Thought this was an interesting article. Just shows how much WDW has outpaced inflation. There was a HUGE jump when EPCOT opened - but back then - park hopping, etc were all included in the ticket prices and there was VALUE associated with the increase. Is there now?
I think the value is twofold:
1: #ThanksShanghai - in other words, we are paying for the value that will be seen in the new park which went extremely far over budget
2: Delayed value will be experienced - we are paying now for things coming down the pike, like AK night stuff and all the things coming at HS.
But to the park guest going today? Probably little to negative value (considering HS is mostly closed right now!) in the ticket increases
1 - The opportunity for most WDW guests to experience Shanhi is slim to none.
2 - The costs associated with future projects should not be reflected in current pricing.
YES - fully believe that Disney should be profitable - but the fact that they have charged WDW guests to finance other projects to which WDW guests are not the beneficiaries is poor business practice. Additionally - the actual VALUE of WDW has gone down. Limited “street” performances, the monorail downtime, additional “hard ticket” events that limit entry hours for “regular” park ticket holders. WDW did NOT charge guests in 1980 for the cost of Epcot in 1980 for the impending opening of Epcot
Oh I agree. But that’s what we’re paying for. Will WE see value, no - but that’s where the value is hiding.
By saying that, you’re suggesting that prices won’t rise when these new things open. Prices will surely continue to rise every year as they always have. As long as the crowd levels stay where they are (or increase) Disney will continue to push ticket prices higher. It’s good business. Supply and demand, plain and simple. If/when crowd levels lower, they will either stop raising prices, slow the rate at which they rise, or offer discount packages to get people to come. They have it down to a science now. They know what they’re doing. The downside is to the consumer that can not afford $100/per person. But ultimately, it is not hurting Disney’s bottom line, which is all they care about.
No, I’m not saying that at all.
Maybe the moon being full is making people read between lines that aren’t there this morning. This is the third time I’ve been “misunderstood” today.
What I’m saying is that we are funding it now. Which @davidtyost I agree is terrible business practice. We won’t see the value of what we’re funding for years (perhaps decades at the rate of speed Disney tends to move). Prices will continue to rise, which Disney will say is due to rising cost of doing business.
And yes, the rest of what you said is true - Disney is ALWAYS assessing how far they can push the envelope. If I were a stockholder I would EXPECT them to do that. Since I’m not, it’s a much harder pill to swallow.
Still, we go…
I think the “value” is totally subjective. Regardless of what the increase is for, they parks continue to fill up so why wouldn’t they increase?
Sure, as a consumer, the increase stinks! I’d like park entry to be free! But, as a business, I don’t see much of a reason NOT to increase prices. People are still flocking to Disney parks in droves.
I think ‘value’ is highly subjective. People complain because so much is closed at HS and frankly it doesn’t bother me a bit. I didn’t really like any of the stuff that closed and I know people will shy away from the park because of that and i’m ok with that. I don’t think the opportunity is visit Shanghai is really any less for anyone. They don’t limit western visitors. Heck I don’t even live on a coast and the flight is about $730 dollars round trip. Compared to paying $400ish to go to WDW that isn’t a huge jump. I think if someone can afford WDW they could likely afford Shanghai if it was important to them to see it.
I genuinely don’t take issue with it… for now. If I were going to try and go to the park for one day I would absolutely have problems with the prices but we take advantage of getting the best value by staying longer. I think 46.00 a day is a totally reasonable price for tickets. Truthfully my point of view is if you are still going you can’t complain too much about the prices because you know full well in advance exactly what you’re paying for. It’s entirely possible that Disney will cross a threshold where going is no longer worth it to me. When that day comes I’ll just move on and take trips elsewhere.
Also a business using profits from one location to pay for the building of a new location is not bad business it’s standard business. Yes I’m sure some of the recent rate hikes have to do with the new location but they are also always working on things right there in Florida as well. If they didn’t renovate the resorts every few years, and didn’t add new shows or attractions people would throw a fit. Just my .02 though…
This is absolutely the truth! People seem to hold Disney to a higher level for some reason as though they should voluntarily make less money just to show their guests some of that, “Disney Magic” lol. Sure it sucks that the price of our trips goes up every year, but I can’t get too mad since I keep going back. They went through some rough years during the last recession and now they are trying to make up for it. And showing record attendance levels to boot lol.
@OBNurseNH it could very well be the moon. I think you make valid point
I think everyone on here has and the very fact as pointed out several times “we still go” shows that we perceive enough value to make the trek. Having gone to WDW since literally the day it opened - I have found diminishing returns at the park for the price.
When EPCOT opened - it celebrated technology - now - not so much - but the park changed to meet what the masses wanted
HS / MGM / HS / Disney’s HS - whatever it is now called. Was pathetic when it opened. It built up and now is pathetic once again
AK - I give them kudos for trying to increase the drawl - but still not there.
MK - Although they have put in a lot of money to New Fantasyland - they still need to do a lot of work on Tomorrowland (however that is an entirely different thread)
I find WDW has slowly lowered its standards. I was going to say they are completely over priced for what they are - however I just paid $250 / night for a Holiday Inn express - so I guess that is a bit moot a point.
The dining plan used to be a HUGE value. It simplified things a bit but gave great value - too much in some instances.
I have found the whole MME to really take away from the magic and instead of enhancing the experience - completely stresses people out.
Attendance is down this year - so perhaps WDW is getting the message a bit that they need to add value to the premium they charge
Oh well - we will still go back - but the frequency will change.
I completely agree with you, @outer1.
People on here, who go multiple times a year have even less to complain about, as I see it. At the very least, if they are so upset over prices and “lack of value”, then why are they going more times? If I don’t like a restaurant, I certainly don’t go back. Why on Earth would I go back to a vacation I feel has diminishing value?
Further, and I know some on here think this is “apple to oranges,” but it isn’t… $100+ a day at Disney, a place I love, and an experience that can last several hours for that $100+ is a great value to me. My other passion, theater, is also very expensive. A decent, not even Premium, seat to a Broadway show is upwards of $150. And that is for a show that could last as short as 90 minutes. And there is no guarantee that I’ll like it. (I have a friend who spent over $1K for a pair of Premium seats to Hamilton, and neither he nor is wife enjoyed it.) Give me Disney and add on a hard ticket event or two, for a whole day of joy… that is a bargain!
Finally, Disney Magic ain’t cheap! We all love a little extra Pixie Dust… but, remember, the next time you get a free After Hours ticket or a voucher for a free pair of shoes or swim suit or a free meal… they are going to make it up somewhere else. We all pay for the freebies eventually.
They have over $4billion in cash. They’re not hurting for money to build anything. They are simply charging more because they can.
Disney finance meeting -
Worker A: If we raise ticket prices by 10% this year, will people still come?
Worker B: Yes.
Worker A: But there’s nothing new this year…
Worker B: Doesn’t matter.
Worker A: But we’ve closed a bunch of things…
Worker B: Doesn’t matter.
Worker A: But we’ve…
Worker D: (interrupting) Listen, this is the Mouse, the happiest place on earth, the place everyone wants to come. We can cut services, pare down menus, cut live entertainment, add up-charges for things that used to be free and people will still come - because it’s “Disney”.
Worker A: But a lot of people can’t afford to come any more.
Worker B: Sounds like their problem. There are more than enough rich people to keep the resorts and parks full.
Worker A: But what would Walt say to that?
Worker B: Walt who?
Thats not entirely true Adam. Disney is a highly successful and very profitable Company no question. However, Disney is financing alot of things with massive amounts of debt (thanks to 8 years of zero interest rates) which arent reflected in that 4 billion. They issued at least 2.7 billion of new debt just in 2015 alone so just take that into account. I didn’t bother combing through that report, but cash net of debt is what you really want to look at if you are interested.
Second, i know alot of people see that Disney raised prices more than the CPI, but really that is a problem with the CPI not DIsney. The CPI number is very watered down to the point of almost irrelevance. It doesnt count energy, or food increases and thats just to big things. I know a number of people (I trade for a living) who use non government numbers to assess true inflation, and Disney ticket prices is one of them. It is actually a much more accurate view of inflation than any number the government puts out.
That all being said, I think everyone here is correct that they will continue to raise prices until people stop paying them…which im pretty sure is no one on this board ! LOL Including me !!!
And so Disney has found its’ consumers tolerance point.
Also of note is that the Brazilian economy is in the tank, and so they are not seeing the tour groups they have in the past.