Disney Beats Vegas

[Jerren]

Interesting article on MSNBC today about how despite the gaming industry's claims of being "recession proof" Disney is showing steady numbers while Vegas is hurting. Analysts think this is due to Las Vegas's emphasis on high end services and 5 star hotels and restaurants with 5 star prices, where Disney's success is due to Disney's value offerings.

The gaming business often brags that it’s recession-proof because gamblers will always like to gamble, but amusement destinations historically have seen their business get hit hard when consumers’ wallets are pinched.

The upscaling of Las Vegas with its five-star hotels, restaurants and shops, and the down-pricing of Disney to more value-oriented park packages and hotels over the last decade has turned that concept on its head.

And even better news for travelers:

In 1991, more than 55 percent of hotel rooms at Disney World were considered premium priced. Now, about 75 percent of rooms there are considered moderate or value priced, Iger said in a May 6 conference call with analysts. Moderately priced rooms range between $149 and $240 a night, while value rates are between $82 and $151 a night.

Full article: http://www.msnbc.msn.com/id/24582165/


Personally I think Disney is just a stronger addiction than Gambling , what do you all think?

[nbodyhome]

I just have issue with rooms going to $240 a night and being called "moderate". I consider that price to be premium (no matter where I travel).

I booked a hotel for July in California (a short walk from Disneyland). Great reviews, full kitchen, full breakfast, newspaper, evening socials a few nights a week - $81.75 per night. THAT is value! (oh - and great reviews too).

[NatdRat]

Yes, the Disney addiction is one big monkey that is impossible to get off my back.

It seems to me that Vegas made a big mistake back in the late 80's by shifting their target and going after the family market (a market that Disney and theme parks in general already dominated). When they finally realized that strategy wasn't going to work they had to make up for it by going after the "whale" market. That strategy seemed to work for the short term and, like most greedy corporations, they forsook long term goals for short term gains (hmm, that sounds familiar ). Now they are finally facing that "long term" has arrived.

[MJMcB]

I just have issue with rooms going to $240 a night and being called "moderate". I consider that price to be premium (no matter where I travel).

very true. Its all in the definitions. Disney gets away will calling some fairly expensive hotel rooms as moderate

[Iluvdisney]

I just have issue with rooms going to $240 a night and being called "moderate". I consider that price to be premium (no matter where I travel).

I booked a hotel for July in California (a short walk from Disneyland). Great reviews, full kitchen, full breakfast, newspaper, evening socials a few nights a week - $81.75 per night. THAT is value! (oh - and great reviews too).

Never mind the moderates look at the values. Remember when POP opened and you could get a room there for like $60 bucks. Not anymore.

[Jerren]

very true. Its all in the definitions. Disney gets away will calling some fairly expensive hotel rooms as moderate

First and foremost moderate resort rooms start at $149 a night not $240/night and vary depending on the season. (Just looked it up for Late September for a client...) That's Hotel w/o park tickets so if we are going to compare just the hotel prices lets do it right.

And for what you get that's much cheaper than other resort destinations like Atlantis in the Bahamas or the nicer Vegas Hotels folks... Let alone places like Great Wolf Lodges... (and I'm talking book rate not the super discounted rates on price line and others here for rooms they can't sell)

Lets try not to be so negative about WDW resorts, for a world class resort destination they do over some great value options and promotions for their customers.

[MJMcB]

First and foremost moderate resort rooms start at $149 a night not $240/night and vary depending on the season. (Just looked it up for Late September for a client...) That's Hotel w/o park tickets so if we are going to compare just the hotel prices lets do it right.

And for what you get that's much cheaper than other resort destinations like Atlantis in the Bahamas or the nicer Vegas Hotels folks... Let alone places like Great Wolf Lodges... (and I'm talking book rate not the super discounted rates on price line and others here for rooms they can't sell)

Lets try not to be so negative about WDW resorts, for a world class resort destination they do over some great value options and promotions for their customers.

but those resort destinations wouldn't classify themselves as moderate. The budget hotels like Pop are more expensive than similar hotels in the area. I understand you are paying for the benefit of being "in the World". Heck, I would never stay off property. But they are unfairly classifying themselves as "moderate" or "Value".

[flynnibus]

very true. Its all in the definitions. Disney gets away will calling some fairly expensive hotel rooms as moderate

I don't think its that bad.. I think what lacks is what service tiers Disney has established for those lower rooms.

I mean.. if you try to get a hotel room in my town (suburbs) its over $150/night for just a regular hotel room with nothing. I live almost 40miles from DC.

Yes, Disney doesn't have the $50/night rooms you find on the interstate from time to time, but I don't think their rates themselves are too far off. I think its the service you are getting for those rates. For what the deluxes charge, you should be getting the concierge service across the board, etc.

The values are on par with a Holiday Inn, etc. Not fantastic, but basic. If anything the biggest negative is simply the bed sizes.

And I agree with the earlier post - Vegas tried to go all high-end.. I could not figure that out. Every place can not be 'exclusive' otherwise there is nothing left. Every property had to build their high-end club, etc. They were pricing out a lot of their audience.. and audiences that didn't want to be a trendy club.

[Jerren]

they are unfairly classifying themselves as "moderate" or "Value".

I have to disagree, I think we are confusing "moderately priced" with the Disney Resort Classification. Deluxe, Moderate, and Value are in reference to the classification of resorts on property and if you price a vacation, lowest tier of each they increase in a stepwise fashion, and generally speaking there is a difference in room size, location, and amenities that go up with each level.

If the question is are Disney resorts moderately priced as far as the industry in general, yes in my opinion the resorts are. I consider 149 a cheap to moderate hotel room, I to am in the Baltimore/DC area and yeah you will pay that for a motel let alone a nice hotel these days and they are definitely NOT Disney. Yes I have stayed in my share of $75 hotels in the past, I travel for work all the time and often pay 250-300/night for a moderate business hotel (usually mid tier Marriott or Hilton chains) , often more in certain areas, again can they hold a candle to say POFQ? Not a chance but they are clean, safe, and convenient to where I am working at the time.

Now are we talking about moderately priced for the Orlando/I4 area? Perhaps not, due to the intense competition in the area yes you can get a room at very affordable rates. Again it's not Disney and I've noticed a few of them have shut down for remodel in the past couple years and don't seem to have reopened or have changed hands. They are going for volume and HAVE to undercut Disney hotels buy a sufficient margin* to survive and draw people away from the on site benefits of staying inside the world. (Like Package discounts, EMH, advanced dining reservations, DDP, Disney Transportation, Magical Express, etc.)

* If you only save 30-40 dollars a night it's not worth it in my opinion since you'll be spending at least that much on Gas, Parking, Rental Car and other related expenses. When you look at the price of the Value resorts room rates which may not be 60$ anymore they still are competitive when you look at the actual "cost" of staying off property.

[Parisi]

Yes, the Disney addiction is one big monkey that is impossible to get off my back.

It seems to me that Vegas made a big mistake back in the late 80's by shifting their target and going after the family market (a market that Disney and theme parks in general already dominated). When they finally realized that strategy wasn't going to work they had to make up for it by going after the "whale" market. That strategy seemed to work for the short term and, like most greedy corporations, they forsook long term goals for short term gains (hmm, that sounds familiar ). Now they are finally facing that "long term" has arrived.

Vegas is always going through a shift. Most of the 90's it was for the Family. Now they are gearing toward the 20-something crowd who likes to sit in lounges and have some drinks.

If you look at all the renovations going on you will clearly see they do not want to cater towards families anymore. Luxor for instance, they closed and removed all the simulator rides they had as well as the Sega Arcade to make room for an ultra lounge.

MGM back in the 90's had a mini water/theme park, which was closed almost as soon as it opened to make way for more pools.

Palms is clearly catered to the Thirtysomething crowd...

I mean who knows where Vegas will be in 5-10 years. Hell even their hotels went from some kind of cheesy theme (ie. Luxor, NYNY,) to more elegant hotels (ie. Bellagio, Wynn, Venetian, ect).

[disneytim]

Being a Las Vegas resident, there were a few things about the article I found interesting.

1. Las Vegas doesn't compete with Disneyland or Walt Disney World. Never has. It competes with Anaheim/Orange County and Orlando (and Chicago and Dallas and Atlanta, etc.) for conventioneers and overall visitor volume. Las Vegas doesn't even target the same demographics as Disney. Vegas markets to singles, couples and business travelers. Disney predominantly goes after families. Obviously, those aren't the only types of people travelling to these destinations, but still, saying that Disney somehow "beats" Vegas is like saying the Cubs beat the Lakers. They don't play the same game.

2. The article said expensive resorts are pricing Las Vegas beyond the reach of regular tourists, yet it also said the average room rate in Vegas for the beginning of the year was $130 per night. That's well below the "moderate" price range the article defined. So no, Vegas isn't overpriced. There are still plenty of affordable rooms here. The problem is, they're mostly at older Strip properties or off-Strip local haunts that don't have the curb appeal of glitzier high-end hotels like Wynn, Palazzo, The Palms and Bellagio. Since Las Vegas resorts have been making a lot of noise in recent years about how upscale they are, it's scaring away the average tourists looking for a deal. Without question, though, Las Vegas is in desperate need a new, moderately priced Strip resort.

3. Gaming revenues have been down the last few months, a direct reflection of the softening U.S. economy, but as the article noted, gaming doesn't generate as big a percentage of profits as it used to--and that's by design. You can gamble one way or another in 48 of the 50 states. For Las Vegas to continue marketing itself as some exclusive place to make a bet would be foolish. So, yes, we aren't recession proof like the old days, but without the appeal of the big resorts, shopping malls, restaurants and entertainment venues, Las Vegas as a tourist destination would have dried up years ago instead of thriving like it has over the past two decades.

Disney is on a hell of good ride right now, buoyed by its diversified interests (and as a stockholder, this makes me happy), but don't feel sorry for Las Vegas. I'm pretty sure we're going to be around for a while.

[aashee]

If only Disney had Gambling. Ah, heaven.

[Lindsy1052]

Hey - you can get a room for $39.00 a night, but would you want to stay there. At Disney at least you get what you pay for. If your going to compare, compare Apples to Apples. Where would you rather be? Motel 6 or Disney. Of course there is going to be a difference. They are in business to make money, if you can't afford it you just stay somewhere else, but I wouldn't knock Disney. You have well maintained hotels, free bus service all over property, close access to parks, some 250 restaurants right on property, how can you possible compare.

[Aura of Foreboding]

Gaming still, however, beat out movie tickets and concessions in the 2007 fiscal year.

[disneytim]

Gaming still, however, beat out movie tickets and concessions in the 2007 fiscal year.

Yeah, but no one comes to Vegas to see movies and buy concessions.