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No more discount for renewing APs: why? What are we missing?

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  • #16
    An Annual Pass is equal to about 3 or 4 park hopper tickets. So after only a handful of visits, Disney no longer makes money off of that AP. Merchandise, food, etc., let's be real. Those APs who use the resort as a convenient hangout won't buy anything. They're just there to add to the horrible overcrowding without dropping a dime.
    So it seems Disney has had enough of trying to lure more of those non-revenue guests into the park. I suspect even more drastic "cutting" will take place as we hit the one year mark until SWL opens. Someone mentioned that sources reported that getting rid of the monthly payment plan was seriously being considered with the last price increase. I think sometime in the Spring, monthly payments will be eliminated. Thus allowing the new and renewed APs to reach the end of their contract in time for the opening of SWL.

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    • #17
      Originally posted by Natalie Price View Post
      An Annual Pass is equal to about 3 or 4 park hopper tickets. So after only a handful of visits, Disney no longer makes money off of that AP. Merchandise, food, etc., let's be real. Those APs who use the resort as a convenient hangout won't buy anything. They're just there to add to the horrible overcrowding without dropping a dime.
      So it seems Disney has had enough of trying to lure more of those non-revenue guests into the park. I suspect even more drastic "cutting" will take place as we hit the one year mark until SWL opens. Someone mentioned that sources reported that getting rid of the monthly payment plan was seriously being considered with the last price increase. I think sometime in the Spring, monthly payments will be eliminated. Thus allowing the new and renewed APs to reach the end of their contract in time for the opening of SWL.
      I disagree about Disney eliminating the monthly payment and I'll tell you why. Disney does not want to necessarily reduce the number of AP holders. That's evidenced by the fact they marginally raised the price of the most affordable AP. Also, as evidenced by over a decade of price increases (more than tripled since 2000) people are not deterred by high prices. What Disney needs to do, and I presume, wants to do before SWL opens, is limit the number of visits and when those visits occur. They can achieve that goal while still maintaining a monthly payment option. If Disney does in fact limit the number of visits, the AP will be no different than a 2, 3, 4, 5 day pass. Instead it will be 10, 15, 25, etc day pass and the cost will vary. But they could still allow for a monthly payment.

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      • #18
        I agree they will not remove monthly payments. It allows Disney to raise the price to extraordinary levels that would not be obtainable without it. They could always reduce the number of APs rapidly by eliminating the monthly payments, but I don't see them doing that.

        Also, they are not eliminating passes, they simply are not allowing new SoCal passes, those with them can renew.

        The one curious item is the removal of the AP renewal discount. I do find that interesting in that people may skip renewing until they actually plan to use the pass, It will be interesting to see how that works, that was the only change that I see has a real chance of reducing passholders.

        Also, I think there is a big difference in the way Disney views Signature (and Sig+) APs vs the lower tiers of Deluxe and below. From a value standpoint it is clear that Sig+ is the better value now with all that it includes. Perhaps that is Disney's desire to drive the wealthier APs to purchase the more valuable pass. If you have a Signature pass, little reason not upgrade and get a Sig+ now. The cost difference is insignificant.

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        • #19
          IMO: Disney is not going get rid , monthly payments

          They say more changes to the AP program are coming down the line .
          Disney going get RID of So.Calif. low Tier AP's

          and do not forget , Disney motto : Subject to Change !
          Soaring like an EAGLE !

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          • #20
            Originally posted by Mr Wiggins View Post

            Because Disney knows they can pocket the discount themselves and it won't hurt AP sales. They know from long experience that no matter how much they charge for Annual Passports, or how many AP perks they remove, the number of Passholders who won't renew is negligible: Sales of Annual Passports will continue to increase.
            Is there any objective data to back this claim up? I don't believe it's really true.

            In fact, I think there's plenty of anecdotal evidence that the opposite is true - that Disney has some levers to pull that can have a very powerful impact on the number of people who do or do not buy/renew - and that the pendulum may be starting a significant back swing.

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            • #21
              I think this is a good thing. Renewal discount was a MAJOR incentive that makes people renew "well if I don't renew my pass I'm losing money". The passes should be a flat rate at any time. This way it makes it easier to choose when you want your pass.

              I think the passes are going to be restricted in the future for the number of visits, like something like each pass they will say "good for x number of visits".
              Last edited by Nesboy43; 02-13-2018, 09:08 AM.

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              • #22
                Originally posted by Mr Wiggins View Post

                Because Disney knows they can pocket the discount themselves and it won't hurt AP sales. They know from long experience that no matter how much they charge for Annual Passports, or how many AP perks they remove, the number of Passholders who won't renew is negligible: Sales of Annual Passports will continue to increase.

                As long as demand for its brands remains high, Disney will continue to raise the prices and lower the perks on its Passport products.
                Since the renewal discount has been removed, do you think they’ll be any erosion in renewals, due to the fact there is no financial penalty to waiting 3 or 6 months, or even a year to renew? It opens the door for that money to be spent on something else.

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                • #23
                  Originally posted by AstroJeff View Post

                  Since the renewal discount has been removed, do you think they’ll be any erosion in renewals, due to the fact there is no financial penalty to waiting 3 or 6 months, or even a year to renew? It opens the door for that money to be spent on something else.
                  I don't think there will be much difference because the renewal discount wasn't very significant, especially for lower passes. Let's say I pass up the $10-20 discount and wait an extra month to renew the socal select pass. Well, if you divide 349 by 12, that comes out to almost $30 a month. What was the discount renewal? $10? So by waiting just one month, I have actually saved $20 not been penalized $10. That savings grows every day I wait to renew.

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                  • #24
                    Originally posted by AstroJeff View Post

                    Since the renewal discount has been removed, do you think they’ll be any erosion in renewals, due to the fact there is no financial penalty to waiting 3 or 6 months, or even a year to renew? It opens the door for that money to be spent on something else.
                    I think there absolutely will be. It will no longer be a big consideration as the renewal cost as just as same as getting a new one. If someone is a bit sick of the parks and wants a break they can do so without any cost to them.

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                    • #25
                      Originally posted by hbdad View Post

                      I don't think there will be much difference because the renewal discount wasn't very significant, especially for lower passes. Let's say I pass up the $10-20 discount and wait an extra month to renew the socal select pass. Well, if you divide 349 by 12, that comes out to almost $30 a month. What was the discount renewal? $10? So by waiting just one month, I have actually saved $20 not been penalized $10. That savings grows every day I wait to renew.
                      You are assuming that people are thinking logically. People are not logical.
                      Dumbo rats: the other lovable rodents.

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                      • #26
                        Originally posted by AstroJeff View Post

                        Since the renewal discount has been removed, do you think they’ll be any erosion in renewals, due to the fact there is no financial penalty to waiting 3 or 6 months, or even a year to renew? It opens the door for that money to be spent on something else.
                        Do we have any idea what percentage of AP holders "renew" anyhow? I mean, we're on a fan site, where many people love DL and would never let their AP expire. But I know from observing my own relatives over the years, whom I would characterize as fairly mainstream consumers, they wait until they're wound up to go -- maybe a birthday or something like that -- and then they buy a ticket and apply it to some AP or other.

                        Anyhow, I would for sure think there would be some erosion in renewals, but maybe that won't have as much impact on AP numbers as we on a fan site might think at first glance.
                        Last edited by Pips; 02-13-2018, 11:06 AM.

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                        • #27
                          Originally posted by hbdad View Post

                          I don't think there will be much difference because the renewal discount wasn't very significant, especially for lower passes. Let's say I pass up the $10-20 discount and wait an extra month to renew the socal select pass. Well, if you divide 349 by 12, that comes out to almost $30 a month. What was the discount renewal? $10? So by waiting just one month, I have actually saved $20 not been penalized $10. That savings grows every day I wait to renew.
                          The discount on the Sig Plus was either $60 or 80, and it went down from there.

                          But, I think they feel they don't need to make the discount to keep APs.

                          If you see a cute yellow lab puppy with a yellow cape, WAVE! It might be us! (Or it may be someone else that lurks here!) Thank you for asking before you pet! Next trip, Dec 22-Jan 3rd.

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                          • #28
                            Originally posted by Malcon10t View Post
                            The discount on the Sig Plus was either $60 or 80, and it went down from there.

                            But, I think they feel they don't need to make the discount to keep APs.
                            Ok but that is still less than 10% of the cost of the pass. So if you waited 1 month to renew, you still save money. Unless someone is addicted to Disneyland and must go weekly, it would always be financially better to not renew and buy the pass on your next visit, if you can control yourself and wait at least a month to renew. You're right. People will renew even without the discount. I mean for crying out loud, people are renewing despite the large price increases over the years. A loss of a nominal discount is not going to discourage renewals.
                            Last edited by hbdad; 02-13-2018, 10:53 AM.

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                            • #29
                              I think the whole idea that someone will forego disneyland over not receiving a renewal discount is ridiculous. Many of these AP holders are brand loyal and Disney enthusiasts. They are willing to keep getting passes year after year, despite the large increase in prices and crowds. You really expect that someone will say, "Yes I will renew and keep paying more and more every year, I will keep battling the crowds, but take away my nominal renewal discount (that I could actually recoup if I waited a month to renew)and I'm done." That's ridiculous. A family of 4 for a sig+ would pay over 4k for the passes before the price hike. Add to that the food, merch, whatever else. You really think they will forego all that because they didn't receive a less than 10% discount on the new price of 1149. Add to that they could just incorporate the loss of the renewal discount into monthly payments. That makes that "tax" even more nominal.
                              Last edited by hbdad; 02-13-2018, 09:42 PM.

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                              • #30
                                They will give other incentives to renew. example is the recent 13th month. If you wait to renew, you only get 12 months and wont get that bonus month.

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