Ticket price increase coming at Walt Disney World!

[mom2rtk]

I don't believe most of the posts claiming their threshold has been hit. Just temporary venting.

Why? When you multiply out the increases out over a number of family members, it's not small. Add in increases in resort rooms and food in the parks and it's a lot, especially for the full family.

I know a number of people who used to always have a Disney trip planned who have stepped back and are taking a break, cutting back from a full week to just a couple days, staying offsite, etc. It's all less money in the pockets of the mouse.

 

[ThistleMae]

Disney is an expensive place to run, that I can say for sure. Prices are up on all things everywhere. I can't even imagine what they pay for fireworks alone. I think they are doing what everyone else is doing, raising prices to cover all their expenses and still make a profit. Do people really feel they are being unreasonably greedy? Just curious.

 

[dlavender]

Disney is an expensive place to run, that I can say for sure. Prices are up on all things everywhere. I can't even imagine what they pay for fireworks alone. I think they are doing what everyone else is doing, raising prices to cover all their expenses and still make a profit. Do people really feel they are being unreasonably greedy? Just curious.

Yes.

As the graphs point out, they are far outpacing not only salaries, but also inflation.

Plus gas is down.

So, their direct labor has not increased (no min wage increases recently), food has not increased (not since the last price increase). I'm pretty sure given their volume, they hold their fireworks supplier hostage, not vice versa (see Walmart).....

They aren't having a profitability problem with parks. They are having it elsewhere in the company, so they are squeezing the parks.

Unreasonable? They are definitely staring it in the face.

 

[wilkeliza]

Yes.

As the graphs point out, they are far outpacing not only salaries, but also inflation.

Plus gas is down.

So, their direct labor has not increased (no min wage increases recently), food has not increased (not since the last price increase). I'm pretty sure given their volume, they hold their fireworks supplier hostage, not vice versa (see Walmart).....

They aren't having a profitability problem with parks. They are having it elsewhere in the company, so they are squeezing the parks.

Unreasonable? They are definitely staring it in the face.

Not saying it is enough to justify this raise but you can't look at just minimum wage increases when looking at Disney's direct labor costs. Disney is unionized so you have to look to the union contracts to see what labor costs start at

With that said they actually didn't need to raise the prices but they are a for profit company so if they can and the market will bear it then economics says anyone would be stupid not to. As it goes now while not everyone will be able to go to Disney (which has always been the case) the price point they are at will allow them to give better service to those that do come. They'll reach a point where there is the idea that we are paying X a day so we demand X amount of service and they'll have to provide it or they'll start to see the numbers slip. It may not show this year but I do wonder what attendance numbers for next year will be when it starts to affect package prices.

 

[dlavender]

Not saying it is enough to justify this raise but you can't look at just minimum wage increases when looking at Disney's direct labor costs. Disney is unionized so you have to look to the union contracts to see what labor costs start at

With that said they actually didn't need to raise the prices but they are a for profit company so if they can and the market will bear it then economics says anyone would be stupid not to. As it goes now while not everyone will be able to go to Disney (which has always been the case) the price point they are at will allow them to give better service to those that do come. They'll reach a point where there is the idea that we are paying X a day so we demand X amount of service and they'll have to provide it or they'll start to see the numbers slip. It may not show this year but I do wonder what attendance numbers for next year will be when it starts to affect package prices.

I think that's what we are arguing/pointing out.

A 15% increase, in some instances, does not seem warranted and I think it will adversely affect them this year. They have reached the "we are paying x a day so we demand x amount of service" plateau, IMO.

It's been pointed out anecdotally on these boards, and I presented my personal anecdotal evidence.

I've been wrong before. Who knows? They could see record attendance. The masses may think they've been underpaying the last year, and be more than happy to reach back into their wallet and throw another $50-$400 down.

If attendance does continue to slip, then I think Disney is positioning themselves to offer more package discounts. They can target the 7 day ticket specifically if they want to.

 

[TwoMisfits]

Look, I think everyone has a misguided vision of how corporations (concerned with their long term future) should work in a fully free environment. There should always be a balance between 3 parts of a triangle - the corporate profit, the employee welfare, and the customer experience. Somehow, maybe b/c of Wall Street and stock prices, everyday Americans and corporations themselves seem to be forgetting two parts to the triangle and focusing solely on the corporate profit. This narrowed focus is how you instantly lose customers when the next "new" guy hits the street. If you create no loyalty from employees, they screw your customers and your profit when they leave when you most need them for the next guy who pays a penny more. If you create no loyalty from customers, they screw your corporate profit and in turn, your employees when they leave for the next guy, putting you at risk of going under. If you create no profit, you eventually screw your employees and customers when you go bankrupt.

Businesses should really never be in the business of trying to put the screws to their customers for every last dollar, nor to putting the screws to their employees by trying to pay them the lowest possible salary the market will support...it's a recipe for a short term profit and a long term disaster.

 

[ChipnDale79]

Look, I think everyone has a misguided vision of how corporations (concerned with their long term future) should work in a fully free environment. There should always be a balance between 3 parts of a triangle - the corporate profit, the employee welfare, and the customer experience. Somehow, maybe b/c of Wall Street and stock prices, everyday Americans and corporations themselves seem to be forgetting two parts to the triangle and focusing solely on the corporate profit. This narrowed focus is how you instantly lose customers when the next "new" guy hits the street. If you create no loyalty from employees, they screw your customers and your profit when they leave when you most need them for the next guy who pays a penny more. If you create no loyalty from customers, they screw your corporate profit and in turn, your employees when they leave for the next guy, putting you at risk of going under. If you create no profit, you eventually screw your employees and customers when you go bankrupt.

Businesses should really never be in the business of trying to put the screws to their customers for every last dollar, nor to putting the screws to their employees by trying to pay them the lowest possible salary the market will support...it's a recipe for a short term profit and a long term disaster.

Spot on. Couldnt' have said it better myself

 

[wilkeliza]

I think that's what we are arguing/pointing out.

A 15% increase, in some instances, does not seem warranted and I think it will adversely affect them this year. They have reached the "we are paying x a day so we demand x amount of service" plateau, IMO.

It's been pointed out anecdotally on these boards, and I presented my personal anecdotal evidence.

I've been wrong before. Who knows? They could see record attendance. The masses may think they've been underpaying the last year, and be more than happy to reach back into their wallet and throw another $50-$400 down.

If attendance does continue to slip, then I think Disney is positioning themselves to offer more package discounts. They can target the 7 day ticket specifically if they want to.

I think they want attendance to slip while maintaining the same profits is what I was getting at. They saw it the last few quarters where actual numbers were lower but they made more. The company has not been secretive in their drive between crowd and profit. If they can charge 90 people $100 or 100 people $90, Disney has made it clear they'd rather have the 90 people paying 100. Of course you can't let the parks feel too empty so they will have to figure out the balance where lower attendance doesn't scream "abandoned".

 

[ChipnDale79]

I think they want attendance to slip while maintaining the same profits is what I was getting at. They saw it the last few quarters where actual numbers were lower but they made more. The company has not been secretive in their drive between crowd and profit. If they can charge 90 people $100 or 100 people $90, Disney has made it clear they'd rather have the 90 people paying 100. Of course you can't let the parks feel too empty so they will have to figure out the balance where lower attendance doesn't scream "abandoned".

I can't get behind the "they want less people in the parks while making the same or more money" argument. IMO they want as many people in the parks for the highest dollar they can charge them.

When i hear that argument, it comes across as spin when attendance is down.

 

[TheFloatingBear]

Look, I think everyone has a misguided vision of how corporations (concerned with their long term future) should work in a fully free environment. There should always be a balance between 3 parts of a triangle - the corporate profit, the employee welfare, and the customer experience. Somehow, maybe b/c of Wall Street and stock prices, everyday Americans and corporations themselves seem to be forgetting two parts to the triangle and focusing solely on the corporate profit. This narrowed focus is how you instantly lose customers when the next "new" guy hits the street. If you create no loyalty from employees, they screw your customers and your profit when they leave when you most need them for the next guy who pays a penny more. If you create no loyalty from customers, they screw your corporate profit and in turn, your employees when they leave for the next guy, putting you at risk of going under. If you create no profit, you eventually screw your employees and customers when you go bankrupt.

Businesses should really never be in the business of trying to put the screws to their customers for every last dollar, nor to putting the screws to their employees by trying to pay them the lowest possible salary the market will support...it's a recipe for a short term profit and a long term disaster.

Agree...your post reminds me of a very interesting documentary about the Market Basket employee strike in 2014. Have you seen "Food Fight: Inside the Battle for Market Basket?" Definitely a corporation that has a handle on the 3 parts of the triangle - I wish Disney would take a page out of their book as they are testing my loyalty!

 

[Pacolovestacos]

I think they want attendance to slip while maintaining the same profits is what I was getting at. They saw it the last few quarters where actual numbers were lower but they made more. The company has not been secretive in their drive between crowd and profit. If they can charge 90 people $100 or 100 people $90, Disney has made it clear they'd rather have the 90 people paying 100. Of course you can't let the parks feel too empty so they will have to figure out the balance where lower attendance doesn't scream "abandoned".

Disagree with the thought that Disney "want attendance to slip." Makes no sense why they would want that. I think they may be indifferent to it as long as profits continue to soar but while that may work now, I'm telling you, once the eventual recession hits, Disney will get absolutely slaughtered.

 

[TwoMisfits]

Agree...your post reminds me of a very interesting documentary about the Market Basket employee strike in 2014. Have you seen "Food Fight: Inside the Battle for Market Basket?" Definitely a corporation that has a handle on the 3 parts of the triangle - I wish Disney would take a page out of their book as they are testing my loyalty!

No, I haven't, but now it's on my list...

 

[TheFloatingBear]

No, I haven't, but now it's on my list...

It's fascinating - and I say that not just because I'm a lifelong Market Basket customer, lol - it really does speak to a "good" corporate model for all three sides of the triangle...

 

[mab2012]

I can't get behind the "they want less people in the parks while making the same or more money" argument. IMO they want as many people in the parks for the highest dollar they can charge them.

Of course they do, but that equation is not linear. I'm sure they'd love for Santa Claus to rain big buckets of money over Cinderella castle too. They can't have both.

If raising prices leads to higher profits, and so far it has, a moderate drop in attendance is not going to bother them. Is it "good business"? Probably not. Will it hurt them in the long run? Maybe, if they push it too far. Do the executives care? Not as long as profits and their stock prices are rising.

When i hear that argument, it comes across as spin when attendance is down.

Why on earth would anyone on these boards want to "spin" anything in Disney's favour? If that's how you've read my comments, you've grossly misinterpreted. I've said at least twice that I think their current ticket prices are absurd and I would be unlikely to pay them. I don't know how to state it any more clearly.

I don't like what they're doing any more than anyone else does. Doesn't mean it's not happening.

 

[mom2rtk]

I can't get behind the "they want less people in the parks while making the same or more money" argument. IMO they want as many people in the parks for the highest dollar they can charge them.

When i hear that argument, it comes across as spin when attendance is down.

That's exactly what it is.

 

[ChipnDale79]

If raising prices leads to higher profits, and so far it has, a moderate drop in attendance is not going to bother them. Is it "good business"? Probably not. Will it hurt them in the long run? Maybe, if they push it too far. Do the executives care? Not as long as profits and their stock prices are rising.

I don't know, I kind of think the moderate drop does bother them, hence the ramped up promos.

Why on earth would anyone on these boards want to "spin" anything in Disney's favour? If that's how you've read my comments, you've grossly misinterpreted. I've said at least twice that I think their current ticket prices are absurd and I would be unlikely to pay them. I don't know how to state it any more clearly.

I don't like what they're doing any more than anyone else does. Doesn't mean it's not happening.

I think people on here spin things all the time because they love the mouse so much and he can't do wrong.

Not saying you're like that, if it came across that way, I apologize.

I think Disney has made good moves from a short term standpoint, but their long term standpoint is pretty bad, just my opinion though.

 

[aprincessatlast]

Look, I think everyone has a misguided vision of how corporations (concerned with their long term future) should work in a fully free environment. There should always be a balance between 3 parts of a triangle - the corporate profit, the employee welfare, and the customer experience. Somehow, maybe b/c of Wall Street and stock prices, everyday Americans and corporations themselves seem to be forgetting two parts to the triangle and focusing solely on the corporate profit. This narrowed focus is how you instantly lose customers when the next "new" guy hits the street. If you create no loyalty from employees, they screw your customers and your profit when they leave when you most need them for the next guy who pays a penny more. If you create no loyalty from customers, they screw your corporate profit and in turn, your employees when they leave for the next guy, putting you at risk of going under. If you create no profit, you eventually screw your employees and customers when you go bankrupt.

Businesses should really never be in the business of trying to put the screws to their customers for every last dollar, nor to putting the screws to their employees by trying to pay them the lowest possible salary the market will support...it's a recipe for a short term profit and a long term disaster.

Fantastic post! I must admit it has made me wonder if Disney will fail at some point. Not saying they will but no company is too big to fail. I know many people IRL who have moved on from Disney due to value nor recommend it any longer. They do not seem to have that triangle figured out. It started with the employees and has now entered into the customers. Time will tell if it hits the third note on the triangle?

 

[Planogirl]

Fantastic post! I must admit it has made me wonder if Disney will fail at some point. Not saying they will but no company is too big to fail. I know many people IRL who have moved on from Disney due to value nor recommend it any longer. They do not seem to have that triangle figured out. It started with the employees and has now entered into the customers. Time will tell if it hits the third note on the triangle?

I agree. See JC Penney and Sears lately.

I think that Disney is at least partially enjoying the rewards of past success. How long can that go on?

 

[lockedoutlogic]

I don't need to read 12 pages of this to see that nothing has changed.

Some say "what the hell?"

But they are drowned out by "should I buy now?"

This is why the ball is gonna keep on bouncing...nothing but increases no matter what.

We will pay for those priced out until we are priced out. It's that simple.

The main "significant" change is the expirations on all tickets...I'm shocked it took this long. Never any reward for loyalty in today's Disney...buy now - spend more, come back next year and spend more again.

I'm sure avatar will
Make it all better

 

[lockedoutlogic]

Yes.

As the graphs point out, they are far outpacing not only salaries, but also inflation.

Plus gas is down.

So, their direct labor has not increased (no min wage increases recently), food has not increased (not since the last price increase). I'm pretty sure given their volume, they hold their fireworks supplier hostage, not vice versa (see Walmart).....

They aren't having a profitability problem with parks. They are having it elsewhere in the company, so they are squeezing the parks.

Unreasonable? They are definitely staring it in the face.

...nothing else to say...but I have my claws ready for defenders who mistakenly come into the reserve...