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Scarcity Principle vs. Under-served Demand – A Disney Tale

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.

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Disney World or Disney Cruise Line Which is Right For Your Vacation?

Vacationers to Orlando, FL have a Disney choice to make when planning their vacation: do I take a cruise on the Disney Cruise Line or do I take a trip to Walt Disney World.  Both locations have their advantages.  In this article, I’ll take a look at these advantages but in the end, it’s up to you to decide which vacation is best for you.

For guests travelling to the Orlando area, both destinations are easily accessible by Disney’s Magical Express.  The primary difference is the Magical Express is free for guests to-and-from Walt Disney World.  This service, however, costs $35 one-way or $70 rounds for guests taking the shuttle to-and-from Port Canaveral.

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USA! USA! USA! A Family Road Trip to Ottawa

Since it’s the summer, I’m on the road for summer vacation more and more.  This is going to be one of those “non-Disney” posts.  This past weekend, my family and I spent the weekend in Ottawa, Ontario supporting our U.S. Women’s Soccer Team as they played China in the quarterfinals of the Women’s World Cup.

One of things that is nice about Ottawa, for my family, is Ottawa is only a five-hour drive from our family’s house in New York.  The game, on Friday, did not start until 7:30 pm so this allowed us to wake up at our usual time before hitting the road for Ottawa.  Also, in the summer, it is a very easy drive as we could stay on highways on the entire time (an important thing when travelling with children).  There are other “faster” to get there but one way involves cutting up near Adirondack State Park and, as a result, does not have many good places to stop.  The other way involves going up to Plattsburgh and across the top of New York State.  Since that way took us through the area where the ongoing manhunt for an escaped prisoner, we decided to staying on the highways.

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Dynamic Pricing and Walt Disney World

In the past couple days, there are have been a number of people who have received surveys asking about “dynamic pricing” and Walt Disney World.   This is not dynamic pricing in the truest sense of the word.  Dynamic pricing is when the market, to a point, dictates what the price of a ticket for an event is going to be.  Disney is investigating if it wants to maintain its current model of pricing or move to a more dynamic model of pricing where certain, more popular, dates will cost more than less popular dates.

Let me say that some business, mainly baseball teams, have been doing this for years.  It’s done in an attempt to get more people to come to the “less popular” games while making more of a profit of the games that  people are coming anyway.  Usually, there is a price floor which the tickets if bought from the team do not fall below.  People can still get tickets, below market value, if they purchase (at their own risk) from a third-party vendor.

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Disney Movies That Help You Get Excited For Your Disney Vacation

Disney has released a lot of movies and lots of people watch Disney movies to help them get excited and help them count down to their Disney vacation.  With Fall Free Dining released today, it seems like a good idea to go through some of the movies which, I think, should be part of every Disney vacation countdown.

I decided to break my countdown movies into two groups (Classic and Modern).  There are four movies in each groups and they all animated.  If this list was for Disneyland not Disney World, it would include Mary Poppins, in the classic category, and Saving Mr. Banks in the modern category.

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