I want to take some time to talk about some business principles and how those principles can relate to operations at Walt Disney World. Those two principles are the scarcity principle and under-served demand. They are two topics which sound like the same thing but actually quite different. The scarcity principle is when there is a limited supply of an item and there is high demand for that item resulting in a supply-demand mismatch. Under-served demand is when there could be more supply added to the supply-demand curve but is not for various reasons. How does this relate to Walt Disney World?
Last night was the first night of Mickey’s Not So Scary Halloween Party. My twitter account was getting reports of items that we selling out after the first day. This is a case of under-served demand. A classic case of scarcity principle is shown in the new Dis Dining Agent. This “service” scoops up open reservation slots and resells them to customers of the “service.” Disney can not add more reservation slots but they can order more merchandise.