Sentinel Exclusive: Disney's MyMagic+ rollout delayed

[mickclub1955]

Sentinel Exclusive: Disney's MyMagic+ rollout delayed


By Jason Garcia, Orlando Sentinel
6:25 pm, November 16, 2013

Walt Disney World's billion-dollar plan to outfit theme-park visitors with wireless rubber bracelets and get them planning more of their trips in advance has fallen behind schedule.

At a minimum, it will likely be several more months before all of the giant resort's customers can use "MyMagic+," which includes a new reservation system allowing visitors to book ride times weeks before their vacations and microchip-embedded "MagicBands" that act as all-in-one park tickets, room keys and credit cards.

Senior Walt Disney Co. executives once said they hoped to have MyMagic+ "largely" introduced by the end of the company's 2013 fiscal year, which concluded in September. But the project remains in testing and mostly limited to guests staying in Disney-owned hotels.

Disney would not provide any updated timetable last week. In a written statement, the chairman of the company's global theme-park division said he was pleased with the progress.

"From the outset, our MyMagic+ development has been focused on enhancing the experience our guests have with us. Our roll-out schedule is designed to be flexible so that we can make adjustments based on our testing and guest feedback," Walt Disney Parks and Resorts Chairman Tom Staggs said in the statement. "We're happy with the progress we are making, and MyMagic+ is now available to all our Walt Disney World hotel guests."

Staggs added that Disney has been making "modifications" based on the feedback it is receiving from guests during testing. "Once we're satisfied with those adjustments, we will continue to broaden the availability to our other theme-park guests."

MyMagic+ is critical for Disney, which has spent more on the project than it did in building the hugely successful Cars Land attraction at Disneyland in Anaheim, Calif. Executives have said they think the project will ultimately get travelers to make more trips to Disney World and spend more time and money at the resort when they visit.

Some analysts had expected the project to begin contributing to profit growth for Disney in 2014, but that now appears unlikely to happen until at least 2015.

Although Disney didn't announce MyMagic+ until January, the project has been in development for more than five years. Disney has been incurring significant costs tied to the project for at least two years, according to regulatory filings.

One month after announcing MyMagic+, Walt Disney Co. Chairman and Chief Executive Officer Bob Iger said it would be rolled out "over the next several months." Chief Financial Officer Jay Rasulo expanded on Iger's comments in May, telling analysts at a New York conference that "by the end of this fiscal year, you're going to feel like it is rolled out," though he said Disney would continue to add elements over time.

But they began to push that target back over the summer. Iger told analysts in August the project was designed for "a probable full rollout in the early part of fiscal 2014." And they have since stopped offering any specific time frames.

During Disney's year-end-earnings call earlier this month, Rasulo said MyMagic+ was "still very much in the early days of rollout."

Disney would not discuss the delay in any detail. But in discussions with analysts, executives have characterized the project as exceedingly complex and repeatedly said they intended to make sure all kinks were ironed out before beginning a wide launch.

"We are walking before we run, so that when you come down and use the service, you are going to feel really good about how it works and not experience glitches, which is our business and not the guest's business," Rasulo said in September.

In addition to taking longer than expected, some analysts suspect the price tag for MyMagic+ has climbed. Doug Mitchelson, a media-industry equities analyst with Deutsche Bank, said he initially projected spending on the project at about $800 million, but "clearly they would have to be north of $1 billion at this point in time."

Still, Mitchelson said he remains optimistic that MyMagic+ ultimately will drive the double-digit returns that Disney management has predicted. And he said Disney is wise to wait until management is "absolutely sure" the systems will work as promised.

"This is obviously one of those projects that you can't afford to get wrong, not even once. Disney's brand is so crucial — they really have one good shot at introducing this to the marketplace," Mitchelson said.

"This is a project of relatively historic undertaking," he added. "It's never been done."

MyMagic+ is the capstone of about $6 billion in capital spending that Disney has plowed into its domestic parks-and-resorts business during the past half-decade or so, a construction spree that included two new cruise ships; a rebuilt Disney California Adventure theme park; a Hawaiian hotel; and the New Fantasyland expansion and Art of Animation hotel at Disney World.

Disney once said it expected those projects would cumulatively be more profitable during its 2014 fiscal year than they were in 2013. But during its year-end-earnings call, the company changed that forecast, saying the "growth initiatives" would generate about $300 million in expenses during the current year and "more or less the same amount" in revenue.

Asked what had changed, Rasulo cited MyMagic+ costs, noting that the information-technology infrastructure Disney World has installed as part of the project depreciates more quickly than conventional attractions.

Rasulo has also said that some of Disney's other big investments — primarily the California Adventure makeover, which culminated in the 2012 opening of Cars Land — turned profitable faster than the company originally expected.

Although some of Disney's most devoted fans have been discussing and speculating about MyMagic+ for years in online forums, the company has managed to keep expectations muted among its mainstream customers, said Kevin Yee, an author who has written about Disney theme parks. That helps ease pressure to get the project done quickly.

Among those who have followed the project closely, Yee described the collective feeling as one of "trepidation." Some fans have been especially vocal about fears that MyMagic+ will sap the spontaneity from their visits by forcing more planning — fears that Yee said won't truly be addressed until the project is totally launched and being used by all guests.

"There are so many variables that the actual implementation could be really positive or it could be really negative," he said.

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[DizneyFreak2002]

Gee, who didn't see this happening? Was a mess when announced, was a mess before testing, continues to be a mess during testing, and will stay a mess for the foreseeable future... Disney is really going to be hard pressed to earn any of this money back from this program... Paid FP, here it comes...

[Mrs Bus Driver]

I for one wanted this to work, liked the idea of ordering lunch and paying for it, while waiting in line. What a great idea and time saver. I don't mind making dinner reservations even 180 days out. Like planning my evenings around dinner and a show. But as I try to plan a trip for the end of January, I am having real difficulty with the idea of getting my fp's 60 days out. DD who likes to catch the first bus to come by the bus stop hated it when I tried to explain it.Then the limit on the number of headliners and the ridiculous offerings for second tier rides. No way do I want to book a ride with a 5 minute wait in the off season. Weather and plans change and who wants to be stuck with what was scheduled 60 days ago. In another thread someone suggested that we should be allowed to book our fp's when we enter the park, heck they can even keep the 2 hour booking window, that would save people from having to run all over the park for fp's. You could even book your next fp while waiting in line. Many aspects of this program can still be useful but they need to do some serious rethinking about fp's. I am hoping now that they drop the 60 day fp planning before my upcoming trip and I have one question, are heads going to roll over this?

[Mrs Bus Driver]

Just one more thought if they want me to spend more time shopping then put things in the store that are unique to that store or park. Also better quality and lower prices. I won't spend $22+ for a tee-shirt that I can get at Wal-mart for $5. I own 2 hats that can be worn just about anywhere but both are Disney hats and I love them got them years ago and still like to wear them on trips. But on my last few trips I couldn't find anything worth while for the prices they were asking. From what I saw most people weren't buying anything either. Good customer service is giving the customer what they want and then charging them for it. Making every customer feel special so then don't mind parting with their hard earned money. I don't see why this is such a difficult concept for the Big-wigs at Disney to get, they used to understand it. Sorry about the rant but wanted to get a few things off my chest.

[DizneyFreak2002]

are heads going to roll over this?

Yes, but not the ones that should... Let's look at the time frame of when Disney expects to start seeing dividends paid off for this program... 2015/2016... Just in time for Iger to walk out the door as he already announced he will leave as CEO around that time... Staggs and Rasulo may join him out the door too, but not because of this mess (providing the Board does not put Rasulo in as CEO, and if they do, kiss The Disney Company goodbye)... However, George Kalogridishas now been put in charge of FP+, NextGen, MM+ (or as some in the online community are beginning to call it, My Tragic +)... So, when this fails on the larger stage, George may be "spending more time with his family"...

[Hammer]

While I have issues with some things in regards to Fast Pass +, I do like some components of this program. I like the bands. It made things very convenient when we were there on vacation in October, and I know from reading these boards many others liked this aspect as well. No problems charging, and after the they fixed our Annual Passes, that was great as well. When we had issues entering the park, it was due to the the finger scan. That has been an issue for years, long before this program was ever devised, so I can't blame this program for it.

I just don't want the things that are good to be taken away with the things that aren't. As the saying goes, don't throw the baby out with the bath water!

[badkitty]

I also liked the convenience of having the bands. Swipe and go. No problem. I even liked having the fastpasses on the band. Again, swipe and go. Cool.

With that said, I still don't want to micro-manage my trip 60 days in advance. The problem as I see it, is selecting and/or changing fastpasses once in the park. As it turned out, my AP wasn't able to be linked to MDE so I had to select my FPs "day of" anyway. The lines weren't too long for the kiosks (yet) but it took a long time for people to select their fastpasses. Many guests needed help understanding the application and then there was always a group debate on where and when they wanted the FPs. That took the most time. (Once this is rolled out completely, I think they will need a lot more kiosks.) I knew what I wanted so I was done quickly and the CM said I could make changes through the phone app. Problem was, the app had a "glitch" (according to the CM it was the system and not my phone) and didn't work most of the time.

[Gregandmel]

So do you think that the majority of the issue is mainly the FP+ ? I like the idea of the Magic Bands where all of your information is stored in one place which allows room access, park access, in-store charging, etc... but seems like it's the Fast Pass + that is really causing the headaches.

[Crow]

Just one more thought if they want me to spend more time shopping then put things in the store that are unique to that store or park. Also better quality and lower prices. I won't spend $22+ for a tee-shirt that I can get at Wal-mart for $5. I own 2 hats that can be worn just about anywhere but both are Disney hats and I love them got them years ago and still like to wear them on trips. But on my last few trips I couldn't find anything worth while for the prices they were asking. From what I saw most people weren't buying anything either. Good customer service is giving the customer what they want and then charging them for it. Making every customer feel special so then don't mind parting with their hard earned money. I don't see why this is such a difficult concept for the Big-wigs at Disney to get, they used to understand it. Sorry about the rant but wanted to get a few things off my chest.

[lindique]

Just one more thought if they want me to spend more time shopping then put things in the store that are unique to that store or park. Also better quality and lower prices. I won't spend $22+ for a tee-shirt that I can get at Wal-mart for $5.

I just got back from Disneyland, and I really wanted to buy a t-shirt, since I mostly go to Disney World. $22?? I would have been happy if they were "only" $22! And most of them were so thin, that they were practically see-through. I came home without any souvenirs at all - what I saw wasn't worth it.

[Terra]

Yeah here at DW the adult ones are near and over $30 for t-shirts. The children's ones are $25ish. We go Highway 192 to all the gift shops and get them for $8.00 or so! I just my boy's 2013 shirts this weekend. They were 2 for $14!

I DO like and want a band as an AP. I think they could still do that. Use the band as the ticket and tie your card to it. I would like to pay by using the band. Everything in one place! Easy! You could use them still as room keys.
And they could ultimately work it to work as the "old fast pass" but paperless. You could go to a FP kiosk and swipe your band and get it, though it would have to flash a return time or something.

But this booking way out thing is ludicrous.

[Kenny1113]

So do you think that the majority of the issue is mainly the FP+ ? I like the idea of the Magic Bands where all of your information is stored in one place which allows room access, park access, in-store charging, etc... but seems like it's the Fast Pass + that is really causing the headaches.

This was true for us. Member of our party wanted to change a FP+ because the wait was < 10 mins. She could not use the app, said she was not eligible for FP+(had booked prior to trip using website). On website could only 1- change expirience or 2- change time. Not both. So had to change time, then change expirience. Lots of time spent on phone bc website is not mobile friendly.
At one point we tried to use the kiosk and no one in either party was able to. All got error message. Line to speak with CM with iPad was loonngg!

I did like the convienince of everything on band.

I expirienced one glitch in regards to charging- for breakfast one morning my pin didn't work. Worked all day the day before and worked when I bought my kids stuff, but when I went to purchase mine, did not work. They told me I was going to have to go to lobby to correct. Manager went with me to connect me with someone and not have to wait in line.

The biggest Inconvience of the trip was with my mom. Originally DH was supposed to go placing 2 adults and 2 kids in my room and 3 adults and 1 child in the other room. DH ended up not going and we cancelled prior to the no refundable date. At check in we asked to move my mom to my room to avoid extra adult charge (she would be sleeping in my room). They informed us that she would have to be issued a new band (ie no customized color and lose FP+ choices). We didn't want this so we left her in the other room (still slept in mine) so she could not go into our room with out me or the kids (or our band).

[CaptSmee]

I dont see how the magic bands are going to turn "profitable". Unless they are going to charge for the experience like Universal does. Its just a FP to me & way to get into the park & way to use my free dining credits I dont get it...

[Mrs Bus Driver]

I dont see how the magic bands are going to turn "profitable". Unless they are going to charge for the experience like Universal does. Its just a FP to me & way to get into the park & way to use my free dining credits I dont get it...

The way it's working now they better not charge for the experience.

[Mendelson]

Soooo.... I see a true, bona-fide expert with knowledge said the cost of this was north of $1 billion.

I guess this will put an end to the fun game we've all been playing:

Intercot's Raise the Price of My Magic+

I was just getting ready to say I'd heard it was now costing $3 billion (up from the $2.5 billion that has come to be accepted on here) but now I can't.

[doodleboy]

Just one more thought if they want me to spend more time shopping then put things in the store that are unique to that store or park. Also better quality and lower prices. I won't spend $22+ for a tee-shirt that I can get at Wal-mart for $5. I own 2 hats that can be worn just about anywhere but both are Disney hats and I love them got them years ago and still like to wear them on trips. But on my last few trips I couldn't find anything worth while for the prices they were asking. From what I saw most people weren't buying anything either. Good customer service is giving the customer what they want and then charging them for it. Making every customer feel special so then don't mind parting with their hard earned money. I don't see why this is such a difficult concept for the Big-wigs at Disney to get, they used to understand it. Sorry about the rant but wanted to get a few things off my chest.

Ditto! I have stopped purchasing merchandise as well. It all seems like cheap junk I can get anywhere, and very little I would use while not on a WDW vacation.

[doodleboy]

The way it's working now they better not charge for the experience.

Of course this is headed to some sort of charge for the ability to FP. Do you really think they spent all of this $$$ to give us more for nothing? Does anyone work for a corporation that invests in programs of products so they can give it away? How do you explain that to shareholders? I can just see that annual shareholder meeting now. "We just blew over $1 billion to make it cooler and easier for the guest just because...."

BTW - I am planning what I think will be my last trip for a bit in May. I am hoping that this thing stays in testing mode until I'm done so I can sit back and see how this really unfolds in the next year or so. I think there will be quite a few changes in store for all in the near future.

[Ian]

I have to say ... thus far, based on my early experiences trying to navigate this new mess, I'm even more firm in my opinion that it's a complete disaster.

[Tekneek]

I have to say ... thus far, based on my early experiences trying to navigate this new mess, I'm even more firm in my opinion that it's a complete disaster.

The only way FP+ works well is if you pick 3 attractions way ahead of time, and are happy about your selections, and never want to change them. If you want to adjust on the go, like in response to actual crowd levels/wait times, then you're going to have a terrible time with it.

In no way is this a good replacement for the old system. It needs a redesign from the ground up. It's pretty clear they took short cuts in design to make implementation easier (which ultimately reduces the impact of the service).

[CaptSmee]

The only way FP+ works well is if you pick 3 attractions way ahead of time, and are happy about your selections, and never want to change them. If you want to adjust on the go, like in response to actual crowd levels/wait times, then you're going to have a terrible time with it.

In no way is this a good replacement for the old system. It needs a redesign from the ground up. It's pretty clear they took short cuts in design to make implementation easier (which ultimately reduces the impact of the service).

Its too big of an investment now for them to change anything. I like the concept but feel it should be up to the user to utilize FP+ & still leave the old methodof obtaining FP bbut with a magic band. That's just my 2 cents.
& if they did start to up charge for this experience I doubt I would be using it