ford91exploder
Resident Curmudgeon
Right. In 2010 when hotel occupancy was 82%, domestic P&R operating margin was 14.6%.
In 2016 when hotel occupancy was 89%, domestic P&R operating margin was 24.8%.
That 7% swing in occupancy was indicative of the health of Disney's Parks & Resorts segment.
Then we look at DLP, where occupancy was 75% in 2014 and operating loss was 5.1%.
HKDL had an occupancy of 79% in 2015, with an operating loss of 3.0%.
WDW does not have the same cost/rack-rate structure as DLP or HKDL. WDW should be able to realize a profit at 75% but it most likely would be down into the single digits. At 70%, WDW is losing money.
DL and Universal are different beasts. Their operating costs are less than WDW, which has to cover the cost of an extensive transportation network (including theme parks and Disney's Magical Express) within its room rates. In addition, DL runs 3 Deluxe Resorts with rack rates that are much higher than the average at WDW.
those 2016 numbers also reflect huge cuts in labor and amenities at the US parks driven by SDL's losses and cost overruns so I'm really not sure they are representative of a 'healthy' P&R segmevt