'Disney is pricing itself out of business.' ... Nope

DopeyRunr

the jeweled acrobats only perform amazing stunts f
Haha exactly. Biggest threat is a recession. As long as TWDC can get people excited about paying $119 for three hours at a partially-closed Magic Kingdom, it still has quite a bit of pricing power.
 

mgarbowski

Well-known member
I found it interesting the extent to which the company both blamed and credited factors outside its control:
"U.S. theme park attendance rose 5 percent and hotel occupancy jumped 2 percentage points to 90 percent, said Disney chief financial officer Christine McCarthy.The rise came in part from the timing of Easter — which had a $47 million impact on operating income, McCarthy added. The week before the holiday was the final week of the quarter in March."
Also:
"It helped offset declines from Shanghai Disney Resort, which was hurt with lower attendance because of bad weather, although it rebounded in March, she added."
 
It wasn't going to happen overnight. The ticket increase was in February. The addition of parking fees was in March.
 

bnoble

he's right
It's not going to happen at all. This conversation occurs every time Disney raises the price of anything. It hasn't hurt them yet, and it's not going to. As Chris observes upthread, the main threat is a recession, followed by another 9/11-style black swan event. Dark horse risk is a spike in oil prices making air travel significantly more expensive.
 

pixarprincess

New member
It's not going to happen at all. This conversation occurs every time Disney raises the price of anything. It hasn't hurt them yet, and it's not going to. As Chris observes upthread, the main threat is a recession, followed by another 9/11-style black swan event. Dark horse risk is a spike in oil prices making air travel significantly more expensive.
dark horse risk is likely to happen this summer... We will see how that changes things. But overall I agree. They know what they are doing. Disneyland is outrageously expensive these days and its still jam packed 7 days a week most of the year.
 

pixarprincess

New member
I think we honestly dont really know these days. Things are so weird politically right now I think its a possibility.
 

nolarookie

Well-known member
The economy is so strong right now... I know things can change, but I think TWDC will roll with the punches.
 

Nia

Active member
Haha exactly. Biggest threat is a recession. As long as TWDC can get people excited about paying $119 for three hours at a partially-closed Magic Kingdom, it still has quite a bit of pricing power.
in my defense they give us free tickets for the 2nd and 3rd week and free dinning and room discount - I feel I should pay for something! :).

Last year when I currency for our California trip for 1 euro I got 1.05 usd. This year I get more for my 1 euro - about 1.19 to 1.24. I am no expert in world economy but US currency is not as strong compared to year ago. This is rather surprising knowing what state EU zone is.

They are making so much investment in the parks and people will want to see the new things. I think even if the economy takes small to medium adjustment WDW will continue their success
 

DopeyRunr

the jeweled acrobats only perform amazing stunts f
Indeed, the dollar was a lot stronger vs. the Euro and British Pound last year. Those currencies had fallen sharply after Brexit but have recovered, plus the dollar has weakened.
 

capeokw56

Member
It's not going to happen at all. This conversation occurs every time Disney raises the price of anything. It hasn't hurt them yet, and it's not going to. As Chris observes upthread, the main threat is a recession, followed by another 9/11-style black swan event. Dark horse risk is a spike in oil prices making air travel significantly more expensive.
I don't think that air travel increases are a big concern. The last I knew most airlines buy their fuel contracts years in advance.
 
The rise came in part from the timing of Easter — which had a $47 million impact on operating income, McCarthy added. The week before the holiday was the final week of the quarter in March.

^a forewarning explanation if the next quarter falls a tad short of expectations :D

For us, the continued rash of price increases just means we'll spend more effort contemplating how to stay within our budget while also extracting the same level of enjoyment we have in the past. I think ours will be a common response.

The RFID system seems fruitful in exposing ways to have guests dig deeper into pockets and profit margins widen, but optimization has a ceiling.

New experiences like StarWars land are intriguing, tho there is only so much we are willing to spend within a year or two so it's more likely we spend less on our other stays to afford SWL. We're not going to decide on skipping trips, just spending less by looking at the best values for our dollar.
 

projectx

Member
Disney is increasing the prices because they can. As long as the demand is there EVERY business does it.

Cruise vacations are typically billed as a great value for a family vacation. Yet we spent roughly the same amount of money on our last cruise (interior stateroom, including shore excursions) during spring break with Royal Caribbean as we did on our Disney theme park vacation. Yes, it is a shot to your wallet, but why is a cruise labeled as a good value while Disney is considered too expensive?
 
Cruise vacations are typically billed as a great value for a family vacation.
Personally, I don't consider a Royal Caribbean cruise a good, let alone a great, value period. But if you look at the basic numbers, a Royal Caribbean cruise certainly does look to be a better value than a trip to Disney World:

Oct 7th to 14th, 2018 (booking today)
Royal Caribbean cruise, western caribbean, 4 people, inside cabin, all-inclusive food and entertainment: $1973.08
Disney World stay at All-Star Movies, 4 people, standard room, quick-service dining plan, 6 days of base tickets: $3837.31

A trip to Disney World for the same length of time costs double what a Caribbean cruise does. And that is with the quick service plan which does not cover even half the food you get with a cruise.

But what the numbers don't show is (a) six park days of entertainment at Disney World is far, far, far superior to the six days of entertainment on a Royal Caribbean Cruise, (b) an alcoholic drink is included in the meal entitlements with Disney World dining plans (c) transportation from and to the airport is included is a Disney World stay and (d) the nickel and diming on a Royal Caribbean cruise is outrageous and the biggest reason your cruise can end up being as expensive as a trip to Disney World.
 

George

wishes he had a pink frolicing llama under his tag
Personally, I don't consider a Royal Caribbean cruise a good, let alone a great, value period. But if you look at the basic numbers, a Royal Caribbean cruise certainly does look to be a better value than a trip to Disney World:

Oct 7th to 14th, 2018 (booking today)
Royal Caribbean cruise, western caribbean, 4 people, inside cabin, all-inclusive food and entertainment: $1973.08
Disney World stay at All-Star Movies, 4 people, standard room, quick-service dining plan, 6 days of base tickets: $3837.31

A trip to Disney World for the same length of time costs double what a Caribbean cruise does. And that is with the quick service plan which does not cover even half the food you get with a cruise.

But what the numbers don't show is (a) six park days of entertainment at Disney World is far, far, far superior to the six days of entertainment on a Royal Caribbean Cruise, (b) an alcoholic drink is included in the meal entitlements with Disney World dining plans (c) transportation from and to the airport is included is a Disney World stay and (d) the nickel and diming on a Royal Caribbean cruise is outrageous and the biggest reason your cruise can end up being as expensive as a trip to Disney World.
Your cruise numbers only allow for four people jammed into an inside room, no?
 

projectx

Member
Personally, I don't consider a Royal Caribbean cruise a good, let alone a great, value period. But if you look at the basic numbers, a Royal Caribbean cruise certainly does look to be a better value than a trip to Disney World:

Oct 7th to 14th, 2018 (booking today)
Royal Caribbean cruise, western caribbean, 4 people, inside cabin, all-inclusive food and entertainment: $1973.08
Disney World stay at All-Star Movies, 4 people, standard room, quick-service dining plan, 6 days of base tickets: $3837.31

A trip to Disney World for the same length of time costs double what a Caribbean cruise does. And that is with the quick service plan which does not cover even half the food you get with a cruise.

But what the numbers don't show is (a) six park days of entertainment at Disney World is far, far, far superior to the six days of entertainment on a Royal Caribbean Cruise, (b) an alcoholic drink is included in the meal entitlements with Disney World dining plans (c) transportation from and to the airport is included is a Disney World stay and (d) the nickel and diming on a Royal Caribbean cruise is outrageous and the biggest reason your cruise can end up being as expensive as a trip to Disney World.
Nickel and diming on a cruise only happens if you allow it. Other than a few cocktails throughout the week we barely spend a dime on the ship. We do spend our money on shore but the cruise lines make that obvious. I guess if you're comparing hurricane season rates to Disney then yeah, it can appear to be a better value. But that price doesn't include any shore activities. Plus 4 people in an interior room? Yikes. Perhaps there's where my numbers get skewed as a family of 5 we get two rooms.

It doesn't cost double. Assuming you're traveling during peak travel times (if you have school aged children, you probably are), the cost is about the same. Our last two vacations were Disney and then a non-Disney cruise. All in they were about the same cost by the time we got home, and we don't bother with the "specialty dining" on a cruise.

All I'm saying is Disney gets labeled as price gouging, while the cruise lines seem to have a "great value for your money" reputation. To me both claims are misleading.
 
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