Disney Skyliner (Gondola Transportation System) Read Post 1 Now Open!

Room rates are going up because the Skyliner is more desirable than the bus, not because it costs more to operate.
Operating costs may be less, but they may also be adding in the amortized cost of building the system. And if they continue to offer somewhat reduced bus service in addition to Skyliner, the combined operating cost may be higher than full bus service alone.
 
Operating costs may be less, but they may also be adding in the amortized cost of building the system. And if they continue to offer somewhat reduced bus service in addition to Skyliner, the combined operating cost may be higher than full bus service alone.
While that may be true, that still isn't why the room rates are going up. They are going up because people will pay for the increase, largely due to the benefit of the Skyliner.

I did just do the math, amortized over 10 years it would be $12.50 per night per room if the $300M number is to be believed. If they don't dump the busses I really don't understand why they built this.
 


Room rates are going up because the Skyliner is more desirable than the bus, not because it costs more to operate.
Where did I say it costs more to operate than buses?

What I said is there is a fee associated with transportation. That fee is charged to each resort based on it's share of transportation costs for the entire transportation system that services the resort. A resort that is served by multiple transportation systems will pay more than a resort that is only served by one source. That fee is then factored into the rack rate. MK resorts pay for monorail, boat and bus. Epcot resorts, POR, the Fort and OKW pay for boat and bus. All Stars, AKL, SSR and Coronado pay for bus. Now CBR, POP, AOA and Riviera will pay for Skyliner and bus. CBR is not going to see much of a fee reduction for less bus service as it still has the internal shuttle, WWOS shuttle and non Skyliner parks.

Skyliner resorts now have both buses and the Skyliner, therefore it is a fact that rack rates will by increased. Even though bus service may be decreased to Epcot and DHS, those resorts still have 2 modes of transportation that they pay for.
 
New video of testing at DHS and POP/AoA stations - and can see a bit more into the stations as some fencing down at both

 
While that may be true, that still isn't why the room rates are going up. They are going up because people will pay for the increase, largely due to the benefit of the Skyliner.

I did just do the math, amortized over 10 years it would be $12.50 per night per room if the $300M number is to be believed. If they don't dump the busses I really don't understand why they built this.

It may likely have been some of the justification of building a DVC property on a non-Deluxe resort site.

And even if they do only reduce buses being used by the resorts on the line instead of removing them altogether, that alleviates strain on the bus system elsewhere by making more resources available while still offering prompt, reliable transport for 1/3 of the rooms on property. Not to mention it could be a cost-effective trial run for ***WARNING: SACRILEGIOUS COMMENT AHEAD*** future monorail replacement (let's face it, the beams aren't getting any more stable and replacing the currently significantly outdated fleet of trains has proven to be troublesome).
 


hat is only served by one source. That fee is then factored into the rack rate. MK resorts pay for monorail, boat and bus. Epcot resorts, POR, the Fort and OKW pay for boat and bus. All Stars, AKL, SSR and Coronado pay for bus. Now CBR, POP, AOA and Riviera will pay for Skyliner and bus. CBR is not going to see much of a fee reduction for less bus service as it still has the internal shuttle, WWOS shuttle and non Skyliner parks.

Skyliner resorts now have both buses and the Skyliner, therefore it is a fact that rack rates will by increased.
Except, if they eliminated the buses being replaced by the Skyliner, the bill for the bus goes down. The assumption on here has been the operational expense of the Skyliner would be less than buses, lowering the overall cost to the resort. Of course, you then have the capital expenditure that has to be amortized as well.

Rack rates are set by demand for the room and what people are willing to pay, not by resort expenses. That is why margin goes way up on more premium resorts, what people are willing to pay goes up much faster than expenses.
 
It may likely have been some of the justification of building a DVC property on a non-Deluxe resort site.

And even if they do only reduce buses being used by the resorts on the line instead of removing them altogether, that alleviates strain on the bus system elsewhere by making more resources available while still offering prompt, reliable transport for 1/3 of the rooms on property. Not to mention it could be a cost-effective trial run for ***WARNING: SACRILEGIOUS COMMENT AHEAD*** future monorail replacement (let's face it, the beams aren't getting any more stable and replacing the currently significantly outdated fleet of trains has proven to be troublesome).
Yeah, that is true, even if they don't full get rid of the buses, just the increased desirability of rooms will pay for this system pretty quickly. I agree they probably would've had a hard time selling Riveria at $200/pt with only bus service.
 
Except, if they eliminated the buses being replaced by the Skyliner, the bill for the bus goes down. The assumption on here has been the operational expense of the Skyliner would be less than buses, lowering the overall cost to the resort. Of course, you then have the capital expenditure that has to be amortized as well.

Rack rates are set by demand for the room and what people are willing to pay, not by resort expenses. That is why margin goes way up on more premium resorts, what people are willing to pay goes up much faster than expenses.
Yes and no.

Resort expenses always get factored into room rate. Yes, other things like location, views, demand and amenities also are factors in determining the published rate. Expenses always set the base starting point.

They are not eliminating buses. Right now they are supplementing them to certain parks (Studios and Epcot). I'm sure that at some point, scheduled bus service will be eliminated and only be either on demand or replacement (Skyliner down) service will be the norm. I'll bet a Mickey bar that the Skyliner will not start as early as the buses currently do and will end evening service before the park is clear (just like the monorail) and buses will be online for those parks at those times from those resorts.

Once that happens, bus expense will go down, Skyliner expense will stay the same and probably, rack rate will go up because they can.
 
I'll bet a Mickey bar that the Skyliner will not start as early as the buses currently do and will end evening service before the park is clear (just like the monorail)
Done!

/* Reminder set for March 5th 2020 */

For Future reference, from the

WDW Transpotation FAQ said:
Our complimentary Resort transportation—including buses, monorails and boats—generally operate from 45 minutes before a theme park’s opening time until one hour after a theme park’s closing time.
 
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cranbiz said:
I'll bet a Mickey bar that the Skyliner will not start as early as the buses currently do and will end evening service before the park is clear (just like the monorail)

Done!

/* Reminder set for March 5th 2020 */

For Future reference, from the

WDW Transpotation FAQ said:
Our complimentary Resort transportation—including buses, monorails and boats—generally operate from 45 minutes before a theme park’s opening time until one hour after a theme park’s closing time.
Believe me, I know the posted guidelines. I also know how things really operate having been a bus driver for 5 years. The buses start between 6am and 6:30am every day. The buses run until a park is clear of day guests, which is always more than an hour after published closing time ( I have seen up to 3 hours after close). At DS, the buses run until 02:15.

The monorail and boats start one hour before park opening and usually up to one hour after park closing time. I fully expect the Skyliner to do the same as boats and monorails.
 
Believe me, I know the posted guidelines. I also know how things really operate having been a bus driver for 5 years. The buses start between 6am and 6:30am every day. The buses run until a park is clear of day guests, which is always more than an hour after published closing time ( I have seen up to 3 hours after close). At DS, the buses run until 02:15.

The monorail and boats start one hour before park opening and usually up to one hour after park closing time. I fully expect the Skyliner to do the same as boats and monorails.
OK, I can see the Skyliner starting a bit later since it's faster and can move more guests, so for the purposes of the Mickey Bar, can we agree if the Skyliner starts by 6:45am and stays open until the parks are clear I win?
 
What are maintenance costs likely to be for the Skyliner over the second ten years compared with the first ten years?

I would choose an "amortization" much greater than 10 years when trying to determine the cost of the Skyliner and the potential effect on room rates.

I would say that it would be a bad idea to "officially" discontinue bus service from Epcot to Caribbean Beach, Art of Animation, Pop Century, and Riviera. Guests need to know where to exit the park to find the desired transportation without having to possess a smart phone to call up My Disney Experince on and reconfirm whether the Skyliner is running.
 
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