We returned from a 2 week trip last week. We stayed a the Fort and while it filled up for the 4 day week-end around the 4th of July the rest of the time, the loop we were on had only 4 other sites filled. The loop we were on was a full hook up site so I expected it to be filled almost to capacity most of the time we were there. So I would say that DW is def. starting to feel the cruch of the economy.
Has the economy affected Disney?
- Thread starter ZIPBAGS
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ssawka
DIS Veteran
- Joined
- Oct 30, 2007
It's funny how if crude goes up, the price at the pump immediately goes up, but if crude goes down, you don't see much of a drop at the pump. And, the oil companies think all Americans are dumb and won't catch on.
big downturn for Disney is expected to hit this fall and continue into mid-09 at least. Their reasoning made sense to me: unlike Vegas which is often booked just a month or two out, many (most?) DisneyWorld visitors book their trips 6 months to a year ahead of time.
I know that is true for myself. If I hadn't paid for our airfare, hotel, and park tickets 6 months in advance we probably wouldn't have gone this summer. In the 6 months between paying and going the economy seriously tanked...today I wouldn't commit to spending the type of money I was willing to spend last fall.
The article also said that many of the changes we're seeing now...cutting character meals, downsizing portions, changing menus to cut items that don't bring in huge profits or take more time to prepare than they're worth to the company, cutting the numbers of busses running, etc...are in anticipation of a drop in attendance due to a drop in bookings.
I know that the past 20 years have seen a change in the way Disney is run, and I question how necessary the changes really are. Basic economics would seem to suggest that Disney should be keeping all the services they've offered and offering deep discounts, or...adding all sorts of perks and leaving pricing as is. It runs contrary to common sense to slash services AND raise prices.
Disney has made it very clear to me that I am not their target customer. I did get an e-mail from the resort manager with a screensaver on it as a thank-you. Figure those are computer generated and it cost them maybe a penny or two, right? Did they offer me a bounce-back package? Send me a letter thanking me and outlining specials they're offering in the upcoming year? Nope.
As to people spending money like water, maybe some do. However, I cancelled two character meals in response to Disney trying to fleece summer visitors by declaring all summer to be a holiday season and raising prices. We brought breakfast and snack foods from home. We cut way back on souvenirs. On my last Disney trip I spent about $50on myself for souvenirs...this trip I spent $8. I can't be the only visitor this summer who wasn't inspired to give Disney open access to my wallet. If I'd felt that Disney valued my business I probably would have spent more...but the feeling I got was that they viewed my family as a being next-to-unwanted. We had the cheapest resort rooms available, didn't purchase the dining plan, didn't book table service meals for every day, and didn't pay for the Pirate and Princess evening. We weren't doing any of the things that they make money off of...so why would they want us back?
I'd like to think that maybe a bad quarter or two would encourage those at the top to rethink current policies, especially those that are pushing a Disney vacation into a price realm that is affordable only by the wealthy. Sadly, I think those days are past and this current downturn will only serve to make Disney less accessable for the average family than it's ever been before!
I know that is true for myself. If I hadn't paid for our airfare, hotel, and park tickets 6 months in advance we probably wouldn't have gone this summer. In the 6 months between paying and going the economy seriously tanked...today I wouldn't commit to spending the type of money I was willing to spend last fall.
The article also said that many of the changes we're seeing now...cutting character meals, downsizing portions, changing menus to cut items that don't bring in huge profits or take more time to prepare than they're worth to the company, cutting the numbers of busses running, etc...are in anticipation of a drop in attendance due to a drop in bookings.
I know that the past 20 years have seen a change in the way Disney is run, and I question how necessary the changes really are. Basic economics would seem to suggest that Disney should be keeping all the services they've offered and offering deep discounts, or...adding all sorts of perks and leaving pricing as is. It runs contrary to common sense to slash services AND raise prices.
Disney has made it very clear to me that I am not their target customer. I did get an e-mail from the resort manager with a screensaver on it as a thank-you. Figure those are computer generated and it cost them maybe a penny or two, right? Did they offer me a bounce-back package? Send me a letter thanking me and outlining specials they're offering in the upcoming year? Nope.
As to people spending money like water, maybe some do. However, I cancelled two character meals in response to Disney trying to fleece summer visitors by declaring all summer to be a holiday season and raising prices. We brought breakfast and snack foods from home. We cut way back on souvenirs. On my last Disney trip I spent about $50on myself for souvenirs...this trip I spent $8. I can't be the only visitor this summer who wasn't inspired to give Disney open access to my wallet. If I'd felt that Disney valued my business I probably would have spent more...but the feeling I got was that they viewed my family as a being next-to-unwanted. We had the cheapest resort rooms available, didn't purchase the dining plan, didn't book table service meals for every day, and didn't pay for the Pirate and Princess evening. We weren't doing any of the things that they make money off of...so why would they want us back?
I'd like to think that maybe a bad quarter or two would encourage those at the top to rethink current policies, especially those that are pushing a Disney vacation into a price realm that is affordable only by the wealthy. Sadly, I think those days are past and this current downturn will only serve to make Disney less accessable for the average family than it's ever been before!
GoofyWaterCoaster
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- Joined
- Aug 21, 2007
Well, a lot more Europeans and Canadians are coming over since their dollar is worth so much more than the USD
LoveKermit
DIS Veteran
- Joined
- Jul 9, 2007
My mom read an article in the Chicago Tribune that after the busy summer season that maingate hotels in Kissimmee are expected to go as low as $49 a night. I know the Values are regularly $79 during Value Season. I wonder if they'll drop to $59 also. Haven't they done that before? Anyway, doing this because they expect lower crowds already in the fall.
I agree with the "local" part of the conversation. I can be lured by good hotel prices but if a plane ticket is $400, there's no way. It's not economical, tempting, but not economical.
I agree with the "local" part of the conversation. I can be lured by good hotel prices but if a plane ticket is $400, there's no way. It's not economical, tempting, but not economical.
LoveKermit
DIS Veteran
- Joined
- Jul 9, 2007
Oh yeah, and Disney is going to have to watch their price increases, I agree. We all understand that prices have to go up, but then we don't want to pay those prices. You'd think they could make up their losses by charging lower (or at least the same) prices and more people would come. Rather than having half-full hotels.
The airlines are the same way. Offer some "can't refuse" prices to great destinations and the planes will be full. They are making us not want to fly because it's too expensive, but it's too expensive because no one wants to fly.
The airlines are the same way. Offer some "can't refuse" prices to great destinations and the planes will be full. They are making us not want to fly because it's too expensive, but it's too expensive because no one wants to fly.
I'm from Winnipeg and I have to agree, because the US dollar is not as high Disney is an affordable option.
When my husband and I made our first trip to Disney $1.68US to every 1$ Canadian...that's a huge differnce.
GoofyWaterCoaster
<font color=blue><marquee> Please stand clear of t
- Joined
- Aug 21, 2007
Did you hear that the US Airways CEO said that flights would be $700 each way by Christmas?
WDSearcher
DIS Veteran
- Joined
- Aug 20, 2002
The only problem with that is that if they charge less to the customer, they can't offset that by cutting employee pay rates. Sure, they have a full hotel, but that means also maintaining a full staff. And they have to pay the staff the same as they did before, only on less income. If you maintain your pricing structure, you may end up with fewer rooms full, but you can adjust your seasonal / temp staff schedules to help offset that.
Plus ... if you charge lower prices, then the foreign visitors (who are already getting a deal because of exchange rates) are getting an even BETTER deal. Which is great for them, but from a Disney business standpoint, not as good of a decision. Because many of the foreign guests are fine with prices as they are now, as they are currently a bargain. The only way around it would be charge more to foreign guests than to domestic guests, and that would be a public relations nightmare!
GoofyWaterCoaster
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- Joined
- Aug 21, 2007
But, they will make more money because more people come to WDW instead of other places because of the priceThe only problem with that is that if they charge less to the customer, they can't offset that by cutting employee pay rates. Sure, they have a full hotel, but that means also maintaining a full staff. And they have to pay the staff the same as they did before, only on less income. If you maintain your pricing structure, you may end up with fewer rooms full, but you can adjust your seasonal / temp staff schedules to help offset that.
Plus ... if you charge lower prices, then the foreign visitors (who are already getting a deal because of exchange rates) are getting an even BETTER deal. Which is great for them, but from a Disney business standpoint, not as good of a decision. Because many of the foreign guests are fine with prices as they are now, as they are currently a bargain. The only way around it would be charge more to foreign guests than to domestic guests, and that would be a public relations nightmare!
Look at Wal-Mart
I am sure that next year will see fewer visitors from U.K. Credit crunch is really biting here and as the economy is heading for recession many people are going to be cutting back on holidays overseas and cost of flights to U.S. have risen steeply. 
Disney will be totally unaffordable for many.
Disney will be totally unaffordable for many.
LoveKermit
DIS Veteran
- Joined
- Jul 9, 2007
The only problem with that is that if they charge less to the customer, they can't offset that by cutting employee pay rates. Sure, they have a full hotel, but that means also maintaining a full staff. And they have to pay the staff the same as they did before, only on less income. If you maintain your pricing structure, you may end up with fewer rooms full, but you can adjust your seasonal / temp staff schedules to help offset that.
Plus ... if you charge lower prices, then the foreign visitors (who are already getting a deal because of exchange rates) are getting an even BETTER deal. Which is great for them, but from a Disney business standpoint, not as good of a decision. Because many of the foreign guests are fine with prices as they are now, as they are currently a bargain. The only way around it would be charge more to foreign guests than to domestic guests, and that would be a public relations nightmare!
I understand all the math of it. In a class I used to teach we would actually find the best way to "fill" an apartment building that will give the most profit while still being maintained. It's about 3/4 full (not using every single variable, of course--it was a regular high school course), but roughly.
But personal emotion and "traveler's" logic work against the math. We feel like we would go if prices were more reasonable--and that includes the travel portion as well (plane or car).
And obviously you can't charge your foreign customers more. But it's not a bad thing if that's who's keeping your hotels full for now. The Europeans are the ones keeping our hanging-by-a-string economy still hanging on. We can't afford to NOT have them come to Orlando or any city.
But I digress.....
kevin_cambs_uk
Mouseketeer
- Joined
- Jan 3, 2003
well we are coming from the UK later this year, and there are four of us, adults, which means for us 2 rooms.
I booked way back in Feb when everything was great, but we will not be going again for a few years until the economic situation has got better,
my entire trip including spending money has cost me in excess of 14,000 dollars, and that is a serious amount of cash and so I cannot afford it again for a long time.
Next year things will really begin to bite.
I booked way back in Feb when everything was great, but we will not be going again for a few years until the economic situation has got better,
my entire trip including spending money has cost me in excess of 14,000 dollars, and that is a serious amount of cash and so I cannot afford it again for a long time.
Next year things will really begin to bite.
Disneycrazymom
DIS Veteran
- Joined
- Mar 28, 2001
I am a bit surprised by Vegas being down. We just returned from there on Saturday night. Believe me the place was crowded! We remarked more then once we had never seen so many people! We did get a good deal (not great but good) and we booked about 3 months out.
TinkerCarol
6 Years Cancer Free Mouseketeer
- Joined
- May 6, 2008
We were there 4th of July week and asked several CM's that question. They all said it was busy because of the holiday week-end, but in general Disney World is down about 60% in its $ take in.
Wow!I think you will see 2 different directions with Disney stays - super economy, and ultra luxury. There are some people that continue to make a lot of money, and don't care how much they spend at Disney - the economy won't affect them.
The other side of the coin is that some people will still try to squeeze in a vacation, but they might stay off-site, or they will stay in a vaule resort. Once there, they might pack (or cook) their own meals, and not spend as much money on Disney junk.
So, I could easily see how $$$ spent at Disney could be down 60%. People will cut corners wherever possible - excluding the "wealthier" group of Disney visitors.
Personally, I can't wait to see what they will do with rates for Feb 2009 - we will still stay on site, but we might cut days, or stay at a moderate instead of deluxe. Maybe we will get lucky, and they will have some kind of special going on!
The other side of the coin is that some people will still try to squeeze in a vacation, but they might stay off-site, or they will stay in a vaule resort. Once there, they might pack (or cook) their own meals, and not spend as much money on Disney junk.
So, I could easily see how $$$ spent at Disney could be down 60%. People will cut corners wherever possible - excluding the "wealthier" group of Disney visitors.
Personally, I can't wait to see what they will do with rates for Feb 2009 - we will still stay on site, but we might cut days, or stay at a moderate instead of deluxe. Maybe we will get lucky, and they will have some kind of special going on!
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