Disney cultivating "better customers" ?

[bigdisneydaddy]

I dont have the exact verbiage to quote but I read the other day that Disney is attributing their improved profits in this last quarterly report to the fact that they are cultivating customers that spend more per day. This goes along with the steep price increases at the resorts and the loss of any longer term discounts and the 30 day limit at the Fort. It was also implied that it may spell the end for Annual passes.
This seems to dovetail with the recent actions by the Chapek team. I guess they just figure they can keep squeezing.

 

[Brocktoon]

You can read Chapek's CNBC earnings interview transcript here:

CNBC Chapek Transcript

BOORSTIN: So the lowest price days have stayed the same. But the truth is, is that the more crowded times, the more popular times those prices have gone up. There’s been backlash online. People want to be able to afford to take their families, how do you address those concerns and what is driving those prices up? Is it inflation, is it labor shortages?

CHAPEK: Demand. This is a supply and demand business. Unfortunately, unlike say Disney+, we have a fixed supply and we commit to our guests to give them the absolute best Disney experience no matter when they come. And, you know, one of the ways that we do that is by taking those guests that want to have a more bespoke, more personalized, more customized, more expensive day and using that essentially to keep the lower prices on again, the second Tuesday in September. And so, it’s really demand that drives it.

 

[disneyseniors]

He needs to go, ASAP, before he completely ruins the brand name. It is difficult, if not impossible, to build up a brand name once it is "gone". Remember Sears,, to name only one?

 

[JamesWinston]

He needs to go, ASAP, before he completely ruins the brand name. It is difficult, if not impossible, to build up a brand name once it is "gone". Remember Sears,, to name only one?

Disney needs to be given a nice fat lip, but it’s the biggest bully on the block and isn’t afraid of anyone. Chapek is doing what he was hired to do- be the hatchet man, and provide profits for shareholders at any expense. A coordinated boycott could work, but that would never happen because the consumer base is so diverse and international. Maybe Universal will give them a left hook in a few years.

 

[bama_ed]

I dont have the exact verbiage to quote but I read the other day that Disney is attributing their improved profits in this last quarterly report to the fact that they are cultivating customers that spend more per day.

Of course. They keep raising prices for rooms, tickets, crappy food, and lame entertainment and the price-sensitive people drop out. The die-hards hang in there.

There is limited product supply and they don't want to fill that pipeline with cheap folks, low-spend passholders, and leisurely touring tourists. They want it filled with in-and-out, theme park warriors, will-pay-any-price to ride Space Mountain types who will eat Tony's (MK) red sauce swill without questioning it. As we say in regards to the Fort, if you don't want to pay the price for a campsite at that level for that time of year, there is someone out there who will.

The WDW Vacation these days requires a Budget Director in your family as well as an Entertainment Director.

I'm just keeping my head down, doing Tent level sites some times, travelling in low-cost periods some times, eating at the campsite some times, splurging very rarely (although one of those trips is coming up soon). Everyone has their own threshold point.

Bama Ed

 

[cxr]

Disney needs to be given a nice fat lip, but it’s the biggest bully on the block and isn’t afraid of anyone. Chapek is doing what he was hired to do- be the hatchet man, and provide profits for shareholders at any expense. A coordinated boycott could work, but that would never happen because the consumer base is so diverse and international. Maybe Universal will give them a left hook in a few years.

i think as soon as interest rates rise they are gonna get punched in the mouth and attendance is gonna drop dramatically. but i bet prices wont.
i dont remember them decreasing in 2008

 

[bama_ed]

i think as soon as interest rates rise they are gonna get punched in the mouth and attendance is gonna drop dramatically. but i bet prices wont.
i dont remember them decreasing in 2008

This is a good point, @cxr. They didn't decrease prices then but there were all kinds of discounts and deals that eventually went away when the economy recovered.

 

[TCRAIG]

I take great delight in the fact that I’m Bob’s worst nightmare- a cheapo deluxe repeat guest! I bought many of my DVC points long ago resale when they were dirt cheap and had no restrictions, keep renewing my discounted AP so I don’t buy tickets, go 4x a year for a week at a time and stay in a 1Br villa and drive, so we eat very few meals at Disney (like maybe 3 for the whole week) and don’t usually buy any souvenirs or snacks…

 

[tiggerdad]

There are people who eat the sauce at Tony's?

Disney has priced me out as far as Disney dedicated vacation. I am going to Yellowstone via the Black Hills this summer for 2 weeks and even with fuel prices up I'm about same cost as a week stay at Disney. Eventually the pricing will effect enough people to hurt Disney then it'll be too late. I've felt shoved out the door by Disney for few years now considering what we used to get compared to now. Far, FAR fewer perks and entertainment for massively higher price.

I'll be there in March 2023 because my oldest DDs band will perform in Main Street parade. After that I don't see it unless something serious changes.

Shame really.

 

[Chilbert]

Has Disney started selling "Preferred Guest" tee shirts yet ???

 

[bigdisneydaddy]

Has Disney started selling "Preferred Guest" tee shirts yet ???

I bet its only a matter of time.

 

[bama_ed]

Has Disney started selling "Preferred Guest" tee shirts yet ???

Then if you are willing to pay more, will the t-shirt say "Premium Guest"?

 

[StormyCA]

Well at least he's upfront about it. Or too stupid to disguise it.

We aren't priced out of FtW and WDW quite yet, but I can see it happening. The good thing about RV'ing is that you can easily combine other destinations with a 'shorter' WDW stay to still make the trip worthwhile. We've always done more destinations than just WDW; the Smokies, Yellowstone, Denver area, The Keys, even DLR for the 60th. Not so easy for those who fly in from all over.

 

[Teamubr]

We aren't priced out yet, but I would say we are unhappy enough with the "value" of the experience. Our 2 weeks in January were nice, but everyday reminded us of something missing (TE buffet, HDDR, little boats to CR/WL) or required a new upcharge for something we used to have as part of the reservation fee. And the lines for everything, in a supposed "slower" time, were getting old by the end of 2 weeks.

We already have bigger trips mapped out for 2022 and 2023. I doubt I'll be back to WDW for a couple of years. I have been contemplating taking a long weekend when we have enough Disney Visa points built up and flying down for a few days at Boardwalk or Yacht Club. That will probably take 18 months or so to have enough points for that.

j

 

[Teamubr]

Funny how this topic has been bouncing around here for a while. But soon after Chapek's comments and the shareholder meeting last week, this pops up on my Fb feed.



j

 

[bigdisneydaddy]

You would think a multi national media and entertainment would have decent cable..... but you would be wrong. What an absolute mess it STILL is, yet here I am at a random RV park tonight in the middle of the boonies yet I have twice as many channels and they are all crystal clear. Plus the entrance gate actually works when I use the media they gave me.

Perhaps Disney should try being a better Disney before looking outside.

Perhaps they could spend some of that mountain of money their general counsel just got on actual customers.

 

[2goofycampers]

They want you in the parks not watching TV or using the WiFi.

 

[tiggerdad]

They want you in the parks not watching TV or using the WiFi.

This right here

 

[bigdisneydaddy]

Were it not for a good cell signal I would not have been able to use the MDE app. For the every tripth time, the wi-fi was an outhouse on fire inside a dumpster. After the first day I turned it off and just used cell data. Darn me and my unreasonable expectations.
I hate to sound bitter but I dont pay Disney prices for mediocrity.
Disney has now become like an addicted friend, I keep hoping things have bottomed out but then they keep descending.

 

[tiggerdad]

Were it not for a good cell signal I would not have been able to use the MDE app. For the every tripth time, the wi-fi was an outhouse on fire inside a dumpster. After the first day I turned it off and just used cell data. Darn me and my unreasonable expectations.
I hate to sound bitter but I dont pay Disney prices for mediocrity.
Disney has now become like an addicted friend, I keep hoping things have bottomed out but then they keep descending.