Why does disney charge higher prices at busy times?

[Allison]

It is how the tourism industry works. Ever book a week at a lake resort or the beach or something similar over the 4th of July? It's a basic business premise-supply and demand.

 

[mom2rtk]

I think the extra revenue would certainly help to pay for the extra CM's that you see during regular operating hours, but I'm not sure it would cover the MK being open at 7am every morning or closing at 1am every night (and sometimes even later with EMH).

We'll never know because we don't have access to the numbers. But I don't believe for a minute they would offer those extra hours if they were losing money on the deal.

Don't forget EMH access is tied to resort occupancy. And those resorts are at peak occupancy during those times and peak pricing as well.

 

[cjparker0110]

As one PP already pointed out it comes to supply and demand. This is a basic Econ 101 concept that is taught in any business class. As demand for something rises, the available supply of that item drops...to the point that there could be less of it available than there are customers for it. Because of that, the cost, and does, increase. Looking at Disney is an easy way to learn this lesson.

They have a finite number of hotel rooms as well as a maximum occupancy rate for their parks. When peak periods come along there are more people wanting to visit the parks/hotels. Because the hotel rooms might sell out, and the max occupancy rate is going up, they raise the prices at this time due to the lack of available supply/space.

On the other hand there are slow periods in which the price drops low and they even give away free things (like dining plans) to encourage people to come. Why? Because they will have too many empty rooms and tons of available space. By offering somebody an extra $100-200 iin services for free, they will get someone to spend $1500-4000. Pure genius.

The more supply there is, the less demand that exists...and that means prices drop.

The more demand there is, the less supply available...and that means prices go up.

 

[Tonka's Skipper]

DISNEY IS DOING WHAT EVERY OTHER COMPANY DOES, MORE DEMAND, HIGHER PRICES.

A very common and well known practice. Even the small local parks (and other businesses) charge more on the weekends. Less during the week days to try and bring in guests.

There is nothing wrong with that.

If anyone doesn't feel its fair,,,,,,,,,,,don't go!

 

[Disneylover99]

We'll never know because we don't have access to the numbers. But I don't believe for a minute they would offer those extra hours if they were losing money on the deal.

Don't forget EMH access is tied to resort occupancy. And those resorts are at peak occupancy during those times and peak pricing as well.

The MK is open to everyone until 1am during Christmas week. And the amount of CM's working during this time boggles my mind.

 

[Gumbo4x4]

We stay offsite. So for us, the price Disney charges us is EXACTLY the same regardless of when we visit

 

[Mikie]

We stay offsite. So for us, the price Disney charges us is EXACTLY the same regardless of when we visit

Interesting point. We've always stayed onsite' so "peak", "value", "holiday" seasons mean big differences in our total vacation price. Our next trip won't be til 2017 of even 2018 and we're considering offsite. I am in such a Disney-pricing mindset, I wa still thinking of "pricing seasons". . . If we look offsite, I wonder if those prices vary as wildly as Disney resorts and whether their low price times differ. I assume if the prices do fluctuate, holidays like Zchristmas & July 4 are high, but I wonder if general "fall", "spring", "summer" seasonal price changes have same or different timing.

 

[larryz]

I assume if the prices do fluctuate, holidays like Zchristmas & July 4 are high, but I wonder if general "fall", "spring", "summer" seasonal price changes have same or different timing.

I don't know when this holiday is, but I like it! Everyone should have their own holiday!

 

[Gumbo4x4]

Interesting point. We've always stayed onsite' so "peak", "value", "holiday" seasons mean big differences in our total vacation price. Our next trip won't be til 2017 of even 2018 and we're considering offsite. I am in such a Disney-pricing mindset, I wa still thinking of "pricing seasons". . . If we look offsite, I wonder if those prices vary as wildly as Disney resorts and whether their low price times differ. I assume if the prices do fluctuate, holidays like Zchristmas & July 4 are high, but I wonder if general "fall", "spring", "summer" seasonal price changes have same or different timing.

I think there's definitely some variance, especially on the absolute peak holiday weeks. But generally speaking, I don't believe the offsite prices vary as wildly as onsite prices - mainly because it seems there is almost always excess capacity.

 

[LilyWDW]

Economics...

That really is the only word needed to answer the question.

 

[Mikie]

Yeah. . . Caps is right by the Z and I fat-finger the key often. However, Zchristmas could catch on! Might be bigger than Festivus! Certainly, the Zdis (see, did it again) DIS is adept at the "airing of the grievances"

 

[Polydweller]

They do it because they can.

The same reason hotel prices fluctuate. They increase because they know people are coming regardless and will pay it.

Though there's some truth to these statements it's more complicated than these simplifications.

The parks are open longer, there are more CM's working, throughout the day.....Disney has to pay their people.

This gets a little closer to what's happening. In our hotel group we have peak, shoulder, and off seasons. The lowest staffing is in off season and the operations costs of the hotel are a lot less, including less electricity and water use due to lower occupancy. And the reduced prices don't really bring in significantly increased customers.

As you go from shoulder through peak the number of staff increases dramatically. You need more front desk, valet, cleaning, maintenance, well more staff everywhere. And operating costs increase dramatically as well. So, the hotel had to cover them.

There is one other factor. In most hotels, you have to make your money in peak season. You will likely make just more than cost and in low season you lose money. I suspect Disney doesn't have those issues to the same extent but the principle is the same, a business makes its money when it can and in the hotel business that's peak season.

 

[Eldon_Brasche]

Demand affects prices of practically every good and service available, not just the tourism industry.

 

[RustManFan]

It certainly does put more stress on CMs!

 

[mickeyluv'r]

There is one other factor. In most hotels, you have to make your money in peak season. You will likely make just more than cost and in low season you lose money. I suspect Disney doesn't have those issues to the same extent but the principle is the same, a business makes its money when it can and in the hotel business that's peak season.

I think this is closest to the truth.

I wouldn't be surprised if even Disney has days where they lose money (so to speak). Even on slow days there are operational costs like Illuminations. The cost of Illuminations (minus special versions) is the same no matter how many guests watch it.

Sure they can reduce MK hours, and that impacts how long the boats run- but they still have to maintain the boats every day, and they still need to monitor the parking lots 24hours a day. Even on very slow days, guests don't wan to wait an hour between buses.

 

[HopperFan]

We stay offsite. So for us, the price Disney charges us is EXACTLY the same regardless of when we visit

Interesting point. We've always stayed onsite' so "peak", "value", "holiday" seasons mean big differences in our total vacation price. Our next trip won't be til 2017 of even 2018 and we're considering offsite. I am in such a Disney-pricing mindset, I wa still thinking of "pricing seasons". . . If we look offsite, I wonder if those prices vary as wildly as Disney resorts and whether their low price times differ. I assume if the prices do fluctuate, holidays like Zchristmas & July 4 are high, but I wonder if general "fall", "spring", "summer" seasonal price changes have same or different timing.

I think what the poster meant was that if she is staying offsite then what she pays Disney - tickets and parking - cost the same no matter what time of year they go. Now if Disney goes to tiered park tickets that may not be the case anymore.

But no the prices offsite can vary widely depending on the resort and time of year. Some shift their prices minimally and some a lot.

To OP - since you seem to be addressing the park and crowds there, then at this point in time Disney does NOT charge different prices for different times of year. If you are talking about the hotels, well that is hotel standard, not just Disney. Actually other hotels tend to raise prices the closer you get without a reservation whereas Disney seems to hold tight to their posted prices. It is not unusual at all.

 

[bbjunkie]

We stay offsite. So for us, the price Disney charges us is EXACTLY the same regardless of when we visit

At least for the time-being. .

But wherever you stay, unless it is with a relative, they are also likely to charge more at peak times. It happens everywhere for everything. We have a trip to Charleston SC this summer for my daughter's national dance competition and the hotel rate is $160 on Tues, Wed, and Thurs, and $310 for Fri, Sat and Sun. Same room, same reservation, same everything. The demand goes up on the weekend: higher prices.

 

[Disneylover99]

To OP - since you seem to be addressing the park and crowds there, then at this point in time Disney does NOT charge different prices for different times of year.

But Disney does charge extra for buffets during peak periods and that is something the OP mentioned.

 

[HopperFan]

I have always wondered why Disney charges more money during busy times (Christmas week/Easter week etc). The way I look at it is that you get a lot less since the crowds are so heavy and it's not as enjoyable to visit in massive crowds. Does Disney raise the prices to deter people from going at busy times, to keep the crowds lower? Do they just charge extra because they can? I have always wondered this and have always felt that the prices should be lower when the crowds are super high (why pay high prices when there is a 3 hour wait for Soarin? or space mountain?) They also charge extra for food. Why?

But Disney does charge extra for buffets during peak periods and that is something the OP mentioned.

Yes, but I was only responding to it in the terms I did because the OP seemed mostly focused on the crowds in the parks. They do not charge more to go in the parks - yet. Even a sold out hotel does not create crowds at the hotel enough to really impact a trip. Specialty Dining is the same category as hotels, supply and demand.

But in regards to that dining I think that those inflated prices encourage onsite booking at higher hotel rates so they can get the Dining Plan and do all those meals .... feeling like they are getting a better value.