Iger: Disney will dial back on park discounts in latter part of 2010
Featured, Jason Garcia, News — By Jason Garcia on December 9, 2009 at 10:52 am
The top executive at the Walt Disney Co. said this morning that he expects his company’s theme parks will scale back discounting during the second half of 2010, though he acknowledged that “we don’t know when we will essentially be able to turn it off.”
Disney Chief Executive Officer Bob Iger noted that the promotions Disney’s parks are currently offering – including another buy-four-get-seven hotel-night offer at Walt Disney World – are slightly smaller than deals they offered earlier this year, when the global recession was at its worst.
“We’ll be able to continue to dial that back over the latter part of 2010,” Iger told financial analysts at the UBC Media and Telecommunications Conference in New York.
Since the beginning of this year, Disney has been using a series of deep discounts at its theme-park resorts – on hotel rooms, food, tickets and more – to keep attendance afloat amid an overall slump in travel and tourism. While the company has relied on promotions to prop up attendance during previous downturns, it has not before used them for such an extended period of time.
The strategy has kept Disney World and Disneyland in Anaheim, Calif., full, which Disney executives say helps ensure continued word-of-mouth marketing and leads to return trips. But it has eroded margins: Operating profit at Walt Disney Parks and Resorts sank 25 percent during the company’s 2009 fiscal year, which concluded Oct. 3.
Some analysts have expressed concern that the strategy may lead to a permanent expectation of discounts among Disney customers, which would make it difficult to return to full prices without harming attendance. Some also worry that the promotions have simply cannibalized future attendance by luring people who were planning to take trips later.
Iger, as he has before, dismissed both concerns. He said, for example, the promotions have attracted new customers who would not otherwise have visited a Disney park.
“We’re not concerned about weaning ourselves and the marketplace of the discounts,” Iger said.
Still, Iger declined to predict when Disney might be able to stop discounting entirely. Tourism-industry experts have been watching for indications that Disney is preparing to pull back its promotions as a likely sign of improvement in the broader travel market.
Iger said it is difficult to make long-term predictions right now because travelers are not planning trips far in advance. “Visibility well into the year is very limited,” he said.
“It’s just not a market that lends itself to long-term commitments or early buying,” Iger said.
Print This Post
Tags: Disney World, News, Walt Disney Co.
Tweet This
Digg This
Save to delicious
Stumble it
35 Comments
Deep discounts, maybe; however the price of a one day-one park ticket has increased in price, as well as the cost of parking your car, at any of their WDW theme parks. Essentially, it appears the day trippers are paying for the discounts the week long guests are getting. They give away food to resort guests (deep discounts) but jack up the price everything else. Poor value, if you ask Floridians wanting to go for the day.
One way to avoid paying for parking is to park at Downtown Disney and ride the bus from there. Saves ya $15 (I think that’s what parking costs now).
You can’t take a bus from Downtown Disney to a theme park or vise versa.
No, but you can ride the bus to a Disney hotel and transfer. Personally, I’d just pay the $15.00.
The prices are ridiculous. I am local, and I wanted to take time to go and visit the park with my family this Xmas, but I wont be able to do it. I can’t afford the high prices for the tickets, the parking, and the food. I understand that buying the 3 day pass is really a good value, but when I need to buy tickets for four people then it turns into something I can’t afford. It is sad. They should consider giving some other special prices for us that live around the parks and don’t go that often because of their high prices on everything. May be if they decide to offer better prices to locals, then maybe more people might consider going more often.
I don’t understand the Floridians who are complaining about the cost of admission and/or food & beverages at Disney. I understand times are hard, but the seasonal passes for Florida residents are more than reasonable. If anything, I’m surprised that Disney and the other theme park companies have been able to keep costs as low as they have, let alone stay in business. Tourism is perhaps the first thing to get hit in a recession. People work more, travel less, and don’t shell out money for that Mickey shaped ice cream cone when their pocketbooks are hurting.
Oh wow, seasonal passes like most of us can afford those? Why don’t you get off your high horse, use at least another brain cell or two and begin to formulate a somewhat intelligent response. Otherwise, do the rest of us “common folk” a favor and shut up, sit down – your 30 seconds were up 45 seconds ago.
William was speaking to, and for, those who can afford the passes. Those people exist. (Believe it or not.) You are speaking about, and for, those who can’t afford them. They exist, too. Both groups exist.
And yet you criticize him for speaking for one group, while you speak for another.
You’re a hypocrite. And I just thought you should know.
If you used the birthday pass to upgrade (like I did and my daughter) you get credit.. so my $250 seasonal pass was actually under $170.
you can also do it with next year’s promotion of volunteering.
The only bad thing with the seasonal tickets is that parking is not included. So yes you can get a seasonal ticket for $240 plus $14 every time you go to the parks. Soon enough that equals the price of an annual pass. So for a family of 4 it still will cost over $1000 per year.
So they just keep raising rates, give some half you know discounts and then make a big deal about getting rid of the discounts. It is already to expensive to go to Disney any more.
Mr. Iger was talking to Wall Street. He is begging investors not to dump Disney stock.
It’s a real shame that Uncle Walt’s dream has been reduced to being driven by a profit and loss sheet.
The Disney Dream is DEAD. Dial back?! You’ve gotta be kidding, park and parking admission prices up at over 100% of inflation the last few years alone, and the CUT BACKS…..PRICELESS. I wouldn’t go to disney, nor eat there with current food cut backs for darn near FREE. All their new attractions and changes are “POINTS OF SALE” now. Everything for a fee. Oh…and you can’t stand there anymore to watch fireworks unless you pay EXTRA! It’s like the New Coke of the current age. Managament has messed up Disney parks badly. Cound me out. If not for Pixar film fascination, disney would have nothing to interest me. Hope they don’t wreck it, as they have all of there “SALES/theme parks”
Walt Disney, the man, was ALWAYS concerned about the almighty dollar. There was never a purity of wanting to provide family entertainment just for the sake of helping his fellow man. Of course, he did take pride in that, but it was a means to an end, a way to earn profits. And there’s nothing wrong with that.
Please remember, it was Mr. Disney himself who invented the practice of building the exit of a ride/attraction so that you MUST walk through a gift shop in order to exit the ride/attraction. So please, let’s not rewrite history that Walt didn’t debase himself by chasing the dollar. Walt was a healthy capitalist, and there’s nothing wrong with that.
And to the person who said you must pay to watch fireworks??? Nonsense. Please don’t believe that. That person was incorrect, or confused. There are some nights each year where the Magic Kingdom closes earlier than usual for “hard ticketed” events (Mickey’s Not So Scary Halloween Party, Mickey’s Very Merry Christmas Party, Pirates & Princesses Party) where a separate admission is charged at nighttime AFTER the park closes to the public. But this information is published literally MONTHS in advance … if you want to avoid such events, a teeny-tiny bit of homework is all that is needed.
But Epcot has IllumiNations, a fireworks and laser show, 365 nights a year, and it never costs a penny extra. And on those small handfuls of nights when the Magic Kingdom is closed for a hard ticket event, anyone can take the monorail for free across the lake and, FOR FREE, sit on the beach at Polynesian Resort or Grand Floridian Resort and watch those fireworks … they even pipe in the music and narration, no extra charge.
It’s fine to think Disney is overpriced or is an evil empire or whatever … we’re all entitled to our opinions. But please don’t LIE and tell people that you have to pay extra to watch fireworks at the Disney parks.
Hi. I visit Orlando each year and never visit Disney as it is too expensive and overated. MK is for the under 12’s and the only one we ever go to is Epcot. Disney has devastated the area of Orlando by encouraging everone to stay and spend onsite by the freebies offered. The area of I Drive is run down with less and less people staying in the area and spending. Wake up to the Disney threat Florida.Pete
Maybe you don’t have fun and think Disney is overrated because you only go to Epcot and Magic Kingdom? Try Hollywood and Animal Kingdom and maybe you will enjoy yourself a little more. Of course, I doubt that because you stated MK is for under 12’s. I am the biggest 12 year old you will ever see then, because I love MK! If you think WDW is expensive, you ought to go to an MLB or NFL game these days. You WILL spend a couple of hundred there, easy. And it lasts only 2 or 3 hours. At least at WDW, you get the whole day!
Stop being an disney apologist. What is it with some people on here that are always down on their knees for all things disney? It IS an overpriced product. Hollywood studios and Animal Kingdom you say? Parks all about style with very little substance. Hollywood studios? 7 actual rides and a bunch of shows and of those “rides”, only the rock n roller coaster, tower of terror, and toy story mania are actually worth a damn. Animal kingdom? Again only lacking actual “rides” with only Expedition everest and Dinosaur worth anything plus the Kilimanjaro safari. Kali river rapids absolutely blows as you suffer through a long wait only to be disappointed by an incredibly short ride. Disney used to be synonymous with “magic” however the real magic is happening at Universal Studios.
You have obviously forgotten that Disney bought Marvel last year. What is going to happen with all those Marvel Character rides when Disney puts their big toe in the water and says mine, mine mine? Universal employs Disney outcasts. They are the rudest people I have ever met. How long do you expect Harry Potter to be around?I’ve been to Disney over 15 times in the last 30 years and we (family of 6) were looking for a rental home on the coast this year and decided that Disney World was actually CHEAPER. We will be returning again this year and enjoying what Disney World has to offer us.
Forget Walt Disney World Florida. Come to Disneyland,Anaheim. There are lots of deals going on in the park. I despise going to Florida becuase that park is geared to everyone to can afford to be ripped off.
If your looking for the best value, the orignal disneyland is the place to come. and its CHEAPER!
Disneyland Cheaper? Yeah right! What are you smoking on? Disneyland is so small you can fit 4 of Disneyland into Disney World…World being the key componet. And please don’t try to get a room at the 3 hotels you guys have..3 count them 1.Disneyland Hotel 2. Paradise Pier Hotel 3. Grand Californian Hotel. What a joke. You will spend more trying to stay at a hotel there, than you would on your entire vacation for a week at DISNEYWORLD with your resort, tickets and dining combined. Disneyland what a joke…Hey go smoke some more of whatever you had then get back to me.
All Disney parks are a great deal for what you get. Disney is not a charity, and it’s not for everybody. If Disneyland or Disney World are out of your price range, I’m sure there are some smaller local parks or county fairs that you can go to. Let’s try not to encourge them to cheapen the parks do that every commoner can afford to get in.
well said, you elitist prick. i hope you bump into a “commoner” that takes exception to your faggity name and kicks the s#it out of you. Chat??? LOL!
To save on parking my husband and I park at the Disney Boardwalk and come in the back of Epcot. If you want to go to Magic Kingdom just walk to the front of Epcot and take the monorail. You can take the ferry from the Boardwalk to Hollywood Studios. We are planning on purchasing the Florida Resident Weekday Select Pass. Which is perfect for us cause we prefer to go during the week anyway and don’t mind the blackout dates.
They need to raise the prices of annual passports for Southern California people has now its no longer fun going into a parking lot crowd who turn up in extreme droves every chance they get it seems. The park has become hostile and I stopped renewing after this past year. I had never seen anything like it or that bad in the previous years so I’m attributing it to the fact that people can be on a payment plan. BAD IDEA.
Yes, you’re absolutely right about that. Raise the Premium and Deluxe annual passports because they are way TOO many Premium and Deluxe APs who crowd the park everyday of the year and ruin everyone else’s fun due to their selfishness!
The Florida resident annual pass seems like a great deal until…you figure out that you can’t go during certain times, like during the Holidays and then the whole summer too. Maybe Disney has forgotten that we in Florida are the ones who attract many “visitors” from the north who not only visit us, but also go to Disney and expect us, their hosts, to go too. There’s nothing more fun than having dinner in Epcot with your visitors and family. But when the blackout dates are there, we either have to pay ANOTHER fee to get in, which for some of us retired people is quite high, or tell our guests that we won’t be joining them. For many of our guests, this means they won’t come to Disney either! So Disney, the marketing plan you thought was so fool proof is just backfiring on you. We WANT to go to Disney, but you are making it more and more difficult. Why not give the Florida residents a break so we can BRING our visitors to the parks too? AFter all, it was the semblance of FAMILY that you all convinced us of when DisneyWorld made its debut here in the Sunshine State.
Good thing he and the board just got massive bonuses. What was it that the Iger got, 30 million? Yea, nothing wrong there. Essentially they are squeezing the consumer for every dollar they have while complaining about the global recession. Right. And how do you all not see through this nonsense?
puma shoes and nike air max shoes
http://www.tradertrade.com
You people are just plain stupid! You talk about Disney as if they are the only one’s raising prices. Look around! HELLO! Prices are being raised everywhere. If you purchase a car your paying more, if you buy a pack or carton of cigaretttes your paying more, if you go to a grocery store, guess what? You’re Paying More!!! What do you think that their business can survive with out raising prices are you kidding me! Go or Don’t go, it won’t matter to Disney if they don’t get your money because you know what? Their is always someone willing to pay the prices that are charged to go to the parks, eat the food, purchase the merchandise, stay in the resorts. If you don’t have the funds then don’t go, but don’t judge those who have the funds to spend and want to go.