3/5: Not-so-Happy Meals

[Al Lutz]

Disney World cut back and raised prices in better times; Now what do they do? Discuss it here...

DIRECT ARTICLE LINK: MiceAge.com - A different look at Disney...

[Lebeau]

Slashing prices is not the answer. First, you give up your status as a premium product. As you pointed out, slashing prices is the Walmart approach. Let Six Flags slash prices.

Plus, if Disney is already in a position of having to cut staff, they can't very well cut prices too. And as you mentioned, the lines are too long for the reduced staff to handle. So, the hordes of people who show up for discounted Disney World will not be satisfied when they realize how long the lines are. Bye, bye goodwill.

I wish Disney World management was taking the opportunity to invest a little more in the future of the parks. Al's story about WDW management canceling Star Tours 2.0 really made me concerned for the short-term future of the parks. But the key for now seems to be buckling down and weathering the storm. Hopefully it will pass before extreme measures become necessary.

[RenMan]

Somehow the focus has to shift back to the company's mission of creating quality entertainment rather than profits. Given the nature of human greed, I'm not sure how that's possible, but I wish it were so. Essentially, a bunch of privileged people need to change their minds about what's important to them.

[davewasbaloo]

I have stopped going to WDW due to how bad the quality diminishing has been. After 34 years of obsessive fandom, I have had enough. WDW has aweful service and average restaurants compared to it's past or indeed even compared to DL, DLP and TDL. The end result is they will no longer get a penny out of me. THis year we are going to Spain, Germany and DLP instead. LAst year it was Califorinia. Next year, Japan.

Once upon a time, WDW would have got that money. I don't want to see a reduction in price per se, I want a return to quality instead. But sadly I doubt that will ever happen again.

[Kiba]

Greed isn't bad when it looks at the bigger picture rather than the quarterly report. It's investing in the park when prices are lower and trimming fat in areas that reduce operating costs without cannibalizing the guest experience. Those range from executive overstaffing and perks to making the sort of investment the DL on-site bakery represents- local production ultimately means less overhead in the form of transportation costs and all sorts of tax breaks. And these savings can be passed onto the consumer. Efficiency, rather than strip-mining.

[SueinSac]

Seems to me they're using "Get in FREE on your Birthday" and deals on hotel rooms like "buy 4 get 3 FREE!" to get people on property, but once you're there, they soak you with overpriced meals and experiences, and sub-par waits and atmosphere due to all the declining by degress issues Kevin talks about.

I don't think it's the right business plan--in a recession or anytime--to get people in with perceived loss-leader deals, and then have them go home angry about how crowded the parks were and how expensive their trip was overall. Word of mouth travels, and if they're going to continue selling "magical" experiences, guests need to carry that "magical" feeling home with them, and keep it going long after their VISA bill shows up.

If you come home and tell your neighbors you had a good trip but came home feeling like it wasn't worth the cost, WDW won't get your repeat business or the neighbors making their first trip, and the property as a whole will suffer.

I love going to WDW, but we've started to severely limit on-site dining and when we go back again next year, we're coming mostly to see the new stuff at Universal. I can stay in my DVC and do lots of other fun things in Orlando!

Sue in Texas
...5 AP's lapsing soon...

[GrumpyFan]

Good article Kevin, but I couldn't finish the entire article because it just irritated me. On our last trip to WDW in June of 2008, I noticed a LOT of these at the restaurants in MK and DHS. I have to agree that it seems like they do regard their guests as mere "tourists" and are cutting corners to the point of it being noticed, a lot! I sent a message to WDW.GUEST.COMMUNICATIONS@DISNEYWORLD.COM
and I would urge others to do the same.

My wife gave me John Hench's Designing Disney for Christmas and I can't put it down. In it he relates a story from the early days when they were building Disneyland, and he talked about the detail they were putting into the stagecoach ride. They tried to cut some corners to save money, and Walt over-rode it, saying the guests would notice the difference (sorry, I don't have the exact quote). But, the point is, Walt Disney himself knew this, and made it a point in EVERYTHING he did, to put on the absolute best possible show and not to skimp on the detail. Walt knew that and preached it to his people and mandated that everything be done to the highest level of qaulity.

It's sad really that WDW has lost this philosophy. I would warn them, their guests do notice when corners are cut. Take the example of Disney's California Adventure. Disney is now spending over a billion dollars to fix a park that many many corners were cut on while in development. Guests notice, and when they do, they don't come back.

I for one, have decided it's not worth my money for our family of 6 to take our vacation at WDW this year. It's not a popular decision because we've taken at least one trip to there every year for the past 9 years, sometimes we took more than one. It saddens me too to not go back, because I'm probably the biggest Disney geek in my family. However, I simply cannot justify the money this year, and with their cutbacks and cheapening, I hope to help send a message that THIS GUEST DOES NOTICE, and if they're going to treat me like a "TOURIST", then I will take my money somewhere else.

EDIT - I went back and finished reading the article, and want to add a couple more statements.

Kevin made some good points about what possibly got us (them) into this mess, greed and the need for an ever increasing bottom line. I agree with this. I also agree with the sentiment of his last two paragraphs. These are very trying times, and as the saying goes, "Desperate times call for desperate measures". Meaning, during these tough times, maybe it's time to do business a little bit different. Take for example what the Korean car manufacturer Hyundai is doing. They have a promotion going on right now where they will buy back your recently purchased (Hyundai) car if you lose your job. Now, they may not actually have to execute this option too often, but the perception that they care and want to help in these tough times, goes a LOOONG way. Smart move on their part, and it's apparently helping their bottom line, as they are one of the few carmakers in the WORLD who actually has a positive bottom line in the last quarter.

[danyoung]

It's all about perception and balance. No one minds that Disney is making gobs of money if their product (in this case a vacation) meets or exceeds expectations. You keep the prices at a point where people don't mind paying them, and keep the services at a point where people feel well served. But then BOOM, a recession hits, and Disney has refused to allow their profit growth to diminish. Their formula is to keep the profits up at any cost, and now things are way out of balance. The sad fact is that things are not so far out of balance that the parks are suffering, attendance wise. People are still coming in droves, people are still eating expensive meals, and people are still enjoying their vacations. Of course the negative side of this is starting to increase, and it's a huge question which one will hit critical mass first - unhappy customers like my friend davewasbaloo who just don't visit anymore, or a break in the recession that will allow the company to get back to its profits without having to further cut services.

For me, I'm not nearly at the point to where I'm going to cancel upcoming vacations. I still have a terrific time at the parks, spend buckets of money on high priced meals that for the most part I enjoy, and come home to start planning my next WDW vacation for a few months from now. But I can definitely see the direction the parks and the company are taking, and I don't like it at all. I can envision a time in the future where I just don't want to spend my money to have a vacation that's not all that fun. I hope that never happens, but I do admit to the possibility.



"Schooner Tuna - the tuna with a heart!"

[sir clinksalot]

I'm hoping that the consolodation of the DL/WDW operations may be a good thing, especially for Disneyland.

If you think the food is bland at WDW, you obviously haven't eaten at DL lately.

[sediment]

Just started reading the article. reminds me of Alaska Airlines commercials by Stan Freiberg in the 80's.
Pitchman for cheapo airline: "Plastic parsley; you can use it over and over again."
CEO for cheapo airline: "I like it."

[sediment]

Originally Posted by kevin, in article

It just might turn out to be a good decade to live in Orlando. My visitor experience may actually get better if it's unaffordable for everyone else!

But of course! You have opted for the prepaid admission program, paying much less per visit than a typical tourist does. I don't think turning WDW into a locals park is a good idea, what with all those empty hotel rooms.

Originally Posted by kevin, in article

As the old Chinese saying goes, we certainly are living in interesting times.

I believe that is a paraphrased curse, not merely a saying.

[vfire]

Good cautionary article of where we may be headed. Unfortunately the fix is beyond Disney as the US stock market intrinsic structure coupled with ubiquitous communication technologies of the 21st century have conflated to reward continuous, short-term profit and dismiss long-term planning and institutional health. The executives have to carry out policies according to this system, which has gotten much worse in its never-ceasing expectation of immediate high profits since Walt's time. Our stock market system was designed at a time when communication systems were less reliable and not omnipresent like today. This massive speed-up in news cycles has led to immense pressure for constant profit at the expense of quality and long-range thinking. We may have to see a Grand Depression so the current system is thoroughly destroyed and discredited so a new system that takes into account the peculiarities of the 21st century is devised. We are at an historical tipping point that is much bigger and beyond Disney's control. WDW may not be able to weather this storm well.

[mickeyandme67]

Sometimes I wish Kevin would never had thought up this whole "declining by degrees" concept. It has become almost boring now with his article's usual tirade against the WDW parks. Of course, he is right, but it just starts to come off as a one note symphony as I look at his newest article, click on it and say to myself, "Yay. Let's see how bad WDW has become today!" But again, don't rail against me, I know he is right and of course, I have the option not to read it. Unfortunately I am drawn to it like a moth to a flame!

[sediment]

Originally Posted by mickeyandme67

Sometimes I wish Kevin would never had thought up this whole "declining by degrees" concept. It has become almost boring now with his article's usual tirade against the WDW parks. Of course, he is right, but it just starts to come off as a one note symphony as I look at his newest article, click on it and say to myself, "Yay. Let's see how bad WDW has become today!" But again, don't rail against me, I know he is right and of course, I have the option not to read it. Unfortunately I am drawn to it like a moth to a flame!

Actually it's all a major conspiracy (co-conspirators TBD) of Kevin's to keep as many people away as possible, so he can have the parks all to himself! Bad, Kevin, bad!

[JiminyCricketFan]

Great article, Kevin!

I love WDW, but food is one of the great pleasures there. Portions and quality have cut for a decade now. Sadly, I have less desire to go as often to WDW as I used to. Few new attractions and new experiences.

Iger announced in his earnings statment a couple years ago that Disney would increase earnings 30% per year for the next few years. How do you do that when inflation is only about 2%? Sell more DVC properties? I don't know, but the parks have bee squeezed to death by Jay Rasulo so much there is nothing in the pipeline as to new attractions for a resort composed of four parks!!!

One of the great advantages of WDW over Disneyland is the quality and price of the food. But that advantage has deteriorated. WDW still have some wonderful restaurants, but they are not as wonderful as they used to be.