Even Disney Is Worried About the High Cost of a Disney Vacation

[HokieRaven5]

There is a give and take to a conglomerate like Disney - during Covid, the other division kept the parks afloat, no?

Yes, from 2020-2021ish the entertainment sector was the only segment earning a profit. Disney took out an additional $20B in debt to keep the experiences afloat and moving along during that time too. (Prior to Covid, the entertainment sector was also bringing in the most operating income to the company for about 30 years as well).

Post 2021 the experiences became the larger profit earner and entertainment took its lumps and wasn’t earning as much as it had previously.

The entertainment sector, despite slacking box office results due to Covid, film reception, a dying linear network market, and the loss costs of launching a streaming service, has maintained profitability.

 

[Mirabell Rose]

It’s impacting the markets that are strong overnight Canadian tourism. Rates are down in places like Orlando and Las Vegas, not so much in places like Anaheim (which saw relatively few Canadian tourists). Cesar Point and Dollywood probably see few Canadian tourists.

Cedar Point is very close to Canada.

 

[clarker99]

Yes, from 2020-2021ish the entertainment sector was the only segment earning a profit. Disney took out an additional $20B in debt to keep the experiences afloat and moving along during that time too. (Prior to Covid, the entertainment sector was also bringing in the most operating income to the company for about 30 years as well).

Post 2021 the experiences became the larger profit earner and entertainment took its lumps and wasn’t earning as much as it had previously.

The entertainment sector, despite slacking box office results due to Covid, film reception, a dying linear network market, and the loss costs of launching a streaming service, has maintained profitability.

Yeah, the narratives are completely backwards to reality. Like, what blogger or article started this nonsense about Parks are keeping the company afloat?

 

[DodgerGirl]

This would be a good subject for a survey on Family Feud and Steve Harvey would probably ask this survey,
Name what makes a Disney vacation so expensive?:
And probably the number one answer would be ticket prices
and here would be some of the possible guesses:
Is it food "bell ringing sound effect"
Is it long lines "strike indicator sound effect"
Is it the hotel room "bell ringing sound effect"
Is it souvenirs "strike indicator sound effect"
When you look at it from a different vision I think Disney is worried and concerned about things that might happen that might cause the parks to close in the future that may affect future ticket prices. But the one thing that Disney has to get rid of that is really affecting attendance is their reservation system and I think it really has to go. Because why do people need reservations to go to an amusement park? It's not a hotel or a fancy restaurant and the only reason why this reservation system exists was because of the pandemic and if the reservation system was removed more people like me could go to Disney Parks easily. Because when Disney Parks reopened during the pandemic and the reservation system was developed it hurt Disney Parks a lot and when people learned about this new system people cancelled their trips. Because when you get the general picture there are more interesting places for families to visit on vacations besides amusement parks. Like you could take your kids to Texas and spend a week at a dude ranch or you could go camping in Washington or you can go to Sacramento and tour the state capitol and plus Sacramento has kid friendly museums as well. I don't know why or how in the world amusement parks became family vacations but they continue to be popular with families today. But in the future Disney Parks will lower ticket prices and more people will visit for a cheaper price

 

[PurpleHaze]

I will apologize in advance. I have not read through all 13 pages of this thread and my post may be a tangent to the recent comments but I feel this is related to the high costs of a disney vacation and how that cost has increased over the years as value has taken a hit. I did my first solo disney trip in February of 2017, and me being a financial guy, I tracked my costs diligently so I could know what i spent and where I spent it. I went back and did my best to recreate that trip using 2024 WDW prices (I actually started pulling my numbers a few weeks ago). Its a pretty interesting comparison.

2017 5 nights at Pop Century with a 15% discount = $502. Same room same week in 2024 also 5 days with a 20% discount = $755. Also that 2017 price included a magic band and magical express, but the sklyliner wasnt open in 2017.

2017 a six day park hopper purchased from Undercover Tourist = $424. Same in 2024 = $776. Remember that the 2017 price included fastpass+. Add a few hundred in 2024 for Lighning Lane access.

2017 meals, I ate 6 quick service, one character meal, two table service meals with alcoholic drinks, several starbucks, and one visit to Trader Sams in total was$302. Looking at todays menus I dont hink there has been a dramatic increase. The only change here is in 2017 I ate lunch at Be Our Guest for $21. Today that would cost $87.

So just using the basic of room, ticket, and food, in 2017 thats $1,228 compared to $1,924 in 2024 which could go up to about $2,270 if you purchased lightning lane, a magaic band, and Uber to and from MCO.

One thing I wish I could find that to me would be the park hours available to me as an onsite guest. I think it would be a much lower number of hours available in 2024 given the reduction of hours in general, cut backs on extended hours and the new ticketed events.

Anyway just some fun food for thought.

 

[LAS2AMS]

Many of the rates being compared are off peak. It’s a different world out there today, and it’s not limited to Disney. If you were able to travel during the shoulder season, you use to get huge savings. Not anymore. Just a decade ago most of the sprawling resorts in Mexico/ Caribbean were largely shuttered during the shoulder season but if you were okay with that, you got a fantastic deal. Not anymore. Younger Millenials/ Gen Z and Bookers are traveling like crazy.

Even in the 2000s, some of Disney’s biggest discounts of the year came in October. Now it’s the busiest month of the year.

You’re not going to find $89 rates at the CBR off peak anymore but you’re not going to find $99 rates at 4* all inclusive resorts either.

 

[wabbott]

I will apologize in advance. I have not read through all 13 pages of this thread and my post may be a tangent to the recent comments but I feel this is related to the high costs of a disney vacation and how that cost has increased over the years as value has taken a hit. I did my first solo disney trip in February of 2017, and me being a financial guy, I tracked my costs diligently so I could know what i spent and where I spent it. I went back and did my best to recreate that trip using 2024 WDW prices (I actually started pulling my numbers a few weeks ago). Its a pretty interesting comparison.

2017 5 nights at Pop Century with a 15% discount = $502. Same room same week in 2024 also 5 days with a 20% discount = $755. Also that 2017 price included a magic band and magical express, but the sklyliner wasnt open in 2017.

2017 a six day park hopper purchased from Undercover Tourist = $424. Same in 2024 = $776. Remember that the 2017 price included fastpass+. Add a few hundred in 2024 for Lighning Lane access.

2017 meals, I ate 6 quick service, one character meal, two table service meals with alcoholic drinks, several starbucks, and one visit to Trader Sams in total was$302. Looking at todays menus I dont hink there has been a dramatic increase. The only change here is in 2017 I ate lunch at Be Our Guest for $21. Today that would cost $87.

So just using the basic of room, ticket, and food, in 2017 thats $1,228 compared to $1,924 in 2024 which could go up to about $2,270 if you purchased lightning lane, a magaic band, and Uber to and from MCO.

One thing I wish I could find that to me would be the park hours available to me as an onsite guest. I think it would be a much lower number of hours available in 2024 given the reduction of hours in general, cut backs on extended hours and the new ticketed events.

Anyway just some fun food for thought.

According to the Bureau of Labor Statistics calculator, $1.00 in February, 2017 is equal in buying power to $1.30 in January, 2025.

https://www.bls.gov/data/inflation_calculator.htm

 

[patm95]

I've been going to Disney for 40+ years. There are more children in the parks than ever, as evidenced by the seas of parked strollers. If the pricing were lower, none of us would be able to navigate the park without tripping over children or strollers.

This is an unfortunate truth. As
Long as attendance is up Disney will keep hiking prices.

 

[New Mouse]

This is an unfortunate truth. As
Long as attendance is up Disney will keep hiking prices.

Attendance is down. The question is whether attendance is down enough to impact overall revenue.

 

[LAS2AMS]

Attendance is down. The question is whether attendance is down enough to impact overall revenue.

Attendance at WDW would’ve been up had it not.been for the hurricane events (that even forced the closure of the parks). Iger has been warning about anticipated drops in attendance for over two years… and Disney continues to beat expectations.

 

[New Mouse]

Attendance at WDW would’ve been up had it not.been for the hurricane events (that even forced the closure of the parks). Iger has been warning about anticipated drops in attendance for over two years… and Disney continues to beat expectations.

You beat expectations by raising prices on everything in hopes you outperform your attendance drop with a spending increase.

Igers goal is to lower attendance while raising the spend per guest.

It's a short term win, but long term which Iger could care less about, you will lose loyal fans across your brand, not just the parks.

 

[mom2rtk]

Attendance at WDW would’ve been up had it not.been for the hurricane events (that even forced the closure of the parks). Iger has been warning about anticipated drops in attendance for over two years… and Disney continues to beat expectations.

Hurricanes aren't a new thing at Disney.

 

[RivShore]

Do we have to say it again and again and again - attendance is not down, it's mostly been flat with the exception of last quarter which was down a mere 2%, with 2 storms causing the drop.

 

[clarker99]

Do we have to say it again and again and again - attendance is not down, it's mostly been flat with the exception of last quarter which was down a mere 2%, with 2 storms causing the drop.

Yeah, unfortunately you have to repeat over and over.

As far as I can tell WDW did not close all its parks for any single day from Oct-Dec 2023. They did for 1 day in 2024. That one day closure accounts for just over 1% drop in attendance YoY. There are 91 days in a reported quarter. 1/91 =0.011

Now account for the day before and after and any people that cancelled altogether.

This goes for any theme park in the area not just WDW.

 

[Minnie1222]

Like you could take your kids to Texas and spend a week at a dude ranch or you could go camping in Washington or you can go to Sacramento and tour the state capitol and plus Sacramento has kid friendly museums as well.

 

[Minnie1222]

Do we have to say it again and again and again - attendance is not down, it's mostly been flat with the exception of last quarter which was down a mere 2%, with 2 storms causing the drop.

Yes, please keep repeating because facts still matter. Some people, for whatever bitter reason, like to cling to the narrative that attendance is down and therefore Disney is not doing well (despite the fact that a larger crowd doesn't automatically mean a larger profit).

 

[Nayan]

Like you could take your kids to Texas and spend a week at a dude ranch

Dude Ranch vacation costs anywhere from $400 to $1000 a day per person.

or you could go camping in Washington

A camping trip to Washington state can cost anywhere from $50 to $100 if your local. Add in flights/rental car/permits and the cost skyrockets.

or you can go to Sacramento

A trip to Sacramento costs close to $1000 per person a day.

I don't know why or how in the world amusement parks became family vacations but they continue to be popular with families today. But in the future Disney Parks will lower ticket prices and more people will visit for a cheaper price

Disney will not lower the prices and park passes will continue to rise. And people will pay those prices. Also Disney Parks are busy, plenty of people go every day and attendance is NOT down. They are NOT hurting at all. I expect it to be crowded when I go in a couple weeks and I expect to pay quite a bit of money for food/drinks. But I love F&G and to spend big bucks there is worth it to me. And by the size of the crowds in the parks it's worth it for other people too.

 

[mom2rtk]

Dude Ranch vacation costs anywhere from $400 to $1000 a day per person.

A camping trip to Washington state can cost anywhere from $50 to $100 if your local. Add in flights/rental car/permits and the cost skyrockets.

A trip to Sacramento costs close to $1000 per person a day.



Disney will not lower the prices and park passes will continue to rise. And people will pay those prices. Also Disney Parks are busy, plenty of people go every day and attendance is NOT down. They are NOT hurting at all. I expect it to be crowded when I go in a couple weeks and I expect to pay quite a bit of money for food/drinks. But I love F&G and to spend big bucks there is worth it to me. And by the size of the crowds in the parks it's worth it for other people too.

Attendance may not be down. But it's not up to the extent they want it to be. And that's a problem for Disney right now.

 

[tjkraz]

Fastpass and Magical Express did get people to spend more money.....over time. Not everything has to be an immediate return, you need a balance for your long term stability.

Magical Express undoubtedly was very effective at keeping people on Disney property 10+ years ago when the only viable alternative was renting a car for hundreds per week. If Disney getting 2-3 meal purchases per person, per day and effectively blocking people from accessing Universal, Legoland and other competitors, sure it pays for itself.

Now we're living in the age of Uber and Instacart. DME does nothing to block people from visiting competitors because everything is a $30-40 Uber ride away. It does nothing to steer people to Disney restaurants and bars because you can have $100 in snacks and drinks delivered to the hotel and eat for days.

I understand why people miss DME. But it's pretty clear why Disney felt they could no longer justify supporting it. It was never "let's be nice and give people a free ride from the airport." It was "if we drive people to and from the airport, they'll spend every dollar on our property and we'll make up the difference." The original motivation is entirely gone. There's a reason Universal and others have never gone down that road.

 

[clarker99]

Attendance may not be down. But it's not up to the extent they want it to be. And that's a problem for Disney right now.

Do you have a quote or anything to back up this claim?