Why give Florida residents a discount?

[kandb]

I know the parks are more crowded then ever. Attendance is up a lot and it doesn't seem like it is going to slow down anytime soon. I always wondered why Disney gives a great discount to Florida residents. There are many amusement parks that don't give discounts just because you live in the same state the park is in. I don't think Disney owes anything to Florida residents and since they are looking to cut down on crowds, maybe they should not discount Florida residents anymore. I am sure if I was a Florida resident, I wouldn't go for this idea but why crowd the parks with Florida residents who pay considerably less? Does anyone else in other parts of the country, get discounts because they are a state resident? Why does Disney discount Florida residents?

 

[MickeyWaffles]

I believe they give the FL discount to motivate residents to make last minute trips and fill otherwise unused rooms, and to make $$$ during lower attendance times (which I realize are few and far between anymore.)

For example, Florida residents can easily hop in the car for a very last minute weekend or mid-week trip. They may stay for a couple nights. Rooms that were not booked far out and otherwise may not have been filled are then filled.

The idea is also that a FL resident can go to WDW more frequently due to their proximity. They are rewarded based on the idea that they can go more frequently. It also encourages residents to go more often. They'll spend money on food and merch like everyone else and Disney won't lose anything.

I am not a resident and have no problem with the Florida discount.

 

[Bluegrrl]

Because. WDW is a huge part of our economy here in Florida. HUGE! Most of my friends here worked, have worked or know others that have worked at Disney/universal/Sea World or a combo of all three.

Disney uses our land, water, and human resources. They are in our politics constantly. Ever wonder why Rosie O'Gradies closed? Two words - Pleasure Island. Disney is in everything down here.

When 911 happened and people were terrified to fly, florida residents saved Disney by going there. After our trifecta of hurricanes hit Orlando, Florida residents saved Disney. We make Disney.

So, yeah, Disney owes Florida residents a lot. They are a big mouse around here and need to court us instead of screwing us around here.

 

[5kidsmommy]

For the above reasons. Not that it matters I think it's awesome for them. When we lived in Southern California we could get Disneyland discounts, it was awesome. I'm not a Florida resident but I have no issues with them getting discounts.

 

[Robo]

The point is, if Disney execs don't want to encourage return guests (which is a major conjecture regarding why they are making so many CUTS in staffing and services at this time,) why would they, at the same time, try to encourage locals to fill up the parks?

 

[larryz]

The point is, if Disney execs don't want to encourage return guests (which is a major conjecture regarding why they are making so many CUTS in staffing and services at this time,) why would they, at the same time, try to encourage locals to fill up the parks?

I think they were betting that locals don't use their APs all that frequently. Exit polling probably showed numbers higher than they liked, hence the huge bump in prices and blackout dates for FL APs...

 

[DavidNYC]

Main reason is proximity results in more frequent short trips which is not how Disney prices it tickets. The FL resident options allow that.

 

[Bluegrrl]

IDK. Disney isn't making any sense to me right now. But we still get something of a discount. It will be interesting to see what happens when their core customers turns.

 

[Robo]

Also... Eliminating the Non-Expiring ticket has cut the way some FL residents were able to minimize their cost of visits.

 

[kandb]

Because. WDW is a huge part of our economy here in Florida. HUGE! Most of my friends here worked, have worked or know others that have worked at Disney/universal/Sea World or a combo of all three.

Disney uses our land, water, and human resources. They are in our politics constantly. Ever wonder why Rosie O'Gradies closed? Two words - Pleasure Island. Disney is in everything down here.

When 911 happened and people were terrified to fly, florida residents saved Disney by going there. After our trifecta of hurricanes hit Orlando, Florida residents saved Disney. We make Disney.

So, yeah, Disney owes Florida residents a lot. They are a big mouse around here and need to court us instead of screwing us around here.

When you say Disney uses Florida's land. Does that mean Disney doesn't own the land the parks are on? Just curious, I was under the impression Disney owned all the land they have their parks on. Does Disney pay their fair share of taxes to Florida? I would imagine all the taxes that Disney brings into Florida really helps the Florida residents, not vice versa.

 

[chelynnah]

It's not just Disney though, most of the parks offer FL resident discounts. If Disney didn't do it they would lose all that revenue to the other parks.

 

[Robo]

It's not just Disney though, most of the parks offer FL resident discounts. If Disney didn't do it they would lose all that revenue to the other parks.

But, again, the point of this is that if (IF) Disney execs don't want to encourage return guests (which is a major conjecture regarding why they are making so many CUTS in staffing and services at this time,) why would they, at the same time, try to encourage locals to fill up the WDW parks and pay LESS than first-time non-resident guests?

 

[DebbieB]

When I've traveled to my company's Orlando office, most do not go to Disney very often. They are more Universal fans, especially those with teens. They are trying to compete for their business.

I know the October AP price change reduced the Florida Resident/DVC Member discount. At one time it was $150 off, now it's $100.

 

[kandb]

But, again, the point of this is that if (IF) Disney execs don't want to encourage return guests (which is a major conjecture regarding why they are making so many CUTS in staffing and services at this time,) why would they, at the same time, try to encourage locals to fill up the WDW parks and pay LESS than first-time non-resident guests?

I have to agree. I am sure Florida residents spend a lot less money at the parks then out of state guests. It would make total sense. Most Florida residents go and probably drink/eat/buy sourvenirs minimally, unlike people who are going on a "real vacation".

 

[Robo]

When I've traveled to my company's Orlando office, most do not go to Disney very often. They are more Universal fans...

Unlikely that extrapolates to all Fl residents.
(Any more than that would hold true for California residents and those same two operations.)

 

[chelynnah]

i think there's probably certain back room type agreements/cooperation between all the parks, all raise their parking prices at the same time and keep it uniform, all offer the discounts, all put in the metal detectors at the same time...

even if the long term goal is recognising they make their money from the one and done, or one every few years, they do need some of the stable guaranteed revenue.

And the backlash if they revoked the local discount I think could truly hurt them. jmpo

 

[Robo]

i think there's probably certain back room type agreements/cooperation between all the parks, all raise their parking prices at the same time and keep it uniform, all offer the discounts, all put in the metal detectors at the same time...

What you are describing is literally "price fixing." It is serious violation of trade laws.

https://www.ftc.gov/tips-advice/com...itrust-laws/dealings-competitors/price-fixing

"Price fixing is an agreement (written, verbal, or inferred from conduct) among competitors that raises, lowers, or stabilizes prices or competitive terms. Generally, the antitrust laws require that each company establish prices and other terms on its own, without agreeing with a competitor."

 

[courtneybeth]

The point is, if Disney execs don't want to encourage return guests (which is a major conjecture regarding why they are making so many CUTS in staffing and services at this time,) why would they, at the same time, try to encourage locals to fill up the parks?

Confirmation of said item in your bolded text? I'm not following.


Park revenue is more than ticket sales. It's everything purchased within the park - food, merchandise, rooms, etc. Locals without passes may not consider going because ticket prices are high (for example - it's a lot to go for just one or two days), but if they reduce admittance costs with special deals but not all the way to passholders, there's an untapped market segment now entering the park and purchasing the food, merchandise, rooms, etc.

There is no confirmation as to whether or not a local or tourist will spend more money. A tourist goes once in a life time (unless they're like us on the DIS), but locals can go multiple times and while they pay less to get in, it's possible over time may spend more in food, merchandise and the like.

I am in Southern California and may be using too much Disneyland logic on this -- but this is the impression that I've gotten over the years. At Disneyland we have the Southern California Flex ticket promotion going on -- 3 days at a park for $180 - or $60 per day. It's bringing locals who have been priced out of the park, but they're doing FULL DAYS, complete with three meals and some character experiences, plus buying merchandise. It'll be interesting to see how the California Adventure Food and Wine festival will be impacted with attendance - I'm sure the price per visit will increase as that promotion happens during the month of April.

But similar logic should apply to Florida. Previously untapped market segment, sweetening the deal, and the profits are increased. Taking the hit on ticket revenue but gaining food sales and merchandise purchases in the long run is still a profit overall.

 

[chelynnah]

What you are describing is literally "price fixing." It is serious violation of trade laws.

https://www.ftc.gov/tips-advice/com...itrust-laws/dealings-competitors/price-fixing

"Price fixing is an agreement (written, verbal, or inferred from conduct) among competitors that raises, lowers, or stabilizes prices or competitive terms. Generally, the antitrust laws require that each company establish prices and other terms on its own, without agreeing with a competitor."

Yup, but it does seem funny then that it all 'just happens' at the same time.

 

[Robo]

Confirmation of said item in your bolded text? I'm not following.

It's not MY conjecture.
It has been a part of the MASSIVE web discussions as to why the Disney execs are making so, SO many cuts in the quality of the parks.
Cuts that really would not be noticed by first time guests, but diminish the enjoyment of many loyal return customers.