Here's An Idea!!

[JimmyV]

Given the number of threads that discuss the value of the plans, what is included, what is not included, etc., why doesn't Disney simply do the following: Whereas they now advertise that you can save 15% on food by buying their plan, why don't they simply create a prepaid dining card that provides 15% more value than the price paid, and have that card be valid only for food, and at the venues that now accept the plan. So for $500 you would get a card with $575 value on it to use as you choose. No more worrying whether the topping you want on your Via Napoli pizza is included. No more worrying about not getting appetizers, but instead getting too many desserts. Make the card available to guests at Disney resorts, and have them expire at the end of the stay. Disney gets your money, and more or less forces you to eat on property, (which is the reason they have the plans in the first place). Fewer headaches for guests. Fewer issues to reslove for CMs. Seems like a win-win.

 

[PIRATEGIRL007]

While that is a good idea it would be a loss for Disney vs what they are getting now from people on the DDP. Many don't research like we do and don't know what value the plan is actually worth. Alot don't use all of their credits, many don't realize they can go elsewhere and get a dinner for the same 1 credit worth twice the OOP money, etc. It just wouldn't pay off for Disney. The DDP is a huge money maker for Disney simply b/c guest confusion over how it works and most guests will not put in the time and effort to research the deals.

 

[JimmyV]

Ahhh. So from Disney's perspective, they want guests to lose money on the plans. Hmmmm. Doesn't that say just about all we need to know about the plans?

 

[PIRATEGIRL007]

Ahhh. So from Disney's perspective, they want guests to lose money on the plans. Hmmmm. Doesn't that say just about all we need to know about the plans?

Ultimately Disney is a business and are designed to make a profit, the biggest profit they can. They are not a non-profit and it's not thier fault people can't understand the DDP and how to use it.

I look at it like this: it's just like people who don't look at sales ads for thier groceries and shop around or use coupons. Is it my Wal-mart's responsiblity to tell me those Oreo's I'm buying for $3 are only $2 at Target and they will price match it?

 

[havoc315]

I have previously made the same suggestion. It's a great idea.

Though I think it would be profitable for Disney, I suspect it would be less profitable than the current set-up.
They would actually have to give a true 15% discount.
If people used their "plan" just for low-markup items (main courses), it would actually cost Disney "15%."

Under the DDP... they can fudge the savings. They can get you to pay full price for all your low-mark up items like main courses, and then offer you a discount on the high-markup extras. (Basically, giving you sodas and desserts for a discount, which costs Disney very little).

To break it down... Imagine a dinner of a steak and a soda.
The steak costs Disney $10, and they sell it to you for $20.
The soda costs Disney $0.10, but they sell it for $2.50.

Now, imagine the Dining plan price is $20. And you get the steak and the soda.
Under the current set up, Disney collects $20, and it costs them 10.10. So they make a profit of $9.90.

Now, imagine you bought a discount under your system -- Imagine you spent $18, for a $20 card. (Approximately 10% discount). You used your card to pay for the steak, and you drank water with your meal.
Now, Disney has only collected $18, and the food cost is still $10... So they have only collected profit of $8.

Disney would much rather give you the discount on sodas, then give you a discount on "real food."

 

[havoc315]

Ahhh. So from Disney's perspective, they want guests to lose money on the plans. Hmmmm. Doesn't that say just about all we need to know about the plans?

I don't think they want you to lose money... They don't want grumpy customers spreading bad word of mouth and not returning.

But they are far more interested in creating "perceived" savings than any actual savings, all while maximizing their own profits.
Best case scenario for Disney -- is when the customer perceives some type of savings, but actually has simply fattened Disney profits.

Going back to a Disney dining plan example, using hypothetical numbers for simplicity.
Imagine John Doe would normally go to Disney, and order just an entree for $20, and would skip dessert and beverage. Imagine Disney would make a $10 profit on that purchase.
Dessert and beverage combined, costs Disney only $2, for a customer who is already getting an entree. The menu price of the dessert and soda is $8 combined.
So, Disney offers a dining plan -- prices it at $25.
If the customer buys the dining plan -- They will perceive a savings. Once they added in the soda and dessert, they got a $28 "value" for only $25... so they saved $3!

But from Disney's perspective, Disney just made a $13 profit, instead of a $10 profit, by upselling you the soda and dessert.

Disney sees this as a win-win -- The customer gets perceived value, Disney gets bigger profit.

 

[mcd2745]

Given the number of threads that discuss the value of the plans, what is included, what is not included, etc., why doesn't Disney simply do the following: Whereas they now advertise that you can save 15% on food by buying their plan, why don't they simply create a prepaid dining card that provides 15% more value than the price paid, and have that card be valid only for food, and at the venues that now accept the plan. So for $500 you would get a card with $575 value on it to use as you choose. No more worrying whether the topping you want on your Via Napoli pizza is included. No more worrying about not getting appetizers, but instead getting too many desserts. Make the card available to guests at Disney resorts, and have them expire at the end of the stay. Disney gets your money, and more or less forces you to eat on property, (which is the reason they have the plans in the first place). Fewer headaches for guests. Fewer issues to reslove for CMs. Seems like a win-win.

Because under the current system, you CAN save up to 15% - but very few actually do. Under your proposal, everyone will actually save 15%.

Plus, the current base dining plan is designed to maximize table turnover. No appetizer, stremlined menus, and pre-prepared desserts. Under your idea, many people would get one appetizer, probably to share, and do the same for dessert (instead of 2 desserts as the plan allows). You now have added a course to most people's meals and slowed down the turnover rate.


I like the idea myself, but there are many reasons for Disney not to do it.

 

[JimmyV]

So perhaps 15% is too aggressive. Make it 10%. Or 7.5%. At some level, there has to be a continued benefit to Disney by getting the maximum number of people to buy into the system.

Havoc...unlike some others, I get your math. The only issue I have is that while Disney is now upping its profit as you lay out for some visitors, it is losing out on an opportunity cost for many other visitors who eat off-site or buy as little Disney food as possible. Simplifying things while still building in savings for the guests should still return a profit for Disney at some level. I don't pretend to know what that level is. Also, if the dining cards expired, I have to believe that a certain percentage of people would leave money on the table, thus upping Disney's take. Just like people who now leave with snack credits unused.

 

[kdawg8762]

Disney would win either way as most people would be so worried about spending their entire 575, that they would probably come in under, or have to spend it all the last day (think snack credits nowadays).

I think more than savings, people, from a budget standpoint, like to know its all taken care of, that they don't have to fool with it, hence the reason that tips coming off of it was such a huge problem to people.

 

[kdawg8762]

I have previously made the same suggestion. (Basically, giving you sodas and desserts for a discount, which costs Disney very little).

To break it down... Imagine a dinner of a steak and a soda.
The steak costs Disney $10, and they sell it to you for $20.
The soda costs Disney $0.10, but they sell it for $2.50.

Disney would much rather give you the discount on sodas, then give you a discount on "real food."[/QUOTE

I'll play nice here, but a few things
1) Steak's mark up isn't even close to 100%, its much, much smaller
2) You are right, soda is a money maker and a half
3) Desserts actually cost quite a bit

In the biz, your margins are tiny with two exceptions....Soda and Booze and Booze blows soda out of the water.

 

[kdawg8762]

So perhaps 15% is too aggressive. Make it 10%. Or 7.5%. At some level, there has to be a continued benefit to Disney by getting the maximum number of people to buy into the system.

Havoc...unlike some others, I get your math. The only issue I have is that while Disney is now upping its profit as you lay out for some visitors, it is losing out on an opportunity cost for many other visitors who eat off-site or buy as little Disney food as possible. Simplifying things while still building in savings for the guests should still return a profit for Disney at some level. I don't pretend to know what that level is. Also, if the dining cards expired, I have to believe that a certain percentage of people would leave money on the table, thus upping Disney's take. Just like people who now leave with snack credits unused.

If Disney thought they were losing a significant amount of revenue, they wouldn't let you bring stuff through the gates and, without park hopper, they wouldn't let you leave and come back. 80% of people who walk through those turnstiles are going to buy something of major profit (soda, merchandise, etc...)

 

[havoc315]

So perhaps 15% is too aggressive. Make it 10%. Or 7.5%. At some level, there has to be a continued benefit to Disney by getting the maximum number of people to buy into the system.

Havoc...unlike some others, I get your math. The only issue I have is that while Disney is now upping its profit as you lay out for some visitors, it is losing out on an opportunity cost for many other visitors who eat off-site or buy as little Disney food as possible. Simplifying things while still building in savings for the guests should still return a profit for Disney at some level. I don't pretend to know what that level is. Also, if the dining cards expired, I have to believe that a certain percentage of people would leave money on the table, thus upping Disney's take. Just like people who now leave with snack credits unused.

Absolutely all true. Especially as they continue to keep increasing the cost of the dining plan, more people will opt out. Of course, Disney tries to conceal the price increases -- People who have enjoyed the DDP in the past, may simply add it to their package in the future, without realizing how much more it costs. Especially as Disney will never give them an itemized price breakdown.

But right now, Disney has probably calculated that they can make greater profits under the current system.
Plus... Since they so often give away "free dining" -- It's a way they can make people feel they are giving an even bigger discount, if they overprice the plan.
At some point, who knows.. maybe they will price the plan at some ridiculous level, so it doesn't work for any educated customer.. but they will offer it for free so often, that they can make it feel like some ridiculously large discount.

 

[JKMJ441724]

Ahhh. So from Disney's perspective, they want guests to lose money on the plans. Hmmmm.

I've said for years that Disney is a bunch of greedy bas....... That doesn't keep me from going there, though

Like ZZUB said, they should just have a barrel at the front gate where you toss in your wallet as you come through the turnstiles.

 

[JimmyV]

Absolutely all true. Especially as they continue to keep increasing the cost of the dining plan, more people will opt out. Of course, Disney tries to conceal the price increases -- People who have enjoyed the DDP in the past, may simply add it to their package in the future, without realizing how much more it costs. Especially as Disney will never give them an itemized price breakdown.

Eventually people (and travel agents...not that travel agents aren't people...)will catch up and fewer DDPs will be sold. Disney will have to react. This is simply one suggestion.

Plus... Since they so often give away "free dining" -- It's a way they can make people feel they are giving an even bigger discount, if they overprice the plan.

Disney could still give away "free dining" by "giving away" a "free" $500 (or whatever) dining card with each non-discounted room reservation of a certain length of time, during slower periods. It would work out the same as it does now. Much like cruise ships give away on-board credits.

At some point, who knows.. maybe they will price the plan at some ridiculous level, so it doesn't work for any educated customer.

I think with the new price increase, we are there. So far, most people here who have done the math are seeing very, very modest savings, if any savings at all. Then you have to weigh that savings against dining freedom. As the savings approach zero, dining freedom will become far more attractive.

 

[TDC Nala]

Disney likes the plans the way they are. With the card idea, they have to give the discount to everybody. There would be no chance that Disney would make out on the deal if people don't use all their dining credits. So I don't see it happening. and why would they sell a discount dining card to off-property guests? One of the reasons the dining plan is marketed the way it is in the first place is to encourage guests to stay in a Disney resort.

I think we're going to see plenty of guests purchasing the plan even with the new prices. Maybe not as many as before...but quite enough.

 

[havoc315]

Disney likes the plans the way they are. With the card idea, they have to give the discount to everybody. There would be no chance that Disney would make out on the deal if people don't use all their dining credits. So I don't see it happening. and why would they sell a discount dining card to off-property guests? One of the reasons the dining plan is marketed the way it is in the first place is to encourage guests to stay in a Disney resort.

I think we're going to see plenty of guests purchasing the plan even with the new prices. Maybe not as many as before...but quite enough.

They could still offer it exclusively to resort guests. They wouldn't have to offer it to off-site guests.

That said -- They may want to offer it to off-site guests, as a way to encourage them to eat more onsite.

I actually think we are going in that direction with the regular DDP. A few years ago, when they introduced the DDP, it may have been a loss-leader -- Disney may have been taking a small loss on the dining plan, as a way to get people to stay onsite.
With the most recent pricing, I doubt Disney ever takes a loss on the dining plan. Thus, they may actually want to start selling the regular DDP to offsite guests. I wouldn't be shocked to see this start happening.

 

[JimmyV]

Disney likes the plans the way they are. With the card idea, they have to give the discount to everybody. .. and why would they sell a discount dining card to off-property guests? One of the reasons the dining plan is marketed the way it is in the first place is to encourage guests to stay in a Disney resort.

There was a built-in assumption that the dining card would be offered in the same way as the DDP, which is to say, only to people who stay at Disney resorts as part of an overall package. Sorry if this wasn't clear.

But even so, Disney has no problem selling TiW cards to FL residents who stay off-site. Money is money. The objective is to capture your dining dollars up front. Not sure that where you stay really matters. Indeed, a good argument could be made that it would be better for Disney to sell it to people who stay off-site as they are the ones most likely to cook in their time-share or go to Bahama Breeze.

ETA. Sorry. Didn't mean to pile on. Havoc made many of the same points simultaneously.

 

[TDC Nala]

TIW cards are different. You pay a fee to get one. Then you have to show up at Disney enough and spend enough to make that back. THEN you start getting discounted. I cannot see why Disney would want to offer an across the board dining discount to EVERYONE.

 

[Diegosmom]

Love the idea...but dont think it will happen...

I think there are too many people in the dark...Like my neighbor just came back from her 2nd trip and we were talking TS places. I said I really wanted to eat at Sci Fi but it wasnt a good value on the dining plan...her hubby jumped in to tell me he had this awesome steak salad (Beef and Blue 16.49) and it was def. worth it on the meal plan...even if you add in a shake ($4.69 not sure he had that) and dessert (most expensive 7.99), he is only at $29.17 plus tax=$31.36. They also told me they used there CS to eat breakfast at the food court every morning. Most expesive is 6.99 and drink is what 2.50. And even if he did a $4 snack his total for the day is 45.86 and what he spent on the plan was 47.99 (peak season)...so he lost a little more then $2 and that is assuming he had a shake and most expensive snack and most expensive breakfast,...now I know other days he might have made up for this but they never added up there receipts. They liked it because it was easy...so I think us Disers are the only ones they do a cost analysis...lol

 

[JimmyV]

TIW cards are different. You pay a fee to get one. Then you have to show up at Disney enough and spend enough to make that back. THEN you start getting discounted. I cannot see why Disney would want to offer an across the board discount to EVERYONE.

First off, you are wrong about the TiW card. You start getting the discount upon your first use. Not after you spend enough to make back the purchase price. You may not see any savings until after you spend that amount, but you certainly get the discount right away.

And second, the reason to sell a card to EVERYONE is to capture the money now lost to Bahama Breeze, Ale House, Chevy's, Knights of the Round Table, and on and on and on... And to capture dollars from people who go back and cook in their timeshares. Maybe a 10% or so discount is all that they would need to push them over the edge toward Disney restaurants. Who knows? But if I were in Disney marketing, I'd certainly be test marketing the idea.