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  1. #16

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    Quote Originally Posted by sediment
    Is the annual report online?
    http://corporate.disney.go.com/inves...l_reports.html

  2. #17

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    Synergy

    Quote Originally Posted by dshimel
    Their operating margin for all of parks and resorts is only 14%. If merchandise was really clearing 25%, then that would account for ALL of parks and resorts operating income.
    This kind of misses the whole point of the synergistic relationship of the park to merchandise sales. A great deal of the retail wouldn't exist if it weren't for the strong image of the park itself. The Strategic Planning Department failed to realize the intangible, but complex synergistic relationships between the all the various parts of the company. You can't plug these elements into a spread sheet and get an answer.

  3. #18

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    Oh my I have a spinning head ahhhhhhh

  4. #19

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    Quote Originally Posted by dshimel
    The only point is this....
    If people are staying away from Disneyland because it is too crowded, and those people that are staying away would have spent ore than an AP spends per visit, then the AP is driving away revenue. They can continue to increase AP prices until the park starts to drift below capacity and that capacity isn't filled with new guests paying full (nuch higher per visit) price.
    The AP is an inelastic good.
    Dumping the PAP would allow guests to pay for and enjoy the most demanded days.

  5. #20

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    Quote Originally Posted by sediment
    The AP is an inelastic good.
    Dumping the PAP would allow guests to pay for and enjoy the most demanded days.

    You lost me on this? What do you mean by "inelastic"?

    I don't understand your comment about dumping the PAP. Personally, I'd like to see the PAP continue to rise in price until the majority of people switch to DAP. Of course, I think they should also add the 10% shopping discount to the DAP....

    The DAP at $209 really limits their ability to sell hoppers, I think. It is $1 less than 2 2-day hoppers and only $9 more than the 5-day hopper.

    Then again, maybe that is the point. If someone is going to come and stay for 5 days, get them to buy a DAP so they'll come back and spend another 3 to 5 days later that same year. If they're coming for at least 2 2-day stays(like me this year), get them to come for 3 or 4 3-day stays instead.... Worked for me as I just ordered 3 DAPs yesterday.

    I think there is another $100 or so that they can raise the DAP before I'd quite buying it... Or maybe just take a year off...

    If the DAP does go above $300, then I hope they open up the next level down (current So_Cal) to non-So-Cal-residents... I'd pay $200 for a pass with So-Cal Resident type block out schedule if the DAP went much above $300.

  6. #21

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    I mean to say its demand is inelastic. This is basic Microeconomics:

    A good which has inelastic demand is one such that when the price increases, the total revenue increases.

    Yes, that's also what I'd like: Dump the PAP, give PAP discounts to DAP. I see no need to continue to offer the PAP. When TDL sells out a NYE private party (No APs allowed), there's definitely revenue being lost by having DL's NYE packed with near-free-loaders.

  7. #22

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    Quote Originally Posted by sediment
    I mean to say its demand is inelastic. This is basic Microeconomics:

    A good which has inelastic demand is one such that when the price increases, the total revenue increases.
    Well, it isn't gasoline, something we have to buy (about) the same amount of whether it is $1 a gallon or $3 a gallon.

    I think the AP will have failry flat demand curve as long as it is inexpensive when compared to a 5-day hopper or a couple 2-or-3-day hoppers.

    If the price were to go to something like $400 for the DAP, equal to the price of 8 1-day tickets or 4 2-day hoppers, then I think demand would fall pretty quickly. Instead of going 10 times on a DAP, many would switch to going 3 or 4 times on 1-day tickets or a couple 2-day hoppers.

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