[Question] Increased prices justification

[Lanmon]

Prices indeed have been increasing throughout DLR. I was just wondering how DLR can justify the increased prices when so many attractions are closed for whatever reason. Do you think prices should be lowered a just few dollars during the refurbishments? Do you think out of town guests feel they are not getting their moneys worth? Does mgt really believe that "it is Disneyland therefore guests will come" regardless of the increased price and closed attractions? Do you think DLR would make more money if their prices were lower during this time? Just a thought for discussion.

[Bob Weaver]

Re: Increased prices justification

The price of anything in the world is determined by one thing:

What the customer is willing to pay.

If the customer is willing to pay the asked price, then that price is justified.

$3 per gallon for gasoline is justified, but only by the fact that customers are willing to pay that rather than seeking an alternative to get from point A to point B.

$72 to get into DCA as it is now is apparently not justified, because not enough people were willing to pay the $72. So Disney is now sweetening the deal.

[CMHusband]

Re: Increased prices justification

It may seem like an expensive place but its packed full of entertainment from early in the morning until midnight (in the summer) Where else will you get that much value for your dollar? You've got rides, atmosphere, broadway quality shows, parades, fireworks and its basically so clean you can eat of the ground...cost of business increases every year in the way of taxes, electricity, water, insurance etc...a couple of bucks here or there in increase is to be expected...Its still worth it I think.

And as far as some rides being closed. The park is open year round, they have to close for maintenance at some time and Disney is very good about posting in advance what and when the closures are, so you can plan your trip around them if a particular attraction is of interest to you.

[techskip]

Re: Increased prices justification

This comes up on occasion... they are a business they do not need to justify their prices. When people quit showing up in mass numbers they will either lower their prices or offer a discount. Since they continue to offer discounted admission my "guess" is that most don't accept the gate admission at face value.

[micromind]

Re: Increased prices justification

Of course they have to raise prices. And cut back on non-essential items, such as maintenance.

How else are they going to continue to pay the executives their obscene salaries and bonuses?

Rob

[MAH4546]

Re: Increased prices justification

Of course they have to raise prices. And cut back on non-essential items, such as maintenance.

How else are they going to continue to pay the executives their obscene salaries and bonuses?

Rob

Salaries are determined by public market forces, just like ticket prices and the price of a churro.

Market forces clearly dictate these executive salaries. They are in no way obscene.

It's funny how everybody always gets jealous and/or bitter about successful executives. They've worked hard to get where they are. Good for them. We don't live in a communist, share-the-wealth society.

[Bob Weaver]

Re: Increased prices justification

But when that hefty bonus for the executive comes at the expense of basic park maintenance, thus putting guest safety at risk... ultimately you end up with guest deaths and injuries, cast member deaths and injuries... just so some overweight CEO can have a few million more bucks...

[micromind]

Re: Increased prices justification

Economics 101......There are a certain number of dollars in existence, if one person has more, another will have less.

Rob

[MrLiver]

Re: Increased prices justification

But when that hefty bonus for the executive comes at the expense of basic park maintenance, thus putting guest safety at risk... ultimately you end up with guest deaths and injuries, cast member deaths and injuries... just so some overweight CEO can have a few million more bucks...

That has not, and never will, happen.

[Timekeeper]

Re: Increased prices justification

That has not, and never will, happen.

^AGAIN!

Timekeeper.

[Mr Wiggins]

Re: Increased prices justification

Market forces clearly dictate these executive salaries. They are in no way obscene.

Another satisfied contributor to Bob Iger's $30 million annual compensation package! :thumbup:

[techskip]

Re: Increased prices justification

That has not, and never will, happen.

Sometimes I question if I should even type something out...

If it is assumed that executives are paid for their ability to increase profits to shareholders then you are wrong. The cutbacks to maintenance started by Pressler helped to increase park profits overall. For his increase in profits he was likely awarded a bonus. The decision to purchase a cheaper nylon based rope was one of several factors that led to the Colombia incident. The cuts put into place to eliminate redundancy and the significant cuts to the maintenance department were a factor in the Thunder incident. A decision not to apply a semi costly program "patch" resulted in the Screamin incident... that "glitch" had already been discovered on Thunder.

So in the most basic sense the decisions which lead to maintence cuts and overall cost savings to generate higher profits in turn led to larger bonuses for the executives awarded to them by their happy shareholders. I seriously doubt the end result was anyone's intention, but it happened.

[Bob Weaver]

Re: Increased prices justification

Wrongful Death of Son on Disney's Big Thunder Mountain

[CMHusband]

Re: Increased prices justification

This thread got a little sideways. Yikes.

[MrLiver]

Re: Increased prices justification

So in the most basic sense the decisions which lead to maintence cuts and overall cost savings to generate higher profits in turn led to larger bonuses for the executives awarded to them by their happy shareholders. I seriously doubt the end result was anyone's intention, but it happened.

It never happened. There is no report anywhere on record that blames budget cuts, and the CMs involved in the Big Thunder accident specifically said that budget cuts had NO PART in the accident.

The CMs screwed up. The budget was not involved at all.

[MrLiver]

Re: Increased prices justification

Wrongful Death of Son on Disney's Big Thunder Mountain

There is a major mistake in that report:

the left side upstop/guide wheel on the floating axle of the locomotive was not tightened in accordance with specifications; and a safety wire was not installed and/or completed the necessary maintenance required by said tagging system, all with knowledge of Disney management.

There was no way for ANYONE to know that the work had not been done, as the work had been signed off as being done.

[Jazziered]

Re: Increased prices justification

They HAVE offered a HUGE discount.. But only if you live in Southern Califonia.. It is the monthly payment plan.. CHEEEP CHEEP....

[aashee]

Re: Increased prices justification

If I am pondering what executives make instead having fun at Disneyland, I should no longer be going. Maybe I'll go bowling...nah the guy who made the bowling balls took all the money and skipped the safety in drilling the holes in the balls.

[Donald1980]

Re: Increased prices justification

Prices indeed have been increasing throughout DLR. I was just wondering how DLR can justify the increased prices when so many attractions are closed for whatever reason. Do you think prices should be lowered a just few dollars during the refurbishments? Do you think out of town guests feel they are not getting their moneys worth? Does mgt really believe that "it is Disneyland therefore guests will come" regardless of the increased price and closed attractions? Do you think DLR would make more money if their prices were lower during this time? Just a thought for discussion.

One thing to be thankful for though, is that about 5 or 6 years ago there use to be more attractions down for refurbishment. Summer seemed like it was the only time everything was opened. When was the last time Indy or Splash Mountain went down for a major refurbishment? I truly can't remember. I remember when every attraction would be down for about a month once a year.

[Armadillo4]

Re: Increased prices justification

Does mgt really believe that "it is Disneyland therefore guests will come" regardless of the increased price and closed attractions?

If the customer is willing to pay the asked price, then that price is justified.

Based on the thread about the park being at capacity and the reported crowd levels on Friday, it seems that guests are coming and paying. I think, as techskip noted, that many guests are paying a discounted admission via annual passes or other promotions. But the price increases are creeping into those discounts too--e.g. AP price increases. And still, they come. It sounds like it was pretty crazy there last night.