WDW during a Recession / Economic Downturn

[Club Cooloholic]

I predict the recession will hit WDW fully just as RoA has been filled in, everything on TSI demolished and the whole area is a giant dirt site.

At that point the Cars and Villains projects will be cancelled. And they’ll put up a fence and pretend everything’s just fine.

Maybe install some standard playground equipment, I always say they could use more playgrounds at the parks.

 

[Sirwalterraleigh]

It looks like you’re finally going to get the recession you’ve been predicting for years.

Oh I wouldn’t put much on that

The power brokers have literally forced Uncle Sam to invent/buy their way out of a couple in the last 15 years already…I seriously doubt they won’t insist it again

And we don’t know if a recession is even possible anymore? Because so many are saddled with huge expenses on credit that the whole ship could collapse at once…which we came within a day of in 2008 as is…

 

[Sirwalterraleigh]

Maybe install some standard playground equipment, I always say they could use more playgrounds at the parks.

And they specifically removed those over time

I don’t know why…but I’d bet the farm that “free range leisure” was deemed to hurt profits and labor allocation

 

[Disstevefan1]

My Disney fandom took a pause between young adulthood (late 90’s) until when I was done having kids (mid-2010’s) so I missed the post-9/11 and Great Recession eras of the parks. I understand from listening to podcasts like Disney Dish that it drastically affected things, such as completion of resorts and the rollout of DCA.

To those of you that lived through those eras, what sort of things have generally happened during those times?

For the last few years the US was in recession if you took the classic definition, the definition changed depending who you talked to if they did not want to consider the US was in recession.

That aside, recession DOES NOT EXIST for folks with money!

The folks with money will just go on with their lives.

More and more, the folks with money are the only ones who can afford to go to WDW anyway.

As we enter this golden age of the US there will be no recession / Economic downturn, even there was a "recession / Economic downturn" if the mainstream media can come up with a definition that fits, the folks with the money will just keep dong what they are doing and go to WDW and buy LLPPs

Its the folks with the tighter budgets, who are on the edge that will be affected, but these folks are being priced out by Disney "recession / Economic downturn" or not.

The coming months will be a good test of a "recession / Economic downturn" comparing WDW to Universal in Florida, now with EPIC and see if either is affected by the "recession / Economic downturn".

It will be interesting to watch.

 

["El Gran Magnifico"]

New cupcake and new refillable popcorn bucket. Works like a charm.

 

[Disstevefan1]

New cupcake and new refillable popcorn bucket. Works like a charm.

 

[nickys]

Maybe install some standard playground equipment, I always say they could use more playgrounds at the parks.

Legoland Windsor once had a children’s play area that had static diggers (excavators) where the kids, plus a lot of Dads in particular, could basically move sand from a pile in front of them into a large container for 3 minutes. After which, the containers tipped all the sand collected back into the pile for the next person.

It was hugely popular as you would expect!

 

[MickeyLuv'r]

That was when Disney started the "Buy 4/Get 3 Free" offer for hotels and packages. I think the offer opened in Fall of 2008. We booked it in November for travel in May. That was by far the best discount we've gotten in the last 25 years.

I had that offer plus for a short time it came with an extra $250 gift card. With a club level stay, the 4/3 included food. I seem to recall there was also a great deal that included the dining plan. Like a 4/3 offer that included the DDP?

As to OP, In early 2002 WDW was VERY empty, but they still kept the parks open long hours. So MK was open until midnight w/ EMH, or near midnight. In some ways it was great- I rode BTMRR one night over and over with no wait. After 17, I stopped counting, but still rode it for like another hour until the park closed. A small group of parkgoers were doing the same, and the CM's would let people stay on if nobody was waiting in your row. It spoiled me for waiting for it after that!

On the other hand, seeing the parks very empty was also a bit disturbing. I was glad when the parks saw an upswing for a few years.

 

[lazyboy97o]

For the last few years the US was in recession if you took the classic definition, the definition changed depending who you talked to if they did not want to consider the US was in recession.

 

[Sirwalterraleigh]

New cupcake and new refillable popcorn bucket. Works like a charm.

…magnets

 

[Disstevefan1]

I will repeat, there is no recession for folks with money. Those are the folks visiting WDW.

Lets see how the "recession" effects EPIC.

 

[Disstevefan1]

So the discussion of lumber and costs has to do with the people going through the gate…not the 5 guys currently sleeping behind the construction wall in dinoland

There are plenty of customers to go to WDW (not limited to families from Denver) that will go on a WDW vacation, open their wallets and buy LLPPs, food and merch in that order.

 

[Sirwalterraleigh]

That’ll really help with the housing supply crisis.

It’ll cost you both kidneys now

 

[Sirwalterraleigh]

There are plenty of customers to go to WDW (not limited to families from Denver) that will go on a WDW vacation, open their wallets and buy LLPPs, food and merch in that order.

As evidenced by falling attendance and shrinking margins…evidence is to the contrary

 

[Disstevefan1]

As evidenced by falling attendance and shrinking margins…evidence is to the contrary

I agree with 99 percent of your post. There is A LOT wrong with WDW.

That said, in my opinion -

Attendance for the sake of attendance is worthless and Disney is still requiring APs to make PPRs and APs have increased blackout days for these "low margin" visitors.

Per capita spending is where its at. I do not have the receipts in front of me, but I am sure that's going up?

I think revenues were up at the parks too when they factored in the hurricanes?

As for margins, things cost Disney more (Disney will blame you know who) and although Disney is constantly raising prices on everything that vastly outpaces inflation, yes margins of some things are lower.

Margins on LLMP, LLSP and the mother of all products LLPP are almost 100 percent profit margin.

Alcohol has very high margins and that is why we are seeing lounges popping up in the parks and resorts.

My point is, while YES I do not like what I see what is happening in WDW "my home park", there are plenty of folks still visiting WDW with plenty of MONEY and LLPPs are selling out.

Lets see what happens, but I think MK will retain their title as most visited park on earth in 2025 and probably 2026 despite EPIC.

 

[Lilofan]

Maybe install some standard playground equipment, I always say they could use more playgrounds at the parks.

Honey I shrunk the kids playground at MGM was a disgusting sweaty time for kids but luckily Studio Catering Co outdoor patio next door was where we can get ice cold beers.

 

[networkpro]

Honey I shrunk the kids playground at MGM was a disgusting sweaty time for kids but luckily Studio Catering Co outdoor patio next door was where we can get ice cold beers.

And the High Octane bar too!

 

[hopemax]

I was around for post 9/11. WDW immediately froze hiring, cut hours for employees, cut park hours, cut shows & entertainment, closed restaurants, closed French Quarter for 6 months and took a lot of buildings out of service elsewhere, eliminated early entry. And there were serious considerations to closing parks.

You can go back to old posts on the DIS and look from like October 2001 - Spring 2002. I mostly read the News & Rumors board, so that's a place to start, but there would be plenty on the main parks, resorts, and dining boards as well.

What I think is coming now is a combo of post 9/11 and Financial Crisis. I expect air travel to be heavily affected for multiple reasons, and layoffs within the educated class to be deep and long lasting, with economic spillover effects that sound like paranoia and insanity. Given how "lean" corporations, including Disney have optimized themselves into, there isn't going to be easy fat to cut.

 

[hopemax]

I will repeat, there is no recession for folks with money. Those are the folks visiting WDW.

Not this time. R&D folks, especially health / medical are certainly within the class of people who could afford WDW vacations, and they are the group hit in the first salvo. Also, take a look at what the import / export folks are having to maneuver around. Tech jobs were already under stress. This won't be a normal, cyclical recession where things don't bubble up to hit to folks in higher echelons. Much like people rob banks "because that's where the money is," the higher economic bands are being specifically targeted and will be ground zero in this one. A volcano erupting in the middle of Los Angeles, and not a national park, if you remember that movie.

 

[NickMaio]

In the event of a recession and further decline in WDW attendance, I expect them to respond in full force with an irresistable and never before heard of special offer:

AP magnets for everyone!

More like BOGO instead of free....