Wednesday, March 30, 2016

All The Magic You Want...For A Price

There's no doubt that Disney's theme parks all over the world are the gold standard for theme parks and family entertainment.  They offer a mix of attractions, entertainment, dining, and retail that is unmatched in the industry.  Every year, millions of families, school groups, conventioneers, and all kinds of other guests get the opportunity to experience these amazing parks for themselves. 

There is nothing cheap about the Disney experience.  The parks are well-run, and spotlessly clean.  The attractions are on a level above and beyond those at any of Disney's competitors.  Just exploring Disney's Animal Kingdom at the Walt Disney World Resort in Florida, one can easily see how Disney spared no expense in creating this masterpiece. 

There's also nothing cheap about the experience of visiting the Disney Parks.  In 2015, Walt Disney World's Magic Kingdom Park in Florida became the first Disney park to charge $100 for a one-day admission.  Disney raises their ticket prices at least once each year, much to the chagrin of their guests.  For those who visit the parks multiple times each year, the annual pass is the most economical option.  But in California, the privilege of visiting Disneyland any day of the year will cost you more than $1,000.

Last month, Disney introduced new tiered pricing for their parks, with higher one-day ticket prices during the busiest times of the year.  Shortly after they announced the seasonal prices, they raised ticket prices across the board, for all of their multi-day passes.  Some fans say Disney is trying to address growing theme park demand by pushing guests to the "slower" times of the year.  But it's also not hard to see Disney taking advantage of higher attendance by charging a premium for guests who visit the parks during peak seasons. 

Of course Disney is not just raising prices at the gates.  They are also introducing new, more expensive experiences in their parks.  Disney California Adventure now offers a dessert party for their popular nighttime show, World of Color.  For $79 per person, guests can enjoy reserved seating for the show, and a selection of desserts and non-alcoholic beverages.  While dessert parties at the parks are nothing new, the price tag keeps growing. A similar event that used to be available for Fantasmic! over at Disneyland, was priced at $59 per adult, before it was discontinued in 2014.

Guests who stay at onsite Disney resorts can take advantage of Extra Magic Hours.  This free perk allows guest to enter a selected theme park one hour before opening each day.  Evening Extra Magic Hours (offered at Walt Disney World) allow guest to remain in a different theme park up to two hours after closing, on selected nights of the week.  But this perk may be about to undergo a very expensive change. 

Starting next month, Magic Kingdom Park will offer "Disney After Hours", on select nights (not Extra Magic Hours nights),  For this "event", the Magic Kingdom will remain open for three hours after regular park closing.  During that time, guests will enjoy selected attractions, character meet and greets, and bottled beverages and ice cream novelties from selected snack carts.  The event will be open to a limited number of guests (whether staying at a WDW hotel or not).  The cost for three extra hours in the park has been set at $149 per person (plus tax). 

Walt Disney World is also planning to offer a similar event on selected mornings, before the Magic Kingdom opens.  "Early Morning Magic" will give guests the chance to enter Fantasyland up to seventy-five minutes before Magic Kingdom opens to everyone else.  Three rides will be open, and a continental breakfast will be served at Pinocchio's Village Haus.  The price for this experience is $69 for adults, and $49 for children. 

Conventional wisdom would be that demand for these upcharge events will dictate their success or failure.  But Disney has a way of making things like this the new norm.  Disney Parks are more popular than ever.  Disney is not just in the business of making money.  They need to make a profit.  Special ticketed events present Disney with a unique opportunity to turn one operating day into two, by charging a premium to allow guests to experience their parks "after hours".  This way they get a full operating day, followed by a ticketed event, all in the same day. 

The problem with these new off-hours events is they could easily lead the an end to Extra Magic Hours in its current form.  I can't see Disney continuing to offer this "free" perk to resort guests, if there is money being left on the table.  I think the steep price tag is an indication that Disney may replace Extra Magic Hours with this new "event", and offer an attractive discount to resort guests who wish to purchase it.

And Disney's guests will pay for it. Some reluctantly, and some willingly.  At the end of the day, Disney's guests rarely give-up on Disney.  They will complain about the prices, and even make threats not to return.  But then they will magically justify paying for these events because of the promise of smaller crowds, or "free" Mickey ice cream bars. 

I've been to Walt Disney World many times.  I've experienced E-Ride Nights, as well as Extra Magic Hours, and other special-ticket events.  I have no problem paying extra for special experiences at Disney.  But I don't believe these new off-hours events fall into the category of "special experience".  I'm not saying I wouldn't pay anything for these.  But at the current prices, I would have to pass, unless Disney was to really sweeten the deal. 

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