MyMagic+ Payoff - I Don't Get It

[*NikkiBell*]

Listening to the segment about MyMagic+, more and more I find myself asking how on Earth this wristband system could have the payoff Disney is looking for. If it cost a billion dollars to make, that's the equivalent of AK or a cruise ship, something Pete pointed out on the show. I just don't get it though. How could this lead to profits that would equate that of a theme park or cruise? I know that it makes purchases easier, but does Disney really think that will lead to the large amount needed to make up for the money spent on this program? More time in the parks I can see too, but again how will that cover the costs? A billion dollars is a lot of money and this is just not adding up for me. What do you think? My mind is blown here.

[sayhello]

It seems to me there has to be a piece to it that we just don't know about yet.

Sayhello

[WorldWacky]

If it is exclusive for resort guests and Disney eventually fazes out the old Fastpass system in place for this, maybe Disney feels like people will be willing to stay on property to take advantage of Fastpass at all. More heads in beds=more money. I hope we get to try it out for our upcoming trip. I'm one of those uber-planners that will love this!

[Kimberle]

It encourages people to stay on site. There are rummers that the number of advanced fass passes will be tied to your resort. Deluxe resorts have more, with off site having the least amout. There are also rummers that on-site guests will be able to book their fast passes first. (Sort of like with dining now, onsite can book 180+10).

Disney can better control their staffing. They will have a better handle on exactly where people will be at what times. They can "smooth out" the day with the number of fast passes they advance book. Busy times of the day will have less passes available, slower times will have more.

The ability to pre-order food will allow them to better manage their food prep staff and food itself. They will have a better handle on what food goes where, how much to prepare and when to prepare the food. This will allow for less waste. They also will not need as many cashiers. The more automation, the less need for people.

By allowing only 1 park per day to be pre-scheduled, most vacationers are going to stay for at least 4 full days, 1 per park. A lot of people currently spend long weekend (3 days) at the parks. If WDW can extend this by 1 day, this is a ton more revenue.

Many guests will have more time "open" in their day. This will allow for more "paying" activities such as mini golf, Circ, tours, spas, etc.

The more control Disney has over you and your time, the more control they have over your money. As a guest, it will be even more important to maintain control over your vacation. Those of us who are "seasoned" will learn how to manage the new system. Those new guests are going to be very overwhelmed.

[Friendly Frog]

Totally agree.

Also, up-selling you to a higher lever resort (so you will get more passes.)

I am still not convinced that at some time in the future ( 5 years or more) they won't decide to charge in some way, such as for extra passes, or for off site guests.

Personally I would rather be able to pull two fastpasses in a day for my favorite ride, than to choose one ride from each of the three lists. ( Which is the way it worked in December.)

The good news is you don't have to be up at rope drop to get a fastpass, and sleeping in on vacation is wonderful.

[stindall]

Originally Posted by Kimberle

It encourages people to stay on site. There are rummers that the number of advanced fass passes will be tied to your resort. Deluxe resorts have more, with off site having the least amout. There are also rummers that on-site guests will be able to book their fast passes first. (Sort of like with dining now, onsite can book 180+10).

Disney can better control their staffing. They will have a better handle on exactly where people will be at what times. They can "smooth out" the day with the number of fast passes they advance book. Busy times of the day will have less passes available, slower times will have more.

The ability to pre-order food will allow them to better manage their food prep staff and food itself. They will have a better handle on what food goes where, how much to prepare and when to prepare the food. This will allow for less waste. They also will not need as many cashiers. The more automation, the less need for people.

By allowing only 1 park per day to be pre-scheduled, most vacationers are going to stay for at least 4 full days, 1 per park. A lot of people currently spend long weekend (3 days) at the parks. If WDW can extend this by 1 day, this is a ton more revenue.

Many guests will have more time "open" in their day. This will allow for more "paying" activities such as mini golf, Circ, tours, spas, etc.

The more control Disney has over you and your time, the more control they have over your money. As a guest, it will be even more important to maintain control over your vacation. Those of us who are "seasoned" will learn how to manage the new system. Those new guests are going to be very overwhelmed.

That's all fine and dandy but not everyone wants to schedule their day around what Disney wants. How is it fair to those parents who just want to give their kids a little magic but they have to save up for a long time and can only afford a few days or a value resort?

[PainInIL]

I guess I don't understand why everyone thinks this system has to be "fair". This allows Disney to to extract as much money out of each guest as they are able. Say goodbye to the days when everyone in the park - with the exception of those on private tours - were basically treated equally. The future is where your experience will be better based on the amount of money you are willing to spend on your Disney resort. The thinking is a tiered system will push people who would normally stay at a Value into a Moderate and Moderates into the Deluxes. It will also let them phase out Free Dining and replace it with a promotion where you get more Fast Pass reservations per day.

It gives Disney tools to increase revenue without really having to give anything away.

[disneynutz]

Originally Posted by sayhello

It seems to me there has to be a piece to it that we just don't know about yet.

Sayhello

There are many pieces that Disney has yet to announce. If Disney has invested 1 billion dollars on NextGen, you can be sure that they expect 2 billion in return.

Tracking guests, adjusting schedules, selling commemorative bands and jewelry for them is all part of the RFID system and it's components. They don't make any money if you are standing in line, they do if you are eating, drinking, and shopping.

Rewarding the people who spend the most money at Disney is standard for Disney and I expect NextGen perks for that group will increase as time goes on.

Bill

[jrtoastyman]

Remember, Disney has 47 million people come through the Florida parks each year. Disney doesn't need to increase their per head revenue that much to make that money back fairly quickly, and if by virtue of this, people are having a better time, feeling like they are getting their money's worth, and accordingly spending more time in the shops and dining, it will be worth it sooner than you might think.

[MrRomance]

Originally Posted by jrtoastyman

Remember, Disney has 47 million people come through the Florida parks each year. Disney doesn't need to increase their per head revenue that much to make that money back fairly quickly, and if by virtue of this, people are having a better time, feeling like they are getting their money's worth, and accordingly spending more time in the shops and dining, it will be worth it sooner than you might think.

Absolutely! If you think about it and do the numbers, how many sets of Mickey Mouse Ears do they sell every year? How many people pay to have their name stitched on them? The "Magic Band" will be a new "must have" accessory. We already know that there will be a range of custom/personalized bands. There will no doubt be limited edition ones that will attract collectors. X millions of people will buy into the magic band and want one with their name, favorite character, sparkles, crystals etc. etc and over a few years, they've recovered the outlay.

I think it's predominantly to improve guest experience for the "feel good factor" but also, many many people don't "feel" like they're really spending money when they just blip a card/wristband etc. I think Disney will cover the cost in 3 years but they'll be selling those custom bands for decades.

[Kimberle]

I think you will still need to be there at rope drop. You can't schedule everything and/or you will want to ride some rides more than once.

[roomthreeseventeen]

Wait until they charge you $19.99 for 30 minutes of phone-charge time.

[MrRomance]

Originally Posted by *NikkiBell*

Listening to the segment about MyMagic+, more and more I find myself asking how on Earth this wristband system could have the payoff Disney is looking for. If it cost a billion dollars to make, that's the equivalent of AK or a cruise ship, something Pete pointed out on the show. I just don't get it though. How could this lead to profits that would equate that of a theme park or cruise? I know that it makes purchases easier, but does Disney really think that will lead to the large amount needed to make up for the money spent on this program? More time in the parks I can see too, but again how will that cover the costs? A billion dollars is a lot of money and this is just not adding up for me. What do you think? My mind is blown here.

I think Disney are looking to recover the costs in multiple ways. Increased spending (people not thinking the wristband is really spending money), decreasing staff (better mobilization of CM's where needed), rolling in "perks" for on-site guests (increasing resort guest numbers), custom wristbands (why get the standard one for free when you can have one with Mickey and your name on it for $25), perhaps some new paid interactive experiences. Doesn't take long for all of those to add up. I don't think they plan on recovering the cost super quickly, but WDW will be selling those wristbands for a long time yet!

[*NikkiBell*]

So, I also don't see the sense in the customizable band argument. The bands can't be used anywhere else and Disney is obviously not interested in repeat guests so why would someone buy one? They're not like Pal Mickey or even ear hats. They aren't necessarily the hit style piece either. I'm sorry but I just don't see it.

[fall08CP]

I haven't berm following this closely, but how does this affect locals and cast members who 1) aren't staying at a hotel and 2) don't have the luxury of planning ahead? It bothers me that they're spending so much money on a project that I don't feel was broken, but they're laying of hundreds (thousands?) of cast members.