MyMagic+ Payoff - I Don't Get It

[dansyr2514]

Just a thought...but maybe it's no so direct as upselling. Just my thoughts on the matter....

Maybe allowing people to schedule their fastpasses allows people more time in the shops to spend money..rather than standing in a line. Or possibly, the less irritated people get waiting in line....the longer they will stay in the park, spending money on food, souvenirs etc.

The better experience the guest has, the more likely they are to come back.

It's all more money in Disney's pocket.

I honestly don't know how I feel about the whole my magic plus yet, but I am curious to see how it all plays out!

[elaine and the boys]

We usually stay at the Swan or Dolphin and buy our park tickets through Undercover Tourist. Swan/Dolphin guests get extra magic hours, Disney bus/boat transportation, but no dining plan. Do you think Swan/Dolphin guests will be included in this new program? And when does it all begin?

[*NikkiBell*]

Originally Posted by rlduvall

I do not agree with this logic completely. DVC is one of their most profitable divisions and they are constantly building new DVC resorts to sell. I cannot see them now alienating all those potential new buyers of DVC, leaving DVC properties unsold for years.

I agree with this here. DVC is a big money maker for them. Not only would it alienate potential DVC owners, but also those who are considering buying more points.

Originally Posted by dansyr2514

Just a thought...but maybe it's no so direct as upselling. Just my thoughts on the matter....

Maybe allowing people to schedule their fastpasses allows people more time in the shops to spend money..rather than standing in a line. Or possibly, the less irritated people get waiting in line....the longer they will stay in the park, spending money on food, souvenirs etc.

The better experience the guest has, the more likely they are to come back.

It's all more money in Disney's pocket.

I honestly don't know how I feel about the whole my magic plus yet, but I am curious to see how it all plays out!

I thought this originally, but it doesn't seem like a sure fire thing to me. Disney couldn't possibly base a billion dollar venture on something that could happen. It's got to be something big - something they have a guarantee will work to return their investment.

Originally Posted by elaine and the boys

We usually stay at the Swan or Dolphin and buy our park tickets through Undercover Tourist. Swan/Dolphin guests get extra magic hours, Disney bus/boat transportation, but no dining plan. Do you think Swan/Dolphin guests will be included in this new program? And when does it all begin?

I don't have any basis for this, but I don't think the Swan and Dolphin will be included. If they go to a resort-based system for the FP+, perhaps they will be on their own tier, if on there at all.

[PainInIL]

Just remember, we are talking about an initiative that cost somewhere between 1-1.5 billion dollars. For this to be greenlit, corporate wants a return of investment of 3-5 years. They aren't doing this out of the goodness of their hearts. They feel putting their money into this will yield them somewhere north of 200 million dollars a year on top of what they are seeing today. It could be argued that this is a defensive mechanism to keep Universal at bay, but I am skeptical. I really think that while you may not be paying for this service directly, you will pay for it somehow. The most likely way I think is tying it directly to your hotel room and continually increasing hot rates 5% annually to cover it. Many people have already been priced out of Disney vacations. That is only going to get much worse in the coming 5 years.

[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!

[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

[disneynutz]

Originally Posted by rlduvall

I do not agree with this logic completely. DVC is one of their most profitable divisions and they are constantly building new DVC resorts to sell. I cannot see them now alienating all those potential new buyers of DVC, leaving DVC properties unsold for years.

Selling new DVC contracts to uneducated buyers makes Disney the most money in the DVC world. The number of DVC owners is so small compared to other guests, spending any money to keep DVC owners happy doesn't make financial sense.

The perks that we do get are discounts that most don't use, restaurants that have empty seats, shopping discounts, PAP's with restricted purchase and use periods. Anything is better than nothing but the perks are more fluff than substance.

[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.

[*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.

[WaDiWo]

Or perhaps, Corporate is actually investing in Guest Experience as a priority instead of profit??

(one can only hope)

[WaltD4Me]

Originally Posted by PainInIL

The bottom line is Disney makes the most money on the guest that comes down every 1 or 2 years, stays for 7-10 days in a Deluxe Resort and buys the Dining Plan. Disney is trying to get more people to do this and the big incentive will be "you don't even have to wait in line, just give us your credit card and leave the rest to us".

This may be true, but they still need the people staying at the moderates and values and off property and locals too. Disney can't afford to focus just on the Deluxe guest and they know it...after all they did just a huge new Value resort. Disney might not have to be fair, but they do have to be smart. Believe me, they wouldn't be too happy if all the Deluxes were full, but all the other resorts were empty and they have to be careful about that. They don't want people who cannot afford a Deluxe but still have plenty of money to burn in the parks to say "Why bother going if I can't get on any rides?" They also don't want the buzz on "MyMagic" to be "If you can't afford $450 a night it isn't worth going." and that is just what would happen.

I agree a billion dollars is HUGE, but also that there does have to be something missing still. Something we don't know about yet. Even still, at this point, I think it's a huge risk. I guess we'll just have to wait and see.

[disneynutz]

Originally Posted by *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.

Many don't see the attraction to little vinyl dolls, pin trading, putting your name on a brick or on a piece of metal in Epcot but Disney has made all of these popular and very profitable. The bands can be used over and over since all of your data is computer stored and updatable on the fly.

Bill

[*NikkiBell*]

Originally Posted by disneynutz

Many don't see the attraction to little vinyl dolls, pin trading, putting your name on a brick or on a piece of metal in Epcot but Disney has made all of these popular and very profitable. The bands can be used over and over since all of your data is computer stored and updatable on the fly.

Bill

I understand that. However, if Disney's #1 focus is on the "once in a lifetime guest," why would that person need a band that they can't use anywhere else but at the parks?