Crowds are down? Curious about the claims . . .

[Disneyhead'71]

More about the mindset of management. You need a P&R VP and a WDW Prez who understands audience building beyond making yourself look good from quarter to quarter based on one-time upcharge events and festivals. Need management that understands that its the long game they're after and that requires continued reinvestments over marketing. You need guests to feel like they got their money's worth.

Accelerate the DHS projects, get Avatar done on time, and those would be good steps in the right direction. Reinforce frontline guest service. All of these would be good first steps.

The attractions will come online eventually. I am afraid Disney doesn't understand what happened. I think there are a lot of people in TDO are a lot like their fans in that they feel they can make no wrong decisions and if bad things happen, it is outside forces at play.

 

[ford91exploder]

Yes 1970's auto industry.

"Automobiles are an established industry with a large barrier to entry. We have no competition "

Sound familiar?

It does indeed...

 

[PhotoDave219]

The attractions will come online eventually. I am afraid Disney doesn't understand what happened. I think there are a lot of people in TDO are a lot like their fans in that they feel they can make no wrong decisions and if bad things happen, it is outside forces at play.

Well when you constantly put people into management whom have never worked outside of Disney, that's what you get...

 

[ford91exploder]

If only we could import Tokyo Disneyland as easily as I can drive my Honda.

If OLC bought WDW and DL we COULD have TDL and TDS quality, It's not the money P&R makes a boatload of cash it's that the money generated is not reinvested at the rate it should be at both places it's frittered away on crap like Maker Studios, Overpriced sports rights deals and stock repurchases It's not the ability its the WILL.

 

[ToTBellHop]

Not within recent memory without the events of 9/11 or the Housing bubble crunch. I cant think of where it organically dropped like this.



Its the result of the same things we've been saying for years: too much style, not enough substance. You can only alienate your core base of middle america so much before they decide that Disney is too expensive or not enough has changed for them to return. The guests won't always come.

The law of diminishing returns always comes faster than you think.

Disney will get thru this.... they're going to have to get their act together with their new offerings and in a hurry.

My hope is that they respond as you suggest instead of running around like their heads are chopped off, canceling projects. Granted, I have not heard of any capex cuts yet. Just further opex cuts. Not sure how much more they can cut though. 1/2 ply toilet paper (every other sheet is your hand)?

I am expecting Jungle Book to retire with a break in DAK nights til RoL is ready. Whenever that is. It's an easy cut with minimal effect of guests.

 

[ParentsOf4]

More about the mindset of management. You need a P&R VP and a WDW Prez who understands audience building beyond making yourself look good from quarter to quarter based on one-time upcharge events and festivals.

Not really. A new VP, WDW president, or even P&R Chairman won't change a thing.

Corporate Disney is a traditional top-down management organization. You need a company CEO who believes in the domestic theme parks.

 

[ford91exploder]

My hope is that they respond as you suggest instead of running around like their heads are chopped off, canceling projects. Granted, I have not heard of any capex cuts yet. Just further opex cuts. Not sure how much more they can cut though. 1/2 ply toilet paper (every other sheet is your hand)?

I am expecting Jungle Cruise to retire with a break in DAK nights til RoL is ready. Whenever that is. It's an easy cut with minimal effect of guests.

We all know what will happen the project cancellations will roll just like they did in 2008, DHS and at least one of the water parks will join River Country... Gods it's hard being a WDW fan recently.

 

[Brad Bishop]

Well when you constantly put people into management whom have never worked outside of Disney, that's what you get...

I think you meant to word it as:
"Do you want bad management? Because that's how you get bad management."

 

[PhotoDave219]

Not really. A new VP, WDW president, or even P&R Chairman won't change a thing.

Corporate Disney is a traditional top-down management organization. You need a company CEO who believes in the domestic theme parks.

..... As opposed as just a way to pay for foolish international expansions? Third time this has happened....

 

[Brad Bishop]

We all know what will happen the project cancellations will roll just like they did in 2008, DHS and at least one of the water parks will join River Country... Gods it's hard being a WDW fan recently.

I don't think DHS will be abandoned but I see them scaling back current projects and canceling future projects (think 1/2 Tomorrowland). My guess is that Pandora is far enough along that it won't see any cuts. TSL has already seen cutbacks and I expect SWL to see the same.

I think the DHS makeover is going to leave the same thought in our heads as NFL ("that was it?") but with less theming.

My guess is that if things get bad any changes to Epcot will be shelved and they'll continue it as an expensive festival park, because, you know, that always works..

 

[Brad Bishop]

..... As opposed as just a way to pay for foolish international expansions? Third time this has happened....

The really odd thing is that WDW ought to Disney's Crown Jewel. The parks at WDW should be the premier parks of the entire Disney Parks chain. They're not, though. It's their cash stash. At least that's what they use it for.

 

[SorcererMC]

and I expect SWL to see the same.

 

[squidward]

We were at Universal all week. It was very slow on the 4th, but business as usual the rest of the week.

 

[wdwmagic]

We all know what will happen the project cancellations will roll just like they did in 2008, DHS and at least one of the water parks will join River Country... Gods it's hard being a WDW fan recently.

There is zero chance of any of that happening.

 

[Tavernacle12]

I don't think DHS will be abandoned but I see them scaling back current projects and canceling future projects (think 1/2 Tomorrowland). My guess is that Pandora is far enough along that it won't see any cuts. TSL has already seen cutbacks and I expect SWL to see the same.

They'd be stupid to cut from Star Wars Land, it's what they need to boost attendance. I can see them scaling back some scenery or interactive elements around the land, but those rides are conceivably the most important thing Disney has under construction right now... or almost under construction. Maybe sorta almost under construction? They're under construction at Land I think.

I would imagine there'll be a bounce back later on in the year assuming nothing else goes wrong, or at least a bounce back to levels that aren't alarming. Hopefully they don't overreact and start cutting even more.

 

[ToTBellHop]

There is zero chance of any of that happening.

Most of what I would expect at this point are further operational cuts. They threatened us with reduced hours this summer and then backed down. I wouldn't be surprised to see them stick come September.

 

[ctrlaltdel]

I would think SWL would be as immune as anything to cuts. I feel like Disney knows how important it is they get SWL right.

 

[donsullivan]

I would think SWL would be as immune as anything to cuts. I feel like Disney knows how important it is they get SWL right.

All of those announced projects are funded with capital dollars that are already allocated and approved and are typically unaffected by stuff like the lower attendance numbers we've seen recently. Lowered attendance has the potential to result in shortened operating hours and other similar operating impacts to adjust operating expenses to the reduced revenues of lower guest counts.

 

[SorcererMC]

They'd be stupid to cut from Star Wars Land, it's what they need to boost attendance. I can see them scaling back some scenery or interactive elements around the land, but those rides are conceivably the most important thing Disney has under construction right now... or almost under construction. Maybe sorta almost under construction? They're under construction at Land I think.

I would imagine there'll be a bounce back later on in the year assuming nothing else goes wrong, or at least a bounce back to levels that aren't alarming. Hopefully they don't overreact and start cutting even more.

Thank you for articulating this in a realistic way....I would take SWL over what they are planning w/ GotG at Epcot anyday. My .02.

I think there is potential for rebound the holiday season as well....the next 3-4 mo. though is a different story. I don't want them to 'throw the baby out with the bathwater' in the meantime.

 

[ANJ]

Most businesses operate on the knowledge that not everyone is willing to pay the price offered, and as such they 'want less paying customers'. It only becomes a concern if they are not profit-maximizing and revenue is falling.

I understand the premise, that isn't the context of the conversation. IMO that isn't the reason the crowds are down. There is a whole confluence of circumstances that are the cause. Back to your premise, although I fully understand what you are saying I happen to disagree . Yes a company knows full well there will be some people who will be priced out but that doesn't mean that they don't want their business full of customers who can afford their services. At the current price structure that Disney has installed do you not think they want the place packed? Disney doesn't want less customers they just want customers to pay more. Now I do agree it always comes down to profit or PGS. As long as they show a profit they will not care what the attendance is. But that's very different from saying they want less customers.