Ticket prices and profit seeking

[Marty Moose]

I saw a rumor online yesterday that soon Magic Kingdom tickets will top $100 for a one day ticket. This got me thinking that over the last couple of years Disney seems to have shifted from a "lets provide entertainment and make some money" mindset to a "lets make as much money as possible off this entertainment" mindset. Ticket prices going up are just one indication. They have added a lot of hard ticket events and "VIP experiences" that don't seem to add any new entertainment, just provide better access for more money. Anybody else feeling this way?

[bcgm3]

Cy started up a pretty active discussion here not too long ago; where there was a lot of talk about this notion: viewtopic.php?f=9&t=9763

But yeah, I think it's pretty clear that the Walt DIsney Company's business model has changed a lot since its inception, and I think that's got everything to do with the eradication of actual Disney blood from the top-level management. It was a company run by, at one point, people who carried the same name and had a reputation and ideal to uphold -- But now it's just a company, and profits are the bottom line for every company.

[Marty Moose]

I remember reading that thread now. The news of another ticket price increase just started it all over again for me.

So, regarding Cy's post.... Yeah, what he said.

[cy1229]

Except I'm a "she."

I don't begrudge a company maximizing its profits. But when it's at the expense of the thing that got them there in the first place, then I have a problem with it. Not to mention, it won't keep a company profitable for long if they forget what got them there.

Case in point, Walmart. It used to be a discount store that provided reasonable service to people, and had lots of things at a good price. Now, profits are EVERYTHING, and customer service is about as appealing as a seasick crocodile. At least here in central Indiana it is.

I don't think Disney is headed in that bad a direction. Yet. At least I hope not.

[Wizzard419]

You're no lady though...

Anyway, the idea that they only suddenly started seeking the maximum profit possible is incorrect. Simple operating costs have (and continue to) rise at a rapid pace. In California, for example, the minimum wage is scheduled to rise to $15/hr soon with mandatory sick days being a requirement for all employers starting this summer. Throw in the rising cost of just running the parks, creating merch, stocking food, etc. and everything starts to spiral out of control. The format of a theme park may also not be long for this world (at least in the US), all the parks have been teetering on the edge of the double digit price for single-day, single park admission as no one really wants to be the first to cross that line.

The take home is that s*it is 'spensive to run and it will not be going down anytime soon.

[Marty Moose]

Cy, I'm sorry for my previous post, but at least I didn't call you "the guy in the Goofy mask." lol

I agree that customer service isn't what it used to be and Disney is still better at it. Listening to the Pardon the Pixie Dust podcast this morning, the hosts made the point that there had always been a team of creative individuals and "bean counters" at the top of the Disney company starting with Roy and Walt. They noted this provided checks and balances and that this continued until a few years ago. Their observation is that the current CEO Bob Iger comes from the "bean counting" side of business and there hasn't been a creative force to balance him.

Dunno if that's true, or even a good analysis. But it seems to fit, I think.

And I'm a few miles north of you!

[Amy]

Cy, I'm sorry for my previous post, but at least I didn't call you "the guy in the Goofy mask." lol ......

It's hard to tell on the forums sometimes. I initially thought (my now brother from another Mother) NaCler was a girl ~ only to have him tell me that he must have been in touch with his feminine side

The point you make about a financial/creative power balance seem valid. It will be interesting to see what the new CEO does.

[theBIGyowski]

This happens with every company that is healthy. You start out by growing like a weed...then you trim the fat...then you refocus...then you grow like a weed...then trim the fat...then refocus...and so on...

As some have pointed out...Disney's main focus in terms of their parks is to make more money off of the stuff they already have. That's why you see the hard ticket events being more of the "you can have a better view than the plebes down below if you pay us more" than the "here is something you can't get anywhere else in the world so it's worth paying more for it" type of thing.

There are big things coming to the parks in the next 5-6 years and I think the changes will allow Disney to offer more to their guests than they can today...especially for the money it costs.

[cy1229]

Yes, operating any theme park must be crazy expensive. I get all thinking about just the electric bill!! Older daughter and I were talking about the perceived decline in the "baseline" Disney parks experience, without the extra ticket events. We both agreed that no one does it like Disney. So it's like they've gone from an 11/10 to a 9/10, while everyone else is hoping for a 7-8/10.

[theBIGyowski]

I remember listening to a podcast where they figured out that the money generated by MK alone is enough to pay for every WDW working CM...from janitor all the way up to the operations folks. So all of the money brought in from the other parks and resorts is sugar on top. To say the parks are healthy right now is an extreme understatement. We can all thank Eisner for starting something that Iger wasn't able to mess up. Let's just hope whoever ends up running the company and the parks in the future has the creativity and the drive to keep the Disney Parks miles ahead of the rest...and open to anyone who wants to enjoy them. (I'm looking at you Poly DVC bungalows!)

[Wizzard419]

But what about utilities, food, merch, insurance, property taxes, licensing fees, etc? I would imagine it isn't a self-contained universe that is able to generate everything internally? They still make a profit, but they also have to put out a lot more than just paying for the meatbags.

[cy1229]

But what about utilities, food, merch, insurance, property taxes, licensing fees, etc? I would imagine it isn't a self-contained universe that is able to generate everything internally? They still make a profit, but they also have to put out a lot more than just paying for the meatbags.

Be that as it may, and probably is, I still think along with BIGyowski that the projected price per night of the bungalows at Poly is INSANE.

[Wizzard419]

I'm not following that development, are those on par with a high end suite (usually aside from space/amenities they also have a view or something)?

[Polynesian Princess]

The estimates I've heard are $2100-$2900 a night.

[cy1229]

I'm not following that development, are those on par with a high end suite (usually aside from space/amenities they also have a view or something)?

Well, I suppose that would depend what you consider to be high-end. But for point of reference, I priced out a place to stay that wasn't where I am currently. The resorts here on Maui were charging $600 a night, on average, for a 1-BR suite. That's actually IN Hawaii. Not sure what I could get for $2500 a night but I bet it's more than a 2BR bungalow.

In fact, maybe I'll see.