Disneyland: Going forward

So, it finally came.

The end of the Disneyland Annual Passport program.

It took a pandemic and the closure of theme parks in California for almost 10 months to accomplish what some folks have been saying was in the wind for most of the last five years and more. While I will admit to having mixed feelings as to this decision, I see it as the right thing to do.

Let’s be honest. When the AP program began at Disneyland, it was not something for the general public. You had to be a member of the Magic Kingdom Club. That wasn’t hard as it was something of an employer or group affinity program that offered discounts for Disneyland tickets as well as hotels and even vacation packages. Disney began offering AP’s to MKC members in 1984. There was no difference between an Adult or Child pass in price. And it wasn’t the first time Disney had done good by the MKC. One-day passports were first offered to members too, starting in 1977. Regular guests still bought ticket books back then.

Look back to the summer of 1984. Attendance was down. Markedly down. Because the Summer Olympic Games were in Southern California. The word had gotten out that things in the area were going to be really crowded because of the Olympics. So people didn’t plan trips because of those rumors. They stayed home. And Disney turned to a new demographic to fill the hole. Southern California residents. Locals. And at $69 each, the Disneyland Annual pass was a bargain too good to overlook. It brought those attendance numbers back to where the Accountanteers liked. Going public, the AP program was a good way to help maintain increasing attendance at the Park. Guests paid the whole amount of their annual pass all at once. in 1989, $199 got you entry into Disneyland each one of the 365 days of your pass. But if you didn’t mind being blacked out for some of the year, your could get an AP for all of $99.

The 80’s and 90’s when AP’s at Disneyland took off were an interesting time. Corporate troubles had brought Michael Eisner and Frank Wells aboard. The cost of a 1-day park admission went up from $14 in 1984 to $39 in 1999. But the cost of the Premium AP? Still $199. Starting in 2002, the price went up to $225 and kept going up every year after that, right up to 2020. The biggest jump came in in 2015 when the price for a no-black out days pass went from $699 in 2014 to $1.049 in 2015. That same year the cost of a one-day theme park admission went to $99 for an Adult. At last count in 2020, that same AP? $1449. Disney also encouraged growth in the numbers of AP’s when it offered monthly payment plans; first to Southern California residents and then to all Californians. And keeping the Southern California discounted pass with blackout days helped ensure that offseason days would be busy ones, too.

Something to consider? Disney kept raising the price of an AP and guests kept paying those new increased prices. That’s simple supply and demand. You can’t fault Burbank for that decision every year.

Disney had encouraged a class system among guests through the AP program. The Park went from something special, maybe the once a year or once in a lifetime experience to almost an everyday event. And it wasn’t long before Disneyland became another shopping mall where parents dropped off the kids for the day to reclaim them later.

Disney has for years looked at guests in terms of how much they spend per person per visit. Say you are one of that mythical family of four making the trip of the lifetime from Peoria to make memories during your stay. Disney knows that you will look for the best ways to get the bang for your bucks on the vacation. They offer vacation packages through the Walt Disney Travel Company that include airfares, transfers, hotel room, and theme park passes, too. They also know that you plan to buy souvenirs, food, beverage, and more while on property. So they make it as attractive as possible to spend that disposable income with Disney.

Looking at the Annual Passholders, they spend less per person per visit. Even though they may visit more often, in the end, they spend less. Maybe they settle for the Chicken Nuggets and a Coke instead of a full meal inside the Parks or a Disney hotel? That is if they don’t cross Harbor Blvd to get those Chicken Nuggets and Coke at McDonald’s instead. And while they may occasionally buy a t-shirt or a pin, some AP’s offer a discount if they meet the price point. But with that discount, they often spend less than the more desired mythical family on a visit.

It doesn’t take Sheldon Cooper to add up the math here.

AP’s don’t provide the revenue that non-AP guests do.

Disney has never provided actual numbers of how many Annual Passholders they had. It’s safe to say, they numbered in the millions. So why has Disney kept the program for so long? I suspect a couple of reasons.

Disney grew accustomed to the revenue it got each year from AP’s. While many visited the Parks on a regular weekly or monthly basis, many did not; instead they may visit 5 or 6 days a year. Perhaps on a couple of multi-day visits. Some stayed at hotels, many at local motels or with family and friends. Some made the hours plus trip there and back in the same day. When Disney went to the monthly payment plans, that income grew to be something of a floating revenue stream. And they liked how that income looked; especially to shareholders who were promised double digit growth.

Disneyland was never meant to be somewhere guests would visit all the time. Yes, it was meant from the start to be a shared experience among families and friends.And even though Disney staff encouraged locals to visit for Date Nights or other year round special events, it was always an extra; not the main source of guests.

Disney was among the last to adopt the one-price admission philosophy. Ticket books served purpose in that guests had to plan their visits to make the best use of the various tickets for attractions. Yes, you could always buy more around the Park, but many families planned a visit by what was offered in those books. (Much like today and the Max Pass offering advanced planning of what attractions you can get a pass for.)

Looking over my photos, I believe I haven’t actually visited Disneyland since the summer of 2018. For many years, visits in June and December were something of an annual ritual. A variety of reasons why had prevented me from doing so in 2019. And oddly, 2020 saw me nearby, having lunch on Katella Avenue in Anaheim, on the Saturday before the Parks closed due to COVID-19. I briefly gave thought to a visit that day, but was occupied with other matters. And like many, I hoped that the closure of the Parks would be short and we would be back to normal soon. 10 months and counting later, we all know how naive that belief was. Much to the regret of 390,000 deaths and climbing.

Out of the masses of AP’s (when I had one), I was one of those who didn’t visit every month. I always had a pass that was not blacked out and included parking. My last pass expired in 2018. I think that year I visited the park three or four times for a day or three off and on. As a seasoned traveler, I usually stayed nearby at a good rate for a room. Flew occasionally from the San Francisco Bay Area (Long Beach and Jet Blue were the preferred choice) but drove down the Five as well. All my meals were not on property, but most were. And over the years, a good chunk of disposable income went to Disney items. I have a good collection of Hawaiian shirts from Disney resorts and more. So, it is indeed fair to say that I got value for my money with an Annual Pass.

You don’t need a crystal ball to see that when Disney is given the green light to open the theme parks in California, things will be different. To begin with, there will be limited numbers of guests allowed inside. And there will certainly be social distancing restrictions in place. Masks are a given, as is temperature screening and dining restrictions. The resort hotels won’t be open to full capacity and may even be restricted to guests only. So, continuing the AP program? Yes, it’s probably for the best to let it sunset now. Ensure that all guests can share an equal experience. Let things start small and build as we experience recovery from the pandemic. The more vaccines administered, the less susceptible we all will be.

In short, a day at Disneyland will probably never be like it was pre-COVID. Safety first. It simply has to be that way.

Now… do I think that the AP program won’t return to Disneyland? Well, that’s the big question. Disney may have a better understanding of the concept of brand loyalty than any other company on the face of the planet. Even with all of the challenges that the pandemic has brought, people still want the products Disney has to offer. Disney+ has revolutionized the streaming of content to the home. And once things normalize somewhat, an economic upswing is likely. With disposable income once again, Disney is a place that people will look to for value. The theme parks are a favorite and will continue to be.

Based on keeping quality up. when an AP program returns, I suspect it will offer limited visits for passholders. The era of unlimited visits is likely done. Planning ahead seems to be the way of things for Disney guests. AP’s may offer a certain number of days per year, requiring booking days of entry in advance. Offering the ability to park hop may be a perk as well as discounts as offered before on food and merchandise around the resorts. Parking? As always, an issue but I could see a parking add on being available. Hopefully, when the AP does return, it will offer a balance of guest rewards and corporate benefit. And at a price more reasonable.

I don’t think we have seen the last of the Disneyland Annual Pass. Or the last of Disneyland, for that matter. Yet, I do think we can all expect a phased and safe reopening of the Parks in 2021. Until then, wear those masks, practice social distancing and get the COVID vaccine, when available.

Frankly, I want to see you all when Disneyland celebrates the 75th anniversary in 2030.