Mop
Mouseketeer
- Joined
- Sep 21, 1999
Orlando Sentinel: Disney whittles capacity at resort
- Thread starter Mop
- Start date
The following is what a friend of mine told me after a brief discussion with his travel agent. At least the agents are hearing it first now.
JeffJewell
DIS Veteran
- Joined
- Oct 5, 2000
...Disney has obviously made the determination that the discount rate they would have to offer in order to fill those rooms does not compare favorably to the cost of keeping all the resorts open in the first place. In other words, it is more cost effective to open fewer resorts with rooms at closer to rack rate than to open all the resorts with significant discounts on rooms.
I personally don't have a huge problem with closing some of the resorts (I would probably even do a little dance if they "closed" the Values with a series of Tomahawk missiles, but I'd try to make sure I wasn't actually in Greg's line of sight while I was gettin' jiggy). My biggest beefs (beeves?) about the closings have been the stupifyingly poor information available from Disney concerning the topic, and the reports of less than Disney quality customer service to the folks who were displaced.
Jeff
C
Captain Crook
Guest
Jeff,
I agree.
I agree.
Sometimes it's also a marketing decision.
You dont like to discount your product if you want to be percieved as top notch.
Many brands known for quality dont permit discouting or severly limit it. (ever got a coupon from a departmentstore that said 'not availible on x, y, or z merchandise').
By lowering your price (even for a short period) you can dilute the future perceived value. THe incremental cost per room is probably really small, a few bucks a night for utilities and wear and tear and maybe 10 or 20 bucks for morning cleaning. SO theoretically they could sell any 'leftover' rooms at ANY resort for 30-40$ and still make a good return. Problem is if you stayed at the Grand Floridian during this recession for $40 bucks a night are you going to go back there next year when the economy is better and fork over $300 for the exact same thing? They wind up shooting themselves in the foot down the road.
You dont like to discount your product if you want to be percieved as top notch.
Many brands known for quality dont permit discouting or severly limit it. (ever got a coupon from a departmentstore that said 'not availible on x, y, or z merchandise').
By lowering your price (even for a short period) you can dilute the future perceived value. THe incremental cost per room is probably really small, a few bucks a night for utilities and wear and tear and maybe 10 or 20 bucks for morning cleaning. SO theoretically they could sell any 'leftover' rooms at ANY resort for 30-40$ and still make a good return. Problem is if you stayed at the Grand Floridian during this recession for $40 bucks a night are you going to go back there next year when the economy is better and fork over $300 for the exact same thing? They wind up shooting themselves in the foot down the road.
DC7800
DIS Veteran
- Joined
- Jun 1, 2001
Absolutely true (but I'd love to have one of those $40 Grand Floridian rooms 
). What I sill cannot completely understand, though, is why Disney cannot keep at least the value and moderate resorts full (especially with even the "modest" level discounts currently available) by siphoning guests away from off-property establishments. Debates about the quality of the All-Star experience aside, it is currently going for about the same rate (or less) as a "walk-in" to your typical (upscale) roadside motel (Hampton Inn, etc). Sure, there are some really nice, economy priced off-property establishments, but I'd always assumed most people would stay in WDW if they could - and now's their chance!
Rooms are available, the price is hard to beat: so why are Disney's value and moderate resorts (apparently) half-empty? If WDW is this slow, U.S. 192 and I-Drive should be slower still - and locations further out a virtual Ghost Town. Are there a lot of people who wouldn't want to stay on-site at any price, or is it a marketing problem (many don't realize they can stay on-site for the same price as off)? Or (more likely), am I missing something here?
). What I sill cannot completely understand, though, is why Disney cannot keep at least the value and moderate resorts full (especially with even the "modest" level discounts currently available) by siphoning guests away from off-property establishments. Debates about the quality of the All-Star experience aside, it is currently going for about the same rate (or less) as a "walk-in" to your typical (upscale) roadside motel (Hampton Inn, etc). Sure, there are some really nice, economy priced off-property establishments, but I'd always assumed most people would stay in WDW if they could - and now's their chance! Rooms are available, the price is hard to beat: so why are Disney's value and moderate resorts (apparently) half-empty? If WDW is this slow, U.S. 192 and I-Drive should be slower still - and locations further out a virtual Ghost Town. Are there a lot of people who wouldn't want to stay on-site at any price, or is it a marketing problem (many don't realize they can stay on-site for the same price as off)? Or (more likely), am I missing something here?
1: Part of it is marketing.
2: The people in the know, also know that Early Entry is gone and if the past couple weeks have taught me anything its that a disturbingly large number of people feel that that is the only reason to stay onsite.
Personally, I wouldn't stay offsite at any price.
2: The people in the know, also know that Early Entry is gone and if the past couple weeks have taught me anything its that a disturbingly large number of people feel that that is the only reason to stay onsite.
Personally, I wouldn't stay offsite at any price.
JeffJewell
DIS Veteran
- Joined
- Oct 5, 2000
...let's see, I get discounts with my Disney Club Card, my Annual Pass, through AAA, for using American Express... there are whole websites devoted to the archiving of Disney discount codes... I know quite a few people who already will not go to WDW until there's a discount.
If the choice not to discount was made based on the expected public perception of "discounts," then those discounts would not exist, either. The choice not to discount is based on making money, period.
The decision not to discount now, with unprecedented drops in tourism, discounts available from competitors, and hundreds of empty rooms available... there's only one sane business plan I can imagine that would lead to that decision: they can make the absolute most money, _right now_, by accepting the customers still willing to show up at any price, then cutting park hours, closing attractions and restaurants, reducing the number of shows and meals, and closing hotels until their expenditures are reduced the same percentage as the attendance. Create a virtual Christmas week by shoving the remaining guests closer in space and time.
Jeff
PS: YoHo, I thought for a long time that I'd never stay off-site, but it turned out that a "too good to pass up" offer came along, and Suzy and I stayed off-site for our honeymoon this past June. We noticed that, when dining at the resorts, it took us 10-20 minutes to get there in the car. No more planning for "an hour-and-a-half" travel time between resorts using Disney Transportation (even though we're on-site next week, we're still getting a car. I never thought the busses were anything close to Magic, but, and I say this with malice toward no one, the busses are for suckers). EE was not our priority that trip (hey, it was our honeymoon) but there were a couple days when we both woke up and ended up eating off-site because we couldn't get into the parks yet (actually, with APs, I bet we could have walked right in during EE. We didn't try it).
Without EE, the price of the room will become a much larger factor in my on-site/off-site decision (and for me, on-site got relatively even _more_ expensive in June, when I realized I'd never stay on-site without a car again).
Jeff, I have to agree with you - and well said!
We've been "on property" only folks for over 13 years - never thought we'd stay anywhere else. We like the Contemporary and the Carabbien Beach. Love the hotels, but most of all really like the CM's. We made reservations for the Contemporary for November 30 - December 10 over a year ago. We leave tomorow. Where are we staying? Not the Comtemporary!
When all the "downsizing" started we watched - we watched closely. What we saw didn't please us. In fact it made me just a bit ill. Other businesses were trying there darndest to keep there employees on board, and get visitors to Orlando. That is, all but Disney. We didn't like the way they were trying to get rid of the CM's by cutting their hours, we didn't like like the way they were handling hotel closings, trying to get customers to pay more for thier vacations. "No room at the moderates" Oh, come now!!!
Celebrating Walt Disney's 100th Brithday - by closing the CoP (an with that, the pre-show that was probably the last vestage of Walt in the Magic Kingdom.)
We called the Contemporary - they made it clear that they really didn't care if we showed up of not. Remember - these are people we have known for years!
So we called the Marriott World Center. The were delighted to hear from us. "Oh it's ok that you're not to Government Orders, if you have government id we'll give you the government reate"! (I had the feeling that if they knew we had cats, they'd find a special rate for us - they wanted customers!) "Oh, you belong to the Marriott Marques Club? Doesn''t matter that you're not in the top teir, we'll put you in for an upgrade"
So, we'll be at WDW, and staying at the Marriott (at half the cost of the Contemporary). As another upside, since we always have a car - agree about the WDW buss service - we'll be able to give bigger tips to the Valets at the Contemporary - they're always happy to see us, so let's make them just a bit happier!!! Yes, we'll be spending a lot of time there, lots of our friends pin trade there, just not sleeping there.
When Disney brings back the value of staying "on property" we MAY go back.
We've been "on property" only folks for over 13 years - never thought we'd stay anywhere else. We like the Contemporary and the Carabbien Beach. Love the hotels, but most of all really like the CM's. We made reservations for the Contemporary for November 30 - December 10 over a year ago. We leave tomorow. Where are we staying? Not the Comtemporary!
When all the "downsizing" started we watched - we watched closely. What we saw didn't please us. In fact it made me just a bit ill. Other businesses were trying there darndest to keep there employees on board, and get visitors to Orlando. That is, all but Disney. We didn't like the way they were trying to get rid of the CM's by cutting their hours, we didn't like like the way they were handling hotel closings, trying to get customers to pay more for thier vacations. "No room at the moderates" Oh, come now!!!
Celebrating Walt Disney's 100th Brithday - by closing the CoP (an with that, the pre-show that was probably the last vestage of Walt in the Magic Kingdom.)
We called the Contemporary - they made it clear that they really didn't care if we showed up of not. Remember - these are people we have known for years!
So we called the Marriott World Center. The were delighted to hear from us. "Oh it's ok that you're not to Government Orders, if you have government id we'll give you the government reate"! (I had the feeling that if they knew we had cats, they'd find a special rate for us - they wanted customers!) "Oh, you belong to the Marriott Marques Club? Doesn''t matter that you're not in the top teir, we'll put you in for an upgrade"
So, we'll be at WDW, and staying at the Marriott (at half the cost of the Contemporary). As another upside, since we always have a car - agree about the WDW buss service - we'll be able to give bigger tips to the Valets at the Contemporary - they're always happy to see us, so let's make them just a bit happier!!! Yes, we'll be spending a lot of time there, lots of our friends pin trade there, just not sleeping there.
When Disney brings back the value of staying "on property" we MAY go back.
C
Captain Crook
Guest
Truly off topic
Sorry Jeff, but this too falls into the realm of personal taste. I NEVER, I repeat NEVER drive my car at WDW. It is one of the things I find truly satisfying (not having to drive). Sure my plans must be made according to which Resort I'm staying at, but so far we have never felt the stroll after dinner to the bus stop or the impending bus change (when necessary) too much of a bother. I rather like the discussions with other guests & having my daughter fall asleep on my lap while the bus rumbles along. Further, as is typical of seafarin' men, I am apt to have a taste of grog with me meal...Sometimes more than a taste (hey, I'm on vacation , too) and while I don't think I'm ever impaired, I certainly wouldn't want to be driving...So, I think even simplistic totally un-magical things like busses can be seen from varying perspectives...
On topic
Small discounts (Disney club, newspaper adds, etc. are figured into the mix). I wholeheartedly agree that wholesale discounts would be entirely the wrong move & hurt Disney in the long run.
No malice? You just called me a goat brained ignoramous and you intend no malice?
Sorry Jeff, but this too falls into the realm of personal taste. I NEVER, I repeat NEVER drive my car at WDW. It is one of the things I find truly satisfying (not having to drive). Sure my plans must be made according to which Resort I'm staying at, but so far we have never felt the stroll after dinner to the bus stop or the impending bus change (when necessary) too much of a bother. I rather like the discussions with other guests & having my daughter fall asleep on my lap while the bus rumbles along. Further, as is typical of seafarin' men, I am apt to have a taste of grog with me meal...Sometimes more than a taste (hey, I'm on vacation , too) and while I don't think I'm ever impaired, I certainly wouldn't want to be driving...So, I think even simplistic totally un-magical things like busses can be seen from varying perspectives...On topic
Small discounts (Disney club, newspaper adds, etc. are figured into the mix). I wholeheartedly agree that wholesale discounts would be entirely the wrong move & hurt Disney in the long run.
raidermatt
Be water, my friend.
- Joined
- Sep 26, 2000
Jeff- Regarding the dicounts you mentioned:
APs and DC card - It should be pretty clear how this is different type of discount than giving rooms to priceline, or merely cutting in half.
American Express - A dicount for using one of Disney's premium partners.
AAA - Probably just too big of an organization for Disney to alienate by not honoring the discount.
I don't believe any of these are more than 10%. The kind of discounting Disney would have to do to fill a significant number of rooms is much more than that. If they did slash rates by say 50%, or even 70%, they would hurt themselves in the long run. People just won't want to pay full price next year, or they will wait, knowing that if Disney can't fill its rooms, they will slash rates. It is a valid business model, and one that is followed by many high-end companies.
That's not to say that the theory that they will make more money by "cramming" isn't valid. But it actually is very closely related to the above plan. The reality is, Disney would make more gross revenue by discounting. They would increase their profits. But they would decrease their margins. Meaning they would take in $75 per guest in revenue instead of $100 (just examples). If that happens, they have to spend $25 less per customer than they are now so that they can acheive the same profit per customer. That mean even more service cuts. The other option is to just let their profit per customer fall, but then they could find themselves in bigger trouble if attendance falls further. Also, its hard to increase those margins once you have let them go down.
JudySue- Given your experience with Disney customer service and Marriot customer service, I can understand why you switched. I feel differently about the other benefits of staying on-site (including the busses, I guess I'm a sucker), but that's just my opinion. I am curious about why you have a problem with Disney cutting CM hours. From what I understand, many areas have been hit hard by the recession, especially the tourism industry, and many companies have laid off workers or reduced their hours. Certainly the airlines have, and I know that hotels have as well. Why do you expect Disney to be exempt from this?
APs and DC card - It should be pretty clear how this is different type of discount than giving rooms to priceline, or merely cutting in half.
American Express - A dicount for using one of Disney's premium partners.
AAA - Probably just too big of an organization for Disney to alienate by not honoring the discount.
I don't believe any of these are more than 10%. The kind of discounting Disney would have to do to fill a significant number of rooms is much more than that. If they did slash rates by say 50%, or even 70%, they would hurt themselves in the long run. People just won't want to pay full price next year, or they will wait, knowing that if Disney can't fill its rooms, they will slash rates. It is a valid business model, and one that is followed by many high-end companies.
That's not to say that the theory that they will make more money by "cramming" isn't valid. But it actually is very closely related to the above plan. The reality is, Disney would make more gross revenue by discounting. They would increase their profits. But they would decrease their margins. Meaning they would take in $75 per guest in revenue instead of $100 (just examples). If that happens, they have to spend $25 less per customer than they are now so that they can acheive the same profit per customer. That mean even more service cuts. The other option is to just let their profit per customer fall, but then they could find themselves in bigger trouble if attendance falls further. Also, its hard to increase those margins once you have let them go down.
JudySue- Given your experience with Disney customer service and Marriot customer service, I can understand why you switched. I feel differently about the other benefits of staying on-site (including the busses, I guess I'm a sucker), but that's just my opinion. I am curious about why you have a problem with Disney cutting CM hours. From what I understand, many areas have been hit hard by the recession, especially the tourism industry, and many companies have laid off workers or reduced their hours. Certainly the airlines have, and I know that hotels have as well. Why do you expect Disney to be exempt from this?
DVC-Landbaron
What Would Walt Do?
- Joined
- Jul 21, 2000
This was the very first thing, way back in the eighties, that started to bother me about Disneys management. They just didnt seem to care that the building up of the property made hour and a half to two hour trips the norm. And I really never did forgive them for not building a monorail to the Studios.
(sorry Captain, but it is!!) You can always leave it in the hotel parking lot. But you dont have any options if you dont have one!!!
And do you really mean to tell me, one afternoon, staying a little too long at the pool, or oversleeping from a nap, you find yourself late for your early dinner seating, you don't hop in the car and cut your travel time by at least half? My goodness!!! Your family must be WAY more organized than mine!!!!
Oh boy!!! Where to start on this one??? Captain. Remember when we met in the summer? I left my family and got to the Dolphin in about a half an hour or so. I drove. Do you have any idea how long it would have taken by bus?!?! I might, if the travel gods were smiling, be arriving at the dolphin four or five hours from now!! Good lord Captain!!!! Cant we agree on anything!?!!?!?!
Once again you are 1000% right!!! I figured that out when I stayed in the Caribbean Beach, back in 90 or 91. I never, never, NEVER go to Disney without a car!! Its just plain stupid!!
(sorry Captain, but it is!!) You can always leave it in the hotel parking lot. But you dont have any options if you dont have one!!! And do you really mean to tell me, one afternoon, staying a little too long at the pool, or oversleeping from a nap, you find yourself late for your early dinner seating, you don't hop in the car and cut your travel time by at least half? My goodness!!! Your family must be WAY more organized than mine!!!!
raidermat - I think it's the way Disney is cutting hours and the why (as I perceive it). By cutting the hours down to 6 r 8 a week they are not - technically - firing the cm's. Therefor it's harder to qualify for unemployment benifits. Since the firing company contributes to the unemploymenttrust fund in preportion to the number of their employees drawing benifits Disney's cost doesn't go up quite as much. Again - Disney finding a way to "save". We've been to WDW a lot - these are friends being hurt.
By the way - Bill Marriott (CEO of the Marriott Corp.) was on TV after the disaster. He wasn't talking about the hotels he lost (2 of them), but about how he set up a "leave fund" world wide for employees to contribute hours to make sure the affectide Marriott employees woud continue getting paid until they could be placed in new jobs and were ready to go back to work. Marriott Corp. also lost 2 employees - they were making sure that the families would be ok.
I've noticed that SouthWest Airlines isn't cutting jobs - would like to support them too.
I vote. Not only on the first Tuesday after the first Monday in November.
By the way - Bill Marriott (CEO of the Marriott Corp.) was on TV after the disaster. He wasn't talking about the hotels he lost (2 of them), but about how he set up a "leave fund" world wide for employees to contribute hours to make sure the affectide Marriott employees woud continue getting paid until they could be placed in new jobs and were ready to go back to work. Marriott Corp. also lost 2 employees - they were making sure that the families would be ok.
I've noticed that SouthWest Airlines isn't cutting jobs - would like to support them too.
I vote. Not only on the first Tuesday after the first Monday in November.
raidermatt
Be water, my friend.
- Joined
- Sep 26, 2000
JudySue- I didn't realize the cut in hours was so severe. If the cut is 40 to 8 per week, I agree. I had looked at it as a way for employees to have some kind of job, and if the cut was 40 to 30, I would still see it that way. But the cuts you are describing are not what I had in mind.
I have nothing against Mr. Marriott, and I have no reason to believe he is anything but a great CEO. Its certainly commendable that his focus was not on the hotels he lost. (A cynic would point out that his losses will be at least partly mitigated by insurance, but even if they weren't I'm sure he wouldn't have complained about it on TV). But do you really think that if Disney had lost 2 hotels, Eisner would go on TV and bemoan the loss of his property? I'm sure he, just like Mr. Marriott and everyone else I heard talking about the situation, would focus on the human toll in any public comment.
As for the leave policy, I really don't see how that puts Marriott in the "humanitarian" category. I had heard about this, though I believe it was a different company doing it. The idea is that employees can donate their vacation time to the the effected employees. Certainly this has some administrative cost to Marriott, but its minimal in the grand scheme of things. And if I were a Marriott employee, I'd be happy to give up a few of my hours to help another employee. HOWEVER, I would also have to ask the question, "Why can't my company pay for this, instead of me?" On a personal level, of course I would donate what I could, just as I sent in money to relief funds. But instead of me giving up a day of my 10 days of vacation, how about my company pick-up that bill?
Maybe Marriott's plan was different from what I had heard?
That said, please don't think I am saying you should not have switched your reservations. I'm more just saying that, IMHO, you MAY be holding Disney to a higher standard than Marriott.
I have nothing against Mr. Marriott, and I have no reason to believe he is anything but a great CEO. Its certainly commendable that his focus was not on the hotels he lost. (A cynic would point out that his losses will be at least partly mitigated by insurance, but even if they weren't I'm sure he wouldn't have complained about it on TV). But do you really think that if Disney had lost 2 hotels, Eisner would go on TV and bemoan the loss of his property? I'm sure he, just like Mr. Marriott and everyone else I heard talking about the situation, would focus on the human toll in any public comment.
As for the leave policy, I really don't see how that puts Marriott in the "humanitarian" category. I had heard about this, though I believe it was a different company doing it. The idea is that employees can donate their vacation time to the the effected employees. Certainly this has some administrative cost to Marriott, but its minimal in the grand scheme of things. And if I were a Marriott employee, I'd be happy to give up a few of my hours to help another employee. HOWEVER, I would also have to ask the question, "Why can't my company pay for this, instead of me?" On a personal level, of course I would donate what I could, just as I sent in money to relief funds. But instead of me giving up a day of my 10 days of vacation, how about my company pick-up that bill?
Maybe Marriott's plan was different from what I had heard?
That said, please don't think I am saying you should not have switched your reservations. I'm more just saying that, IMHO, you MAY be holding Disney to a higher standard than Marriott.
C
Captain Crook
Guest
Landbaron, it doesn't seem like we can agree on anything!
BUT let me say this...I understand that you & Jeff and many others feel the need to have a car. I always DO have a car. But I have NEVER, not once used it until checkout.
Perhaps we are more organized, perhaps it's simply because we go more frequently and never schedule dinner at 'Ohana when we're staying at AK, for instance...But my point is that you guys are catagorically dismissing the bus system as not being viable or as having any good side effects when I have clearly shown that it fits the bill for me our family...Why can't it be both ways?
BUT let me say this...I understand that you & Jeff and many others feel the need to have a car. I always DO have a car. But I have NEVER, not once used it until checkout.
Perhaps we are more organized, perhaps it's simply because we go more frequently and never schedule dinner at 'Ohana when we're staying at AK, for instance...But my point is that you guys are catagorically dismissing the bus system as not being viable or as having any good side effects when I have clearly shown that it fits the bill for me our family...Why can't it be both ways?
Jeff-
I can tell you from personal experience that sometimes the best LONG TERM business plan is to keep the price (and therefore margins as Raider Matt points out) and quality high. I happen to be in the consulting business. The field I'm in there are tons of competition.
The company i last worked for we charged literally half for the same services and we would get the bussiness from customers who shopped soley by price. Because our margins were so low we had to keep many people working at 100% to maintain a decent profit. Also the quality did suffer, it was important to watch every penny to make sure that we didnt lose money. THe people that we had to hire as a result werent exactly top knotch and so the quality went down more so the prices had to stay low and the cycle spiraled forever. I personally had to leave becuase as a project manager I was always having to put out the fires caused by the slackers and my life stunk for it.
My current business partner and I left that place and started a new firm, the basic foundation of our business plan is that we WILL CHARGE MORE than many and we will give great service and quality. I can happily report that I work half as hard and make 4 times as much with almost no headaches. A couple of my friends also left and went the other route- they thought they could discount better. Well they get stuck killing themselves stressed all the time putting out the fires of 40-60 employees while I only need to watch one or two. I see my friends and figure they gross 10 or maybe 20 times what we do, yet i think i take home more.
Sure I discount my rates to land bigger customers, to keep regulars happy,or when times are slow - but then its only along lines of the 10-15% of DC or amex or DVC etc that disney would do, not the wholesale priceline chop of 50%. I think if i drop my price in half, i can never go back up- I lose a full price customer forever. If i discounted that hard and than try to double my rates when times where better, that particular client is just going to run to my competition for the price I charged when i discounted crazily.
I dont agree with many of the current decisions made in the mouse house for exactly the reasons above- half ***ing a new theme park or resort or even ride is only going to lead to the downward spiral were they wind up seeing who can discount better- them or six flags. But in this case I kind of agree with their plan (although i DO have reservatiuons since they seem to pick and choose when to play the quality card).
I can tell you from personal experience that sometimes the best LONG TERM business plan is to keep the price (and therefore margins as Raider Matt points out) and quality high. I happen to be in the consulting business. The field I'm in there are tons of competition.
The company i last worked for we charged literally half for the same services and we would get the bussiness from customers who shopped soley by price. Because our margins were so low we had to keep many people working at 100% to maintain a decent profit. Also the quality did suffer, it was important to watch every penny to make sure that we didnt lose money. THe people that we had to hire as a result werent exactly top knotch and so the quality went down more so the prices had to stay low and the cycle spiraled forever. I personally had to leave becuase as a project manager I was always having to put out the fires caused by the slackers and my life stunk for it.
My current business partner and I left that place and started a new firm, the basic foundation of our business plan is that we WILL CHARGE MORE than many and we will give great service and quality. I can happily report that I work half as hard and make 4 times as much with almost no headaches. A couple of my friends also left and went the other route- they thought they could discount better. Well they get stuck killing themselves stressed all the time putting out the fires of 40-60 employees while I only need to watch one or two. I see my friends and figure they gross 10 or maybe 20 times what we do, yet i think i take home more.
Sure I discount my rates to land bigger customers, to keep regulars happy,or when times are slow - but then its only along lines of the 10-15% of DC or amex or DVC etc that disney would do, not the wholesale priceline chop of 50%. I think if i drop my price in half, i can never go back up- I lose a full price customer forever. If i discounted that hard and than try to double my rates when times where better, that particular client is just going to run to my competition for the price I charged when i discounted crazily.
I dont agree with many of the current decisions made in the mouse house for exactly the reasons above- half ***ing a new theme park or resort or even ride is only going to lead to the downward spiral were they wind up seeing who can discount better- them or six flags. But in this case I kind of agree with their plan (although i DO have reservatiuons since they seem to pick and choose when to play the quality card).
JudySue-
Not sure about Florida- (i'm somewhat ignorant about working there and I accually do believe its a little archaic in regards to worker protections..)
But here in the northeast, cutting someones hours from 40 to 8 definately triggers unemployment insurance for the worker. (I think its actually just a 10% cut here in NJ). So Hopefully that isnt Disney's motivation. I coudlnet imagine them (as in the state) allowing the workers to get so abused. (but florida is a 'right to work state' so i dont really know)
Also the percentage rate is based upon how many collected the previous period, but you still pay that rate times your current payroll, so keeping someone on just to save in unemployment tax probably doesnt work out econcomically.
Not sure about Florida- (i'm somewhat ignorant about working there and I accually do believe its a little archaic in regards to worker protections..)
But here in the northeast, cutting someones hours from 40 to 8 definately triggers unemployment insurance for the worker. (I think its actually just a 10% cut here in NJ). So Hopefully that isnt Disney's motivation. I coudlnet imagine them (as in the state) allowing the workers to get so abused. (but florida is a 'right to work state' so i dont really know)
Also the percentage rate is based upon how many collected the previous period, but you still pay that rate times your current payroll, so keeping someone on just to save in unemployment tax probably doesnt work out econcomically.
Planogirl
I feel the nerd in me stirring
- Joined
- Aug 11, 2000
Actually, I wasn't ever thrilled with the CM hours going from 40 to 30. However, I'm in a situation where I need all the hours I can get. Getting only 8 hours or so is just awful.
I'm another one who likes to drive while at WDW. We didn't have a car during our last trip and it was awful IMO. We took taxis a few times and mooed glumly to the back of overcrowded buses during the majority of our other trips. I really enjoy exploring the central Florida area and we even spend some time at the beach once in a while. But without a car, I feel very trapped which I understand is exactly what many travelers want and that is perfectly understandable. However, I want to spend about 75% of my time at Disney and then play at other places during the other 25%. Besides, I can't even get to the outlet malls without a car!
I don't understand why Disney can't discount a bit more than they do. Everywhere else I travel, I land great deals and I don't like to stay in dives or even chains unless it's absolutely necessary. I love hotels with personality and character which is why the themed resorts at WDW appealed so much to me. But a good bed and breakfast or historic inn pleases me too and these places don't hesitate to discount when they need to. I see no indication of a downward spiral at my favorites (at least not yet!) so I'd love to understand how this happens.
I'm another one who likes to drive while at WDW. We didn't have a car during our last trip and it was awful IMO. We took taxis a few times and mooed glumly to the back of overcrowded buses during the majority of our other trips. I really enjoy exploring the central Florida area and we even spend some time at the beach once in a while. But without a car, I feel very trapped which I understand is exactly what many travelers want and that is perfectly understandable. However, I want to spend about 75% of my time at Disney and then play at other places during the other 25%. Besides, I can't even get to the outlet malls without a car!
I don't understand why Disney can't discount a bit more than they do. Everywhere else I travel, I land great deals and I don't like to stay in dives or even chains unless it's absolutely necessary. I love hotels with personality and character which is why the themed resorts at WDW appealed so much to me. But a good bed and breakfast or historic inn pleases me too and these places don't hesitate to discount when they need to. I see no indication of a downward spiral at my favorites (at least not yet!) so I'd love to understand how this happens.
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