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Saturday, August 27, 2011

Where are the Discounts?

A lot of people have complained that the discounts we have come to expect are no longer being offered.  It's not really shocking when we look at the facts.  Bob Iger came right out and said that Disney was trying to ween people off of discounts.  This makes us question if the timing of decision.  The economy is still struggling and fewer people can afford to go on vacation never mind an expensive Disney World vacation.

To figure out why Disney is not back peddling on their decision you need to look at their bottom line.  Right now that's on the up tick.  Since Disney has been making more money off of the parks why would they offer additional discounts?

Right now Disney is making more money on fewer people.  There is no reason to offer a discount to get people into the parks.  If Disney did that they would be making the same gross income but would have to pay more in expenses because they would have to ensure they had enough cast members to handle the larger crowds. 

When can we expect to see some discounts like we saw in the past?  For the discounts to come back one, and only one, thing needs to happen.  Disney's income needs to drop.  If Disney sees their income at the parks decrease then we will see discounts offered.  For the income to drop people need to stop going to Disney World.  

If the economy stays awful we might see the day when park attendance drops to the point where Disney needs to offer discounts again.  In the meantime do not hold your breath. Instead keep an eye on Disney's numbers.  When you see them drop you can get excited.

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