Bob Chapek Interview: "We have much more demand than there is supply"

Jeff:

It's crazy what 90 minutes in the middle of a work day does for my spirit

Oof. I get 22 minutes unless I have a student coming in for help. Then I get about 6.

That's rough. I don't get that time often, because I work with folks across four time zones, but you can bet I enjoy it when I can.

OhioStater, you’re on a coaster site though, which makes you one of those coaster weirdos that is not representative of a majority of the public. I didn’t include my coaster friends, because I would say a fair amount of them are like you (who rotate to Disney every few years as part of their park habit) I was talking about the GP I know.

Something no one has mentioned directly: I think that there's a certain appeal to the prices going up. Talk to any of the Disney faithful and they're more than happy to volunteer what they've spent, even proud of it. It seems to almost be a bragging contest. Demand for Ferrari, Gucci, etc, has not dried up despite the price increases, and neither will Disney. That's what Disney has become, a luxury product that just so happens to be a Theme Park.

I'm guilty of it myself. I've mentioned to co-workers how I've gone to Disneyland while overnighting in Southern CA and, if asked, will not balk at telling them the total cost of the one day ticket, rental car, parking, and in park spending for a 7 hour visit. Why? Because it was worth every penny. It's not something I'll do every time I'm there, but an opportunity to meet up with a Disney Nerd friend who was there and was able to show me a great time.

Not sure where I've been but my daughter told me the other day that Bob's nickname amongst the Disney faithful is Bob "Paycheck". Cute.

Tommy is on to something and it is a conversation that isn't comfortable for everyone. Disney has become, more and more, a luxury to many (and certainly a luxury if you want to do it the most comfortable way). I did the Disneyland experience at the beginning of the summer and basically told my family it was the one time we'd do it all together so I wasn't going to be frugal. Now, I did not pull the trigger on a Disney resort but we stayed within walking distance and bought the Genie+ options to take advantage of the time. I don't know what the final tally was, but I'm sure my wife does. It was an easy decision for me. It was also a decision that I absolutely understand isn't available to a LOT of Disney fans out there and is becoming increasingly difficult to access.

Is that right or wrong? It isn't a morale question though many people would like it to be. Health care? That is an easier sell for me as a right than access to a theme park. A house is, to many, part of the American Dream...yet how many people in the nation will never own one? A lot. People want Disney to be for everyone because Disney is as American as baseball and apple pie. But, they are a business...and a successful one at that. Capitalism is also very American...and it is on full display at Disney.

All valid points, but theme parks aside, the company is not making less art, or lower quality art, and I'm sorry, but with Disney+, that's all more accessible than it's ever been, with more of it. So as an entertainment company, I'd argue they're a bright spot, for most anyone who wants to spend less than a single burrito every month.

Is Disney really a luxury item if demand is still far outpacing supply?

I'd wager that Disney+ is so cheap to hook people on their intellectual property and pique their interest in visiting the parks. That is their advantage over the competition. Nobody is planning a vacation to ride a Bugs Bunny or Justice League ride. What is the last attraction Disney opened that wasn't tied to some of their intellectual property?

Avatar, but now they own that too.

I would not say it is a luxury brand. Instead, I'd say it is an aspirational one--at least when it comes to Parks & Resorts (and that includes DCL). For large swaths of These United States (tm), a trip to Disney is a childhood right of passage. Being able to give one's children that is often a marker of status.

And, I think that's where a lot of the agita is coming from. As the "middle class" bifurcates into a (smaller) group of haves and a (larger) group of have-nots, a Disney trip is one way we can tell ourselves that we are still in the "haves" group, even if we have to scrimp and save to make it happen. The term I've seen used for this is "aspirational consumption" and it makes a lot of sense.

That's not how the middle class is splitting though. More people are graduating up than down. I'm not saying that doesn't have consequences in terms of a wealth and earnings gap, but the popular narrative is that the middle class is shrinking and everyone is getting poorer. That's not the case. If anything the way it's splitting might help explain why price pressure isn't reducing demand.

Brian Noble:

a trip to Disney is a childhood right of passage

I know that's a typo, but it's totally appropriate. It's astounding how many people voice some sort of entitlement around a Disney vacation (rotisserie Walt, etc.).
There's also some joke about Flight of Passage in here, but I can't find it.

I’m sure it’s been discussed around here before…..but I’m guessing many , many people either take out vacation loans, save over a number of years or just budget for a Disney vacation. You don’t have to be privileged to do these things. A Disney vacation is certainly obtainable for most average income people.

It's certainly obtainable if you think the value is there. But you're paying quite a bit more for the pixie dust than you would going to Cedar Point, a national park, Washington DC, or a tourist trap like Branson or Pigeon Forge. I can understand why people feel they're getting priced out.

ApolloAndy:

I know that's a typo

Sigh. Spelling: I do not do it.

ApolloAndy:

But you're paying quite a bit more for the pixie dust than you would going to Cedar Point

Unless you're Jeff ordering fresh cut fries at Happy Friar vs Epcot

Andy,

You are right about the pricing, with the exception of maybe Pigeon Forge. Dollywood is $79. Anakeesta is $35 but doesn't include the coaster or ziplining. Heck, even the aquarium is $40. Each attraction is cheaper than Disney but when you do multiple things in a day or figure the cost per hour Disney wins. (I won't even mention how much I spend at the Direct Tools in the outlet mall)

When I go to Dollywood I have enough to do there to stay the whole day.

But Disney is still cheaper per day if you are there for a long stay. That's my point.

And on the flip side of that, even when I was a tourist, it was hard to occupy an entire day with just one park in the Orlando Disney or Universal offerings.

Not when you get a Gold Pass and do 2 days in the park in the spring and two days in the park at Christmas. Just sayin, pretty sure this is still the pass I get the most bang for my buck (or maybe it’s second behind my CF PP, depends on the year.)