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  1. #1

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    DLR Attendance Up 15%, WDW Down 1%

    Perhaps quality will finally win out over quantity.

    attendance was up 4 percent — down 1 percent in Orlando but up 15 percent in California. Average hotel occupancy at Disney World was down four percentage points from a year ago, to 81 percent.

    Combined guest spending between Disney World and Disneyland fell 4 percent for the quarter, reflecting the continued discounts Disney has been offering to keep its theme-park turnstiles clicking.
    Disney earnings offer few signs of theme-park turnaround | TheDailyDisney.com from OrlandoSentinel.com

  2. #2

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    Re: DLR Attendance Up 15%, WDW Down 1%

    Most depressing quote in that entire article:

    Toy Story 3 "represents the essence of our franchise strategy."

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    Re: DLR Attendance Up 15%, WDW Down 1%

    Quote Originally Posted by CinderellaStory View Post
    Most depressing quote in that entire article:

    Toy Story 3 "represents the essence of our franchise strategy."
    It seems like Tom Hanks will have alot of hair tousling to do over there in wall street then.

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    Re: DLR Attendance Up 15%, WDW Down 1%

    …You maintain pricing — meaning higher pricing — to a point, and, then, if the marketplace doesn’t respond to that, that’s when you judiciously roll out your promotional strategy,” Disney Co. President and Chief Executive Officer Bob Iger said. “I’m pretty confident that we’re going to be able to drive the volume that we need over the course of the year. The question is how much we will have to discount to get it.”
    So...I'm kind of confused by this. What's he getting at? Raise prices, if they don't respond, then discount?

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    Re: DLR Attendance Up 15%, WDW Down 1%

    Quote Originally Posted by indianajack View Post
    What is telling is that profit is flat and guest spending is down as compared to last year. This means all the promotions and all the annual passes sold is not increasing profits. The attendance at Disneyland is up because of the strong Halloween/Ghost Galaxy promotions as well as the Christmas promotions. The increase is most likely to the annual passholders at all levels. This means Disneyland is more crowded and guest spending is down. The economy is still in the tank and you cannot blame passholders for enjoying the park and all the discounts available.
    Disney has to be on edge about the number of out-of-town tourists coming to the resort in 2010 and the renewal rate of annual passholders in 2010.

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    Re: DLR Attendance Up 15%, WDW Down 1%

    Quote Originally Posted by JoeCool View Post
    What is telling is that profit is flat and guest spending is down as compared to last year. This means all the promotions and all the annual passes sold is not increasing profits. The attendance at Disneyland is up because of the strong Halloween/Ghost Galaxy promotions as well as the Christmas promotions. The increase is most likely to the annual passholders at all levels. This means Disneyland is more crowded and guest spending is down. The economy is still in the tank and you cannot blame passholders for enjoying the park and all the discounts available.
    Disney has to be on edge about the number of out-of-town tourists coming to the resort in 2010 and the renewal rate of annual passholders in 2010.
    Only thing good about all this is all theme parks are hurting and if Harry Potter at Universal makes them money then Disney will see good attractions do make money and discounted junk doesn't and they will build something worth seeing.

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    Re: DLR Attendance Up 15%, WDW Down 1%

    In 2008, markets were in a free-fall and people weren't comfortable dropping hundreds of dollars per person on Disneyland. The company responded by introducing payments on the passes and offering heavy discounts in order to get people in the gate. The majority of Disneyland's costs are fixed, and the marginal cost of additional guests is very low. Effectively, it's better for someone to get in very cheaply than to have nobody come at all.

    The markets have stabilized significantly, and even though unemployment is still high, people aren't as terrified about losing their jobs as they were a year and a half ago. Consumer spending is going up, and Iger is responding by rolling back the company's promotions.

    Without these promotions, I'd imagine that attendance would have tanked, and the parks would be doing very poorly. I am aware that most people on these boards didn't follow Disney until very recently, but this problem I described happened in the early 2000's, and it was very bad - Eisner didn't respond to the recession, revenue tanked, and more fuel was added to the fire to throw him out.

    The past two years have been the worst economic crisis since 1929, and I think Disney management has done a great job keeping the company afloat. They've managed to maintain profitability, drop a billion dollars on California Adventure, and have not cut any maintenance in the parks throughout all of this.

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    Re: DLR Attendance Up 15%, WDW Down 1%

    Quote Originally Posted by dl1955pounds View Post
    In 2008, markets were in a free-fall and people weren't comfortable dropping hundreds of dollars per person on Disneyland. The company responded by introducing payments on the passes and offering heavy discounts in order to get people in the gate. The majority of Disneyland's costs are fixed, and the marginal cost of additional guests is very low. Effectively, it's better for someone to get in very cheaply than to have nobody come at all.

    The markets have stabilized significantly, and even though unemployment is still high, people aren't as terrified about losing their jobs as they were a year and a half ago. Consumer spending is going up, and Iger is responding by rolling back the company's promotions.

    Without these promotions, I'd imagine that attendance would have tanked, and the parks would be doing very poorly. I am aware that most people on these boards didn't follow Disney until very recently, but this problem I described happened in the early 2000's, and it was very bad - Eisner didn't respond to the recession, revenue tanked, and more fuel was added to the fire to throw him out.

    The past two years have been the worst economic crisis since 1929, and I think Disney management has done a great job keeping the company afloat. They've managed to maintain profitability, drop a billion dollars on California Adventure, and have not cut any maintenance in the parks throughout all of this.
    Never ever is a quick fix good, all these cheap promo's have hurt the park not help it. Who knows how many ppl that pay full price have been turned off by the parking issues and crowds created by this cheap fix, letting in ppl for nothing that don't have the money to spend while their there is a joke and now Disney has at least a year to be stuck with it. They have made one mistake after another.

    the problems in 2000 from Eisner was that he let the park sit there stagnet, alot of ppl want to come see whats new and nothing was. The money was there to do something as he invested in all kinds of other area's(alot of which ended up losing money) When you have something with a proven track record you don't sideline it hoping to cash in on it while it looses its appeal. Everyone is not a Disney fan, you have to give those ppl a reason to come to the park.

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    Re: DLR Attendance Up 15%, WDW Down 1%

    Id be willing to spend money if a churro wasnt $3.50!!! Sorry, they aren't seeing my money anytime soon. I'm not suggesting they lower prices, but I am curious if they would profit anymore by offering reasonable prices for unique food/ merchandise. (By unique food I mean things like Monte Cristo, and while not really "unique", soup bowls.)

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    Re: DLR Attendance Up 15%, WDW Down 1%

    Quote Originally Posted by dl1955pounds View Post
    In 2008, markets were in a free-fall and people weren't comfortable dropping hundreds of dollars per person on Disneyland. The company responded by introducing payments on the passes and offering heavy discounts in order to get people in the gate. The majority of Disneyland's costs are fixed, and the marginal cost of additional guests is very low. Effectively, it's better for someone to get in very cheaply than to have nobody come at all.

    The markets have stabilized significantly, and even though unemployment is still high, people aren't as terrified about losing their jobs as they were a year and a half ago. Consumer spending is going up, and Iger is responding by rolling back the company's promotions.

    Without these promotions, I'd imagine that attendance would have tanked, and the parks would be doing very poorly. I am aware that most people on these boards didn't follow Disney until very recently, but this problem I described happened in the early 2000's, and it was very bad - Eisner didn't respond to the recession, revenue tanked, and more fuel was added to the fire to throw him out.

    The past two years have been the worst economic crisis since 1929, and I think Disney management has done a great job keeping the company afloat. They've managed to maintain profitability, drop a billion dollars on California Adventure, and have not cut any maintenance in the parks throughout all of this.

    I have followed the Company since 1992 as a stock holder and now a passholder. Eisner did nothing in 2000-2002 especially after 9/11.
    Eisner's ouster was his fault. He neglected the parks and build DCA on the cheap and the ABC network in primetime was awful. Iger and his staff have kept ABC competitive, ESPN is growing and the parks are stable. The movie studio after a drought looks like it will roar back in 2010.
    The economy is sill very bad, unemployment when you factor in the underemployed, part-timers wanting full time work, and stopped looking is probably close to 20%. The very fact that revenues and operating income at the parks is stable just shows that Disney acted correctly in 2008 and 2009 with promotions and discounts. Disney needs to be careful in 2010 to keep attendance and profits stable.
    Last edited by JoeCool; 02-10-2010 at 12:33 PM. Reason: typos

  11. #11

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    Re: DLR Attendance Up 15%, WDW Down 1%

    Quote Originally Posted by CinderellaStory View Post
    Most depressing quote in that entire article:

    Toy Story 3 "represents the essence of our franchise strategy."
    Even more depressing:
    Iger said Toy Story 3, which will be infused throughout the company’s properties....
    You thought Tinker Bell was over-pushed? Get ready for a marketing, merchandise and money-grabbing mania. TS3 will be branded everywhere in DLR but on the guests' butts.


    "With the acquisition of Marvel and now of Lucasfilm,
    Disney may have finally found the grail. You don't need
    imagination or art. All you need is a brand."

    - Neil Gabler


  12. #12

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    Re: DLR Attendance Up 15%, WDW Down 1%

    Quote Originally Posted by Mr Wiggins View Post
    You thought Tinker Bell was oversold? Get ready for a marketing, merchandise and money-making mania. TS3 will be branded everywhere in DLR but on the guests' butts.


    Thank heavens! That's a bad place to market Woody.

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    Re: DLR Attendance Up 15%, WDW Down 1%

    Quote Originally Posted by Mr Wiggins View Post
    Even more depressing:
    Iger said Toy Story 3, which will be infused throughout the company’s properties....
    You thought Tinker Bell was over-pushed? Get ready for a marketing, merchandise and money-making mania. TS3 will be branded everywhere in DLR but on the guests' butts.

    I agree. When is Disney going to make a new animated film with Mickey Mouse and Donald Duck? The marketing effort would at least be different than all the Toy Story and Tinkerbell and Princess stuff that we see year after year.

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    Re: DLR Attendance Up 15%, WDW Down 1%

    “What we do is we test the marketplace. …You maintain pricing — meaning higher pricing — to a point, and, then, if the marketplace doesn’t respond to that, that’s when you judiciously roll out your promotional strategy,” Disney Co. President and Chief Executive Officer Bob Iger said. “I’m pretty confident that we’re going to be able to drive the volume that we need over the course of the year. The question is how much we will have to discount to get it.”
    As they continue to drag on with this philosophy they will soon realize that they may have already reached a plateau in the number of times that they can keep implementing this model. What is most concerning is that throughout this whole report nobody from Disney ever acknowledges any focus on quality and how that will contribute to getting more success in their marketplace tests so that the promotional engine does not need to be rolled out so robustly.

    This seems to be an affirmation that Disney can keep quality at a low priority and instead use this marketing and promotions engine as the virtual "fix-a-flat" for any bad marketplace strategy they decide to roll out to the "Consumer".

    Disney, Martin added, also appears to be grappling now with some of the downside to its discount strategy. The soft pace of bookings so far this spring, she said, suggests that last year’s promotions may have left a whole in demand this year, as vacationers who might have made their trips in 2010 traveled in 2009 instead to take advantage of the deals.
    “It looks as if they may have pulled attendance from this year into last year,” Martin said.
    This wouldn't have been a problem if when the tourists were at the parks in 2009, they were left with such a great impression and such an amazing experience that they would make coming back in 2010 a major priority. Again, here is a quality issue completely being played down. This statement also indicates to me that further dependence on the local guests and APers will be necessary in 2010. I don't expect to see the current AP program recess in scope for a while.

    Disney’s cable-TV channels were again a particular source of strength; sports giant ESPN, for example, churned out record ratings and higher affiliate and advertising revenue.

    After a dismal fiscal 2009, operating profit at Disney’s movie studios rose 30 percent during the first quarter to $243 million, and executives said they have high hopes for upcoming releases such as Alice in Wonderland and Toy Story 3. Iger said Toy Story 3, which will be infused throughout the company’s properties, “represents the essence of our franchise strategy.”
    You mean people love the Disney Channel as-is? Really?? I'm so out of touch with what the kids want these days . I'm thrilled that the masses are responding so positively to these great decisions being made by the entertainment division. It is justice for all of those who have watched the overall entertainment quality decline sharply over the past few years. Lassiter and the other entertainment execs for both Disney and Pixar should get a huge well deserved bonus for this.

    Operating profit at Disney’s consumer-products division fell 8 percent to $243 million, weighed down by slowing sales of High School Musical and Hannah Montana merchandise. Losses at Disney’s video-game unit narrowed from $45 million to $10 million.
    Alternately some people from the consumer-products division should actually be forced to pay some of their past bonuses back! Their pricing vs. quality model is practically the devil according to most MCers opinions and then they come out and state that their plan is for one movie to be their great savior in the upcoming year? That's a whole lot of pressure to put on Disney entertainment, hence why they should get the all the bonus money .

    So generally it looks like the Disney Co's realization to seriously address the overall quality of product offered by their company is at this point smacking them right in the face and kicking them in the groin screaming for attention. To me it would be smarter for them to acknowledge the quality issues publicly and commit to fixing them now than to silently address this in the background and keep the guests and consumers guessing.

  15. #15

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    Re: DLR Attendance Up 15%, WDW Down 1%

    DLR attendance is up because they bribed people to show up with those cheap SoCal APs, and monthly payment plan ($6 a month to waltz into Disneyland anytime you please? A joke.) This is not a good thing, as has been discussed in multiple threads.

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