Why isn’t there an Annual Pass Payment Plan for Non-Florida Residents?

This summer, Disney unveiled an annual pass payment plan for Florida residents which allows guests to split up payments over the course of a year.  It basically works like this:  Show proof that you’re a Florida resident by producing either a valid driver’s license or state-issued ID card, then pay for one day’s admission plus one monthly payment in advance. For example, say you’re buying a Premium Pass, which costs $520.81 for Florida residents.  You’ll pay $84.14 plus $36.39 that day and then $36.39 for the next eleven months.  There’s no extra charge for getting the plan and there’s no interest, so it’s a great way to pay for your annual passes, particularly for families who potentially shell out a few thousand a year for APs.

Early reports are that the plan was a success, as many more Floridians than expected took advantage of it. This is great for Disney and for Floridians, but what about non-residents?   When Disney announced this plan on Facebook and on the Official Parks Blog, it became apparent from the comments that most readers were very disappointed that this option didn’t extend to non-Floridians.  In fact, on Disney’s Facebook page, there were nearly 1000 comments on this subject, nearly all asking why non-Floridians don’t also qualify for a payment plan (Plus two guys arguing about Star Wars. Why?).  Some of them took it downright personally.

The only reason I’ve heard for not extending this benefit to non-residents, and this doesn’t come from Disney itself but rather from posters on a Disney message board, is that it poses some difficulties in the event that someone fails to pay.  I find this difficult to believe.  If that were the case, any one of us non-residents could go to Florida, have a ball and run up some bills, default, and be untouchable by creditors. We all know that it doesn’t work that way.

In many ways, extending the payment plan to non-residents is better for Disney.  Annual passes work best for Disney when they aren’t used that much. It’s kind of like gym memberships; if every member went regularly, the place would go out of business. Now granted, Disney potentially earns revenue every time someone comes into the parks, so having guests come multiple times a year is good for Disney, to an extent. But having lived in Florida, in my experience many Floridians regard Disney as a day trip, particularly if they live within driving distance, so they’re less likely to stay in Disney resorts or eat at Disney restaurants or even buy souvenirs . Frankly, if you buy an annual pass and you’re used to seeing Disney this way, maybe you’re not spending much money at all, but you’re still parking on Disney property (for free) and using that pass.  Then that pass makes a lot less sense for Disney.

Conversely, non-residents are almost guaranteed to spend money. In fact, it’s pretty much unavoidable.  We’re certainly not doing Disney as a day trip.  We’re buying souvenirs, trying the restaurants, and staying in the resorts. Plus, give a Dinsey fan an annual pass and what you typically hear is that it will burn a hole in his pocket–he’ll go more because the ticket, one of the biggest expenses of a Disney trip, is already paid for.  But unlike nearby guests, we’re not going so much that we start to put a dent in Disney’s profit. Plus, it’s a given that a small percentage of those out of state guests who  buy annual passes might even fail to get their money’s worth out of it. Things come up, flights get too expensive, trips get cancelled, passes expire.

I suppose it’s possible that Disney feels that by extending this benefit, the company could possibly be giving the wrong signal to shareholders who might view it as a public admission that the economy has hurt Disney World as much as any other travel destination.  Many parks have a similar payment option, but Disney has never been “most parks.”  By not extending this benefit, Disney parks retain the image, at least, that the economy hasn’t touched them.  And maybe they don’t need the money.  Disney World attendance was steady in 2009, a year when Universal attendance was dismal.  Despite reports that attendance was down slightly in the last quarter as compared to last year, spending per room is up.  Still, I’m inclined to think that the fact that Disney continues to give substantial resort discounts indicates that even the Mouse has felt the pinch in the last few years.

I always say that Disney is one of the smartest companies out there and I think this is a brilliant plan.  And while I’m sure they have their reasons for not extending this benefit to non-residents, I can’t imagine what the reasoning is.  What I suspect and hope is that the Florida payment plan is actually being used by Disney as a test to see how it might work for the rest of the country.

Hey, I can dream, right?

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