Andrew C
You know what's funny?
lucky son of a guns...
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News Disney plans to accelerate Parks investment to $60 billion over 10 years
- Thread starter CaptainAmerica
- Start date
mysto
Well-Known Member
Iger is obsessed with disappointing @Disstevefan1
obviously
I too am obsessed with this, so this is a confirmation bias, possibly. Or I have some kind of disorder.
BrianLo
Well-Known Member
Do you mean me? I tried to stay economic than political. The policy commentary was meant as framing that I don’t have an inherent reason to downplay.
I think the cost of project goods should be fair game. It’s just economic reality. Assuming it doesn’t cause everyone to argue the why.
Just as attendance data, tourism and inflation are all relevant. We can hopefully just stick to the facts and resist the urges to go elsewhere.
Tha Realest
Well-Known Member
Have you ever seen a UK offer this generous?
osian
Well-Known Member
As I demonstrated in the Disney+ offer thread, I think UK visitors pay far more for hotels than domestic visitors do. When the UK has an "offer", it takes the hotel price down to what you call rack rate. So with a free dining offer, it means UK pays 25% in excess of rack rate for the room but gets a dining package thrown in and £200 "discount". A bit more discount for a flight-inclusive package however, again, Disney marks up the flight prices from what you would pay with the airline directly. I did the maths once! Disney doesn't itemise the cost of the flight in the package but you can do a comparison by quoting for the package with and without the flight, and then find out what the same flight would cost from the airline.
Rosso11
Well-Known Member
Len I think I’m missing that 17% number on the spreadsheet. I’m seeing down 11.3 for March in total and 3.3 for the year. Where is the 17% number? I don’t want to speak for you but I think you meant Western Europe is down 17% in March. Not total international travel?
Andrew C
You know what's funny?
Aye. This is helpful. And interesting.
osian
Well-Known Member
This is quite a typical UK package, now that free dining (I assume this is a dining plan offer) has come back. Since 2020, it's been gift cards and dining/merchandise credit which, for me, was better value than free dining, so I'm annoyed that free dining has come back. But as I show above it's smoke and mirrors. We pay over the odds for the hotel room in the first place.
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Disstevefan1
Well-Known Member
Its important to note, in Disney's theme park business, they do not increase budgets. Projects will be "scope cut" to stay within the budget.
In Disney's movie business there is only an idea of a budget. They spend, spend, spend until they think they got a movie, release it, and hope for the best.
montyz81
Well-Known Member
We have a $60 billion investment planned over the next 10 years across all parks, which averages out to about $2.4 billion per year per park (12 parks in total, not including the two water parks or any resorts). Building Guardians of the Galaxy (GotG) cost approximately $500 million. This suggests that there is enough funding to create around four new rides each year at Walt Disney World (WDW) for the next decade. I mention this as a reference point to help understand the potential changes ahead. Of course, many variables could affect these estimates.
lazyboy97o
Well-Known Member
It’s important to note that this is not true.
The $60 billion is for "Parks and Experiences", not just the parks. So the money spread is even thinner when 3-4 new cruise ships clock in at $1.6 billion a piece. Plus new DVC builds, refurbs...
Disstevefan1
Well-Known Member
You're right, in Disney's movie business they try to stay within a budget, but most of the time they are forced to go over budget when test screenings force reshoots
As for theme park budgets, you are also probably right also, when you announce something 4 years in advance then change course, the budget is forced to change.
Disstevefan1
Well-Known Member
New DVCs and Cruise ships with a little left over for theme parks
Disstevefan1
Well-Known Member
On June 5, 2024, ABC news (owned by Disney) said:
"Disney is currently planning up to $17 billion of capital investments within the district in the next 10 to 20 years, with a commitment of $8 billion in the next 10 years,"
So I guess if we say the clock started in June of 2024, they are going to invest at least 8B in WDW in the next 9 years or so.
Lets see what we get for that 8B...
"Disney is currently planning up to $17 billion of capital investments within the district in the next 10 to 20 years, with a commitment of $8 billion in the next 10 years,"
So I guess if we say the clock started in June of 2024, they are going to invest at least 8B in WDW in the next 9 years or so.
Lets see what we get for that 8B...
Tha Realest
Well-Known Member
Goes back before that. Includes at least some of the EPCOT transformation, Tiana, and the Star Tours updates.
Disstevefan1
Well-Known Member
Oh boy, the clock is ticking!
BrianLo
Well-Known Member
Just want to say I agree with both of the points you are making. But we have these numbers already broken out for us by the company.
It’s 1.19B of new build capacity at WDW per year. 70% of 17B / 10 years.
The ships are eating 12B of the larger 60, but they also are 1.1 a piece for their Triton class and the new ones I suspect will be less as they shed 30% of their tonnage. 1.6 maybe is what Genting was originally spending on what became Adventure?
JAN J
Active Member
Since TWDC it's a publicly traded company, I don't think he can just come up with projects and announce them because of pressure. There could be legal repercussions if he outright lied.
(Actually, all CEOs are aware of that. Except Tesla's. He just comes up with stuff on the spot, hype the stock price, and since no one holds him to it, why not right?)
The reason why so many times they don't go forward? Who knows... The world has been pretty unstable in the past 10-15 years. So, if you need to justify budget cuts and project slashes with cash flow management, and stock prices won't detach from the market too much, you're saving yourself quite a bit of work.
And unlike markets that have very strong competition, theme parks are not something you just easily replace, so in the short term the business impact won't be too noticeable. Long term... they are more likely to show up.
