Logic behind Best Rate Program

[Zip-a-dee-dude-da]

Great ArTICLE ON REASON FOR bEST rATE Program


Based on what's being said here, you'd think that the world was coming to an end.

And maybe for a small select group of WDW annual passholders, the world actually is coming to an end. As in: That world where -- on a whim -- these people could call the WDW reservations center and book a last-minute trip to Disney World. Where -- thanks to their annual passes -- these folks could then count on getting a significantly reduced room rate during their on-property stay.

Well, thanks to WDW's new "Passholder Best Rate" program (Which officially rolled out back on June 17th), those days of annual passholders getting significant discounts for on-property rooms that are booked at the last minute appear to be gone for good.

"So what's the problem with WDW's new "Passholder Best Rate" program?," you ask. Well, for starters, it virtually eliminates the chance that a WDW APer will save much of anything on spur-of-the-moment travel to WDW. From here on in, in order to get a half-decent discount on your next Disney World vacation, annual passholders must first:

Book their reservation on-line.
Book that reservation at least 120 days in advance.
Place a nonrefundable deposit (I.E. The cost of one night's lodging at that WDW resort, plus tax) on a major credit card at the time of booking.
Should they have to make any sort of change to their reservation, Disney will then automatically charge a $50 change fee to their credit card.
As you might expect, all these new rules and regulations have a number of WDW APers up in arms. "Why am I paying for a premium pass when I'm no longer getting premium perks?," groused one WDW annual passholder in a recent e-mail to JHM. "You know, I have a half-a-mind now to just let my annual pass lapse. Not renew the thing next year when the bill comes due."

Which is exactly what the management of the Walt Disney Company is hoping that you'll do.

Say what?

I hate to break it to all you APers out there. But -- if you could just see the forest through the trees here -- you'd realize that Disney is deliberately doing something here to annoy its annual passholders. With the hope that some of you people will then opt out of the system.

"But why would Disney do something like that?," you sputter. "Isn't this a company that has made a name for itself out of giving great guest service? Why would they do something that deliberately runs counter to that reputation?" Because -- to be blunt -- the Walt Disney Company currently has too many people enrolled in its annual pass programs. The system has become unwieldy, unmanagable. Which is why the Mouse has decided to thin the herd.

"But what could Disney hope to accomplish by doing that?," you continue. Well, for starters, if there are fewer APers (Which Disney's own surveys show make over 80% of the complaints that are filed at the theme parks each year) ... Well, that then makes the Guest Relations staff that much more available to deal with the day visitors. You know, those people who actually paid full price to get into the theme park? Those folks who won't be getting any discounts on their meals and/or merchandise purchases?

It's these people (I.E. The day visitors) that Disney management has now begun to think of as their top priority. After all, these are the folks who spend money much more freely during their visits to DLR & WDW. Unlike many annual passholders, who are constantly looking for new ways to cut corners, save time & money during their Disney vacations.

However, in order to have the resources necessary to give the day visitors the attention they deserve, that means that the Guest Relations staff will have to spend significantly less time dealing with APers. And the easiest way to do that (At least according to Disney Company management) is to reduce the number of people who are currently enrolled in Disneyland and/or Walt Disney World's annual pass program.

"And how exactly is the Mouse going to do that?," you ask. By deliberately putting measures in place that -- over the next few years -- will make it seem less & less attractive to have an annual pass. In Orlando, the way that Disney intends to do this is by slowing pruning away many of the privileges that WDW's annual passholders now enjoy.

This is honestly the reason that the "Passholder Best Rate" program got rolled out last week. I mean, why else would Mickey deliberately cut back on a perk that Disney World annual passholders currently enjoy? <H>The obvious long-range goal here is to make it seem less & less desirable to own a WDW AP.

And -- as for the Disneyland Resort -- what the management team out there has decided to do is make that pass's ever-increasing pricetag the major deterent toward renewals. As in: Over the next four-and-five-years, they'll deliberately raise the price for a DLR annual pass by $25 - $30 each year. Until a premium annual pass for the two Anaheim theme parks will wind up costing guests somewhere between $400 - $450.

At that price point, a lot of current annual passholders will just say: "To hell with it. I'm not going to renew." Which again is exactly what Disney wants.

Because -- after all -- the corporation's long-range goal here is to thin the herd. Eliminate a significant number of annual passholders from the system. So that the company's AP programs can then get down to a more managable size. So that the Guest Relations staff can then turn its attention back to the theme parks' most important (Read that as "profitable") customers: the day visitors.

Of course, the beauty part of this scenario is that there will always be a diehard group of Disney fans who -- no matter how high the price gets -- will still insist on buying Disneyland and/or Walt Disney World annual passes. So -- even though there'll obviously be fewer bodies in the AP system -- the money that the Mouse takes in each year from annual pass sales will actually remain about the same.

"So what's Disney's end-game here?," you ask. Well, after the Mouse gets the number of people enrolled in the DLR & WDW annual pass programs down to a more managable level (I.E. I've heard that Disney World is looking to whittle about 50,000 people out of its program, while Disneyland's long-range goal is to take 150,000-200,000 out of that system), the Walt Disney Company hopes to begin creeping up the number of perks that it will make available to its annual passholders. Who (at that point, anyway) will now be paying top dollar for the privilege of having an AP.

But -- for now -- if you're a Disney annual passholder, you'd best get used to the idea of paying a whole lot more for a whole lot less. Because that's what you're honestly going to get for the next four or five years.

from Jimhillmedia.com

 

[C.Ann]

Interesting article.. Were it not for the fact that I'm going to be spending three months in Florida next winter I wouldn't even consider buying an AP..

As for room discounts, if there is a family vacation in the works I will look and see what's available.. If there's something to my liking, I'll take it - if not, I'll be just as happy staying offsite.. Staying on Disney property just isn't that important to me..

 

[Acklander]

Great ArTICLE ON REASON FOR bEST rATE Program



"But what could Disney hope to accomplish by doing that?," you continue. Well, for starters, if there are fewer APers (Which Disney's own surveys show make over 80% of the complaints that are filed at the theme parks each year) ... Well, that then makes the Guest Relations staff that much more available to deal with the day visitors. You know, those people who actually paid full price to get into the theme park? Those folks who won't be getting any discounts on their meals and/or merchandise purchases?


from Jimhillmedia.com

Wow!!!! 80% of the complaints are made by APers??? Do you think it's because APers have higher expectations than casual visitors?
Even if the price goes up we'll probably still get the AP, since we go to the parks aprox. 25 days a year and that in itself saves us money. As far as the other perks, it was never the focus of the AP purchase, but we did take advantage of purchasing the DDE card this year, since we do enjoy dining while at Disney. We've been going since 1989 and have been an APer for about 10 years, but I don't think I've ever complained to Disney about anything in all my trips. Then again, I can only think of 3 times in my entire life where I actually felt things were worth my time/effort to make a complaint about; so maybe it's just that I have low expectations. LOL

 

[fantasymagic]

I haven't been following WDW happenings for about the past 6 months, and just 2 weeks ago we moved to Florida from Wisconsin, so I just now came back to the boards and found this information. As we were driving down, I was planning on how to budget to get the annual passes. Now I think I'll just wait. This article was very informative -- although ironic for me

 

[missypie]

I don't feel like I have a right to object. I bought my AP soley for discounts...between room, food and merchandise discounts, my net savings was about $850.

I had wanted to upgrade our family's tickets to APs when we were at WDW, then go again at Thanksgiving and for Spring Break, but DH's attitude is that now we've "done Disney" and don't need to go back. I had hoped to get a great AP rate on a resort to "lure" DH back but if I can't, so be it. I'm most likely the type of AP holder that Disney wants to get rid of!

 

[lillygator]

I don't really think they want to thin out the Ap'ers....but I guess we all will just have to wait and see....

 

[ksoehrlein]

I agree with Lillygator that Disney probably don't want to lower the number of AP holders; they just want a different type of AP holder. This year, they offered a great DVC discount on APs. Surely that increased the total number of APs purchased. DVC/APers, however, are less likely to call daily for AP room rates -- they'll just use their points. (And if they don't have enough points, they'll be bitten by the add-on bug and then give Disney/DVC even more money!)

 

[mamalle]

very interesting article and I have to agree with the writer.

 

[Susiesnowflake]

If Disney infact plans to thin out its herd of AP holders, they may actually end up thinning out their herd of park visitors. One might be able to justify multiple trips a year with an AP. Without one, there is no way I would. Lost $ for Disney.

 

[DMRick]

Well it will work on thinning us out. We won't renew next May, and we sure won't make our (at least) 5 trips a year (it was 6 this year). 3 of those are usually..wow, look at the rates, lets go last minute trips. Obviously, my only expenditure was not the AP, but I helped fill those rooms that still haven't gotten high enough occupancy to finish builing the other half of Pop. Certainly our food costs, and souvenirs helped bring in the bucks for Disney. Our main trip next time? Heck, we're planning a trip to the Great Smokey Mtns..something we wouldn't have done, if we got a good rate at Disney for October. We're planning more trips with our RV, rather than our multiple Disney trips. I'm not saying we will never go again, but the 10 day tickets will save us money, and will still do 2 - 3 trips. We'll also save because we plan on trying out some of those really nice hotels that have higher star ratings than the Disney hotels. Of course if Disney isn't filling rooms, I think you'll see business as usual.

 

[NCombs]

And where is Jim Hill getting his information from? Just because it's on the internet doesn't make it accurate information. Isn't he no longer allowed in DW or can't do tours or something?

 

[crazy4wdw]

I think that Disney is making a big mistake regarding this program. Right now, travel is rebounding and more people are going to WDW. However the economy cycles and at some point will go south. Will travel still be improving in 2006 if gas prices continue to rise? If (or when) attendance at WDW decreases, they will be offering all kinds of discounts to get people to the parks.

 

[CharlesTD]

SOunds like sound business decisions actually why not cater to those that are willing to pay a premium for service and not try to exploit something for discounts etc. Disney is about making money and if they can still fill rooms without offering discounts then it is in their best interest to do so. I know if I were running this company otr any company really and business started picking up again I would quickly end discounts so I was making more money can't blame them for that one.

 

[C.Ann]

SOunds like sound business decisions actually why not cater to those that are willing to pay a premium for service and not try to exploit something for discounts etc. .

----------------

Could you explain which AP actions you consider "exploitation"?

 

[CharlesTD]

The folks that buy an AP looking for room discounts that are perks not guarantees. If you are buying an AP for room discounts you are not getting it for the intended purpose thus exploiting the system such as buying a childs AP and using that to book room discounts. Or the [people that book and hold multiple rooms till they get the best rate they can on the accomodations they know that without the AP rate they can't really afford so they hold rooms at numerous resorts waiting for said discounts.

 

[DMRick]

The folks that buy an AP looking for room discounts that are perks not guarantees. If you are buying an AP for room discounts you are not getting it for the intended purpose thus exploiting the system such as buying a childs AP and using that to book room discounts.

I must have missed the part that said this AP has just one intended purpose. My AP gives me all sorts of perks..one of which is getting into the parks as often as I wish. While the other "perks" may not always be definate, they are a part of the ticket. You may have one reason (to get into the parks) for why you bought yours. I bought mine because of the total picture. If I don't get the total picture, Disney will lose a good portion of our trips. Exploiting is a mighty strong word to use. I would just say I have been taking full advantage of all Disney offered for many years (way before 9/11). I would also say I'm a big Disney Fan..however, I would also say, I like good value for my money. If I don't get it, I will find other ways to visit Disney, and less often. Disney isn't stupid. If this doesn't bring in more money than the "old" way, they'll find another way to entice us back. They always have.

 

[C.Ann]

I must have missed the part that said this AP has just one intended purpose. My AP gives me all sorts of perks..one of which is getting into the parks as often as I wish. While the other "perks" may not always be definate, they are a part of the ticket. You may have one reason (to get into the parks) for why you bought yours. I bought mine because of the total picture. If I don't get the total picture, Disney will lose a good portion of our trips. Exploiting is a mighty strong word to use. I would just say I have been taking full advantage of all Disney offered for many years (way before 9/11). I would also say I'm a big Disney Fan..however, I would also say, I like good value for my money. If I don't get it, I will find other ways to visit Disney, and less often. Disney isn't stupid. If this doesn't bring in more money than the "old" way, they'll find another way to entice us back. They always have.

--------------------------

Yeah - what she said.. LOL.. She beat me to the keyboard..

And I also agree that "exploiting" is a very strong word for something that isn't really exploitation..

 

[CharlesTD]

It is just like our DVC perks they are perks not guarantees. We don't buy AP's as we only do 5 park days a year and we go to Disney for 2 weeks a year. Yes I see buying a childs AP and using it to get a room discount exploiting a system some may not but I do. As I also said earlier that it is smart business for them to start to cater to those that pay full price to stay at the resorts and full price for tickets etc it makes the company more money and yes you may take more trips than the average person but you do so using many discounts and they are now looking to do away with them. They are going to concentrate on the full paying guest that may only go once a year or for all we know may go 10 times a year I can't see that actually but you just never know. So they are starting to look to those that are putting more profit into the company than the ones using more discounts thus generating less profit.

 

[DMRick]

First of all Disney did not consider using a child's AP an "exploitation" and if you don't believe me, I will give you a name you can write to at Disney. She'll be happy to let you know that was a "perk".

Second of all, you make way too many assumptions for me. Unless you are married to one of the decision makers, and you have pillow talk, you are guessing, just as the rest of us, as to why this new change. Disney isn't out of the slump yet. Remember, they had to give free meals to get people in these rooms this time around. Disney doesn't want empty rooms. It's much better financially for them to take a hit on the room price, to fill those rooms, restaurants, and parks. They are just playing with different ways to get those discounts out.

If they cater to just those who pay full price, I think Disney will find themselves with a lot more empty rooms (and we've seen a lot of those in the winter months). A lot of people think 9/11 was the start of discounts. It wasn't...they have been around a lot longer. They just weren't spread as fast without the internet help. And the jump gas just took again, Dis going to hurt (and I'm not just talking about those who drive..when gas goes up, so does the airline fares).

I'm sure this is just a new marketing ploy for Disney to try..just like all the other's they have tried this year. I certainly don't have any idea why Disney is doing this. But I do know how much my Disney trips cost. We eat out a lot, we buy a lot, and we go often. Only time will tell, if Disney gets a discount out that will benefit me and my type of visitor.

It is just like our DVC perks they are perks not guarantees. We don't buy AP's as we only do 5 park days a year and we go to Disney for 2 weeks a year. Yes I see buying a childs AP and using it to get a room discount exploiting a system some may not but I do. As I also said earlier that it is smart business for them to start to cater to those that pay full price to stay at the resorts and full price for tickets etc it makes the company more money and yes you may take more trips than the average person but you do so using many discounts and they are now looking to do away with them. They are going to concentrate on the full paying guest that may only go once a year or for all we know may go 10 times a year I can't see that actually but you just never know. So they are starting to look to those that are putting more profit into the company than the ones using more discounts thus generating less profit.

 

[CharlesTD]

See we purchased DVC for the sole purpose of having our accomodations pre paid for years and years to come. The only time we ever used a discount was when we got the Magic Kingdom Club Gold card and we didn't even know about the room rate difference they asked us at the time of booking if we had it and I said yes. As for the childs AP comment my SIL was going to buy a childs AP last year to use for discounted room rates and when she asked she was expressly told no this was no the case and that is had to be an adult pass for the discount. The free dining is not really much of a discount when you think about it especially when you are still paying rack rate for the room we looked at how the dining goes as for payment etc like upscale dining and CM"s etc and it is not really that big of a savings yes it is nice and the way they present it makes it look really appealing to many people but staying at All Stars and going out to eat or renting DVC points and eating out can be even less expensive in many cases. I just think that no matter what we do wehter it be going to Disney for holidays or what have you we expect a deal. I mean you can't go to the grocery store and one week get chicken on sale and go back the next week and demand the same discount becasue it was offered the time before.