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  1. #61

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    Re: How Disney could increase their theme-park business

    Quote Originally Posted by PragmaticIdealist
    I know that one of the reasons I haven't been to Walt Disney World lately is because virtually the same attractions that exist here in California also exist there now, and, whenever I do visit W.D.W. in the future, I probably won't be spending much time, if any, at The Magic Kingdom or at any of the duplicate attractions.
    There still is only one EPCOT... And it is the closest reminant to a Worlds Expo we have left... But you are correct, how repeatable is it?
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  2. #62

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    Re: How Disney could increase their theme-park business

    Agreed. There needs to be more originality at each location. However, I think *some* duplication is acceptable in light of the fact that each location can only draw so many people from a certain distance away, and that number diminishes as the distance increases, because eventually it become prohibitively expensive for the majority of people to visit a particular distant resort - many of those people who could possibly afford to visit a nearer resort. That's why, for example, there is more than one Disneyland. New York is just too far away from California for the average family, but many of the families who would never come all the way to California MIGHT be able to pop down the coast to Florida. If there's a terrific attraction in Paris, it's prohibitively expensive for the average Californian to get there to see it, but if that same attraction were at WDW or DL, they might. On the other hand, there do need to be some unique attractions to make those of us who could travel to the distant parks (such as DLP) do so. But I'm willing to bet you'll get a lot more Parisians attending DLP than DL anytime soon.

    So there really is a justifiable reason for having more parks with similar attraction sets, but at the same time making each one unique enough to capture those customers who CAN be motivated to visit each park around the world.

    And I think that the regional park idea can tie into this - by putting a park where there is no destination resort nearby, say, in Texas, but making it unique, you capture people who live near other parks (who will have to stay in hotels at a distant park) and want to see something new, and at the same time capture those people who would like to go to a Disney park, or go more frequently than they do, but for whom the distance to the major resorts is a deterrent.

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  3. #63

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    Re: How Disney could increase their theme-park business

    Quote Originally Posted by Morrigoon
    Agreed. There needs to be more originality at each location. However, I think *some* duplication is acceptable in light of the fact that each location can only draw so many people from a certain distance away, and that number diminishes as the distance increases, because eventually it become prohibitively expensive for the majority of people to visit a particular distant resort - many of those people who could possibly afford to visit a nearer resort. That's why, for example, there is more than one Disneyland. New York is just too far away from California for the average family, but many of the families who would never come all the way to California MIGHT be able to pop down the coast to Florida. If there's a terrific attraction in Paris, it's prohibitively expensive for the average Californian to get there to see it, but if that same attraction were at WDW or DL, they might. On the other hand, there do need to be some unique attractions to make those of us who could travel to the distant parks (such as DLP) do so. But I'm willing to bet you'll get a lot more Parisians attending DLP than DL anytime soon.

    So there really is a justifiable reason for having more parks with similar attraction sets, but at the same time making each one unique enough to capture those customers who CAN be motivated to visit each park around the world.

    And I think that the regional park idea can tie into this - by putting a park where there is no destination resort nearby, say, in Texas, but making it unique, you capture people who live near other parks (who will have to stay in hotels at a distant park) and want to see something new, and at the same time capture those people who would like to go to a Disney park, or go more frequently than they do, but for whom the distance to the major resorts is a deterrent.
    The closer a person is to a particular destination, naturally, the more likely it should be for him or her visit that resort more frequently.

    However, Disney strongly prefers to attract guests who are traveling from greater distances because the profit margins at the hotels are as much as three times those of the theme parks. International tourists also tend to spend more on food and merchandise.

    In the future, air travel will most likely become less and less expensive, so vacations of this sort may be growing. In the U.S., though, the tendency is for Americans to take shorter and more frequent vacations throughout the year, so regional Disney developments have great potential for success if Disney is able to carve a niche that doesn't affect the ability for Walt Disney World and the other international travel destinations to attract those guests who live within a one-hour-plus flight radius.
    Last edited by PragmaticIdealist; 07-07-2006 at 12:32 PM.

  4. #64

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    Re: How Disney could increase their theme-park business

    Plus, regional parks allow them to explore new concepts on a smaller, less expensive scale without raising too much expectation from the public, due to being planned around half the usual admission cost. Food and beverages of course could have similar markups to their destination resort counterparts, or perhaps 10% lower, but merch would actually be better off sold at comparable prices (lest it make the destination resorts appear in an unfavorable light to guests of both), so Disney's per capita take is still likely to be more than 50% of what they get at the destination resorts, but with the public expectations of being a "50% less expensive park".

    Personally, I'd just love to see them be able to explore new concepts or expand on old ones. Rather than just slap a land into park real estate that isn't terribly favorable to the addition and hope it increases attendance, that same land with a little infrastructure and a couple more in-theme attractions can become a park all on its own. Imagine, if you will, an expanded Toontown concept. It's enough to carry off a park on its own. Likewise Toy Story, Bug's Land, and Neverland.

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  5. #65

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    Re: How Disney could increase their theme-park business

    Quote Originally Posted by PragmaticIdealist
    However, Disney strongly prefers to attract guests who are traveling from greater distances because the profit margins at the hotels are as much as three times those of the theme parks. International tourists also tend to spend more on food and merchandise.
    If this were the case, why such a marketing emphasis on purchasing AP's?
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  6. #66

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    Re: How Disney could increase their theme-park business

    Quote Originally Posted by PragmaticIdealist
    I know that one of the reasons I haven't been to Walt Disney World lately is because virtually the same attractions that exist here in California also exist there now, and, whenever I do visit W.D.W. in the future, I probably won't be spending much time, if any, at The Magic Kingdom or at any of the duplicate attractions.
    But the MK is just *one* portion of WDW. I think thats the problem with alot of the ppl who downplay WDW.. is they forget its a RESORT with theme parks. I don't recall being able to golf, waterski, take in an afternoon at the park, and then goto dinner at another in a setup like DL.

    If the MK would be your sole reason for visiting WDW or not.. then I'd urgue you to think of an entire holiday.. not just a theme park visit.

    WDW isn't the best at all the things it has (there are better hotels, better golf courses, better resturants), but they do well or great at most and when you put it all together the amount of distractions you have at your disposal far out last what most people can even discover in 1-2 weeks.

    Quote Originally Posted by morigoon
    Imagine, if you will, an expanded Toontown concept. It's enough to carry off a park on its own. Likewise Toy Story, Bug's Land, and Neverland.
    ...or Legoland ?

    Bash SF all you want (they deserve it) but large scale amusement parks don't seem to be the 'easy money' everywhere you look these days. I think the DCL is a good example of Disney expanding the Disney Experience into new areas. Hopefully they can find others. Why not just start offering Disney themed Hotels at key locations around the country? Plant the seed.. and when they do visit the parks they'll understand why they should stay on property, etc.

  7. #67

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    Re: How Disney could increase their theme-park business

    Quote Originally Posted by Morrigoon
    Plus, regional parks allow them to explore new concepts on a smaller, less expensive scale without raising too much expectation from the public,
    But how do you control expectations to not want people to just say 'well its not DL'. The only way to things like that would to not make it an actual Disney park. Do it under another brand, with different themes. Use your business theories and strats but with a different skin. Any 'small disney park' would simply be slammed for not being one of the 'big' disney parks.

  8. #68

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    Re: How Disney could increase their theme-park business

    Quote Originally Posted by cellarhound
    If this were the case, why such a marketing emphasis on purchasing AP's?
    One of the main benefits of AP's for Disney is that they keep hotel/DVC guests on property. That means not having to spend as much on improving the product. Compete on price, wear the competition out.
    Disney has deeper pockets. SF and Legoland have realized this. SF would be in better hands as part of Time-Warner, since it could use the parks as giant advertisements for movies and DVDs. Paramount hasn't figured this out yet. Cedar Fair would be smart to hook themselves up to a movie studio, but there aren't many left. Fox?

    A second benefit of AP's for Disney is that some people (recipients of gifts) don't overuse them as others do. As a gift, an AP doesn't have that underlying economic requirement for its owner to "get his money's worth."
    "Here You Leave the World of California Today and Enter the World of, um, er, California Today."

  9. #69

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    Re: How Disney could increase their theme-park business

    Quote Originally Posted by flynnibus
    But the MK is just *one* portion of WDW. I think thats the problem with alot of the ppl who downplay WDW.. is they forget its a RESORT with theme parks. I don't recall being able to golf, waterski, take in an afternoon at the park, and then goto dinner at another in a setup like DL.
    The old mini-golf course across from DL that closed down in the 80's doesn't count, eh? :P

    Why not just start offering Disney themed Hotels at key locations around the country? Plant the seed.. and when they do visit the parks they'll understand why they should stay on property, etc.
    That is one of the reasons why I really like the DVC and wish they expanded the program to have a west coast benifit that make sense...

    I would LOVE to sign up for a time share... I just don't want to go to Florida to achieve the maxim benifit from it's use... Understood?
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  10. #70

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    Re: How Disney could increase their theme-park business

    I don't think that "smaller regional park" strategy would work, either.
    1. "Regional" will likely mean "four-season" regions, which will mean little to no revenue stream in the winter and rainier-than-SoCal months. Meanwhile the park would get more weather-beaten.
    2. It's already well acknowledged that Disney spends more on its attractions (on average). $100 million ToT versus $20 million (?) for Tatsu. Yes, the comparison of such diverse attractions/rides is specious, but the point is that Disney will build higher quality attractions and they will require a revenue stream.

    Theme parks in Texas would be the most economically advantageous of any options. Land would be cheap (if it buys land as it did in Florida). Weather is reasonable. Does the company have a few billion dollars to spend on this? No. But sell the CapCities properties, and that's some $30 billion plus right there.
    "Here You Leave the World of California Today and Enter the World of, um, er, California Today."

  11. #71

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    Re: How Disney could increase their theme-park business

    people who think its hot in florida have never been to texas

    Usually opening the door in texas in the summer is worse then sticking your head in the oven..

  12. #72

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    Re: How Disney could increase their theme-park business

    Quote Originally Posted by flynnibus
    people who think its hot in florida have never been to texas

    Usually opening the door in texas in the summer is worse then sticking your head in the oven..
    Well, there's a reason why Florida was chosen for the second theme park location.
    "Here You Leave the World of California Today and Enter the World of, um, er, California Today."

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