Prices just hit my threshold :-(

[SparklePixie]

Sounds like some first world problems.

People tend to forget how business have a margin of profit and when that margin is no longer there they have to increase prices.

With a profit margin of 19% and $7.5 Billion dollars profit for 2014, I think Disney is doing ok.

 

[jesse8931]

With a profit margin of 19% and $7.5 Billion dollars profit for 2014, I think Disney is doing ok.

I never said they were not.

I just said they have a profit margin to meet and if they are not they have to raise the prices.

You also have to remember prices for everything have been artificially low due to the 2008 recession.

 

[disneyfan2kids]

I never said they were not.

I just said they have a profit margin to meet and if they are not they have to raise the prices.

You also have to remember prices for everything have been artificially low due to the 2008 recession.

There has been nothing "low" about WDW's prices since 2008... trust me!

 

[P'colaBeachBum]

In 1961 my Dad was stationed in CA. He took my family to Disneyland and we could only afford to go for 1 day and had to stay at a cheap motel in town. I think it was about $4 for a ticket book. It would break my heart seeing families get off the monorail at the Disneyland Hotel. You do what you have to do.

 

[disneyfan2kids]

In 1961 my Dad was stationed in CA. He took my family to Disneyland and we could only afford to go for 1 day and had to stay at a cheap motel in town. I think it was about $4 for a ticket book. It would break my heart seeing families get off the monorail at the Disneyland Hotel. You do what you have to do.

Not sure what this means?

 

[DekrRini]

People tend to forget how business have a margin of profit and when that margin is no longer there they have to increase prices.

I understand about a business's profit margin. My family have been business owners for years. I also understand that having a few long time guests stop going won't have a major impact on that profit margin. For me, it's not so much they raised prices, it's that they're now closing in on the limit of what I'm willing to spend on a Disney vacation. And there are plenty of people to take my place so Disney won't care all that much.

 

[jtowntoflorida]

I have never been! Now I will have to try it... but I know NOTHING about universal. It seems daunting to plan a visit when I know so little. I suppose i will have to visit their boards so I figure out how that place works?! LOL...otherwise I'll be the non-informed WDW tourist that shows up mid-afternoon wondering why all the people in front of them got those "front of the line" passes and why I can't get front seats for the 3pm parade

I'll give you the Cliff's Notes version....the parks are less crowded, the rides are more elaborate, and you can go and have a ton of fun without a touring plan or ADRs. Oh, and you can walk to the parks and City Walk from their deluxe resorts in under 10 minutes.

 

[P'colaBeachBum]

Not sure what this means?

That means if you feel you are being priced out to the point you can no longer afford (or justify) the higher prices you go elsewhere. Or you could spend less time at WDW. Price is relative to the times. $4 in 1961 for a ticket book was expensive.

 

[jesse8931]

There has been nothing "low" about WDW's prices since 2008... trust me!

In previous years you would see 30% off or free dining in order for Disney to increase guests. Well now resorts are filling up 6 months in advance. We will see an increase in pricing and decrease in offers.

 

[Planogirl]

I'm just about at the same place. People will tell you that it doesn't matter because others will fill the gaps but Disney has to reach a breaking point somewhere. Besides only your own family matters when it comes to this subject.

Universal is great! They are an amazing alternative with good food (if you know where to eat just like the Disney resort) and so far reasonable lines and no need for ADR's. We will continue to stick with that one.

 

[goofy4tink]

I've been going to WDW since '99. Bought into DVC in '03. The lowest prices I've seen were right after 9/11...for obvious reasons. The costs have gone steadily up. In the past 8 years or so, we have seen fewer and fewer wonderful packages offered. Room rates have been high. Now, the cost of AP is making it hard to make the decision to renew in May. I don't take many photos in WDW..so PP is not a so called 'perk' for me. I've always had free parking, so no change there. But, I do get to pay $100 more for a Gold AP but get weeks taken away from me that I can't go to the parks during!
Does everyone deserve to go to WDW? Of course not. It's not a case of 'deserving'. Yes, it's expensive...always has been. But you realized you were getting a higher level of quality there. I've cruised with Disney three times now. I am hesitant to cruise with anyone else. BUT...I can cruise for twice the days with another company vs with Disney! No more kids at home, so don't really need all that Disney 'magic'.

Yes, Disney is a business. But I have to tell you..prices are as high as they have ever been. Resorts are fairly full...hence the few pkg discounts, or at least not great ones. The parks are crazy!!!! I haven't been to WDW, in the past year, when the parks weren't crowded. That would be Sept '14, Nov '14, May '15 and July '15. These were not peak times to go....all you had to do was look at all the various crowd calendars....none of them showed my dates as particularly busy. But wait times for attractions were all lengthy. 25 mins for IASW is just not right!!!!

So, will I stop going to WDW? Probably not. But, I won't be buying anymore DVC points, as I had intended on doing in Jan. I won't be going 2 or 3 times a year, that's for sure. And when I do go? I won't be using the TiW card that they are increasing the cost of by $50! That means, fewer nice meals...and probably fewer QS meals as well.
It means I'll be visiting other areas..instead of just my beloved WDW!!!

 

[Disneyliscious]

People tend to forget how business have a margin of profit and when that margin is no longer there they have to increase prices.

This is truth. Another truth is that people also tend to forget how paying customers have a threshold and when that threshold is met they no longer require the services of said business.

 

[jesse8931]

This is truth. Another truth is that people also tend to forget how paying customers have a threshold and when that threshold is met they no longer require the services of said business.

The difference is there are hundred of thousands that are.

 

[Planogirl]

The difference is there are hundred of thousands that are.

Do you have the numbers? Is it mostly American tourists or foreign visitors who often get price breaks? Are most of these people in the moderates and budget resorts?

There are many factors to consider.

 

[bpadair32]

I'm just about at the same place. People will tell you that it doesn't matter because others will fill the gaps but Disney has to reach a breaking point somewhere. Besides only your own family matters when it comes to this subject.

Universal is great! They are an amazing alternative with good food (if you know where to eat just like the Disney resort) and so far reasonable lines and no need for ADR's. We will continue to stick with that one.

Others will fill in the gaps. You know why ticket prices are going up and there are less discount offers? Because demand is higher than ever.

I've been going to WDW since '99. Bought into DVC in '03. The lowest prices I've seen were right after 9/11...for obvious reasons. The costs have gone steadily up. In the past 8 years or so, we have seen fewer and fewer wonderful packages offered. Room rates have been high. Now, the cost of AP is making it hard to make the decision to renew in May. I don't take many photos in WDW..so PP is not a so called 'perk' for me. I've always had free parking, so no change there. But, I do get to pay $100 more for a Gold AP but get weeks taken away from me that I can't go to the parks during!
Does everyone deserve to go to WDW? Of course not. It's not a case of 'deserving'. Yes, it's expensive...always has been. But you realized you were getting a higher level of quality there. I've cruised with Disney three times now. I am hesitant to cruise with anyone else. BUT...I can cruise for twice the days with another company vs with Disney! No more kids at home, so don't really need all that Disney 'magic'.

Yes, Disney is a business. But I have to tell you..prices are as high as they have ever been. Resorts are fairly full...hence the few pkg discounts, or at least not great ones. The parks are crazy!!!! I haven't been to WDW, in the past year, when the parks weren't crowded. That would be Sept '14, Nov '14, May '15 and July '15. These were not peak times to go....all you had to do was look at all the various crowd calendars....none of them showed my dates as particularly busy. But wait times for attractions were all lengthy. 25 mins for IASW is just not right!!!!

So, will I stop going to WDW? Probably not. But, I won't be buying anymore DVC points, as I had intended on doing in Jan. I won't be going 2 or 3 times a year, that's for sure. And when I do go? I won't be using the TiW card that they are increasing the cost of by $50! That means, fewer nice meals...and probably fewer QS meals as well.
It means I'll be visiting other areas..instead of just my beloved WDW!!!

For the TiW card, it really depends on where you eat, how much you eat, and the size of your party. We did the math last night after the price change was announced and found that for us it is still worth it.

This is truth. Another truth is that people also tend to forget how paying customers have a threshold and when that threshold is met they no longer require the services of said business.

And everyone is free to take their business elsewhere, but just because some people don't see it as being worth it anymore, doesn't mean that many others will have a different opinion. I don't think Disney is in any danger of seeing a drop in attendance.

Something else to keep in mind is that Disney is a luxury vacation. I think that is actually something they may be trying to build on. They may be trying to make it something that the up and coming types will start to see as a "hey I can afford this now" type of thing and get the brand image more back in the luxury category. I am not saying that is what they are doing, but it is something that I wonder about.

 

[tlmadden73]

They needed to eliminate that escape hatch before implementing the new plan.

Unfortunately I think this is only step 2 of 3.

I still think tiered pricing is on its way. Soon.

Agree .. now we see the real reason WHY they got rid of non-expiring tickets.

They raised the price of the annual pass to around the price of what a 10-day non-expiration ticket cost.
The no-expiration ticket was such a nice deal for short trips over many years and protected you from the price increases (that have . and will come).

I agree that the tiered pricing will be coming next. (if not simply another price increase) Why not? They already do it for the hotels, why not tickets? The attendance is growing (even slow seasons aren't as slow anymore). I wouldn't be surprised to see "premium" reservations soon where you can get those hard to find ADRs.


Eventually things will level off as people no longer go as much .. or get sick of the crowds or the prices. But until then, Disney will increase prices as DEMAND grows.


It seems like they are working hard to maximizing their profit in the busy season (why not?) . .and making sure that the "slow" seasons aren't really slow anymore with (relatively) cheaper hotels, tickets, and special parties and celebrations.

The fact remains Disney is pretty much a luxury vacation now (especially if you stay on-site). It is not a "go for a day or two" theme park like it used to be when we were all children. It is just not worth that cost for such a short stay.

There are plenty of Six Flags and Cedar Point theme parks out there for that option.

 

[Planogirl]

They were not always a luxury vacation. They gradually turned into a luxury destination which is ironic since the uber rich don't seem to be very interested in the Disney parks.

 

[jesse8931]

Do you have the numbers? Is it mostly American tourists or foreign visitors who often get price breaks? Are most of these people in the moderates and budget resorts?

There are many factors to consider.

They were not always a luxury vacation. They gradually turned into a luxury destination which is ironic since the uber rich don't seem to be very interested in the Disney parks.

Not sure where you get that info at.
My aunt works for Disney and I can promise you the uber more money then god rich do visit Disney and they spend alot to do so.

 

[scout68]

There has been nothing "low" about WDW's prices since 2008... trust me!

The recession officially ended 5 years ago. When an annual pass was $499.00. (roughly 50% less) Good thing everyones employer has increased their wages by at least that much.

W ay out of touch
D igging ever deeper into your pocket
W ithout an end in sight

 

[3DisneyFanz]

That means if you feel you are being priced out to the point you can no longer afford (or justify) the higher prices you go elsewhere. Or you could spend less time at WDW. Price is relative to the times. $4 in 1961 for a ticket book was expensive.

The rate of US inflation would put those $4 at $31.50 today. Pretty far cry from $105.