Disney Parks: Has Efficiency Replaced Guest Service in Strategic Importance?

MousDad

MousDad

New Member
Original Poster
Yee thinks so, in a very interesting and well-articulated article today:

http://miceage.micechat.com/kevinyee/ky040209a.htm

His basic premise: Efficiency is the new business model for Disney Parks (replacing the old model of guest service).

His culprit: Jay Rasulo and his management strategies that were honed initially at DLP and have become the new model for American Disney Parks.

Interesting how he relates this to the current anomolies at Disney World (such as layoffs while crowds are packing the place).
 
Master Yoda

Master Yoda

Pro Star Wars geek.
Premium Member
I have to wonder if Yee has ever been remotely involved in running a business and if he has I wonder how well he did as a whole. You simply can not run a business based on guest satisfaction alone. It sounds great on paper to do so but it rarely works in practice. Efficiency simply has to be a part of the equation.

My first couple of years in college I managed a quick lube, which is a business where guest service and efficiency are paramount. I could have kept a dozen mechanics on the clock at all times and had ever single car in and out in 2 minutes. My guest satisfaction numbers would be through the roof and my profit margin would be in the toilet. On the flip side I could have had only 2 mechanics on the clock and made more money per car but I would loose all my business because people would not be willing to wait. You have to strike a balance between service and efficiency. The trick is to find that balance.
 
Lucky

Lucky

Well-Known Member
Yes, and Disney's market niche is better service than other theme parks. If they let service decline very much in attempting to cut short-term costs, they'll lose that reputation, and will then have to cut costs more and more to compete with the Universals, Busch Gardens and even Six Flags. Going very far down the cost-cutting road carries enormous risks.
 
wdwmagic

wdwmagic

Administrator
Moderator
Premium Member
MousDad said:
Interesting how he relates this to the current anomolies at Disney World (such as layoffs while crowds are packing the place).
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Not really an anomolie. The park is busy, due to the free night offer. The free night offer is obviously hitting hte bottom line, as is the greatly reduced guest spending. So lots of guests does not equal great financial performance unfortunately. The slow food and merchandise sales and the cost of the free night offer are hurting.
 
EpcotServo

EpcotServo

Well-Known Member
Wow, he...actually got it pretty much right. That's the EXACT problem at WDW right now, the use of systems that MAKE NO SENSE and keep lines long.

"A Disney World at Peace? There has to be sacrifice."
-Evil Jay Rasulo, In My Mind
 
Lee

Lee

Adventurer
Kudos to Kevin for echoing what I've been saying for quite some time.
Management puts efficiency over show on a disturbingly regular basis.

I think there was an old saying that was something like:
If you lose a customer while trying to save a dollar, It'll cost you two to get him back.
Something like that. Seems appropriate.

And yeah, the parks will be very busy next week, but check the tags on the cars in the lots. I would estimate them being about 80% Florida locals. Staying cheap, eating cheap, and buying little.
 
MousDad

MousDad

New Member
Original Poster
Master Yoda said:
I have to wonder if Yee has ever been remotely involved in running a business and if he has I wonder how well he did as a whole. You simply can not run a business based on guest satisfaction alone. It sounds great on paper to do so but it rarely works in practice. Efficiency simply has to be a part of the equation.
Click to expand...

Of course, you are correct in that a balance is necessary.

But you also can't deny that Disney Parks absolutely, 100% built their reputation on guest service being number one. I can recall, anecdotally, references to this from my childhood, but I'm sure old timers who visited as adults 20, 30 years ago would confirm that was the case.

So the question to me is not so much has this shift taken place - I'm fully confident it has - but rather was the shift really necessary?
 
Pioneer Hall

Pioneer Hall

Well-Known Member
I read Kevin's articles, and often wonder where he comes up with his logic. I agree that the way the parks are run now isn't correct. However, you cannot run the park on magic. You have to have efficiency and have to come up with ways to produce a profit. Disney is a publicly traded company which relies on its shareholders. If those shareholders aren't making money, then the company is going to be in a lot of trouble.

I think that Disney needs to look back and see how they can incorporate guest service more in to their algorithms. I also think that things of the past would now be hard to justify (such as 1am closings throughout the summer).
 
MousDad

MousDad

New Member
Original Poster
Again, good points.

What about this - Is there a difference between a philosophy of A) efficiency at the expense of guest service, and a philosophy of B) efficiency while giving priority to guest service.

Can you do B) and still be profitable? Did Disney in the past do B) and maintain profitability? Or have they really done A) all along, and its only everyone's imagination? Does anyone think they do B) now?
 
Master Yoda

Master Yoda

Pro Star Wars geek.
Premium Member
MousDad said:
Again, good points.

What about this - Is there a difference between a philosophy of A) efficiency at the expense of guest service, and a philosophy of B) efficiency while giving priority to guest service.

Can you do B) and still be profitable? Did Disney in the past do B) and maintain profitability? Or have they really done A) all along, and its only everyone's imagination? Does anyone think they do B) now?
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There is no question that there is a difference in philosophy A and B and to be an effective business that can weather the ups and downs and still remain profitable in the eyes of shareholders you have to be more aligned with B. I can not see how Disney can not have been doing this all along. If they weren't every QSL register would be manned 24/7, The noodle station and El Pirata y el Perico would be open year round and every park would be open from 7 AM to 12 AM 356 days/year.
 
wendysue

wendysue

Well-Known Member
Guest service in the parks

My husband and I stayed at WDW Mar. 23 - 30. Arrived at Orlando Int. around 2:00 and there was no line at the Magical Express. We stayed at the Pop Century this time, (usually stay at CB) and had a preferred room that was close to food court, pool and buses. :) This was our 6th time to WDW and we saw a definite difference in price and service since Sept. 07.
The pool and resort was great, but the bus service was so-so. We took the Animal Kingdom/Blizzard Beach bus to play miniputt at Winter/Summerland around 10:00 a.m. When we were done, we waited 1hour and 20 minutes and then had another bus driver radio dispatch to send a bus to us. We had seen at least 40 buses pass us just dropping off, so wont go there again. :(
I feel that the resorts are making up for the free dining by charging much higher prices. 10.00 for a chicken dinner? 2.00 for 1 oz. of cereal? Cmon.
Dont get me wrong, I LOVE WDW and we are returning on a bounceback in December, but at that time I will bring more food and less clothes in the one suitcase the airline lets you carry on.
 
C

COProgressFan

Well-Known Member
CaptainMichael said:
And it's becoming more and more obvious. I just wish the "common guest" would start noticing and complaining.
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Very true. The problem is the common guest does tend to notice, but they're not likely to complain unless something goes really bad. But if the park is a little bit dirtier, the food more expensive, the lines a bit longer, the staff a bit surlier, they'll just chalk it up to "this place isn't quite as magical as they said it is" and perhaps not return. The suits at Disney don't seem to get this because it must be too hard to quantify in their surveys and spreadsheets.

CoP
 
C

CaptainMichael

Well-Known Member
COProgressFan said:
Very true. The problem is the common guest does tend to notice, but they're not likely to complain unless something goes really bad. But if the park is a little bit dirtier, the food more expensive, the lines a bit longer, the staff a bit surlier, they'll just chalk it up to "this place isn't quite as magical as they said it is" and perhaps not return. The suits at Disney don't seem to get this because it must be too hard to quantify in their surveys and spreadsheets.

CoP
Click to expand...

I'm thinking the closure of Space Mountain ought to prompt a few complaints.
 
SirGoofy

SirGoofy

Member
"Show trumps Efficiency"
"Show trumps Efficiency"
"Show trumps Efficiency"
"Show trumps Efficiency"
"Show trumps Efficiency"


Bravo to Mr. Yee for writing an article that I agree with.
 
EPCOT Explorer

EPCOT Explorer

New Member
SirGoofy said:
"Show trumps Efficiency"
"Show trumps Efficiency"
"Show trumps Efficiency"
"Show trumps Efficiency"
"Show trumps Efficiency"


Bravo to Mr. Yee for writing an article that I agree with.
Click to expand...

Indeed. I don't think it should trump efficiency though...It can deftly work with it though. They compliment each other.
 

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