Posted
Many mom-and-pop hoteliers in the Four Corners and Kissimmee areas are wary of the massive "value-priced" resort project announced March 3 by Walt Disney World. Some even predict at least a few lodging operators could be driven out of business by the project, which Disney says will include 4,000 to 5,000 competitively priced hotel and time share units near the west side of Disney property.
Read more from Orlando Business Journal via MSNBC.
If you were just going to do Disney World or almost entirely only Disney World, there would be little reason to rent a car either, so that's an even bigger savings. Hmmm...think I'll have to give that place a try next time.
I've no doubt that other motels are worried. Any time you add 4000-5000 rooms there is more market saturation. My point is that those hotels charging less (like they do already)will probably survive on the same strategy.
I understand and respect that many of you have high class taste. On the flip side...there are a ton of travelers out there...many who could afford better...who see a room as nothing more than a place to sleep. This type of traveler does not comprehend spending 2-5 times as much as he has to in order to get crappy bus service and overpriced fair food.
The real question is how many of these rooms will be occupied by first-timers versus veterans...? A lot of Disney veterans have figured out how to maximize their experience and dollar. Typically this is not by using a Disney "value" resort. For "value" it is done much better off property. If you talk about Monorail properties, etc...the story changes. But this story is not about building high end Disney properties with first class service.
Anyhow...it is not the low end chains that need to worry. It is the $100/night establishment.
I love any new competition. It gives me another bargaining chip when negotiating weekly rates.
Anyhow...it is not the low end chains that need to worry. It is the $100/night establishment.
You're dead on with that comment! :)
I still maintain that if a property is selling it's rooms for $50* that they're cutting corners somewhere (or a very old property) and it scares me to think of the ways you would cut costs at a hotel. :)
*note: that means $50 across the board, not the occasional Priceline or extended stay visitor or other 'heads-in'beds' techniques.
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