Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

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  • AuthenticDisney
    Banned User
    • Jul 2014
    • 13

    [Question] Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

    Ever since the recent changes and elimination of lower cost levels of Disneyland Annual Passes were announced I for one didn't buy their "story" that this was being done to help contain crowd levels. I still don't believe it. Upon hearing the news I immediately said - this was being done to transition AP'rs to higher priced brackets because crowd levels were actually going to be trending down.

    Full disclosure - I'm a film industry marketing exec (not for disney or any affiliate) and I pay for a premium pass myself.

    Meanwhile back at the ranch so to speak....I call the whole "excuse" for changing the pass tier levels along with price increases to the existing ones all planned for increases in revenues and not to "help" ensure better "guest experiences".

    Case in point... In the Los Angeles market - Disneyland Promotions has launched many many marketing tie-in's and cross promotions with local radio, television, and print "hyping" the annual pass programs via free giveaways of yearly passes to lucky contestants. These at the HEIGHT of the theme park attendance season! Yea I know what I'm talking about here. This is highly irregular and a bit ominous given it's "timing".

    I don't want to argue with those who will stick by whatever Disney Parks does "for the sake of guest experiences" but I'm telling you that the elimination of lower priced AP programs had more to do with concerns over dropping renewals and a lack of interest due to the "after glow burn out" of Carsland and an overall lack of anything else new - nearly two years in -- which I know many here will claim till their death - has turned the entire resort around.

    All I will say is that OUTSIDE marketing data and opinions about the "new" DCA are not as great as even some reporters on this site have said citing satisfaction surveys were "100% positive", as one famous reporter likes to exclaim - Oh-Kay! The Little Mermaid has not had nearly 3 "makeovers" because it's a 100% positive hit ? Yes DCA is better, but outside market research show that the public is still grossly disappointed with it's "Billion Dollar" makeover as am I. What is with the monstrosity of metal in the "lagoon" for World of Color? You mean for all that money they could not come up with a system that preserves it's aesthetics and appearance. How un-disney like! Ya really.

    Outside of Disneyland pulling together a miracle attraction before Harry Potter opens at Universal and the continuing re-positioning of Knott's as a family value attraction - you can bet Disney "suits" are going to continue to "squeeze" more out of AP'rs and maybe "really" offer them incentives to keep them re-upping.
  • theatremouse
    MiceChatter
    • Sep 2013
    • 1185

    #2
    Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

    Ever since the recent changes and elimination of lower cost levels of Disneyland Annual Passes were announced I for one didn't buy their "story" that this was being done to help contain crowd levels. I still don't believe it. Upon hearing the news I immediately said - this was being done to transition AP'rs to higher priced brackets because crowd levels were actually going to be trending down.

    I certainly do not claim to have read every article on the subject, but I have not read anything official stating they did it to reduce crowd levels, nor that it was not an attempt to get people to upgrade to higher levels. Everything I've read on both those matters has been fan speculation. Can you point to an instance of Disney claiming one and denying the other? All I'd seen was the vague and "currently sold out" and "may be available later" and was not remotely surprised to not read any actual comment on the "why".

    I would suggest that all pricing changes, product changes, changes in availability of different ticket types (at any venue that sells tickets of any kind) are always in one way or another a marketing "ploy" intended to increase revenue. That's the whole purpose of making those sorts of changes. If selling fewer, higher priced tickets has an effect of reducing crowds, so be it, but the goal in that case would still be to increase revenue (and financial capacity). The reduced crowd levels would be a side-effect, not the end game. It would be silly to claim otherwise. It's pricing strategy 101.

    Comment

    • ScottG
      Done with MC.
      • May 2007
      • 1962

      #3
      Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

      Nothing is done without consideration of profit.

      Comment

      • micromind
        world class bilge rat
        • Aug 2009
        • 25303

        #4
        Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

        Everything TDC has done in the last 20 years has been done for the sole purpose of increasing executive compensation packages.

        Of course it's another marketing ploy, designed to increase profits.

        Comment

        • micromind
          world class bilge rat
          • Aug 2009
          • 25303

          #5
          Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

          Originally posted by ScottG View Post
          Nothing is done without consideration of profit.
          Well Scott, ya beat me to it by one minute......lol.

          Comment

          • Barbaraann
            Chicago Gal
            • Apr 2005
            • 58403

            #6
            Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

            Even I know they're in it for the money.
            Last edited by Barbaraann; 07-23-2014, 07:52 PM.
            BarbaraAnn

            Comment

            • micvicfaust
              New MiceChatter
              • Jan 2013
              • 55

              #7
              Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

              Spot on Post one, you hit the mark square on the heads of the suits..they are out of touch,out for profit and out of their minds..a sad state of affairs for the future of a Calif. icon.
              If your looking for Alice she's not here...sigpic

              Comment

              • SOTSreleaseplease
                MiceChatter
                • May 2014
                • 1146

                #8
                Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

                If only they had the attitude of "what is good for the parks, will be better for profit (in the future.) I hate that they would rather take $5 in a year than $100 in 7. You can't have this short term, penny pinching philosophy for long and get away with it.

                Comment

                • techskip
                  I Break Things
                  • Jun 2007
                  • 12793

                  #9
                  Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

                  I've mentioned it before but if the tourists aren't showing up and spending then the alternative is to bleed more out of the AP's and locals. It's not to say that Disney is operating at a loss in July but I question just how much they made with crowds being "very manageable". I'd hazard a guess it is on the low end of their projections when you consider that tourists... not AP's... used to pack the park and spend small summer fortunes.
                  "Happiness is a Low Water Level"

                  sigpic

                  "Creating magical memories and making Managers cry since 1955!"

                  Comment

                  • Scarlet Spanky
                    MiceChatter
                    • Sep 2013
                    • 1100

                    #10
                    Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

                    Originally posted by AuthenticDisney View Post
                    What is with the monstrosity of metal in the "lagoon" for World of Color? You mean for all that money they could not come up with a system that preserves it's aesthetics and appearance. How un-disney like! Ya really.
                    I always wonder about this.
                    World of Color is lovely.
                    All its hardware visible above the water during the day is butt-ugly.

                    Comment

                    • micromind
                      world class bilge rat
                      • Aug 2009
                      • 25303

                      #11
                      Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

                      Originally posted by Scarlet Spanky View Post
                      I always wonder about this.
                      World of Color is lovely.
                      All its hardware visible above the water during the day is butt-ugly.
                      It most certainly could be done better, but it would cost more. And with the ceo raking in $30 million a year (and goodness knows how much his well-trained minions cost the company), TDC doesn't want to spend anything more than it has to on other stuff.

                      Comment

                      • MrLiver
                        MiceChatter
                        • Jan 2005
                        • 5279

                        #12
                        Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

                        I don't really follow. If the concern was that AP holders were finding fewer reasons to renew, why would they effectively raise the price of the passes?

                        I would assume that those who choose the So Cal AP, did so because it was the best for for what they could afford, or better suited their interest level. Reconfiguring the pass options does nothing to change what someone can afford or how interested they are in the park. I would believe that they have priced out more folks by eliminating the option, than convinced others to pay more.

                        Their recent Capex expenditures (land purchases for parking uprades, main street flow ways, etc.) betray a real concern over crowd levels for the next few years. Considering the money now being spent to improve guest flow, it seems reasonable to belive the changes in the AP offers are in line with their concerns over crowding.

                        Originally posted by techskip View Post
                        It's not to say that Disney is operating at a loss in July but I question just how much they made with crowds being "very manageable". I'd hazard a guess it is on the low end of their projections when you consider that tourists... not AP's... used to pack the park and spend small summer fortunes.
                        The park has gone back to being it's typical busy summer self. I suppose the July 4th weekend was a fluke.

                        Comment

                        • MrLiver
                          MiceChatter
                          • Jan 2005
                          • 5279

                          #13
                          Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

                          Originally posted by micvicfaust View Post
                          Spot on Post one, you hit the mark square on the heads of the suits..they are out of touch,out for profit and out of their minds..a sad state of affairs for the future of a Calif. icon.
                          It bares repeating that those people who are out of their minds are running one of the biggest media companies and the most successful collection of theme parks in the entire world.

                          They don't make money unless people are happy, so their ultimate goal will always be to make people happy.

                          Comment

                          • BW1
                            MiceChatter
                            • Jun 2014
                            • 861

                            #14
                            Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

                            I don't follow the logic of this post. I don't buy the fact that they would be raising prices into decreasing attendance. The only way I can see this to be true is if they were actually LOSING money on So Cal Passes. If this were the case, shame on them for continuing those passes for so long (I have a hard time believing they are that dumb)

                            Of course Disney wants to make more money and of course they are going to use every one of the 4P's. Some thoughts:

                            1) I went on a trip in March and the crowds were worse than I have ever seen them.

                            2) If someone cannot afford a $500 deluxe annual pass and instead ops for the $260 So Cal select, how much money do you think they are going to spend in the park?

                            Basic take:

                            capacity is scarce = pricing power

                            So Cal Passes aren't very profitable

                            Eliminate So Cal Passes = higher margins per park attendee

                            Comment

                            • sediment
                              Banned User
                              • Jan 2005
                              • 14975

                              #15
                              Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

                              Clarification: they did not eliminate any level of AP. They merely stopped selling new ones for an indefinite period of time. Current SoCal APs can renew their passes.

                              And, the SoCal Select, even less expensive with more blocked-out dates, is still being sold, I believe.

                              But, really, DL is not worth (on average) the one-day ticket price when it is too crowded to get a one-day-ticket-price experience.

                              However, it is still worth the average entrance fee if you've prepaid for a year. (Average cost varies by number of visits, of course.)

                              Only thing we can speculate is that the SoCal pass did not have enough blocked out days, its existence thus causes large crowds on days when the park can't handle that large of a crowd (only so many attractions opened, only so many Cast Members expected to work that day, etc.).
                              Last edited by sediment; 07-25-2014, 03:01 PM.

                              Comment

                              • micvicfaust
                                New MiceChatter
                                • Jan 2013
                                • 55

                                #16
                                Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

                                So Mr.Liver you think that the suits are out for the guest best interest, because they make money when everybody is Happy? Also you think because they run such a huge corp. they know what they are doing and we should trust them? Well Mr. Liver they said that about the Bankers,Automakers and Healthcare providers how did that turn out? If that is your outlook of Corporate America, then you are blind and cannot see the forest for the trees.
                                If your looking for Alice she's not here...sigpic

                                Comment

                                • MrLiver
                                  MiceChatter
                                  • Jan 2005
                                  • 5279

                                  #17
                                  Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

                                  Well they have to be keeping enough people happy to fill the parks with 60 million people a year. They must be making someone happy to generate something close to 11 billion in revenue a year.

                                  The idea that all of these people keep going to the parks and spending money despite being miserable and disgusted at the experience is played out.

                                  And folks have been saying the sky is falling for a good 30 years now. It hasn't yet.

                                  Comment

                                  • Cookie Boat
                                    MiceChatter
                                    • Jun 2014
                                    • 154

                                    #18
                                    Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

                                    There are different types of annual pass-holders. There are the customers who buy a single-day ticket and then decide that day to upgrade to a pass. There are those who buy the annual passes directly - religiously - every year. There are customers who buy a pass as a way to "hack" their Disney vacation - getting discounts on parking or hotels or food, never to return. Are there more subsets? Do you what the numbers are like in each group?

                                    And there are four different types of annual passes, which complicate things further. That means you (and Disney) can segment the annual pass-holders into at least 12 subgroups. You could look at the retention, growth and profitability of each group; you could decide which group you wanted to retain, and which one you wanted to grow in, and which you needed to squeeze more money out of.

                                    Oh yeah, and then there are the various levels of tickets (one-day, multi-day, parkhopper, discounted from outside vendors) to make it even more complicated. And employee sign-ins. Man - that is a whole lot of moving pieces to try and deal with.

                                    Without knowing the actual numbers on all of the segments, it is hard to say specifically what the motivation for removing the SoCal pass for new business customers was.

                                    Although I would start with profit and revenue.

                                    Comment

                                    • micvicfaust
                                      New MiceChatter
                                      • Jan 2013
                                      • 55

                                      #19
                                      Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

                                      I see said the blind man..
                                      If your looking for Alice she's not here...sigpic

                                      Comment

                                      • nightrippe
                                        New MiceChatter
                                        • Jul 2014
                                        • 17

                                        #20
                                        Re: Was The Elimination of Certain Annual Pass Levels A Revenue Marketing Ploy?

                                        I'm not sure if this may play into it, but when I first started purchasing my annual pass, you had to pay for it up front. Now that they have the monthly payment option, this allowed for people who couldn't normally pay for the pass to be able to obtain one while maintaining their budget. This option may have increased Annual Pass sales and helped justify the increase in the price of Annual Passes. The only pass that you can not pay monthly on is the Premier Pass and that pass also has tax (Florida charges a tax on admission sold). And yes, the Premier Pass was a great deal when I had it, until the price went up to close to $1,000 this year.

                                        Comment

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