Discussion:End Of Free Dining Forever

[catherinesian]

Originally Posted by nth09

It's really pretty simple from an economics point of view - the relationship between demand and capacity (in this case desired capacity) assuming that each additional person increases profit.

If, due to economic, or other, factors the demand is not there to get the parks to desired capacity offers will appear. It could be free dining or something else. If they can get to their desired capacity without it there will be no need to introduce offers.

The only tricky thing in this case, from a business perspective if that the "desired capacity" may well be a moving target over the next 12 months.

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Whilst I entirely agree with you, I do think it's more complex than just supply and demand. Free dining isn't about getting people to go to the theme parks, they will do that whether or not they are staying offsite or onsite. Free dining is a lure to get people to stay onsite, so they will have to manage demand for the parks (which I have no doubt they have more than enough) but also demand for the hotels. Without a doubt they make more money from people staying onsite. If they have parks operating at 50% they sure want nearly 100% of that 50% to be staying onsite, as they make a lot more money that way than if most of that 50% were offsite visitors. So may need to offer perks to encourage that 50% to stay onsite.

Just my thoughts