[Chat] Bob: Reservation System / Genie+ / Yield management is the Future of Tech at Parks

[Sonicrumpets]

So has anyone seen this article?

https://blogmickey.com/2021/09/disne...t-theme-parks/

This quote is extremely disheartening.

When discussing how the theme parks have operated following the COVID-19 pandemic and resulting shutdowns, Chapek talked about how the theme parks are improving their yield management. To improve yield management, Chapek noted that Disney has introduced a variety of technologies and will soon be introducing a suite of new offerings in the Disney Genie, Disney Genie+, and Lightning Lane Individual Attraction Selections.

and

Chapek said that the core “backbone” of their technology yield management strategy is the Disney Park Pass reservation system. By being able to control demand and understand the mix of guests visiting their theme parks, Disney is able to activate their technology to ensure that yield management is efficient and that the guest experience remains high.

For those who aren't familiar with the term yield management here's the quick def from WIKIPIDIA

Yield management is a variable pricing strategy, based on understanding, anticipating, and influencing consumer behavior in order to maximize revenue or profits from a fixed, time-limited resource (such as airline seats or hotel room reservations or advertising inventory).[1] As a specific, inventory-focused branch of revenue management, yield management involves strategic control of inventory to sell the right product to the right customer at the right time for the right price.[2] This process can result in price discrimination, in which customers consuming identical goods or services are charged different prices.

Genie+ isn't even out yet and It doesn't take a genius to tell that Lighting lane is primed for rampant price discrimination. The fact that price gouging and guest manipulation has the potential to be so much worse than anything that park goers have had to put up with before.

I'm not just doomsaying here, the fact that more and more of what we do in the parks is being pushed onto the app makes it ripe for manipulative tactics to keep us spending like never before without them having to add value of any sort.

let's say I have reservations for lunch and dinner through the app, they can send me a special offer in between restaurant reservations for a discount at a snack location for what they statistically know is a snack or drink that sells particularly well at that time, that I otherwise wouldn't have bought.

Or let's say my credit card is linked to the app and they compare what I've spent on souvenirs on my previous visits to my current stay and I haven't spent as much as last time. They could send me a reminder about how I can pick up my merch at guest services at the end of the day which makes me think about shopping while informing me of the service. They could use the GPS to send me this message in front of the emporium on the main street, making me more likely to shop.

Finally, let's say they can use the demand pricing on the Lightning Lane to offer me a lighting lane pass for I ride that has space available but they know I historically haven't bought a lighting lane above a certain price, they can offer my family of four a lower price that they now I'm statistically more likely to buy and charge another family of four standing three yards away a premium for the same opportunity.

They'll know where you are what you've spent and your itinerary. they'll finally have a way to influence how you spend your time and money in the parks.
Bob just told us the game, This new system is meant to squeeze blood from a rock

I very much love Disney and I hope that they don't do this but It came right from bob's mouth. If this is how they're going to treat their consumers I'll start taking my money elsewhere.

[Stormy]

This is exactly what worried me when LL+ was announced. More along the lines of a LL+ being a certain price for all at a certain time or day and being less (or more) at another time or day. As a consumer I'd be cheezed if I paid $20 for an LL+ only to find out that a friend paid $10 four hours later or the next day. If they're going to do that, then they need to post an LL+ ride price calendar the way they post a single day ticket price calendar.

[Sonicrumpets]

The Yield management model works by sorting customers or goods and services into buckets, in this case, the number of lightning lane spots per hour of ride operation.
the buckets are the different price brackets think coach, first-class, and business. Just like an airline but in this case, Genie + is a bucket, and then they'd probably a number of buckets for the lighting lane.

if they have more slots open than a predetermined threshold at any particular time the price can dynamically drop to a Minimum viable price per that attraction but as the slots fill the price will climb back up to whatever sort of cap they set, which could be the highest price the market will bear per said attraction till the slots are all sold

The key thing to remember is that all the available park reservations or passes allocated in a day are viewed as perishable goods, anything left at closing time is waisted potential revenue.

like apples that last a mere 24 hrs, they want to sell all the apples but they also want to sell them all at the highest price they can get without having any left at the end of the day.

SO Depending on how many Lighting lanes they sell they could choose to change the price per spot per ride daily, hourly, or live to the minute.

[nostalgic]

I just have to get over my sadness that my kids are going to age out of having their first experience while they're young. I think it'll take a decade for the market to provide enough push back and force Disney to be transparent in their pricing. As I've said before, I canceled Disney+ subscription months ago because I don't want to be an enabler in addicting my kids to Disney. I had been considering subscribing once in the fall just to watch Black Widow, but then I was able to rent it this weekend at Redbox, so forget Disney+. I'm the big fan in my family, and if I can keep it under control we'll continue our Disney hiatus.

[Eagleman]

IMO
I been sharing for years
"There more to Life than Disney"

and stated to see consumers ,started taking there money elsewhere.

and as for me , I VOTE WITH MY WALLET.........

[wlc108]

So has anyone seen this article?
They'll know where you are what you've spent and your itinerary. they'll finally have a way to influence how you spend your time and money in the parks.

Let's say this happens. It'd be possible to identify which guests should get that special '"Disney magic" and which ones they could just phone in the fun. I'm imagining those who spend the most being treated differently, with maybe special spacing on ride seats or a well-liked skipper on the Jungle Cruise. It'd be like a virtual plaid, but silently offering a better experience to the more profitable guests.

[savarese04]

I hate Bob as much as everyone else, but I support yield management. For one, I think they're not going to get the LL sales they think they are. However, surge pricing is absolutely the way to do it. It basic supply and demand - how bad do you want to go on at 2pm for $15pp? Can you wait 45 minutes in standby instead? maybe you wait until 5pm and the cost is only $8pp.

The reservation system in my mind is also great. Yes, it kinda sucks to have to preplan your trips but there's none of this happening:
1) 4am lineups to get in on popular days
2) worry that if you leave the park you can't get back in on certain days
3) worry that the park will be so crowded you can't move on Main Street

I've been there on days when it's shoulder to shoulder and that should never happen again. The reservation system is yield management at work because there's a diminishing return when the park hits certain levels of crowdedness. There are only so many cast members you can have on a certain day (even if you pay them $40/hr and they all suddenly want to be there). If you look at it from a logistics angle, there are only a finite number of checkout registers in the stores and food locations and only so many cooks you can put in the kitchen to make the food. This is your max service capacity. It's no different than max ride capacity of people per hour. At a certain crowd level, where you can normally max out at selling say 100 hot dogs an hour, you're going to start selling 60 an hour because people look at the line and say "nope". Now you're losing money.

Better to run at peak efficiency than peak capacity. The difference between 1985 and 2021 is that improvement in analytics technology has helped them capture this data, bring it together in a standardized manner, and effectively model it to make these determinations about where on the curve they need to be.

[redoscar]

I hate Bob as much as everyone else, but I support yield management. For one, I think they're not going to get the LL sales they think they are. However, surge pricing is absolutely the way to do it. It basic supply and demand - how bad do you want to go on at 2pm for $15pp? Can you wait 45 minutes in standby instead? maybe you wait until 5pm and the cost is only $8pp.

The reservation system in my mind is also great. Yes, it kinda sucks to have to preplan your trips but there's none of this happening:
1) 4am lineups to get in on popular days
2) worry that if you leave the park you can't get back in on certain days
3) worry that the park will be so crowded you can't move on Main Street

I've been there on days when it's shoulder to shoulder and that should never happen again. The reservation system is yield management at work because there's a diminishing return when the park hits certain levels of crowdedness. There are only so many cast members you can have on a certain day (even if you pay them $40/hr and they all suddenly want to be there). If you look at it from a logistics angle, there are only a finite number of checkout registers in the stores and food locations and only so many cooks you can put in the kitchen to make the food. This is your max service capacity. It's no different than max ride capacity of people per hour. At a certain crowd level, where you can normally max out at selling say 100 hot dogs an hour, you're going to start selling 60 an hour because people look at the line and say "nope". Now you're losing money.

Better to run at peak efficiency than peak capacity. The difference between 1985 and 2021 is that improvement in analytics technology has helped them capture this data, bring it together in a standardized manner, and effectively model it to make these determinations about where on the curve they need to be.

Agree with all of this. Unlike WDW, Disneyland experienced exponential attendance growth around the turn-of-the-century (especially '08 and the monthly payment plan introduction), enough such that limiting the number of guests in the parks to address guest satisfaction would assuredly impact bottom line, since for many (not all, though) guests the ticket is the single-most expensive thing they will purchase that day.

Maximizing revenue potential per guest as opposed to turnstile count is a good cost-benefit compromise of overall capacity availability (including attendance) versus what guest purchasing power is at the time. Its not what people traditionally think of when they think of theme parks, but as noted above, the technology wasn't there in the past, else Disney and other theme park operators would have executed on this much earlier.

[Starcade]

Yield management or putting "yield" at a premium in any way only works in manufacturing. When yield is applied to service, well you see what it is doing to Disney and has done to failed business after failed business. It's a short term gain with long term consequences. The airline industry is a great example on how putting yield at a premium has destroyed things for consumers. There are those that will push for it and they are usually share holders who care little about much than their own dividends. I miss the days where CEO's put growth over yield and our country as a whole was a world leader in just about everything. Now we are selling our souls and greed spreads like a cancer.

And yes I know this likely makes me sound old to some but I have watched corporate America from the 80's till now decline in its ability to lead due to eating itself in the name of profit.

[savarese04]

Yield management or putting "yield" at a premium in any way only works in manufacturing. When yield is applied to service, well you see what it is doing to Disney and has done to failed business after failed business. It's a short term gain with long term consequences. The airline industry is a great example on how putting yield at a premium has destroyed things for consumers. There are those that will push for it and they are usually share holders who care little about much than their own dividends. I miss the days where CEO's put growth over yield and our country as a whole was a world leader in just about everything. Now we are selling our souls and greed spreads like a cancer.

And yes I know this likely makes me sound old to some but I have watched corporate America from the 80's till now decline in its ability to lead do to eating itself in the name of profit.

I don't believe growth over yield has to be a binary choice. Many companies have succeeded at this and, as you note, many have failed. I do think that's more a factor of stale innovation and poor management than prioritization of yield. However, we're getting into the weeds of business academia. You're also mostly right about airlines, but there were 2 major contributory factors there that bear mentioning: 9/11 and the simultaneous realization that route subsidization was not sustainable.

[Eagleman]

And yes I know this likely makes me sound old to some but I have watched corporate America from the 80's till now decline in its ability to lead do to eating itself in the name of profit.

That a BINGO..........that what happening.......... alright.
AGREE

[Golden Zephyr]

Yield management or putting "yield" at a premium in any way only works in manufacturing. When yield is applied to service, well you see what it is doing to Disney and has done to failed business after failed business. It's a short term gain with long term consequences. The airline industry is a great example on how putting yield at a premium has destroyed things for consumers. There are those that will push for it and they are usually share holders who care little about much than their own dividends. I miss the days where CEO's put growth over yield and our country as a whole was a world leader in just about everything. Now we are selling our souls and greed spreads like a cancer.

And yes I know this likely makes me sound old to some but I have watched corporate America from the 80's till now decline in its ability to lead do to eating itself in the name of profit.

I second this, and your comparison with the airline industry is a perfect example. Yield management algorithms tend to greatly depreciate the standard experience and increase overall costs for the customer. There is really nothing positive for the customer at the end of the game. It is only more expensive for the same services and an ever eroding quality of service and product.

The decline is accelerating and like nostalgic said, we are also "detoxing" from a Disney addiction. It simply isn't fun right now, just an endless labyrinth of algorithms, scarcity control, and gamesmanship by Disney management. There is no care for the customer in the current season, just revenue "enhancement". Hopefully that changes, but only time will tell.

When one sees the words "Goldman Sachs" "Bob Chapek" and "yield management" all in one paragraph, never think that the customers are going to benefit.

[merlinjones]

More simply put:

"Magic" = "ketchup"

[tarheelalum]

Chapek is doing his best to ruin the image of the Walt Disney Corporation as quickly as possible. The man has all the charm of a cold ham sandwich.

Nickle&DimeLand

[Blurr]

For me, honestly the biggest worry I have regarding all these new systems they've been implementing is the whole Mobile Order debacle. I can (hopefully) always choose to wait in lines at rides without needing to use my phone if I just refuse to pay the extra for something like Lightning Lane. But my most recent visits made me feel like they're really doing everything in their power to make sure that if you don't mobile order, that you lose the ability to dine at certain locations unless you place and order way in advance of any potential hunger or cravings. I understanding dining reservations at sit-down restaurants but seriously, last time I was there, mobile orders for food at the Test Kitchen were all gone and my only option was to wait in a nearly hour long line just to make a purchase at the one cash register they had operating. Insane. I feel like someday, I won't be able to just walk into Rancho and order a burrito when I'm craving it, unless of course I somehow knew that's what I was going to want and pre-purchased it during the wee hours of the morning for a future time that I know need to work my day and attraction ride times around.

[Starcade]

Regarding DLR's failures on food service through trying to turn it's restaurants into automated people powered vending machines... "If you can't sell it through a vending machine, then you cannot vend it like a machine." - Anonymous

[linkeq2001]

Regarding DLR's failures on food service through trying to turn it's restaurants into automated people powered vending machines... "If you can sell it through a vending machine, then you cannot vend it like a machine." - Anonymous

Disney's food service is a complete and utter disaster in terms of the consumer right now. We know a couple people who have made the trip from the Seattle area over the last few weeks and every group has said the same thing on their return. Getting reservations was impossible and they hated anything "virtual" to do with food. Some people stuck is out but two families ended up giving up on food in Disneyland proper completely and just went to DTD or across to Macdonalds or other places for almost all meals and any substantial snacks. In all cases they just said they gave up on battling to eat on a vacation and just went the path of least resistance.

[Jaygatzby]

Instead of Superman II’s “Kneel before Zod”, I could easily see this being a ‘Yield before Bob’.

At this point I think I am far enough along in my ‘Disney detox’ to where I have moved on enough to enjoy the world outside the Magic Kingdom.

I don’t, and can’t really expect, Bob Chapek and co. to change direction from their obsession with yields, dynamic pricing, unbundling of experiences, and any other flavor of the month buzz words they picked out of Forbes, Inc. or the Wall Street Journal and are trying to do to make sure Wall Street investors happy and their bonus checks bigger.The Disney board are allowing this; it’s not like Bob and his band of retaileers were some corporate pirates that took over Disney.

I still hang on the boards hoping things will get better, but like Nostalgic, I also think it will likely be a decade before things shake out and a focus on the guest, rather than wallet, experience will return.

I just don’t need my hard earned dollars contributing to Disney’s current yield obsession.

[Eagleman]

Instead of Superman II’s “Kneel before Zod”, I could easily see this being a ‘Yield before Bob’.

At this point I think I am far enough along in my ‘Disney detox’ to where I have moved on enough to enjoy the world outside the Magic Kingdom.

I don’t, and can’t really expect, Bob Chapek and co. to change direction from their obsession with yields, dynamic pricing, unbundling of experiences, and any other flavor of the month buzz words they picked out of Forbes, Inc. or the Wall Street Journal and are trying to do to make sure Wall Street investors happy and their bonus checks bigger.The Disney board are allowing this; it’s not like Bob and his band of retaileers were some corporate pirates that took over Disney.

I still hang on the boards hoping things will get better, but like Nostalgic, I also think it will likely be a decade before things shake out and a focus on the guest, rather than wallet, experience will return.

I just don’t need my hard earned dollars contributing to Disney’s current yield obsession.

I Enjoy your post......
Hope you are right about-shake out and a focus on the guest, rather than wallet, experience will return.
But for Now......
Disney IMO is on the wrong wrong Street......when comes to guest service......Time will tell !

For now - My Money , stay in my wallet................

[Eagleman]

Chapek is doing his best to ruin the image of the Walt Disney Corporation as quickly as possible. The man has all the charm of a cold ham sandwich.

Nickle&DimeLand

X 2
I AGREE....Now I know why
I dislike HAM sandwich