Credit: DisneyA trip to the Walt Disney World Resort is expensive, but why? What makes staying at a Disney World hotel more expensive than other luxury hotels nationwide?
Sure, a Disney World hotel has access to, well, Disney World. There is an exclusivity to staying on property that comes with some benefits.
However, since the end of the Pandemic, the exclusivity of staying on property at the Walt Disney World Resort has waned. Disney has removed many benefits that made paying the exorbitant price to keep on property worth it, including the loss of Disney’s Magical Express, free Magic Bands, and extra Magic Hours.
So, if the cost is starting to outweigh the benefits of a Disney World hotel, why are so many people lining up to do it? Well, a new video breaks down just how Disney is able to convince guests to pay outrage sums for what they call the “fake luxury” of every Disney hotel.
Review time broke down why every Disney fan needs to shell out thousands of dollars a night for a Disney hotel room and how Disney tricks you into believing you’re getting something you’re not.
So, let’s examine how Disney tricks its fans into paying for “fake luxury” through “Disney cosplay.”
Related: Disney’s Magical Express was Taken Away Out of ‘Stinginess’
The History
When Walt Disney was nearing completion of his Anaheim project, there was no Disneyland Resort; there was just a park. Walt didn’t have the money to build anything besides his theme park.
Walt turned to oil tycoon Jack Wrather to build the Disneyland Hotel after other major hotels turned him down. A few months after the completion of Disneyland, the Disneyland Hotel opened, and it was a hit.
Like with most things at Disneyland, Walt learned what changes needed to be made when he went to work on his Central Florida project. Sadly, Walt died before the completion of the Magic Kingdom.
Related: Priced Out of Disney World, Guests Are Fleeing to a New Resort
With the completion of the Magic Kingdom, Disney opened the Polynesian Village Resort and the Contemporary Resort. Both were massive hits with guests.
Years later, Disney would open the ultimate luxury hotel in Disney’s Grand Floridian Resort. The hotel was based on the classic Hotel Del Coronado in San Diego.
Disney owned and operated all three hotels outside of the Magic Kingdom. However, with the opening of EPCOT, Disney needed to expand its hotel offerings to accommodate the new theme park.
This brings us to the Michael Eisner era as Disney CEO. Eisner came up with the concept of the “Disney Bubble.” Once you arrived on the property, you never had to leave. The Walt Disney World Resort had everything guests needed: hotel, shopping, theme parks, and dining.
More importantly than giving guests what they wanted, the “Disney Bubble” kept guests on the property spending their money. Disney, get every last dollar you would spend on your vacation.
During Eisner’s first ten years, Disney World went from four hotels to 13, including the addition of the Beach Club, Yacht Club, and Boardwalk Hotel around EPCOT. When Eisner left Disney, the Walt Disney World Resort had 19 hotels.
Theme parks worldwide would copy this method. Everyone wants to ensure that guests spend every dollar on their property.
Comparison
Review Time I specifically compared the Hotel Del Coronado in San Diego to Disney’s Grand Floridian Resort. Since the Grand Floridian is based on a Southern California hotel, it seemed like an apt comparison.
A standard room at the Hotel Del Coronado costs between $300-$500 a night, depending on the season. A standard room is precisely what you’re thinking: two beds, a bathroom, and a limited ocean view.
For the same room at Disney’s Grand Floridian Resort, guests will pay $700-$1,000 a night, depending on the season. That is nearly double what you will pay to stay on the beach in San Diego.
Review Time said:
Disney gives guests the glamour of a historical, highly acclaimed, and architecturally significant resort without actually being a historical, highly acclaimed, and architecturally significant resort. These glamorous facades are just elaborate costumes masking a well-established framework.
Disney fans will argue that staying at the Grand Floridian Resort gives you access to the Magic Kingdom via Disney’s monorail. However, the Hotel Del Coronado gives you access to a private beach on the Pacific Ocean.
Like most things in this world, the price of a hotel room is a matter of opinion. However, Review Time describes what Disney gives its guests as “fake luxury” designed for the masses.
Review Time continued:
This clever design results in an experience that feels luxurious and unique on the surface, but is fundamentally geared for mass accommodations. We call this artificial opulence, and it works.
They are not necessarily wrong. A Disney Resort Hotel is designed to move as many people in and out quickly as possible. It’s the fundamental design of Disney’s business.
If guests are willing to pay for it, Disney will continue to give it to them. But is there a breaking point for guests?
The Expense of Disney World Hotels
So, how did Disney World Resort hotels get so expensive? Two words: location and convenience.
Disney learned from its mistakes at the Disneyland Hotel and kept ownership of its resort hotels. This allowed the company to charge whatever it wanted for the privilege of staying on their property.
Disney offers guests nearly everything they need on a vacation: theme parks, a pool, restaurants, and a chance to relax and enjoy themselves. For that, guests are willing to pay a premium.
Review Time said:
Disney’s Resorts may not be traditional luxury, but the carefully craft experiences and benefits they provide for their guests still hold significant value for many. As long as people find value in the resorts, the prices aren’t going anywhere but up.
And it’s the cost that keeps going up every year. That brings us to the final piece of this puzzle: the Disney Vacation Club.
Disney’s Vacation Club
The Disney Vacation Club is the final puzzle of Disney World’s “fake luxury.” The cyclical nature of the DVC keeps costs rising for average Disney World guests and continues to put money in Disney’s pocket even if no one is showing up at the parks.
The DVC was initially created to get people into the parks during slow times. The fees Disney charges keep a steady stream of revenue coming into The Walt Disney Company even when people are not heading to the parks.
However, this also created increased prices for people who were not DVC members through a sneaky move that Disney used to entice more people into buying DVC memberships.
By increasing hotel prices, Disney can sell the idea of saving money over time by purchasing a Disney Vacation Club membership. By getting more Disney Vacation Club members, Disney can collect more fees and build more DVC hotels.
It becomes a vicious circle that repeats itself, forcing Disney guests to pay for a Disney Resort Hotel stay or pony up a massive amount of cash to become a DVC member.
In doing so, Disney maintains a monopoly over the best access to its parks and experiences, with very few outsiders allowed in the bubble.
The Conclusion
Disney’s cycle relies on guests paying massive sums to stay on Disney property. This moneymaker has been driving Disney’s profits for decades.
However, this cycle is built entirely around guests continuing to come. But what happens if people stop showing up?
Disney CEO Bob Iger admitted that Disney has seen a dip in attendance due to a post-COVID dip. But with fewer new rides and attractions coming in the next couple of years, what if this dip is permanent or lasts for years?
Related: There’s a Laundry List of Reasons Disney World is Empty this Summer
This would result in Disney cutting costs to ensure the stockholders still receive their profits. If Disney cuts costs, it will result in lower quality at its parks, something guests have been complaining about over the last year.
To bring the quality back up, Disney will have to infuse massive amounts of cash into its parks; see this year’s D23 Expo. As a result, guests will have to pay higher prices for the Disney Park experience.
And the cycle continues.
Either way, Disney will keep its most diehard fans returning yearly and paying more and more for the experience. In the end, it makes perfect sense for them.
Do you think Disney World Resort Hotels represent ‘fake luxury’?