Price increase show discussion

[jimmymc]

I don't think the price increases have done it, but I do think the crowds have made me less likely to visit. It's so difficult to figure out when crowds will be low, when it used to be "Come during these weeks and you're good." And even low crowds this year are still crazy compared to 10 years ago.

 

[disneysteve]

Some guests (including myself) don't use Magical Express, but isn't there an associated cost/fee (yes, it's a free guest service) incorporated into our resort price?

Fair point, but if you go down that road, we never go swimming so I don't want to pay for the pool. We have unlimited cellular so don't use the WiFi and don't want to pay for that. We use our own car and drive everywhere so I don't want to pay for the buses.

Parking is completely separate from the hotels so it's an easy line to draw and make a separate charge.

 

[maltdizzy]

Why a parking fee? Not all guests park a car so why roll it into the ticket price? That would mean every guest was paying for parking whether they used it or not. I'm okay with them only charging the people actually using the parking lot and trams.

Nothing at WDW uses commodity-based pricing. Rates are set by what the market will bare.

Parking is completely separate from the hotels so it's an easy line to draw and make a separate charge.

At hotels? When we're paying $500+/night for a "Deluxe Room" (with a closet-sized bathroom), it seems insulting to then charge us $30/night to park. We all know it is know that it's not because we contribute an additional cost — this is not to maintain the lots — it is being charged, "just because they can."

It's bad optics. For $500+, Disney should want to maintain the perception (real or placebo) that we're being pampered and catered to, instead we come away feeling like Disney is being petty and cheap. It creates up an negative connotation right t the beginning of the trip.

 

[disneysteve]

When we're paying $500+/night for a "Deluxe Room" (with a closet-sized bathroom), it seems insulting to then charge us $30/night to park. We all know it is know that it's not because we contribute an additional cos — this is not to maintain the lots — it is being charged, "just because they can."

It's bad optics. For $500+, Disney should want to maintain the perception (real or placebo) that we're being pampered and catered to, instead we come away feeling like Disney is being petty and cheap. It creates up an negative connotation right t the beginning of the trip.

I'm honestly shocked that it took Disney so long to start charging for parking considering so many other destinations have done it for years. Heck, even hotels near Disney World like the Gaylord have done it for years. But go to NYC or Baltimore or D.C. or Chicago or Louisville or LA or San Francisco or Dallas and you're going to pay to park at your hotel. Is it "right"? Maybe not, but it's certainly not unusual. And like I said with the theme park parking, it only charges those using the service so in a way, it could be seen as being more fair than just rolling it into the room rate.

 

[CanadaDisney05]

Nothing at WDW uses commodity-based pricing. Rates are set by what the market will bare.



At hotels? When we're paying $500+/night for a "Deluxe Room" (with a closet-sized bathroom), it seems insulting to then charge us $30/night to park. We all know it is know that it's not because we contribute an additional cost — this is not to maintain the lots — it is being charged, "just because they can."

It's bad optics. For $500+, Disney should want to maintain the perception (real or placebo) that we're being pampered and catered to, instead we come away feeling like Disney is being petty and cheap. It creates up an negative connotation right t the beginning of the trip.

Would you prefer they charge $525 per night and make the parking free? Atleast if I fly, I don't have to pay for it.

 

[disneysteve]

Would you prefer they charge $525 per night and make the parking free?

I think you meant to type "free" in quotes.

This meshes with debates about resort fees. I think they're sleazy and should just be included in the room price because they aren't optional. Parking, however, is optional as not all guests have cars. In fact, I'd bet that a pretty good percentage of onsite guests don't have cars.

I love when I see hotel ads that say they give you "free" Wifi and "free" breakfast. Obviously those things aren't free. They're just included in the price of the room.

No matter how they break things down, you're still paying for them. It's just a question of if you'd rather pay a la carte or all in one.

 

[smiths02]

Would you prefer they charge $525 per night and make the parking free? Atleast if I fly, I don't have to pay for it.

But then shouldn't they charge for Magical Express as well? If I drive, I have to pay for that AND parking.

 

[maltdizzy]

Would you prefer they charge $525 per night and make the parking free? Atleast if I fly, I don't have to pay for it.

Would you say the same if they start charging $25/person for Magical Express? Isn't @jimmymc right that ME is built into the resort budget?

But, once again, this parking fee is NOT as a commodity-priced item. Adding the parking fee didn't reduce the cost of the rooms for everyone else, they are still going up every year. Disney doesn't price rooms based on the expense it cost to operate them, they price them based on the cost the market will bare. The parking fee is a value-added profit item, they can make make more profit providing the same level of service. And one day, they'll do it with the ME.

But, once again, my argument isn't about the cost. If we can afford $3000 for a room for 6 nights, we can afford $180 for parking. It's about the way it makes us feel as "guest." and this is really just one example of many. We feel less appreciated, we feel more like ...cattle, and that impacts our future vacation decisions. If we're not getting the same warm and fuzzies we used to get (even if by the placebo effect), we'll go elsewhere and try something else.

 

[CanadaDisney05]

Would you say the same if they start charging $25/person for Magical Express? Isn't @jimmymc right that ME is built into the resort budget?

But, once again, this parking fee is NOT as a commodity-priced item. Adding the parking fee didn't reduce the cost of the rooms for everyone else, they are still going up every year. Disney doesn't price rooms based on the expense it cost to operate them, they price them based on the cost the market will bare. The parking fee is a value-added profit item, they can make make more profit providing the same level of service. And one day, they'll do it with the ME.

But, once again, my argument isn't about the cost. If we can afford $3000 for a room for 6 nights, we can afford $150 for parking. It's about the way it makes us feel as "guest." and this is really just one example of many. We feel less appreciated, we feel more like ...cattle, and that impacts our future vacation decisions. If we're not getting the same warm and fuzzies we used to get (even if by the placebo effect), we'll go elsewhere and try something else.

I think there is a difference between Magical Express and parking.

If you drive, you have to park at the resort. There is no real, non-disruptive alternative.

If they pulled ME out of the cost of the room, and started charging for it as an add-on, customers would start looking for alternatives. People can rent cars themselves and do one way drop offs. People will Uber. People will Taxi. People will use alternative shuttle services. By including it in the price, your not giving the customer the choice. The profit is made automatically.

 

[disneysteve]

this is really just one example of many.

I can appreciate that. As we've said throughout the thread, it's a bunch of changes over time that are getting some people to the tipping point rather than any one change by itself.

 

[maltdizzy]

If they pulled ME out of the cost of the room, and started charging for it as an add-on, customers would start looking for alternatives.

They won't pull the cost out of the room, that's not what they did for parking. They'll just start charging additional for it — add-on revenue — the cost of the room will stay the same. The fees are just more profit. But I think people would pay a ME fee because so many only trust "the bubble."

WDW is a selling a commodity, it's not priced at cost+profit margin = cost. It doesn't cost Disney 4-5 times as much money to run a Deluxe resort than it does a Value resort, it (probably) doesn't cost them twice as much money. The prices are set according to what people are willing to pay for Deluxe vs Value ...market-based pricing. If people were willing to pay $400 a night at All_Stars, Disney would charge $00/night even if their operating costs stayed the same.

But we have digressed.

 

[CanadaDisney05]

They won't pull the cost out of the room, that's not what they did for parking. They'll just started charging additional for it — add-on revenue — the cost of the room will stay the same. It's not a commodity, it's not priced at cost+profit margin = cost, it's more profit, because the market will bare it. But people well pay it because so many only trust the bubble.

It doesn't cost Disney 4 times as much money to run a Deluxe resort than it does a Value resort, it doesn't cost them twice as much money. The prices are set accoridng to waht people are willing to pay ...market-based pricing

I get it. If its $475 per night, and they feel the market will bare $500 for night, they can charge it as

1) $500 per night with free parking + free ME or
2) $475 per night with $25 parking + $25 ME

Anyway you look at it, its the same thing. Maybe they don't pull it out of the price and then tack it on. Maybe the next increase is minimal, and they start charging for it. It doesn't really matter. It's just semantics.

Atleast with an a la carte option, as the consumer, I can choose which services I want to pay for. Perhaps I'd rather take an Uber from the airport and skip ME. Maybe I want to drop my car off at a cheaper paid parking lot somewhere else in Orlando, and Uber to my resort at the beginning, and back at the end of my trip.

 

[Brianstl]

ME saves Diseney money in multiple ways. It reduces the the infrastructure needed to accommodate their guests, reduces insurance cost, reduces the personal needed for traffic control, etc.. If it wasn’t saving Disney money, it wouldn’t be free.

 

[SorcererHeidi]

No question. And it's because we have become such an overly-litigious society. Every bad thing that ever happens has to be someone else's fault (personal responsibility doesn't exist), and they must be sued for it.

PREACH, @mcd2745

You've taken the words I say all the time literally right out of my brain!!

And - on another note being talked about here - I have said for YEARS I am AMAZED they have NOT started charging for Magical Express a LONG time ago - I totally expected it!

 

[Brianstl]

It appears that Bob Chapek has decided to make Catherine Powell the scapegoat for what will be two awful quarters in a row for Disney’s US parks and resorts.

https://www.bloomberg.com/news/arti...arks-chief-leaves-after-15-years-with-company

 

[Jeff Laughlin]

Two major factors between Disney charging for parking vs not for ME is traffic reduction and keeping people in the bubble. Renting a car to take to offsite attractions is not going to look as attractive going forward, of course it can backfire and push people offsite but the parking could do that too anyway

 

[rteetz]

It appears that Bob Chapek has decided to make Catherine Powell the scapegoat for what will be two awful quarters in a row for Disney’s US parks and resorts.

https://www.bloomberg.com/news/arti...arks-chief-leaves-after-15-years-with-company

Its certainly interesting as it seems they are not firing or putting out to pasture Michael Colglazier who is the Asian parks counterpart of what she did. Disney is also doing a restructuring and many management positions are being cut. She is just the highest level of that.

 

[Brianstl]

Its certainly interesting as it seems they are not firing or putting out to pasture Michael Colglazier who is the Asian parks counterpart of what she did. Disney is also doing a restructuring and many management positions are being cut. She is just the highest level of that.

I think it is funny that the woman that made Disneyland Paris a money making machine is the person taking the fall for the US parks and resorts losing money two quarters in a row. She had no role in the development of anything that is causing the current issues at US parks and resorts. This stuff was in place before she was promoted.

Her success at Disneyland Paris was responsible for Chapek’s division not showing a loss in the third quarter, but the woman that save Euro Disney is the one who takes the fall.

 

[rteetz]

I think it is funny that the woman that made Disneyland Paris a money making machine is the person taking the fall for the US parks and resorts losing money two quarters in a row. She had no role in the development of anything that is causing the current issues at US parks and resorts. This stuff was in place before she was promoted.

Her success at Disneyland Paris was responsible for Chapek’s division not showing a loss in the third quarter, but the woman that save Euro Disney is the one who takes the fall.

Yes and no. Powell was a great marketer. The people before her laid the ground work for the big changes at DLP. Powell continued it and it still continues after her.

 

[hertamaniac]

Fair point, but if you go down that road, we never go swimming so I don't want to pay for the pool.

But you have the option to use that amenity (and others).

ME for those that don't fly in, subsidize it's costs via the resort rate(s) right? I don't have the option to tell Disney I'm driving to stay at their resort and want a reduced rate because I'm not using ME. Instead, they actually charge us (probably to help pay for ME). So if I extrapolate this rationale forward, those that drive to WDW and stay onsite, are partially paying for those guests that are flying in and using the ME, yet don't have an option to use that service.