A Spirited Perfect Ten

[ParentsOf4]

It also should be mentioned that a portion of the increase in net income was driven by DVC sales, further driving home management's belief that DVC sales are a strong bottom line play:

Higher operating income at our domestic operations was due to increases in guest spending and volumes, partially offset by higher costs. Guest spending growth was primarily due to increases in average ticket prices at our theme parks and cruise line, increased food, beverage and merchandise spending and higher average hotel room rates. The increase in volumes was primarily due to attendance growth at Walt Disney World Resort and sales of vacation club units at Disney’s Polynesian Villas & Bungalows, partially offset by lower attendance at Disneyland Resort. Cost increases were due to labor and other cost inflation and higher pension and postretirement medical costs.

Disney is blowing smoke here. DVC sales are up. However, the "old" Villas at the Grand Floridian (VGF) actually outsold the Polynesian Villas & Bungalows (PVB) by a wide margin. (Sorry, I don't have the numbers in front of me.)

 

[realdizfan]

Not really if you understand that over half of the DLR attendance is AP’s and locals. It was well publicized within the local community that a lot of rides were down and why would locals go during this time when they knew all of what was coming in May. At various times during the last few months the following attractions were down:

Critter Country (the whole land that’s right DL shut down a whole land) which includes Splash and Winnie the Pooh.

Other attraction downtimes included Indy, HM, IASW, Matterhorn, Pan, the Castle was under tarps, and more. The weekend Fireworks show RDCT ended and was replaced with a very weak 5 minute show while they get the new show ready. RDCT was a draw by itself on weekends. DCA also had several refurnds including WOC.

I’m not saying this was all of it, but it’s not unreasonable to assume that the massive refurbs and people postponing their trips until May is what led to part of DL’s attendance shortfall, especially with locals who are informed.

I'm no expert (wait, I actually am), but Disneyland needed an adjustment in their attendance and per cap numbers. The parks have been bursting at the seams with cheap annual passholders that "drop by" for a few hours and contribute a fraction of the per capita spending of a typical guest. The sentiment with DLR is that it's "always full now" and there are lots of vacationers or locals that only visit once a year that don't want to deal with the parking mess or the annual passholder "gangs".
Disneyland finally realized that it's a fools errand to chase attendance goals with garbage annual passes that draw on the lowest spending people that visit the park. If you had a store that could only support 100 people an hour, yet there was massive demand from thousands of people each hour, would you focus on the cheap ones that barely spend a dime, or go after the more lucrative customers? Disneyland isn't a used car dealership trying to con low spending patrons into buying a cheap product in large numbers. Disneyland is a Porsche dealer with huge margins- they don't need to nor should they go for the bulk "value" segment of annual passholders.

 

[wm49rs]

Anyone else thinking our driving force is again gracing us with his presence?

I was seriously thinking that the style of posts seemed a bit familiar.

Ole Jimbo has two other sock puppet accounts already. Even he's not dumb enough to go for the trifecta....

 

[CaptainAmerica]

I see a lot of weeds and dandelions in that photo. Olaf should have laid down a pre emergent in the fall. Now its up to Weed-B-Gone to get it done.

Maybe Olaf has idiot neighbors who don't control their weeds so his lawn pays the price.

 

[Travel Junkie]

I can't wait for OLC to begin dumping fugly slurry all over the pathways and letting it rot for decades.
I also can't wait for "limited merchandise releases" that last for a few weeks and then return to the same generic/terrible crappy merchandise for much of the year.
I also can't wait for them to have the parks open from 9AM-10PM during the busy season when crowds dictate at least a midnight closing.
I'll be thrilled when they start shutting off a 90 minute long queue 90 minutes before park closing.
It'll be good times to see them running 7 or 8 cars too many on every single dark ride so I have to pause 4 or 5 show scenes from the end of the ride and sit there while each vehicle slowly loads.
And don't get me started on their crowd control during the night shows/parades- it's just plain ridiculous with almost no CM's directing traffic and gridlocked crowds everywhere with no attempt to try and alleviate any congestion.

- Things that occur every single day at Tokyo Disney Resort that people tend to overlook for some reason. Everybody has legitimate complaints about WDW, and Tokyo's Resort is better run, but in my several visits to the place I've noticed plenty of problems too. Like any other Disney park, Tokyo also loses a bit of it's luster once you've visited enough times to really start analyzing how the place operates and it's problems. Don't get me wrong, I adore Tokyo Disney and have never had a "bad" day at either of their parks, but they're not without fault- something I rarely see mentioned, if ever.

I'm super glad that they're re-doing their Fantasyland, because it was without doubt the worst looking Fantasyland by a large margin. Now they'll only have the (by far) worst looking/most outdated Tomorrowland in the chain.

In your several trips to Tokyo did you notice something about the trains. How the trains in Tokyo shut down around midnight? That's why they aren't open later and that's why they shut queue's down early. So their guests and employees that use the train (that's how most commute to TDR) can get home before they are stranded overnight. Would TDO care enough about their CM's to take such an action? I doubt it.

TDR is not perfect but before you criticize their practices you may want to look into why they do something. It could be a culture thing or it could be a logistical thing.

 

[wdisney9000]

Ole Jimbo has two other sock puppet accounts already. Even he's not dumb enough to go for the trifecta....

Perhaps your correct. This guys ego seems a bit more puffed up than Jims. Another self proclaimed expert though. For all I know he very well could be, but I believe any self respecting expert does not feel the need to continually exclaim his/her prowess.

 

[wm49rs]

Perhaps your correct. This guys ego seems a bit more puffed up than Jims. Another self proclaimed expert though. For all I know he very well could be, but I believe any self respecting expert does not feel the need to continually exclaim his/her prowess.

Or proclaim their greatness on an internet forum. Unless they have other motives for doing so....

 

[wdisney9000]

Or proclaim their greatness on an internet forum. Unless they have other motives for doing so....

The inevitable martyrdom will likely ensue at any moment.

 

[englanddg]

Perhaps your correct. This guys ego seems a bit more puffed up than Jims. Another self proclaimed expert though. For all I know he very well could be, but I believe any self respecting expert does not feel the need to continually exclaim his/her prowess.

So...the fact I drive one of these doesn't add to my "street cred"?

 

[GoofGoof]

Disney is blowing smoke here. DVC sales are up. However, the "old" Villas at the Grand Floridian (VGF) actually outsold the Polynesian Villas & Bungalows (PVB) by a wide margin. (Sorry, I don't have the numbers in front of me.)

I was about to post the same thing. GFV sales were higher than Poly sales this quarter. Since GFV is sold out they probably chose to highlight the property they are currently selling.

 

[wdisney9000]

Maybe Olaf has idiot neighbors who don't control their weeds so his lawn pays the price.

Im lucky that both my neighbors take good care of their lawn. We compete for 'yard of the month'. There nothing more enjoyable than cutting my grass and then sitting on the deck with a beer to stare at it. Im pretty lame

 

[ParentsOf4]

I was about to post the same thing. GFV sales were higher than Poly sales this quarter. Since GFV is sold out they probably chose to highlight the property they are currently selling.

It could be they simply wanted to highlight the newest DVC property. After all, Disney is comparing 2Q2014 results with 2Q2015 results. Y2Y, VGF sales were up (and certainly higher than PVB in Q2) but PVB sold 0 units in 2Q2014. Even 1 unit sold in 2Q2015 means infinite growth at PVB.

 

[PhotoDave219]

Florida yard work, I do not miss thee.

Yard work in New England be like:

Not quite today. Where I am, there's a bit of humidity.

 

[EPCOTCenterLover]

What really gets me is the notion that it should rival stuff like Splash Mountain or Indiana Jones Adventure. It's a Fantasyland dark ride. What do you believe Disney was intending to do with Little Mermaid? If you expected an E-ticket, then you're exactly the person I was referring to when I couldn't ever hope to take you seriously. I was under the impression that their goals were something along the lines of: Maintaining the classic Fantasyland style dark ride, but use upgraded projection effects and new style animatronics along with an omni-mover ride system to help with capacity. Honestly, other than perhaps Hunny Hunt at Tokyo, is there a better dark ride in Fantasyland around the globe? Spare me with the sub 3 minute "classics" that either use press board cutouts or static figures.

Fantasyland dark rides that are at or above Little Mermaid's level-
Not Winnie the Pooh
Not Snow White
Not Peter Pan (possibly DL's after the update but we'll see)
Not Alice in Wonderland
Not Mr Toad's Wild RIde
Not Storybookland
Not Casey Jr

I guess you could say Small World is, but I don't even know if that's a fair comparison. I love them as much as the next guy, but lets get real- Mermaid is far more cohesive and impressive in comparison. And the notion that DIsney/Guests were "unhappy with it's presentation" so it needed to be closed/refurbished and changed- good for them. They corrected their errors and turned a good ride into a great one. It's been "plussed" within the first few years instead of having to wait decades for a update like Peter Pan, Indy, Mansion, Pirates, Small World and all of the other major Disney e-tickets have received as of late. They just got those issues ironed out when the rides creator still had the authority to correct them, instead of waiting 40 some odd years to do so like it took for Haunted Mansion's hatbox ghost.

I agree that Mermaid is better than the existing dark rides in Fantasyland. But then, if it was to be on par with them and not an E Ticket it should have been housed in a similarly "smaller" style of presentation than in its grand exterior with a grand queue to match. To me, its' a bait and switch. Do I think everything has to be an Indy? Of course not. But Disney suits, imagineers, and advertising shouldn't position a smaller attraction to appear as something different than it is. Whether you take me seriously or not, well, that's your choice. I like to take most people as individuals to be respected and considered- even if I don't agree with them. Hopefully, you'll do the same.

 

[GoofGoof]

I imagine most of the attendance drop at DLR can be attributed to the preparations for the 60th. A lot and I mean a lot of attractions were down for refurb and the local audience in So Cal was aware of this and stayed away. I think you will see DLR attendance jump once the 60th festivities kick off.

This makes a lot of sense. I hope you are right and they recognize it.

It's not really surprising that there is a dip at DL...the DCA redux was bound to drive a spike that would not be sustained long term. But attendance still appears to be very good across the resort with heavy crowds most days, much heavier than 5-10 years ago (pre DCA redux and AP payment plan). The other thing that may by causing some dips is the increase in pricing with AP's not renewing and day guests not willing to pay $150+ for a parkhopper ticket.

Yes, Orlando needs some investment (Epcot, DHS) but Disneyland Park is in dire need of a new/fresh attraction(s). They've been using "enhancements" aka updated Alice, Peter Pan, Matterhorn & addition of the Hatbox Ghost to build excitement and lucky for them, they now have the ability to use these along with the 60th parade and fireworks to carry them for at least another 18-24 months. Maybe by that time we will see the start of something new, possibly Star Wars land.

Carsland opened in 2012. The letdown from the spike should have already happened. If attendance is down Jan-Mar 2015 vs Jan-Mar 2014 I don't think it's just a letdown from a spike. I agree that they do need to invest at DLR too.

 

[JediMasterMatt]

Second, for the i-Ride from Brogent, listed as the Panoramic Flight Simulator on the Vekoma website, forget it. The reason why we got the current Soarin' is that WDI back in the 90's did not want to deal with multiple loading levels.

Except that the leaked blueprints for the Pandora headlining attraction show exactly that - a multistory loading attraction with ramps taking guests up or down.

Some great numbers again from Disney's Parks & Resorts (P&R).

Let's start with the basics.

P&R revenue for the quarter is $3.8 billion, up a poor 5.6%, the lowest increase since the 2009/2010 recession. However, operating income was up an outstanding 23.9%, the best in 2 years. Overwhelmingly, this is being driven by what’s happening at WDW. Prices are up, attendance is up, and consumers want to vacation in Orlando. All great signs for WDW even if Disney’s International P&R operations continue to struggle.

Looking at the numbers WDW fans should care the most about:

• Domestic P&R Depreciation: $367 million
• Domestic P&R Capital Expenditures: $289 million

This is a much better trend than last quarter, where domestic P&R depreciation actually outpaced capex.

Internationally, Disney continues to invest in Shanghai as Disney reported another $416 million spent on International P&R capex, far outpacing International P&R depreciation. Combined P&R capex was a strong 20.8% of revenue for the quarter. Disney is investing in its theme parks but, right now, it’s mostly overseas.

Repeating what I wrote last quarter, domestic performance shows that WDW needs to build. It needs new attractions to handle increased demand. Pandora helps, a third theater at Soarin’ helps, another track at Toy Story Mania helps, but more is needed.

More is needed at Epcot besides a rethemed Maelstrom. There are pavilions with underutilized space. Unless you enjoy imbibing adult beverages, there’s less to do at today’s Epcot than there was years ago. As a bar, Epcot is doing great. As a theme park, Epcot is struggling.

The DHS redo can’t happen fast enough. There are large areas of the park that need major renovation.

Hopefully, Burbank recognizes that, with the right investment, there’s even more money to be made in Orlando.

Unfortunately, I fear these earnings will do nothing but further entrench that which is already in motion, or in Orlando's case - what is at rest. Newton's laws of motion at work.

DLR's gate is down slightly for the quarter, shouldn't be a surprise as both parks had significant sections, let alone attractions, offline and the promise of exciting new things the next quarter were just around the corner for the 60th. Not a surprise in the slightest that the gate is down for this period. It is about to go through the roof in a few weeks as the 60th kicks into gear and all those vacations that were delayed take place. From a purely reactionary to the Street approach, what a perfect under arm slow pitch this quarters earnings will be for the "bold" announcement in August of Star Wars land for Anaheim. No doubt in my mind at all that DLR's announcement is made at this point. The Street doesn't like spending money unless it's warranted and the decline in attendance is now the perfect opportunity to open the purse strings. Disney Parks will be applauded for the large capital outlay now.

For Orlando, I can't imagine this will be taken as anything more than confirmation to continue what is already working. Keep spend in check and watch the gates still spin.

I hate it as much as anyone and the truth hurts; but, why would they deviate from the present course in Orlando?

For a resort that used to have their foot on the gas, wistfully racing to embrace the future, they've gone to not only placing things on cruise control or coasting, to the equivalent of putting their foot on the brakes. Keep cutting expenses and services and all the while, attendance goes up.

The WDW fan it me hates it; but, you got to take your hats off to the sure bravery of continuing to steer the resort and its legacy straight on into the upcoming icebergs.

Eventually, there will come a time when the harvest will need to be reaped and history of what they've sown in Orlando in the last decade plus will cause guests to finally notice what has happened and the memory of what was once in the swamps will not match the reality of the product on display. WDW has the biggest case of the Emperor's New Clothes and it's hard for people to see what it has really become.

 

[gmajew]

What is Little Mermaids capacity per hour?

I feel the ride is way more popular then people think it is but I would assume that it is the same issue with Star Tours the wait is never really really bad but it has high hourly capacity making it a very popular ride.

 

[ParentsOf4]

Unfortunately, I fear these earnings will do nothing but further entrench that which is already in motion, or in Orlando's case - what is at rest. Newton's laws of motion at work.

This really comes down to management philosophy. Is it smart business to take your most successful product line for granted?

 

[wdisney9000]

What is Little Mermaids capacity per hour?

According to @realdizfan, the ride is absolute perfection so the hourly capacity numbers most likely fall under the Fibonacci Sequence

 

[LuvtheGoof]

Disney is blowing smoke here. DVC sales are up. However, the "old" Villas at the Grand Floridian (VGF) actually outsold the Polynesian Villas & Bungalows (PVB) by a wide margin. (Sorry, I don't have the numbers in front of me.)

For March - VGF - 129,116 points, for Poly - 75,649.