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  1. #1

    • Just another Disney fan..
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    Question Anyone else think admission will be going up soon?

    Based on what I have read about the theme parks division financials, as crazy as it may sound, I'm wondering if admission for the parks will be increased?

    Attendance is UP. Operating costs are UP. Merchandinse and sales revenue are DOWN. Overall financials are down for the theme parks division. This is even after the downsizing of off-stage management.

    What this translates to is more people visiting the parks (paying admission) but not spendig as much money once there. (Note: I know there are some people that are getting in free for their birthdays, but I don't think the free people alone are the ones making up the crowds)

    In order to offset higher operating costs since merch and food revenue aren't doing it, park admission revenue would need to be adjusted. Doing so also has the effect of cutting down the number of people buying admission because of the higher price.

    Bringing attendance down a bit by raising prices will lower operating costs. I think it is a matter of finding the "sweet spot" where operating costs are under control and there is still acceptable number of people paying for admission.

    I didn't mention it above, but raising Annual Passport prices would also feed into this discussion and have the same effect.

    Thoughts?

  2. #2

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    Re: Anyone else think admission will be going up soon?

    Admission prices at Disneyland have gone up continuosly for years, according to www.wikipedia.org. I came across this while reading about Disneyland on that site. Heres the link: Disneyland Park (Anaheim) - Wikipedia, the free encyclopedia

    Look at the "Contents" on the left hand side of the page. Click on #7 for "Tickets". The whole article is very interesting though.

    "I hope that we never lose sight of one thing-that it was all started by a mouse." Walt Disney

  3. #3

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    Re: Anyone else think admission will be going up soon?

    Quote Originally Posted by Roger55 View Post
    Based on what I have read about the theme parks division financials, as crazy as it may sound, I'm wondering if admission for the parks will be increased?

    Attendance is UP. Operating costs are UP. Merchandinse and sales revenue are DOWN. Overall financials are down for the theme parks division. This is even after the downsizing of off-stage management.

    What this translates to is more people visiting the parks (paying admission) but not spendig as much money once there. (Note: I know there are some people that are getting in free for their birthdays, but I don't think the free people alone are the ones making up the crowds)

    In order to offset higher operating costs since merch and food revenue aren't doing it, park admission revenue would need to be adjusted. Doing so also has the effect of cutting down the number of people buying admission because of the higher price.

    Bringing attendance down a bit by raising prices will lower operating costs. I think it is a matter of finding the "sweet spot" where operating costs are under control and there is still acceptable number of people paying for admission.

    I didn't mention it above, but raising Annual Passport prices would also feed into this discussion and have the same effect.

    Thoughts?
    You'd think that the above arguments would make sense, but it seems to me we're living in an "Alice In Wonderland" world when it comes to the DLR.

    As you mentioned, they've raised ticket prices several times in the past few years, and AP prices too. Yet, attendance keeps going up.

    Yes, some of that has to do with the new "monthly payment plan" for AP's, but that doesn't fully explain why at a time you'd think the economy would have attendance going south, you still have big crowds in the parks most days.

    As for the birthday freebies...I'm sure that relatively few of those come by themselves to the park.

    Rather than raise admission or AP prices, I think they need to look at cutting their ridiculously high profit margins on food and merchandise. If the prices were more reasonable, maybe some folks that are now forced to skip those altogether to afford the admission price, might be lured back into spending more money in the long run.

    If nothing else, that makes for good PR - look at how much mileage Angels owner Arte Moreno got from cutting some beer prices at the ballpark by a quarter. "D-land cares about its valued guests, so we're rolling prices back", etc.

    In any case, I don't think we need to hold any bake-sale fundraisers for the Walt Disney Company.

    -- Barry
    God, grant me the serenity to accept the things I cannot change, the courage to change the things I can, and the wisdom to know the difference.

  4. #4

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    Re: Anyone else think admission will be going up soon?

    Quote Originally Posted by Radiobarry View Post
    Rather than raise admission or AP prices, I think they need to look at cutting their ridiculously high profit margins on food and merchandise. If the prices were more reasonable, maybe some folks that are now forced to skip those altogether to afford the admission price, might be lured back into spending more money in the long run.
    This is a good point, however it appears the way Disney is going about things is by lowering merchandise development cost by doing the whole "Disney Parks" generic branding of merchandise. And I haven't seen that translated into the lowering of prices of these "shared" goods.

    Whenever Disney starts offering "cheaper" food, all the complaining starts that they are lowering standards. I haven't heard of any "must have" food offerings from Disney lately. I think that people who don't buy food at the parks most likey didn't buy that much food before.

    Merchandise revenue is probably the bigger swinger as far as discretionary dollars goes, but what can be done in regards to making merchandise sales go up?

    Somehow, I don't think that they will come up with anything that will pry more money out of the guest's wallets. That is why I was going with the higher priced attendance approach.

  5. #5

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    Re: Anyone else think admission will be going up soon?

    Quote Originally Posted by Roger55 View Post
    This is a good point, however it appears the way Disney is going about things is by lowering merchandise development cost by doing the whole "Disney Parks" generic branding of merchandise. And I haven't seen that translated into the lowering of prices of these "shared" goods.

    If it's an economy, I think it's a false economy. If anything, speaking for myself and most other DL fans I know, this is the very type of thing that has kept us from buying merchandise. We long for the pre-Pressler days of unique merchandise in the parks. I won't buy anything with that silly "DisneyParks" logo on it.

    Whenever Disney starts offering "cheaper" food, all the complaining starts that they are lowering standards. I haven't heard of any "must have" food offerings from Disney lately.
    Take a look at some of the "favorite foods at Disneyland" threads we have here. Granted, we are all Disney geeks here to one degree or another, but food makes up part of the experience for a lot of visitors - when they can afford it, I guess.

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  6. #6

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    Re: Anyone else think admission will be going up soon?

    Consider this theory: attendance is up because more locals and in-staters are attending. The bad economy has actually caused increased DL attendance because people are traveling more in-state and less out-of-state. Instead of taking the family to Hawaii, a few day trips to DL are still a way to have fun, but much, much cheaper if you're local or within driving distance.
    As for merchandising, locals probably buy fewer souvenirs than out-of-staters or those who've traveled long distances, simply because there's always the "I can always get it next time" feeling.
    I agree about the "DisneyParks" stuff. I have bought some stuff like that, but overall I really dislike the generic merchandise and would like to see more park-specific items offered.

  7. #7

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    Re: Anyone else think admission will be going up soon?

    Anyone else here think the sun will come up tomorrow?

  8. #8

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    Re: Anyone else think admission will be going up soon?

    Quote Originally Posted by Roger55 View Post
    Based on what I have read about the theme parks division financials, as crazy as it may sound, I'm wondering if admission for the parks will be increased?

    Attendance is UP. Operating costs are UP. Merchandinse and sales revenue are DOWN. Overall financials are down for the theme parks division. This is even after the downsizing of off-stage management.

    What this translates to is more people visiting the parks (paying admission) but not spendig as much money once there. (Note: I know there are some people that are getting in free for their birthdays, but I don't think the free people alone are the ones making up the crowds)

    In order to offset higher operating costs since merch and food revenue aren't doing it, park admission revenue would need to be adjusted. Doing so also has the effect of cutting down the number of people buying admission because of the higher price.

    Bringing attendance down a bit by raising prices will lower operating costs. I think it is a matter of finding the "sweet spot" where operating costs are under control and there is still acceptable number of people paying for admission.

    I didn't mention it above, but raising Annual Passport prices would also feed into this discussion and have the same effect.

    Thoughts?
    The bolded part is incorrect, since too many people are not paying enough admission to get in. Combine this with the opinion (mine) that $69 is too much to pay, and we should be able to figure out who's not paying enough.
    To increase the average admission revenue, one should start with the lowest prices first, not the highest ones.
    That way, the park is not overly dependent on selling stuff in the park. The park is the attraction and it deserves to be paid for via admission.

    Also please note that the birthday promotion is mostly two things: a two-for-one deal to those without APs; and a free gift card for those with an AP. Money out the window, IMO.
    "Here You Leave the World of California Today and Enter the World of, um, er, California Today."

  9. #9

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    Re: Anyone else think admission will be going up soon?

    Well they certainly ain't going down.

  10. #10

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    Re: Anyone else think admission will be going up soon?

    Quote Originally Posted by mickeymark34 View Post
    Admission prices at Disneyland have gone up continuosly for years, according to www.wikipedia.org. I came across this while reading about Disneyland on that site. Heres the link: Disneyland Park (Anaheim) - Wikipedia, the free encyclopedia

    Look at the "Contents" on the left hand side of the page. Click on #7 for "Tickets". The whole article is very interesting though.
    As a math geek, I object to the misuse of the word "continuously."
    "Here You Leave the World of California Today and Enter the World of, um, er, California Today."

  11. #11

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    Re: Anyone else think admission will be going up soon?

    Well, Disney is heavily marketing new ticket offers.

    To locals, a 3 day ParkHopper for just $99 ($33 a day)

    And "2 days Feee" for pre-purchased 3 and 4 day ParkHoppers.

    So a 5 day ParkHopper is just $179 ($35.80 a day)

    And a 6 day PH is $194 ($32.34 a day)

    So if anything, Disney is LOWERING Ticket Prices for the summer due to the economy.

    And I doubt Disney will raise prices until at least the fall, depending on how the summer goes.

    And don't forget, Disney is competing with others for "Entertainment" dollars, and if they raise their prices, they actual might lose money in the long term, as they might sell less tickets in general.
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  12. #12

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    Re: Anyone else think admission will be going up soon?

    Quote Originally Posted by Darkbeer View Post
    Well, Disney is heavily marketing new ticket offers.

    To locals, a 3 day ParkHopper for just $99 ($33 a day)

    And "2 days Feee" for pre-purchased 3 and 4 day ParkHoppers.

    So a 5 day ParkHopper is just $179 ($35.80 a day)

    And a 6 day PH is $194 ($32.34 a day)

    So if anything, Disney is LOWERING Ticket Prices for the summer due to the economy.

    And I doubt Disney will raise prices until at least the fall, depending on how the summer goes.

    And don't forget, Disney is competing with others for "Entertainment" dollars, and if they raise their prices, they actual might lose money in the long term, as they might sell less tickets in general.
    I would not be surprised, Darkbeer, if Disney still increases the park ticket price at the ticket booth despite some heavy promotions to essentially cut the price of a ticket for locals. And it would be a boon considering not only the economy but that so much of the parks will continue to be construction zones...

    I would speculate that there is, maybe, a 30% chance they will freeze the base gate price... But, it would be an effort to attract folks from out of town and for them it is easier to run discount programs through the hotels... I do think they need do more for folks who travel just outside the SoCal boundary but want to stay one or two nights from out of town. IMHO it is the one demographic they constantly mis-promote.

    So, the base price is virtually arbitrary...
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