Price Increases Since 1982

[theBIGyowski]

It's similar to paying $500 for something that is worth $1,000. You feel good because you saved $500...without fully realizing that you just spent $500 in the process.

[Boilerdude]

Really this is nothing new. Vegas have been doing this for years, and so does every casino out there that has a hotel. Keep people on property, bottom line. Working for a casino, in my past, we would give the rooms away, we did not care. If it meant to keep your money on property so be it. Disney is one of the best at this and knows they make their money in the parks, not at the resorts. Just like the casino makes their money on the “floor” and not in the restaurants or hotels.

As far as the Resorts’ occupancy being down, I do not believe that to be a concern of WDW. Along ticket sales are high, the parks are profitable and the resorts are covering operational cost. The resorts are just a product of the parks. And if Disney cannot keep you on property, that is fine. They got your money for the tickets and what you bought in the parks. Just like a casino, if you stayed somewhere else but played with us, we still got your money. Just like Vegas, the amenities (i.e., restaurants, hotel, spa, etc…) are just part of getting you to come. Not designed to make money, but if it does great. Along it makes enough of cover operational expenses and not cut in to profits generated from the “floor”. In Disney’s case the parks.

[disneylizzy]

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.

I too am one of the willing participants who buys into it all!

That makes sense that the resort & theme park divisions are different although they affect one another. I guess the parks could be doing quite well while the resorts are struggling.

[Len90]

Exactly these last few responses are the explanation that I was lazy to type out at 1:30 in the morning yesterday. In Disney's eyes the rooms are there and in a way cost them money every night. IF Disney can at least cover some of the fixed costs that they have on the rooms it is benefical to do the discounts to fill the rooms rather than let them go empty and in theory cost the company more. Another thing to keep in mind is the profit margin on all the stuff Disney sells on property. Everything Disney sells is based on either a sponsership or a coopertive that they have with another corporation. Through this, Disney can ensure that the guests will only buy that brand of a product. It allows them to buy at a larger quantity and also get a lower price for it.

[noledawg]

Good points. Remember, an unsold ticket is nothing more than that - an unsold ticket. There is no material cost to support that unsold ticket.

On the other hand, an empty room is very significant. Heads in beds is the key metric. An empty room must still be maintained - plenty of fixed costs, plus labor not utilized. You have to find ways to get folks to stay in your rooms. In past offseasons we've seen them close wings of moderates - I believe there was a time when a portion of Port Orleans was not even booked b/c travel was down - that is all lost opportunity.

Also, the ticket gets the guest in the park. But the more important measure is guest per capita. I want that person buying food and merchandise, not just riding rides and going home. That's why annual passholders are nice, but if, like say in Disneyland, there becomes an inordinate number of APs using the parks as an afternoon day care (sounds harsh, but I believe that was happening at DL), then the company gets no benefit from that. Yes, APs will spend money, and these individuals are valued long-term customers for life (hopefully). But (I suspect) you would want the majority of your visitors to be multi-day out of town guests, spending oodles in the parks and raising the guest per capita.

Just a thought.