Per guest spending increases 30% at Disney Parks, further cuts may come to park restaurants

[Nimbus]

Originally Posted by Tinkerbell

This is is exactly. While people will pay for genie plus, lightening lane, upwards of €170pp for a walk around MK for four hours, it'll continue.

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Yes. And it seems more and more people are willing to pay more for these things. There's 33% of guests buying Genie+ now but I bet that figure increases as time goes on.

Originally Posted by YorkshireT

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Well, Disney's choice to start charging for fastpasses certainly didn't put people off visiting then!

I bet if they did start charging to use the toilets it wouldn't put people off.

[BarryL]

One more trip for us and we're out.

We're blowing the budget to stay at a couple of places we've always wanted to visit but after that no more.

[Nimbus]

Originally Posted by YorkshireT

It was 18% does it now say 22%?

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It was meant as a joke, but I thought someone said just before the pandemic hit that Disney had suggested amounts for 22%, 20% and 18% now. Or maybe I just dreamt that?

They have had suggested amounts for both 20% and 18% for years though.

[Nimbus]

Originally Posted by BarryL

One more trip for us and we're out.

We're blowing the budget to stay at a couple of places we've always wanted to visit but after that no more.

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Well, until the next time, eh?

[wobblywibbly]

Originally Posted by YorkshireT

It was the earnings call yesterday.

Profit and guest spend up substantially.

33% are buying Genie+

They are considering cutting food portions for profit.

wdwnt/2021/11/disney-par...rease-profits/

Shares are down, the market doesn’t seem too impressed, particularly with Disney+ growth.

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they stated that nearly a third of guests purchased the Genie+ so turning it around over 66% of Guests didn't. It seems hardly a stunning success at the moment...

[quartergill]

Originally Posted by Nimbus

Building a new park will not reduce the crowds at the existing parks. It didn't when they built AK (average attendance at the other parks remained the same - overall guest numbers increased) and it didn't when they built new lands in the existing parks (new lands attract more people, increasing crowds at the parks). Adding more to WDW will only attract more people to WDW, as we've seen time and time again.

Bob is trying to reduce crowd levels by applying the old "supply and demand" pricing model. Demand is currently too high so increase prices until demand lessens and meets supply. This will reduce the number of people in the parks, increasing guest experience, whilst extracting more money per guest, which in turn increases profit.

The problem at the moment is that prices don't seem to be high enough to reduce demand. It doesn't seem to matter how much Disney increases prices, more people keep on visiting (as your photos show). Bob needs to rise the prices higher!

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You are right re basic laws of supply and demand. There is no doubt it is a case of making hay while the sun shines. There is huge demand, people have money burning a hole in their pocket so Disney is doing them a favour and taking as much of it as possible. At what point that reduces demand is obviously where Disney is trying to get to.

[Nimbus]

Originally Posted by quartergill

At what point that reduces demand is obviously where Disney is trying to get to.

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It may be that in a year or two's time they hit that point where price increases start having an effect and the crowds lessen. Perhaps the rumoured reduction in portion sizes might do it? Or maybe it'll take a decade of price increases and reduction of benefits before that point is reached. Who knows.

But right now it doesn't seem like the changes Disney has made over the last few years have made much of a difference - although it's difficult to tell with the effect that Covid has had (and still having).

[MillyMoo]

We won't be visiting for a few years, probably when Epic Universe is finished. I cant imagine what things will be like by then

[Nimbus]

Originally Posted by wobblywibbly

they stated that nearly a third of guests purchased the Genie+ so turning it around over 66% of Guests didn't. It seems hardly a stunning success at the moment...

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I suppose it depends on how you look at it.

Yes, on the one hand, Disney has been unsuccessful in getting the majority of its guests to buy Genie+. On the other hand, Disney is now making a lot more money by successfully getting a third of it's guests to buy something that they used to receive for free and they can increase that percentage over the coming months.

I'm sure Bob is promoting that other 66% as an opportunity: "We've managed to get a third of them to pay out after only a month, now we've just got to work on the other two-thirds. Meanwhile, reduce portion sizes of the meals and tell 'em we're doing it to reduce our food wastage so we can help fight against climate change or something".

[Moorlandman]

Rather than building a new park, they could put some attractions in Epcot & AK to manage the crowds away from MK & HS.