Price Increases Since 1982

[noledawg]

I make no normative statement about the below.

http://www.glowfoto.com/static_image/08 ... 5/glowfoto

[Amy]

I make no normative statement about the below.

http://www.glowfoto.com/static_image/07 ... 6/glowfoto

Ummm, there was nothing there noledawg, so I fixed your link...
yikes! on the price increases!! But to be fair, they do offer more than they did in 1982.
EDIT: Ooops, never mind, you already fixed it...

[noledawg]

Thanks Amy, I caught that as soon as I loaded it.

There are many ways to interpret this. And I'm not one to complain about price increases - if I don't like it, I won't go. And frankly, it is a business, and if they can raise prices, they should. If guest per capita in park spend goes down as a result, then the increase for 2011 should be re-evaluated. If in park spend is at least level, then it's a successful increase.

But even that analysis fails to consider every other revenue performance measure available. This chart is nothing but an interesting view of prices over the years.

[Len90]

There are numerous ways an economist can play with this chart to fit either argument. It is interesting to see that the price in "1982 Dollars" has been consistent with inflation. However, the other side is also quite intriguing. I will say that this is something that would be interesting to read about if somebody wrote a whole article on it.

[mindflipper]

Well, with the increase in prices being so steady, Disney can form a financing company that will allow guests to mortgage their homes in order to purchase tickets and hotel room for a family of four to stay for three days.

[noledawg]

There are numerous ways an economist can play with this chart to fit either argument. It is interesting to see that the price in "1982 Dollars" has been consistent with inflation. However, the other side is also quite intriguing. I will say that this is something that would be interesting to read about if somebody wrote a whole article on it.

Hey Len90 - if that's the way my chart expresses it, then that was a mistake on my part. Hopefully the chart shows how the price has outpaced inflation. $15 in 1982 is about 30 or so today, vs 80+ for a one day ticket.

I might to clean that up.

And Mindflipper, you are right, though isn't that what the DVC is all about?

[noledawg]

OK, just fixed it.

[disneylizzy]

Wow, I had no idea what the prices were like back in the 80's and 90's!

Interesting that the graph raises so sharply around 2002 and onward. I wonder how Disney's price increase would compare to other price increases (for other parks, travel, etc.) over that same period of time.

[Len90]

Okay now that shows a clean cut rise in prices. Sorry about that. It is interesting to see how much a single day one park ticket is.

I am starting to think that Disney is making the one day park ticket extremely high on purpose. I think they want people to buy for multiple days so they can keep them in the parks for more time and maybe get them to buy more stuff in the parks. Keep in mind that in 1982 there was only one park and there were really no hotels. WDW was still seen as a daily type of place and not the vacation resort that it is today. Now there are 4 gates and in general people visit the parks for multiple days. Thus the cost per day for parks is closer and almost coincides with the 1982 price which I assume is adjusted for inflation.

[DIAC1987]

Recession what? Disney knows nothin' bout' no recession....

[theBIGyowski]

Len...you hit the nail on the head. Disney has risen the price on the one-day ticket because they want to keep people there in the parks. It's a brilliant strategy that has paid off well for them. When you can control the two (single day vs multi-day tickets) you control their relative values. You forget that both ticket prices are astronomically high...because the focus is being put on how the multi-day ticket is relatively cheaper than the single day option.

What is interesting is how the prices have increased at an exponential rate since the economy started taking a dive in 2004-2005. It could be that WDW became the "escape" for people who were being troubled by the negativity in the real world...thus cushioning the impact on Disney.

[disneylizzy]

Recession what? Disney knows nothin' bout' no recession....

LOL and so true!

What I don't get is why Disney raises the ticket prices only to end up discounting their hotels and offering free dining to get people to come & stay - it doesn't make sense to me.

[Len90]

I think even though it is the same company, they are different divisions of the company. The theme parks are visited by Floridians, resort guests, and guests who stay off property. The resorts only have a small fraction of those who visit the parks. Disney needs to offer some sort of perks to draw more people into their resorts.

[mindflipper]

I think even though it is the same company, they are different divisions of the company. The theme parks are visited by Floridians, resort guests, and guests who stay off property. The resorts only have a small fraction of those who visit the parks. Disney needs to offer some sort of perks to draw more people into their resorts.

I think Len90 is correct. If ticket sales are strong and resort bookings weak, then the resorts management has to offer things that will get people into the resorts without detracting from the ticket sales.

[jeremyleo]

I think even though it is the same company, they are different divisions of the company. The theme parks are visited by Floridians, resort guests, and guests who stay off property. The resorts only have a small fraction of those who visit the parks. Disney needs to offer some sort of perks to draw more people into their resorts.

So true Len90. With the 'perks' Disney offers for resort guests,the perception is that you are saving money on car rentals, hotel transfers and, depending on the current promotion, hotel costs and/or dining costs. It is truly brilliant. Disney picks you up at the airport, delivers you to your resort door (without having to touch your luggage) and they drive you around to all the parks and other attractions while you are there. They make it so you don't mind being held captive and spending a premium on Disney food, Disney snacks and Disney merchandise while you are there - all things that they control pricing on. I totally buy into it because I know that I am getting a quality vacation for my $$, and the experience will be truly magical.

Even with ticket price increases, Disney's brilliant marketing shows us how much we can save per day for multi-day tickets - all the while encouraging folks to stay and play longer and leave more $$ behind.