We’re big fans of discounts over here at Chip and Co, so we were disappointed to hear that Disney plans on weaning the public off of them in the very near future. The company announced Tuesday that it is
“determined and confident that we can take our pricing back to normalized levels,” Walt Disney Co. Chief Financial Officer Jay Rasulo said during a conference call with stock analysts.”
While recent discounts have kept resort beds full and people in the parks, revenue is still down. Nonetheless, it appears that Disney is willing to take a short term hit on attendance in order to wean the public off discounts. This, in turn, is expected to gradually increase park revenues, the idea being that fewer people in the parks paying full price is better than more people paying the deep discounts we’ve seen in recent years. Says Disney President and CEO Box Iger,
“We made a decision to reduce the size of the discount. In doing so, we were pretty certain, short-term, that was going to reduce volume,” adding however, that bookings have very recently begun to accelerate, suggesting, he said, “It’s possible that we’re starting to see signs that the consumers are starting to look past” discounts.
One thing I’m wondering is whether or not pin codes (discount codes sent via email that are specific to the individual), bounce back offers, and annual pass discounts will gain in importance as general public discounts are reduced, or will these also become a thing of the past? I certainly would be more willing to buy an annual pass if I knew I could count on an AP discount, which at this point isn’t any better than the general public discounts that are out there right now. What do you think? Will a lack of discounts keep you out of the parks?
Source: The Daily Disney.
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True on all counts, Julia!
I'm grateful every day my children have good teachers.
Sandi, one new thing is that the rumor about payment plans for APs is apparently true. I heard they'll be testing it in July and rolling it out (right before AP and ticket prices go up) around the first week of August.
Well, we are not wealthy people, so I am all for the discounts. Especially the florida residents discounts. Otherwise, my kids would not be able to enjoy the same vacations that I enjoyed as a child. These discounts are one of the perks of living in Florida. I do not really care about the dinig plan offers because we cannot utilize these with the florida resident ticket offers, but I imagine these are a big help to some families. Even if you only get counter service with them, it helps families that coul not afford it otherwise. We pack our own lunches for the parks, so again this is not an issue for us. One cahnge would be great to the AP though. If they did not begin until first use. For instance, I could purchase one for each of my kids birthday, or one a month for christmas gifts.
I like the idea of fewer discounts overall if it helps the company in the long run… But I wouldn't mind having discounts that are more specific–like educator and military discounts. Both professional groups are essential to everyone and it's time they are appreciated (educators are only given a small discount–and only a few times–at Swan & Dolphin–which isn't even a Disney resort). Let's celebrate people who really help our society (the volunteering promotion was also a wonderful idea).
I enjoyed the free dining but I'm surprised it lasted so long. It was always IMPOSSIBLE to make reservations anytime that promotion was going on. And that's just ridiculous for guests who were willing to pay full price.
I wouldn't mind seeing free dining go. I really don't like the changes that have occurred and food quality/variety has really dropped since it all started. A few nice discounts would be fine. It will be interesting to see if Disney can hold the line though, people have gotten so used to expecting the discounts; it will be hard to break those expectations.
I agree with you completely and I worried about the tip issue as well. I think we over-tipped on our last trip because we had the dining plan, but I'm sure that's not the norm, which is a shame. We've always had great service at WDW restaurants.
It really does seem that people are divided into two camps: Those that love free dining and those that do not. From what I've been hearing, most people think its really hurt the quality, which is a huge shame. One of my favorite parts about visiting WDW is the food.
Bounce backs, private email pins, AP discounts I have no problem with these. But free dining has got to go. Thankfully I got my ADRs in before free dining was announced. If not I'd be sitting here with no place to eat. It's going to be crowded with lower quality service and food. I can't imagine staff is making any money off tips from the free dining people.
Crunchy, I totally agree. I'm not a fan of free dining. When I made my ADRs at the 180 day mark, prime spots were already full 38 minutes (I looked at the clock) after you could make them because people were anticipating free diing. Now, if you looked at the next day, things were open (because they couldn't do 180-10). I understand the reason behind it, but it's not fair. Don't even get me started on the issue of whether or not it hurts the food quality. Just not a fan of free dining.
Plus, I'm hoping that Disney offers incentives for frequent visitors. This is what a lot of AP holders have been calling or. Right now, your AP discount means nothing if the same discount is offered to the general public. And if bounce back offers continue, it's not that bad of a thing.
If reducing discounts means free dining goes away I am all for it. I feel the dining experience has declined since the introduction of free dining.