Attendence falls at WDW per lastest earnings release...

[lightning509s]

"lower hotel occupancy and attendance at Walt Disney World Resort and a decrease at Disney Cruise Line, partially offset by higher guest spending at our domestic resorts, primarily due to higher average ticket prices and increased attendance at Disneyland Resort."

Whats wrong with this picture??? Anyone???

Perhaps senior management will finally recognize that major changes to the way TDO operates should be reevaluated...

Link to entire earnings release:

http://www.businesswire.com/news/ho...isney-Company-Reports-Fourth-Quarter-Earnings

 

[Captain Hank]

I'm not terribly surprised. Discounts were lowered and not nearly as many people got in free this year, leading to lower attendance at WDW. At the same time, Disneyland opened World of Color--which has been a HUGE deal.

 

[fosse76]

Exactly. And when you raise prices, eliminate many discounts, and offer NOTHING new, who's going to want to go? And with the new Harry Potter attraction nearby, a large percentage of guests will simply reduce the length of time they spend at Disney (but I this could be off-set by people who normally wouldn't have visted either now deciding to visit both).

 

[dreamfinder]

I'm not terribly surprised. Discounts were lowered and not nearly as many people got in free this year, leading to lower attendance at WDW. At the same time, Disneyland opened World of Color--which has been a HUGE deal.

This makes a fair amount of sense. If a family of 4 went last year because Johnie got in for free on his Birthday, but didn't go this year cause no one got in free, spending plummets.

 

[Testtrack321]

Real question is what is related to decreasing the discounts/freebies and what is related to Harry Potter.

Lets just hope whatever it is it'll finally push some new attractions and experiences through the pipeline to the parks.

 

[captainkidd]

As everyone else has said, no surprise at all. They're releasing fewer and fewer discounts, combined with the fact that when they do release discounts, it's at the last minute. I get that they want to fill hotel rooms up at rack rate then try and fill the rest last minute by offering discounts. At what point will they realize, most people aren't going to drop everything on a dime just because they release a discount, and head off on vacation?

 

[captainkidd]

Real question is what is related to decreasing the discounts/freebies and what is related to Harry Potter.

It has very little to do with Harry Potter. As others have said, if anything, Harry Potter is a boost to Disney as well. Not many people fly to Florida just to do Universal, and skip Disney.

 

[captainkidd]

Exactly. And when you raise prices, eliminate many discounts, and offer NOTHING new, who's going to want to go? And with the new Harry Potter attraction nearby, a large percentage of guests will simply reduce the length of time they spend at Disney (but I this could be off-set by people who normally wouldn't have visted either now deciding to visit both).

This is pretty much spot-on I'd say. Disney has been resting on it's laurels now quite some time. Not just in regards to the parks, but to the resorts (see Polynesian). They're charging an assanine amount of money to stay on-site. It was only a matter of time before it caught up to them.

 

[lightning509s]

Disney has been resting on it's laurels now quite some time. Not just in regards to the parks, but to the resorts (see Polynesian). They're charging an assanine amount of money to stay on-site. It was only a matter of time before it caught up to them.

Absolutely! If you read the entire Parks and resorts segment of the earnings release, all other Disney parks are either at or above in attendance to last year. This speaks volumes! WDW's value perception is waning badly and people are letting the company know with their $$$'s...

 

[Testtrack321]

It has very little to do with Harry Potter. As others have said, if anything, Harry Potter is a boost to Disney as well. Not many people fly to Florida just to do Universal, and skip Disney.

I completely understand that fact, I've never been a part of the whole "Universal gains at Disney's loss" situation.

 

[Eldon_Brasche]

This makes a fair amount of sense. If a family of 4 went last year because Johnie got in for free on his Birthday, but didn't go this year cause no one got in free, spending plummets.

I personally don't see getting in for free on my birthday as that big of a deal unless I was only planning to go for one day only. Think about it, the incremental cost for extra days more than offsets the cost of free attendance. If I'm planning to attend the parks for 5-7 days, I'm only going to see my ticket price decrease by less than $10.
Not a show stopper by any means.:shrug:

 

[Future Guy]

I doubt that the declines are enough to make management reevaluate the way they do things. Besides, attendance will surely rise once the FLE is completed, and then these declines will be forgotten. It'd take a major and sustained drop in attendance, unrelated to problems with the economy or a terrorist attack, to really give TDO a kick in its complacency.

 

[Vince3]

As far as the economy goes WDW is as blind as DC ! Maybe someone from the Tea Party should run TDO !

 

[lightning509s]

I doubt that the declines are enough to make management reevaluate the way they do things. Besides, attendance will surely rise once the FLE is completed, and then these declines will be forgotten. It'd take a major and sustained drop in attendance, unrelated to problems with the economy or a terrorist attack, to really give TDO a kick in its complacency.

Think about this: Attendance at WDW declined but Disneyland attendance surged.

"Parks and resorts revenue fell 1 percent as fewer people closed on Disney Vacation Club properties and domestic parks attendance fell 6 percent."

Let's look at this a little closer...Disneyland attendance surged and WDW attendance declined. Hmmm. If domestic park (Disneyland and WDW) attendance fell by 6%, wonder how much the actual decline at WDW was??? Must have been substantial to bring down the attendance #'s put up by Disneyland...Just point to ponder...

 

[rharvey78]

My family and I just returned from a week at WDW (Saratoga Springs, DVC members). Only spent 2 days in the parks because my son and daughter have got the 'done that, not again' blues. Universal did benefit at Disneys expense, at least with us. Wound up spending an extra day at the water parks, and lounging time at the resort. Both stated that next year, they would rather take a cruise. The parks are stale enough in their present shape to be losing loyal visitors.

 

[Jimmy Thick]

How can Disney be resting on their laurels when they offer an amazing product that few can offer?

Disney World is fine, it does not need massive renovations to spruce up a floundering park that Disneyland had. Disneyland needed help, they got it, people are going there to see the new stuff and then the recent bump in traffic will level out and drop down below Disney World where they belong.

People are just being more careful with their money taking smaller vacations or no vacations at all. If I had a limited budget and only a few days, I would hit Disneyland.

It has nothing to do with discounts, which are still out there, I get a discount codes every month, or the service, or the chipping paint, or the hat or the wand...


Jimmy Thick- Hot Dog dance anyone?

 

[powlessfamily4]

Just a couple thoughts.....
We have a plunging economies on a global level and historic unemployment domestically. Maybe some of those that no longer have jobs couldn't vacation this year.

Wait that is almost as bad as expecting new expensive attractions and rides to be built all the while complaining if ticket prices go up or discounts are eliminated.

 

[captainkidd]

How can Disney be resting on their laurels when they offer an amazing product that few can offer?

Not sure if you're being sarcastic or not, but if you really believe this, you haven't been to Disney (or stayed at one of the WDW resorts) lately.

 

[lightning509s]

Just a couple thoughts.....
We have a plunging economies on a global level and historic unemployment domestically. Maybe some of those that no longer have jobs couldn't vacation this year.

Wait that is almost as bad as expecting new expensive attractions and rides to be built all the while complaining if ticket prices go up or discounts are eliminated.

Some of you are looking at WDW through "rose colored glasses." You need to look at the larger picture pertaining to Parks and Resorts.

Here is another quote from the (just released) earnings statement.

"Higher operating income at our international resorts reflected increased attendance and guest spending at Hong Kong Disneyland Resort and Disneyland Paris."

Now why is WDW the only Park showing marked deceases??? The answer is there if you've spent any quality time at WDW over the past 10 years or so. The quality of WDW has diminished greatly and the offerings have become slimmer and slimmer. I'll take lights of Winter at Epcot as a good example and that's merely one of a hundred other items I could mention. The list of venues that WDW management has eliminated is overwhelming but that needs its own thread.

I firmly believe that repeat visitors just don't see the value at WDW that they once did. Most other posters here have already pointed that fact out.

 

[roadtripper]

If you read about this elsewhere it is stated that there was one less week this quarter compared to last year's quarter. That happens quite a bit in business and companies expect lower numbers due to this. Disney stated that taking the extra week into consideration they would have been up 1% in attendance.