFID card was quite the opposite - tap the card - tap the card again - cashier takes card - taps card - taps card again - it goes through - enter pin code - something wrong have to enter it again - second time it goes through. So hopefully it all works better than that once it's up and running! My faith in disneys IT capabilities is clouded by years and years of dismal performance when I've had to use it. Fingers crossed, because, apparently we are stuck with it.
That is not a deal breaker for me, if FP+, on the other hand, becomes stressful to schedule and/or use on site - that's different to me - disney is already at the max stress level for vacation fun in my life. Since they stopped allowing reasonable (IMHO) cancellation of ADRs, we just eat wherever we can now - almost always spending less than when we made daily ADRs - so they are already loosing $ on me (just an infinitesimal drop in their bucket, I know).

 

[Wendybird55]

DWillowbay - really like your way of putting it "Life's bundle of bricks"..a phrase I think I may be using in future...

 

[Princess Disney Mom]

Let's see. You had 1,000 people staying at one of two deluxe resorts with a three-day arrival window. Did they compare the spending of these 1,000 people with their last trip, taking inflation and price increases into consideration.

I have a friend who is a very high level technical person in Disney's IT department who likens the My Magic Plus as trying to run a railroad while the locomotive is still under construction. Nothing against the Disney Officers, but do you expect them to currently say the billion plus dollar effort is not working?

Good point. And were they repeat or first time visitors. After 25 trips I spend very little in the gift shops.

Sent from my iPhone using DISBoards

 

[neffernie]

II got a call from my bank about 2 months ago because someone 1000 miles away in Pennsylvania was trying to charge like $300 on my card,luckily they stopped the charge but I'm still baffled as to how they got the card info,I have a totally separate account I use only for making purchases online,I never use the card anywhere if it's going to leave my sight so the only explanation the bank gave is they probably skimmed my card which is someone walking by you with some machine and they scan the info from the card in some way,about a week later I was buying these sleeves for my cards that supposedly prevent that.So if someone got my card info while the card was in my wallet wouldn't it be a lot easier if people are just walking around with wristbands??I just don't feel the need to even risk it so I won't.

When they say skimmed, they probably meant at an ATM, gas station, or grocery store. This is by far the most common way of skimming a card. A small device is placed where you slide the card. When you put the card in, it scans the info on the magnetic strip. This is why European debit and credit cards have a chip and PIN system. Many places there won't accept our magnetic strip based cards because they are so unsecure.

Personally I feel fine with the magicbands and I work in debit fraud.

 

[luvmy3]

OP, what other reason would there be? They are a business, and like any other, their only reason for doing anything is to make more money.

 

[Maleficent Dragon]

I just don't get that I will buy more because I tap my band at the register rather than swipe my card. Go figure.

I am with you. Just because somebody has a wristband making a purchase easier doesn't mean that they have more money to spend. And I WILL NOT tie a credit card to any kind of card. If I am forced to, my vacations to Disney will come to a stop.

 

[Robo]

If everyone has the rfid chip, and ANYONE who wishes to purchase something can do it in milliseconds, then there is NEVER a long line at the cashiers.

etc etc etc.

It's not quite as slick and fast as that.
What they found early-on with the RFID tests
(in addition to the RFID cards NOT READING correctly on many swipes/taps of
the cards) is that guests, clerks and managers became worried about
security issues with the RFID devices (cards now, MagicBands pending.)

To ward off problems with the use of lost, stolen or cloned RFID devices,
they now require everyone to provide a unique PIN code for every purchase.

Disney first set things up so that only purchases over a certain amount ($50 ??)
needed to provide the PIN.
After just a short time, they made the PIN necessary for all purchases.
AND, since the PIN needs to not be "easily" heard or seen by possible nefarious onlookers,
there must be some sort of semi-private exchange of info (like a shielded input keypad.)
And, we've all been behind others in a checkout line who don't understand the keypad
and don't remember their PIN.

ARGH!

(Best laid plans, and all.)

 

[maxiesmom]

OP, what other reason would there be? They are a business, and like any other, their only reason for doing anything is to make more money.

It never ceases to amaze me that people are shocked by that! Imagine, a business wanting to make money!

Why else would any business roll something out that costs them tons of money up front? They expect to make all that money back, and then some!

 

[Rileygirl]

It's not quite as slick and fast as that.
What they found early-on with the RFID tests
(in addition to the RFID cards NOT READING correctly on many swipes/taps of
the cards) is that guests, clerks and managers became worried about
security issues with the RFID devices (cards now, MagicBands pending.)

To ward off problems with the use of lost, stolen or cloned RFID devices,
they now require everyone to provide a unique PIN code for every purchase.

Disney first set things up so that only purchases over a certain amount ($50 ??)
needed to provide the PIN.
After just a short time, they made the PIN necessary for all purchases.
AND, since the PIN needs to not be "easily" heard or seen by possible nefarious onlookers,
there must be some sort of semi-private exchange of info (like a shielded input keypad.)
And, we've all been behind others in a checkout line who don't understand the keypad
and don't remember their PIN.

ARGH!

(Best laid plans, and all.)

I'm all about the concept, and not about the execution. Apparently Disney is the same!

 

[sandbmisnfla]

Its marketing at its best they take advantage of making it "easier" for you too spend money. The idea of using something in place of real money or a debit/cc is partly convenient but too know its really done in the hopes of getting you too spend more is a turn off.

 

[brettb]

The nugget I got out of that statement was that they expect it to roll out throughout Disney World by year end.

End of which year, though? 2014 might be possible.

 

[DOOM1001]

When they say skimmed, they probably meant at an ATM, gas station, or grocery store. This is by far the most common way of skimming a card. A small device is placed where you slide the card. When you put the card in, it scans the info on the magnetic strip. This is why European debit and credit cards have a chip and PIN system. Many places there won't accept our magnetic strip based cards because they are so unsecure.

Personally I feel fine with the magicbands and I work in debit fraud.

After they got my card info and knowing I don't give my cards info out very easily I looked at some videos on YouTube showing people just walking next to you getting your cards info,they have some machine in their pants pockets stand next to you and if your card is not in a sleeve that protects it from being scanned the card info can be stolen.This is why I wouldn't feel very secure with a new technology on your wrist.I've heard of the skimming devices at ATMs and gas stations and I also go inside the gas station instead of paying outside.Basically I try to prevent issues,this being a new technology I just can't trust it,if I need to pay something after the magic bands come out I'll either pull out some cash or take my cards out of their security sleeves and use them.

 

[2Tiggies]

I am with you. Just because somebody has a wristband making a purchase easier doesn't mean that they have more money to spend. And I WILL NOT tie a credit card to any kind of card. If I am forced to, my vacations to Disney will come to a stop.

I also currently decline the option to add charging to my room key for various reasons. I feel quite happy about the magic bands if they are now using a pin system.

What I am wondering right now is more of a practical nature: In this bid to make spending so easy and to speed up check out lines at shops, are we going too see a rise in snack credits incorrectly charged to a room? So many of us have had it, saved only by being careful and checking our receipts but when lines are moving swiftly, the natural tendency is to do the same, meaning not checking as thoroughly