A trip to Walt Disney World Resort is expensive, but why? Why are Disney World hotels more expensive than other luxury hotels across the country?
Sure, Disney World hotels offer access to Disney World, and staying on-site comes with some perks.
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But since the pandemic ended, staying on Walt Disney World Resort property has become less exclusive, as Disney has removed many of the perks that made paying the exorbitant fees to stay on property worth it, including the elimination of Disney’s Magical Express, free Magic Bands and extra Magic Hours.
So if the costs of Disney World hotels are starting to outweigh the benefits, why are so many people lining up? A new video details how Disney manages to convince guests to pay exorbitant amounts for what they call the “false luxury” of Disney hotels.
ReviewTime analyzed why Disney fans should shell out thousands of dollars a night for Disney hotel rooms, and how Disney tricks people into thinking they’re getting something they’re not actually getting.
So let’s examine how Disney is tricking fans into paying for “fake luxury goods” through “Disney Cosplay.”
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history
When Walt Disney neared completion of his Anaheim project, there was no Disneyland Resort, only the park. Walt didn’t have the funds to build anything else besides the theme park.
After being turned down by other major hoteliers, Walt asked oil tycoon Jack Lasser to build the Disneyland Hotel. A few months after Disneyland was completed, the Disneyland Hotel opened and was a huge hit.
Like most things at Disneyland, Walt learned what changes needed to be made when he arrived on the Central Florida Project. Unfortunately, Walt passed away before the Magic Kingdom was completed.
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With the completion of the Magic Kingdom, Disney opened the Polynesian Village Resort and the Contemporary Resort, both of which were hugely popular with guests.
A few years later, Disney opened the ultimate luxury hotel at Disney’s Grand Floridian Resort, modeled after the classic Hotel del Coronado in San Diego.
Disney owned and operated all three hotels except for Magic Kingdom, but with the opening of Epcot, Disney needed to expand its hotel offerings to accommodate the new theme park.
So came the days of Michael Eisner as CEO of Disney. Eisner came up with the concept of the “Disney Bubble.” Once you were on property, you never had to leave. Walt Disney World Resort had everything a guest needed: hotels, shopping, theme parks, restaurants.
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More important than giving guests what they want is that the “Disney Bubble” keeps them spending money on property. Disney, take every last dollar you spend on your vacation.
During Eisner’s first decade, Disney World grew from four hotels to thirteen, including the Beach Club, the Yacht Club, and the Boardwalk Hotel around Epcot. When Eisner left Disney, there were nineteen hotels at Walt Disney World Resort.
Theme parks around the world will follow suit, wanting their guests to spend every dollar on their property.
Credit: Disney
Comparison
Review Time I specifically compared the Hotel Del Coronado in San Diego to Disney’s Grand Floridian Resort, and since the Grand Floridian is based on a Southern California hotel, it seemed like an apt comparison.
Standard rooms at Hotel del Coronado cost between $300 and $500 a night, depending on the season. A standard room is exactly what you’d imagine it to be: two beds, a bathroom, and a limited ocean view.
The same room at Disney’s Grand Floridian Resort would cost anywhere from $700 to $1,000 a night, depending on the season — nearly double the price of a stay on the beach in San Diego.
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Review Time said:
Disney gives its guests the glamour of a historic, highly acclaimed and architecturally significant resort when in fact it is not a historic, highly acclaimed and architecturally significant resort. These glamorous exteriors are merely elaborate costumes to hide the established framework.
Disney fans will argue that staying at the Grand Floridian Resort means you can ride Disney’s monorail to the Magic Kingdom, but the Hotel del Coronado also offers 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 divided opinion, but Review Time describes what Disney is offering its guests as “fake luxury” designed for the masses.
Review time continued:
This clever design creates a ostensibly luxurious and unique experience, but fundamentally serves as accommodation for the masses. We call it artificial luxury, and it works.
They’re not necessarily wrong: Disney resort hotels are designed to get as many people in and out as quickly as possible. That’s the fundamental design of Disney’s business.
Disney will continue to offer it if guests are willing to pay the fee, but are there limits for guests?
Disney World Hotel Costs
So why are Disney World Resort hotels so expensive? The answer is location and convenience.
Disney learned from its mistakes with the Disneyland Hotel and retained ownership of the resort hotels, which allowed them to charge whatever they wanted for the privilege of staying on their property.
Disney gives its guests just about everything they want on vacation: theme parks, pools, restaurants, and opportunities to relax and have fun, and guests are happy to pay a premium price for it.
Credit: Disney
Review Time said:
Disney resorts may not be traditional luxury, but the carefully crafted experiences and perks they offer guests still hold great value for many people. As long as people see value in the resorts, prices will only continue to rise.
And the costs continue to rise every year, which brings us to the final piece of the puzzle: Disney Vacation Club.
Disney Vacation Club
Disney Vacation Club is the final puzzle of Disney World’s “fake luxury.” The cyclical nature of DVC keeps costs rising for the average Disney World guest, putting money in Disney’s pockets even if no one comes to the parks.
DVC was originally created to bring people to the parks during off-season periods, and the fees charged by Disney ensure that The Walt Disney Company continues to have a steady stream of revenue even when people aren’t going to the parks.
Credit: Disney Vacation Club
But this was a sneaky ploy used by Disney to get more people to buy DVC memberships, which also increased prices for people who aren’t DVC members.
By raising hotel fees, Disney is able to sell the idea that purchasing a Disney Vacation Club membership will save you money in the long run. By increasing Disney Vacation Club memberships, Disney can collect more fees and build more DVC hotels.
This creates a vicious cycle, with Disney guests either having to pay to stay at Disney resort hotels or shelling out large amounts of cash to become DVC members.
In doing so, Disney monopolizes the best access to its parks and experiences, largely excluding outsiders from being allowed inside its bubble.
Credit: Disney Vacation Club
Conclusion
The Disney cycle relies on guests paying huge amounts of money to stay on Disney property, and this money-making has driven Disney’s profits for decades.
But this cycle is built on the assumption that guests will keep coming – but what happens when people stop coming?
Disney CEO Bob Iger acknowledged that Disney attendance will decline due to a post-COVID-19 downturn, but what if the decline is permanent or lasts for years to come as fewer new rides and attractions are introduced in the coming years?
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That will force Disney to cut costs so shareholders can make money — and as Disney cuts costs, it will mean lower quality at its theme parks, something guests have complained about over the past year.
Disney will need to pump huge amounts of money into their parks to improve quality again — just look at this year’s D23 Expo — and as a result, guests will have to pay more for their Disney Parks experience.
And the cycle continues.
Either way, Disney will be bringing die-hard fans back year after year, paying more and more for the experience — and at the end of the day, it makes perfect sense to them.
Do you think Disney World Resort hotels represent “false luxury”?
