Disneyland Hotel taking reservations, but...

[waltopia]

I always love the Monday updates, THANK YOU MICECHAT!!! Interesting image this week, and all this after-talk about jobs, and access and appropriateness...

‘$586.00 ... king bed, parking lot view.’

That’s 600...Dollars, for one night, in one bed, overlooking a parking lot (or trees), Plus fees...for staying in the worst part of a decent hotel with bad plumbing and poor “service” (from unfailingly pleasant, but powerless “cast members”, compared to similarly priced properties around the world).

Who actually pays this? Those who can afford it, probably wouldn’t. Average American families on vacation? Not likely, or for long. The expenses for a day at Disneyland have only begun at this point. It boggles.

It sure was fun when it was reasonable, but these rates are just laughable, in a sad way. Glad I can remember when....

[tarheelalum]

No, its 586 plus 17% tax which adds another 100 dollars plus parking which is around 25 now so that runs a bit above 700 bucks, for a parking lot view. Reality has yet to smack Disney in the face. They honestly think with unemployment numbers like the Great Depression, people are still going to pay their absurd prices, for a covid19 mask wearing experience in the heat. And some probably will, but the smart money will wait for this mess to pass.

[DisneyPilot]

Their rates are based purely on supply and demand. The Resort hotels were running (pre-shutdown) a 95% occupancy rate which is unheard of consistently in the hotel world...so plenty are paying it.

Now if that trend continues...that is to be seen but I would argue those that can pay that rate are also the ones that are likely least impacted by the impending financial hardships.

[Zanadros]

You also have to take into consideration that many people book these vacations as part of a large package that includes room, tickets, food, etc., so the price isn’t really $600 a night for most of the tourists.

[Mr Wiggins]

Who does Disney think will spend five-star money for a four-star experience in the middle of Anaheim's economic ghost town?

Reality check for Disney management:

Americans are slashing their spending, hoarding cash and shrinking their credit card debt as they fear their jobs could disappear during the coronavirus pandemic.

US credit card debt suddenly reversed course in March and fell by the largest percentage in more than 30 years. At the same time, savings rates climbed to levels unseen since Ronald Reagan was in the White House.

The dramatic shifts in consumer behavior reflect the unprecedented turmoil in the US economy caused by the pandemic. Although caution is a logical response to that uncertainty, hunkering down also poses a risk to the recovery in an economy dominated by consumer spending. A so-called V-shaped recovery can't happen if consumers are sitting on the sidelines.

More than 33 million Americans have filed for initial unemployment claims since mid-March, and economists warn the jobs market won't return to pre-crisis levels for years.

"Consumers are very cautious," said Russell Price, chief economist at Ameriprise Financial. "We're right in the middle of the storm."

The unemployment rate soared to 14.7% in April — the most severe unemployment crisis since the Great Depression — and Americans are bracing for more challenging times ahead. [Treasury Secretary Steven Mnuchin said Sunday that the real number was closer to 25%.]

The perceived probability of losing one's job over the next 12 months soared to nearly 21% in April, according to a New York Federal Reserve survey released Monday. It was the second straight month of a record high for this metric in the survey, which the NY Fed launched in 2013.

Workers are also worried about how they'll land another job if they lose theirs. The perceived probability of finding a job in the next three months tumbled 6.1 percentage points to 47% in April, the largest monthly decline ever recorded.

The survey described "considerable deteriorations" in household expectations, including record lows for expected earnings, income and spending growth.

"We know that Covid has not gone away," said Danielle DiMartino Booth, CEO and chief strategist at Quill Intelligence. "That is going to keep in place an element of uncertainty and fear and hold back consumers' ability or desire to spend."...

"People have seriously reined in their spending. You have to wonder when they will feel comfortable splurging," said Booth....

[DisneyIPresume]

As a comparison here is the description for the same dates on an Ocean King room at the Resort at Pelican Hill in Newport Beach (copied from their website)

“Treat yourself to Five-Star, Five-Diamond luxury in this Ocean King Bungalow overlooking the Pacific Coast. With the communal warmth of a Tuscan village, it features an unforgettable panoramic ocean view you’ll only find at Pelican Hill. From strolling to dinner to walking to the pool, this Mediterranean escape is the ultimate Resort destination.”

The cost per night? $595.00

Of course it is about 20 - 25 minutes away from Disneyland but for a comparable price you don’t get a view of a parking lot in Anaheim.

[linkeq2001]

As a comparison here is the description for the same dates on an Ocean King room at the Resort at Pelican Hill in Newport Beach (copied from their website)

“Treat yourself to Five-Star, Five-Diamond luxury in this Ocean King Bungalow overlooking the Pacific Coast. With the communal warmth of a Tuscan village, it features an unforgettable panoramic ocean view you’ll only find at Pelican Hill. From strolling to dinner to walking to the pool, this Mediterranean escape is the ultimate Resort destination.”

The cost per night? $595.00

Of course it is about 20 - 25 minutes away from Disneyland but for a comparable price you don’t get a view of a parking lot in Anaheim.

$595.00 A night gets you a bungalow right on the ocean at a resort on Oahu with a kitchenette, oh sorry it's less than $595.00

This is why I always cringe when people get all giddy hoping Disney buys out the surrounding hotels and levels them for more Disney properties. Lots of those places are priced reasonably at what you get IMO. Think Disney's offerings will be anyway near that? god no. We've stayed at all three DLR properties, and we MAY do it again, but we've also stayed at the Fairfield Marriott, the Desert Palms, and the Peacock inn and suites.....other than GCH's proximity, there is not a ton of difference, at least not a $400 a night difference that's for sure. To each their own, I won't begrudge people for where they choose to stay, but man I'd be disappointed if Disney "luxury" hotels sprung up around the resort because Disney "luxury" isn't really luxury.

Another note, they like to claim 95% occupancy, but that includes deeply discounted rooms to CMs, and while that is probably not a HUGE percentage, let's keep in mind that in the off season those discounted rooms are open to even Disneystore CMs of which there are tens of thousands worldwide, it's probably a pretty good chunk, but just stating 95% occupancy looks good to casual investors who don't dig

[Spongeocto4]

Even before the Coronavirus pandemic began, I thought the pricing bubble would burst eventually, with another incoming recession. Now the virus has sped things up and the price shock will become more noticeable.

Would I stay in at on a property hotel on the next trip? Maybe or maybe not. But, it's not good sign that I did not for my last trip during the March shut down.

In a semi-related note, TDA got lucky by canceling the 4th hotel. If they hadn't, they would of been stuck with construction being halted, as the hotel wasn't supposed to open until 2021. And even after completion, the future ecomomy is not looking positive for a new 4 star hotel to open.

And, I think the Disneyland Hotel's 4th/DVC Tower will get shelved....again.

[Spalding]

The Hotel Del Coronado charges that sort of rate for a parking lot view as well!!!

I would think the high hotel room rate is due to the concentration of wealth within the western US. You have Amazon, Microsoft, Apple, Facebook, Google, etc., along with basically the entertainment capital of the world in SoCal. I'd guess between the Grand Californian and the Disneyland Hotel, there are enough earners in the west US to fill these rooms at these exorbitant rates. I am an out of town guest who only visits annually. I have stayed off site a couple of times, but there is nothing like staying at the DLH.

The DVC units for Grand Californian are the most difficult to book in the entire DVC system. They have essentially doubled in value over the last six years. For a timeshare, that is unheard of. This is further evidence that there is huge demand to stay on property.

There is just sooooo much demand for that Disneyland experience and not enough Disney owned properties to meet that demand. People continue to pay the big bucks for the mouse!!!

[Stormy]

I think it's "if you charge it, they will pay". And people have not just willingly, but happily, paid those prices. Shoot, I was one of them when the Grand was around $500/night, although there was usually some sort of discount going on. But now at the upper $700s for 'rack rate' for a standard view? The offsites are looking better and better. Especially when you consider that some of the 'moderates' at WDW are in the $300-400 range (last time I looked) and are very nice indeed.

Prices will come down ONLY if people stop staying onsite. And even with the economy in shambles and people reevaluating their spending habits, there will still be enough people who will pay those prices. I don't see them coming down soon, if at all.

[Blurr]

I'm fortunate enough to have a place to stay just a few minutes away from the resort so I certainly can't imagine paying that sort of price for a hotel room, pandemic or not. Even as a CM and after the CM discount the price was outrageous to me (-and this was like 7 years ago). But oddly enough whenever I book a WDW vacation, I find the prices are easier to stomach despite probably also being grossly overpriced. Maybe there is something behind the tourist vs. local logic there.

If the Disneyland Resort ends up going "by reservation only" this summer due to pandemic, then I can imagine folks still paying this price because doing so also promises you entry to the parks without having to go through any of the other hassle (sort of like the Galaxy's Edge reservations). At least, that's the only mental gymnastic I can jump through in an attempt to justify paying what I'm seeing right now. I love the hotels and will often spend time shopping and dining at them when I visit the parks, but I haven't stayed on property in many, many years.

[hbdad]

I called reservations for the DLH last week to ask about rates. I was quoted the same rate as OP. I said to the rep that recently they were providing FP to people who made a reservation. I asked if they would be able to include a FP with the $580 a night rate. The rep said no. I declined to make a reservation. I wouldn't have made the reservation anyways, but the total lack of good will repulsed me. One FP per person (in this case 4) costs them nothing, yet despite these times, despite the fact the rep knew I was an AP holder, they didn't even want to do that. Forget you.

[Starcade]

We used to stay on site for 2 nights in the Spring ( anniversary ) and two nights in the Fall ( Girls B-day ) we mostly stayed at the DGC sometimes we would stay in the Classic Hotel or PP but very much preferred the DGC. In the 10 years we have been doing this prices have basically doubled with the most increases coming in the last 3-5 years. Last year we only stayed on site for the Fall nights. This year we may not be staying site at all. And it's not because we can't afford it but because of the unwillingness to be grossly overcharged. Spending $700 for two nights is a bit steep but it's a luxury and sometimes we are willing to overspend a lil bit. But $1200 for the same two night we paid $700 for just a couple of years back well that's just goofy!

[Spalding]

The high hotel rate just shows how popular the Disneyland Resort. The market seems to support the high rates.
How about the rates at Paradise Pier? That's the one that interests me since it is supposed to be more of the affordable Disney hotel.

Since I live in WA and only go to DL once a year, we pony up the cash to stay on property, though, I think 500 a night is my limit until I start looking elsewhere. As such, we end up going at odd times like February.

There really isn't a lot of land for Disney to expand, so I would think that as long as the population grows and the popularity of Disneyland remains high, they'll have no problem filling their on property hotels with high rates.

[[email protected]]

My prediction is that when they begin the soft reopen, park tickets will only be available to guests staying at one of their properties. You will have to buy a special package at the hotel that includes daily park tickets. AP access will be temporarily suspended. The hotels will implement additional screening and cleaning measures for hotel guests (such as temperatures checks upon check-in and constant sterilization) that will give the impression that the parks are a more controlled environment. Hotel guests will feel that they aren't mingling with people "off the street".

Disney will say the move is designed to control capacity and monitor symptoms of guests, but the underlying motive is to maximize revenue per guest. This will allow them to continue to charge $650 per night, in fact the rates could even rise!

[Spalding]

My prediction is that when they begin the soft reopen, park tickets will only be available to guests staying at one of their properties. You will have to buy a special package at the hotel that includes daily park tickets. AP access will be temporarily suspended. The hotels will implement additional screening and cleaning measures for hotel guests (such as temperatures checks upon check-in and constant sterilization) that will give the impression that the parks are a more controlled environment. Hotel guests will feel that they aren't mingling with people "off the street".

Disney will say the move is designed to control capacity and monitor symptoms of guests, but the underlying motive is to maximize revenue per guest. This will allow them to continue to charge $650 per night, in fact the rates could even rise!

That does seem like a plausible scenario for a place like WDW with a lot of hotels. Disneyland Hotel, Paradise Pier, and Grand Californian probably only have enough rooms to accommodate less than 8,000 people (thats just a guess).

[Jesser-pie]

[email protected]

I’d be curious to see that concept played out, but
I don’t think Disney is going to bite that hand that feeds them. They’ll nip at it for sure, but they rely APs to spend money in the parks - on food, ears, clothes and popcorn buckets. You remove APs and you remove a significant chunk of revenue.

Looking at past precedent (though admittedly these are unprecedented times), Disney doesn’t do that. I remember musings on this message board that SWGE would be limited to hotel and/or multi-ticket guests. That didn’t happen. There is a rumor that persistently pops up that Disney will get rid of the monthly payment program (to reduce the number of APs). It hasn't happened. ROTR had a high demand and limited capacity. You would think they would have ensured access to hotel guests, but IIRC they didn’t.

For your idea to work, the demand and the prices for the hotels would have to be exceedingly high that Disney can forgo the AP revenue stream. I also wonder at how feasible it is to run the park with a smaller amount of paying customers and how willing those customers are to pay top dollar for Disneyland-lite. There are limits to charging more and have less customers. You still have to pay the CMs to operate the park, amongst other numerous costs. If you have a small amount of guests, you are less likely to have everything open. For example, there is no point in opening all the dining, if you do not have guests to fill the restaurants. So not only will guests be paying a premium for the park but now they will have less options (not to mention the possible loss of fireworks, parades and characters). With less people in the parks, the rides would operate less CMs and vehicles. Thus, wait times wouldn’t necessarily decrease. You are paying more for Disney’s exclusivity but not necessarily reaping the benefits of it.

Maybe I look at this differently than it is, but I think the hotels are designed to help fill the park (more days as opposed to one day). Making Disneyland as hotel-only park would be the reverse of that; using the park to fill the hotels. Are the hotels that important? I’m dubious.

[jamesscarlette]

You are spot on. Summer of 2019 we decided to head to Maui for 8 days and found out we had spent half of what we spent at Disneyland, when we went in December 2019 (staying on a DL property for 4 days)....it was eye opening! And to be honest not worth the price. Although that is subjective, from person to person. We can afford to stay there but the value just doesn’t match the price tag

plus the food at Disneyland has significantly gone down in quality, even the better quality restaurants onsite.

[JacobR22]

Who does Disney think will spend five-star money for a four-star experience in the middle of Anaheim's economic ghost town?

Reality check for Disney management:

Americans are slashing their spending, hoarding cash and shrinking their credit card debt as they fear their jobs could disappear during the coronavirus pandemic.

US credit card debt suddenly reversed course in March and fell by the largest percentage in more than 30 years. At the same time, savings rates climbed to levels unseen since Ronald Reagan was in the White House.

The dramatic shifts in consumer behavior reflect the unprecedented turmoil in the US economy caused by the pandemic. Although caution is a logical response to that uncertainty, hunkering down also poses a risk to the recovery in an economy dominated by consumer spending. A so-called V-shaped recovery can't happen if consumers are sitting on the sidelines.

More than 33 million Americans have filed for initial unemployment claims since mid-March, and economists warn the jobs market won't return to pre-crisis levels for years.

"Consumers are very cautious," said Russell Price, chief economist at Ameriprise Financial. "We're right in the middle of the storm."

The unemployment rate soared to 14.7% in April — the most severe unemployment crisis since the Great Depression — and Americans are bracing for more challenging times ahead. [Treasury Secretary Steven Mnuchin said Sunday that the real number was closer to 25%.]

The perceived probability of losing one's job over the next 12 months soared to nearly 21% in April, according to a New York Federal Reserve survey released Monday. It was the second straight month of a record high for this metric in the survey, which the NY Fed launched in 2013.

Workers are also worried about how they'll land another job if they lose theirs. The perceived probability of finding a job in the next three months tumbled 6.1 percentage points to 47% in April, the largest monthly decline ever recorded.

The survey described "considerable deteriorations" in household expectations, including record lows for expected earnings, income and spending growth.

"We know that Covid has not gone away," said Danielle DiMartino Booth, CEO and chief strategist at Quill Intelligence. "That is going to keep in place an element of uncertainty and fear and hold back consumers' ability or desire to spend."...

"People have seriously reined in their spending. You have to wonder when they will feel comfortable splurging," said Booth....

You have told us what other people thing, how about telling us what you think? Thanks

[CASurfer65]

I called reservations for the DLH last week to ask about rates. I was quoted the same rate as OP. I said to the rep that recently they were providing FP to people who made a reservation. I asked if they would be able to include a FP with the $580 a night rate. The rep said no. I declined to make a reservation. I wouldn't have made the reservation anyways, but the total lack of good will repulsed me. One FP per person (in this case 4) costs them nothing, yet despite these times, despite the fact the rep knew I was an AP holder, they didn't even want to do that. Forget you.

No surprises there. Disney has been corporate for 3.5 decades now.
What’s more is there has been a huge increase in APs over those decades.
And they know what APs are like.
They don’t need to offer you any perks.
If you don’t book, there will be an AP right behind you waiting to do so. With or without an incentive, as small as that incentive may be.
Disneyland is driven largely by APs and they know that. Disney won’t take their foot off the gas because they know APs will just speed up to keep up with them. And pay whatever Disney asks.
Some might not, but more than enough will.