Bad News for Late 2010 Discounts
Uh-oh, this sort of contradicts my last post (eek)... just thought I'd share this story I just read on Bloomberg...
Disney to Curb Park Discounts as Economy Recovers (Update1)
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By Andy Fixmer
Dec. 9 (Bloomberg) --
Walt Disney Co. expects to offer fewer discounts at U.S. theme parks in 2010 as the economy improves, according to Chief Executive Officer
Robert Iger.
The world’s biggest theme-park operator has already reduced discounts from a year ago, Iger said today at a UBS AG investor conference in New York. Disney added promotions in November 2008 to attract visitors during the credit crunch.
“We will be able to continue to dial that back over the latter part of 2010,” Iger said, referring to discounts on hotel rooms, food and merchandise. “We are not making these commitments yet until we see the marketplace conditions.”
After previous recessions, Disney has scaled back the promotions, Iger said. Since last year, the company has offered free hotel nights and discounts on food and merchandise. The parks unit has
reported four straight quarters of lower revenue and profit compared with year-ago periods.
Last month, Disney announced that Chief Financial Officer
Tom Staggs and
Jay Rasulo, head of the company’s parks, will swap positions in a move designed to bolster the experience of both executives. The switch takes effect at year end.
Disney, based in Burbank, California, rose 2 cents to $30.70 at 4:15 p.m. in New York Stock Exchange composite
trading. The shares have gained 35 percent this year.