Chapek's comments - he doesn't want anyone on this board at WDW any more

[Sirwalterraleigh]

Seven hells, the CFO was giving a financial variance explanation in a financial presentation to financial investors and analysts. She wasn't demeaning your value as a human being.

If I sell Apples and Bananas, and Bananas are more profitable than Apples, but one quarter I sell more Apples and fewer Bananas than last year, that's "unfavorable product mix."

…man…you’re gonna rock that 300 level course

 

[Jrb1979]

Building capacity costs money. You'd have to raise ticket prices to pay for it, and in doing so, end up reducing demand (and attendance anyway). Add the new attraction and the bump up in attendance gets you right back where you were.

I agree it costs money but not all attractions bump attendance equally. They need more C-ticket attractions to fill out AK, Epcot and DHS to spread out the crowds.

 

[Sirwalterraleigh]

These parks are capacity hamstrung & its like the are afraid to adequately make them where it needs to be with the fear they may lose revenue on say Genie+_ etc... meanwhile i think it would only generate more money for them with happier guests & if they truly want the family trips to be limited to 5-6 days spending more money this would to me make it happen...

This is where Disney IS like any other company

They’re not “afraid” to increase capacity…they are refusing. Because they refuse the increase in overhead.

Wall Street would rather less cost than more money in principal…then they get greedy and ask for more anyway…it’s called “after lunch”

Right now…they could build out on two sides of all 4 Florida parks and they would increase spending, attendance and profit…

So why don’t they? They’re telling their leash handlers they can make just as much without added overhead.

Sorry to pull back the curtain on Oz

 

[Sirwalterraleigh]

I agree it costs money but not all attractions bump attendance equally. They need more C-ticket attractions to fill out AK, Epcot and DHS to spread out the crowds.

Correct…they’re failing on in park management and LOSING money because of it…

Yes…that’s not a typo. Better flow leads to more spending…across the board.

Disney figured this out over 40 years of research. What did walt say? I think it was “in the end…stupid people will lose us easy money”

Pretty sure I read that on a wall or statue once?

 

[Lilofan]

That starts right at the top. Which is probably what escapes you.

What starts at the top is their direction. It is their way or the highway.

 

[Jrb1979]

What starts at the top is their direction. It is their way or the highway.

There way hasn't been good for the parks. It's been good for D+ though.

 

[jloucks]

Seven hells, the CFO was giving a financial variance explanation in a financial presentation to financial investors and analysts. She wasn't demeaning your value as a human being.

If I sell Apples and Bananas, and Bananas are more profitable than Apples, but one quarter I sell more Apples and fewer Bananas than last year, that's "unfavorable product mix."

Tell that to the Bannana. Banana... Ban... however the heck you spell banannaa.

 

[Lilofan]

There way hasn't been good for the parks. It's been good for D+ though.

Sure seems that way. Some of the gym rats I workout with have been coming less to the gym and spending more time watching the idiot box and D+.

 

[jloucks]

What they’ve been doing for two years is retraining their customer base to pay more for everything, while trimming overhead to increase yield.

Not hard here, kids

There has to be a max to that training tho? right? I mean, money is finite for most people.

...which goes back to my point. They should target the people whos resources are not as finite. Not the masses with tight limits.

 

[jloucks]

This is where Disney IS like any other company

They’re not “afraid” to increase capacity…they are refusing. Because they refuse the increase in overhead.

Wall Street would rather less cost than more money in principal…then they get greedy and ask for more anyway…it’s called “after lunch”

Right now…they could build out on two sides of all 4 Florida parks and they would increase spending, attendance and profit…

So why don’t they? They’re telling their leash handlers they can make just as much without added overhead.

Sorry to pull back the curtain on Oz

Which is weird, because the profit increase with additional supply should be linear? Like, more profit should = desirable, even with more overhead.

 

[Sirwalterraleigh]

There has to be a max to that training tho? right? I mean, money is finite for most people.

...which goes back to my point. They should target the people whos resources are not as finite. Not the masses with tight limits.

Well that’s our “dilemma” here on the boards, isn’t it?

We are looking for common sense and for a limit to “level the waters”…
But it’s not looking good for anyone round here.

Over on DIS the problem is Doc. Period.

Just thought I’d throw that in too.

 

[Jrb1979]

There has to be a max to that training tho? right? I mean, money is finite for most people.

...which goes back to my point. They should target the people whos resources are not as finite. Not the masses with tight limits.

Most of those people aren't interested in theme parks. So good luck with that.

 

[Sirwalterraleigh]

Which is weird, because the profit increase with additional supply should be linear? Like, more profit should = desirable, even with more overhead.

Well i talked to a dude once who studied Disney at work and he said they have problems with caps on vacation time/windows, park cannibalization, diminishing return, longterm benefit and labor increases, etc etc…


…or something like that.

The point is Disney fears “saturation” of their market in Florida…the “sponge” being full and money pouring back out of it.

 

[Sirwalterraleigh]

Most of those people aren't interested in theme parks. So good luck with that.

Correct. Nor are they prone to repetition unless they own it outright.

This is what Praets get wrong when they repeat the “they’re luxury now”

They don’t stop to look around when they’re there and make the link to the natural limitations of that product. They’re just proud of themselves.

 

[jloucks]

Most of those people aren't interested in theme parks. So good luck with that.

True, but you don't need that many of them.

...and I suspect you would be surprised how many of those people go to the park.

...maybe we are talking about different people. I am not talking about the 1%'ers. More like the 20%'ers.

 

[Marijil]

Can you imagine Walt uttering this garbage

 

[crazy4disney]

This is where Disney IS like any other company

They’re not “afraid” to increase capacity…they are refusing. Because they refuse the increase in overhead.

Wall Street would rather less cost than more money in principal…then they get greedy and ask for more anyway…it’s called “after lunch”

Right now…they could build out on two sides of all 4 Florida parks and they would increase spending, attendance and profit…

So why don’t they? They’re telling their leash handlers they can make just as much without added overhead.

Sorry to pull back the curtain on Oz

I totally get ALL of that b ut what boggles my mind is this.. especially now that they have proof people will pay for ILL these newer rides literally pay for themselves... wasnt that part of Walt's deal during the World's Fair? Either way i dont know how this is not a simple thing for them to understand and execute

 

[CaptainAmerica]

Which is weird, because the profit increase with additional supply should be linear? Like, more profit should = desirable, even with more overhead.

Demand isn't infinite, nor is it stagnant. Having piles of extra capacity on hand TODAY would be making them more money, because the demand is there to fill it. But it magnifies the risk in the event of something like COVID or 9/11 or a recession.

 

[Sirwalterraleigh]

I totally get ALL of that b ut what boggles my mind is this.. especially now that they have proof people will pay for ILL these newer rides literally pay for themselves... wasnt that part of Walt's deal during the World's Fair? Either way i dont know how this is not a simple thing for them to understand and execute

The thing is the profits…aren’t made of ride tickets or passes or lighting lanes…

It’s made of merchandise…the vast lions share. It’s a pretty simple thing if you see through the smoke.

That stuff is usually just overhead coverage. So are they really “paying for themselves”?

I’d debate that one. At least as far as how much that matters.

 

[jloucks]

Demand isn't infinite, nor is it stagnant. Having piles of extra capacity on hand TODAY would be making them more money, because the demand is there to fill it. But it magnifies the risk in the event of something like COVID or 9/11 or a recession.

Oh, good point, I never even thought about the risk of increased capacity!