A Spirited Perfect Ten

[Disneyhead'71]

We are still a year away from Kong opening. I will bet you money that as the opening gets closer you will see a national media campaign. Just like you did for Diagon Alley. There is nothing opening this year, and they aren't hitting the national ad circuit too hard at this time.

 

[Funmeister]

We are still a year away from Kong opening. I will bet you money that as the opening gets closer you will see a national media campaign. Just like you did for Diagon Alley. There is nothing opening this year, and they aren't hitting the national ad circuit too hard at this time.

Will it only be confined to the "great white north?" LOL

 

[Quinnmac000]

Universal is playing the game right. Right now they constantly get underestimated to continuously surpass them.

Example, Transformers, Diagon Alley, even Minion Mayhem in California changed the entire success of the park. In the film division with F7 no one expected it to even hit the $1 billion mark or be so radically successful in China. I would not doubt Kong at all. If they build it, they will come.

 

[CaptainAmerica]

Which is why Transformers gave the park a 14% attendance boost. Right. Got it.

1. I already told you attendance is irrelevant. Pass holders have a disproportionate impact on attendance (going back to the point I made about the ride having impact on the LOCAL market but not beyond).

2. There's no possible way you can link Transformers as the cause of the growth. I think it's much more likely that we're still seeing Potter boom. I agree with your general premise that Universal is killing it, I just disagree with your diagnosis of the cause.

 

[ParentsOf4]

What about when Fast & Furious and the Marvel expansion open? Those could potentially be big earners as well.

Yes, new IPs at Universal could do well. Harry Potter is not the only popular IP.

However, there is a difference between doing well and the kind of gains Universal is reporting right now. The last 2 quarters have seen revenue gains of 29.9% and 33.7% by simply adding a land to a single theme park. These are the kinds of numbers typically associated with adding an entire amusement park. Remember, Universal operates more than just one theme park in Orlando. These revenue gains are for the entire business unit. By any objective measurement, Hogsmeade and Diagon Alley have proven to be home runs.

The pull-through revenue generated by Diagon Alley is just tremendous; one new land in Orlando is generating a ton of money across the entire resort. That why there was a 54.6% gain in operating cash flow for the quarter. Diagon Alley is generating additional income throughout the entire Universal Orlando Resort. Looking at Disney's numbers, I had to go all the way back to 1986 (when Eisner instituted a huge ticket price increase) to see that kind of gain (57.9%) in operating income.

Hopefully by now folks on these threads know that I prefer to talk in percentages. I could tell you I made $10K but that number cannot be evaluated unless I also tell you how much I invested. Percentages tell the story.

Universal might experience strong monetary gains with additions such as Fast & Furious or a Marvel expansion but with both IOA and USF now firing on all cylinders, I simply don't see the current growth continuing for more than another quarter.

IMO, a "knock your socks off" Star Wars themed land in Orlando could be a huge winner for Disney, perhaps not a 30% gain but a 20% revenue gain? I think so. Let's hope Disney has learned from Hogsmead, Diagon Alley, and it's own Cars Land that "doing it right" when adding a new land is how to improve business across an entire resort.

 

[Disneyhead'71]

1. I already told you attendance is irrelevant. Pass holders have a disproportionate impact on attendance (going back to the point I made about the ride having impact on the LOCAL market but not beyond).

2. There's no possible way you can link Transformers as the cause of the growth. I think it's much more likely that we're still seeing Potter boom. I agree with your general premise that Universal is killing it, I just disagree with your diagnosis of the cause.

Ummm, Transformers/Springfield opened 3 years after Potter, in a completely different park. When Transformers/Springfield opened, USF saw a 14% increase in attendance and a 26% increase in revenue. Not a bad year for them.

 

[GLaDOS]

1. I already told you attendance is irrelevant. Pass holders have a disproportionate impact on attendance (going back to the point I made about the ride having impact on the LOCAL market but not beyond).

2. There's no possible way you can link Transformers as the cause of the growth. I think it's much more likely that we're still seeing Potter boom. I agree with your general premise that Universal is killing it, I just disagree with your diagnosis of the cause.

Unless you have hard numbers to back up your idea that a 14% increase was due to Universal passholders coming more during the opening year of Transformers, I'll stick with the facts that they had a 14% increase the year it opened at USF (which had NO POTTER at the time) while IoA did not increase the same amount. Without facts your hypothesis looks more like twisting the numbers to fit your desired outcome.

 

[wdisney9000]

Walls are down around Sound Stage 1. Wasnt there a door and windows there before? from Twitter acct @Disnversal:

 

[ChrisM]

Walls are down around Sound Stage 1. from Twitter acct @Disnversal:

View attachment 91778

Behold my....blank wall....ye mighty, and despair!

 

[Quinnmac000]

I think I going to contribute to all of NFL's success to passholders because I don't see in the "Great White North" talking about it at all or Disney as a matter of fact...

No matter how you twist it rather it be locals or vacationers that had a huge increase of attendance in Uni parks whether its a repeat visitor or a one time guest.

 

[DDLand]

I didn't say anything about "the numbers." If @Funmeister can throw out anecdotal and nebulous comments about "marketing and sales buzz," then so can I. I get that the numbers are strong. I'm just sharing that in "my world," (northeasterners with children and HHI between $50K and $150K, i.e. Universal's core audience), I don't see that buzz.

I actually tend to agree with you here. As a person who lives several hundred miles away, I know how other people view Orlando Vacations. They're expensive and rare. I've seen no time where a brand new addition is what got them to come down and visit. Maybe with the exception of Harry Potter. That was an amazing addition.

Is the likes of New Fantasyland or Minion Mayhem enough for families to break a 5 year vacation cycle budget? I don't think so. The idea behind additions for the out of townners is to keep them on property longer, create good value, and to get them to spend more.

Heck, I doubt a new Disney/Universal Theme Park would even drive new vacations down there. People either just aren't aware of the new additions or can't afford to make trips on a whim.

 

[SJN1279]

With all the talk of Potter financials, we seem to be forgetting that Gringotts was the most overhyped, and disappointing attraction to open in O-Town this decade(with that Penguin Travesty at Sea World a close second).

 

[GLaDOS]

With all the talk of Potter financials, we seem to be forgetting that Gringotts was the most overhyped, and disappointing attraction to open in O-Town this decade(with that Penguin Travesty at Sea World a close second).

Another pretty lazy attempt at trolling from you. I expect better. But I understand how the numbers completely destroy all the preopening hate you were throwing at Diagon, so I understand you being thrown for a loop.

 

[Mike S]

Yes, new IPs at Universal could do well. Harry Potter is not the only popular IP.

However, there is a difference between doing well and the kind of gains Universal is reporting right now. The last 2 quarters have seen revenue gains of 29.9% and 33.7% by simply adding a land to a single theme park. These are the kinds of numbers typically associated with adding an entire amusement park. Remember, Universal operates more than just one theme park in Orlando. These revenue gains are for the entire business unit. By any objective measurement, Hogsmeade and Diagon Alley have proven to be home runs.

The pull-through revenue generated by Diagon Alley is just tremendous; one new land in Orlando is generating a ton of money across the entire resort. That why there was a 54.6% gain in operating cash flow for the quarter. Diagon Alley is generating additional income throughout the entire Universal Orlando Resort. Looking at Disney's numbers, I had to go all the way back to 1986 (when Eisner instituted a huge ticket price increase) to see that kind of gain (57.9%) in operating income.

Hopefully by now folks on these threads know that I prefer to talk in percentages. I could tell you I made $10K but that number cannot be evaluated unless I also tell you how much I invested. Percentages tell the story.

Universal might experience strong monetary gains with additions such as Fast & Furious or a Marvel expansion but with both IOA and USF now firing on all cylinders, I simply don't see the current growth continuing for more than another quarter.

IMO, a "knock your socks off" Star Wars themed land in Orlando could be a huge winner for Disney, perhaps not a 30% gain but a 20% revenue gain? I think so. Let's hope Disney has learned from Hogsmead, Diagon Alley, and it's own Cars Land that "doing it right" when adding a new land is how to improve business across an entire resort.

 

[CaptainAmerica]

Unless you have hard numbers to back up your idea that a 14% increase was due to Universal passholders coming more during the opening year of Transformers, I'll stick with the facts that they had a 14% increase the year it opened at USF (which had NO POTTER at the time) while IoA did not increase the same amount. Without facts your hypothesis looks more like twisting the numbers to fit your desired outcome.

I have no desired outcome. I'm not a Universal fan, nor am I a Potter fan. Why would someone who dislikes Universal and Potter be pushing an agenda about how amazing of a product Potter is and how well Universal is doing because of it?

Heck, I doubt a new Disney/Universal Theme Park would even drive new vacations down there. People either just aren't aware of the new additions or can't afford to make trips on a whim.

Which is why the whole "Disney versus Universal" thing is trumped up by the locals (many of whom are employees of one or the other).

 

[ABQ]

Walls are down around Sound Stage 1. Wasnt there a door and windows there before? from Twitter acct @Disnversal:

View attachment 91778

Yup, but the benches were not there previously.
https://twitter.com/ORLParkPass/status/594519427363790848

 

[Travel Junkie]

Unless you have hard numbers to back up your idea that a 14% increase was due to Universal passholders coming more during the opening year of Transformers, I'll stick with the facts that they had a 14% increase the year it opened at USF (which had NO POTTER at the time) while IoA did not increase the same amount. Without facts your hypothesis looks more like twisting the numbers to fit your desired outcome.

Just to add when Transformers opened in Hollywood attendance also bumped up 15% year over year. Clearly Transformers is a draw.

 

[BernardandBianca]

Now let me get this straight, I go in that direction and turn right at Hong Kong?

 

[stlphil]

Folks on these threads sometimes obsess over attendance but increases to revenue and operating income are what's important.

I can't imagine Kong performing like Transformers & Springfield but I was wrong about the performance of those 2 additions. No reason I can't be wrong again.

The 33.7% gain in Universal Theme Parks revenue is a number Disney hasn't seen since Epcot opened (42.1%), although they were in the ballpark when DHS and Typhoon Lagoon both opened in 1989 (27.1%).

This is it though. 2015 should be the last year we see these monster revenue gains from Universal until they open another theme park.

What's really impressive is the $93 million (54.6%) gain in operating cash flow for the quarter, suggesting Diagon Alley could pay for itself this year, an impressive period of maturity for an amusement park investment. Diagon Alley seemed to start off slow but Comcast has to be pleased with the gains over the last 2 quarters.

Since a lot of speculation is going on right now in this thread, let me throw out one more bit of it. If ever there was a "park" with unrealized potential it is Universal Hollywood. I predict that Potter opening there next year will be like a dam breaking for that park, with increases in both attendance and revenue much bigger than even what was seen in Florida.

 

[Quinnmac000]

I didn't know the Monorail goes to Universal now