June 2019 AP Price Increase - WDW

[RevFreako]

The plan all along - per all the insiders - has been to get more money out of fewer, richer guests. We've been hearing this for the last five, ten years. Putting the success of this plan aside, as that's not the debate I'm looking for here, everything we're hearing lines up with this strategy, in my opinion. What am I missing here?

 

[bob albert]

The plan all along - per all the insiders - has been to get more money out of fewer, richer guests. We've been hearing this for the last five, ten years. Putting the success of this plan aside, as that's not the debate I'm looking for here, everything we're hearing lines up with this strategy, in my opinion. What am I missing here?

If you look at video games you can see how given increasing income gaps the companies are big on taking money from the ultra rich with pay to win dlc/etc. I would say Disney is driven just like those companies to get more money from the ultra rich who do not care much when prices go up as long as they can pay to get a head of other people. The problem is Disney attendance is built pretty heavily on the middle class stretching increasingly to afford going there. At some point even though the ultra rich will always pay more you need the volume that comes from the other people. You cant make all your profit from a minority of guests.

But the key is Disney is driven by the shareholders and it doesn't matter if this is a good long term plan. Short term it is working out in a good economy.

 

[RevFreako]

If you look at video games you can see how given increasing income gaps the companies are big on taking money from the ultra rich with pay to win dlc/etc. I would say Disney is driven just like those companies to get more money from the ultra rich who do not care much when prices go up as long as they can pay to get a head of other people. The problem is Disney attendance is built pretty heavily on the middle class stretching increasingly to afford going there. At some point even though the ultra rich will always pay more you need the volume that comes from the other people. You cant make all your profit from a minority of guests.

But the key is Disney is driven by the shareholders and it doesn't matter if this is a good long term plan. Short term it is working out in a good economy.

Again - the viability of more money from fewer whales isn't what I'm trying to get at here. It might work, it might not. My point is that everything we've seen seems to me to be consistent with a company that has that goal in mind, and I'm asking if I'm missing anything in that assessment.

 

[bob albert]

Again - the viability of more money from fewer whales isn't what I'm trying to get at here. It might work, it might not. My point is that everything we've seen seems to me to be consistent with a company that has that goal in mind, and I'm asking if I'm missing anything in that assessment.

Their goal is increased profits quarter to quarter driven by short term thinking shareholders. To that effect they are doing well. The other goal is elimination of any real discounts long term due to star wars driving attendance and being able to increase prices without blowback. That so far has been a failure. I don't really think they have a long term goal besides thing DVC locking people in and taking more money from members.