Chapek's comments - he doesn't want anyone on this board at WDW any more

[Sirwalterraleigh]

Demand isn't infinite, nor is it stagnant. Having piles of extra capacity on hand TODAY would be making them more money, because the demand is there to fill it. But it magnifies the risk in the event of something like COVID or 9/11 or a recession.

The lack of a predictable recession is what’s throwing all analysis of parks out of whack.

The issue is the current bad management doesn’t seem to understand that. They’re banking that nobody will ever lose money again. The house isn’t eager to cover that bet.

 

[crazy4disney]

The thing is the profits…aren’t made of ride tickets or passes or lighting lanes…

It’s made of merchandise…the vast lions share. It’s a pretty simple thing if you see through the smoke.

That stuff is usually just overhead coverage. So are they really “paying for themselves”?

I’d debate that one. At least as far as how much that matters.

Souvenir prices to me was the most glaring increase... now with that being said wouldmt a well executed ride/attraction generate merchandise sales that would fit right into what you are trying to say?

 

[Lilofan]

Can you imagine Walt uttering this garbage

Walt would be voted out if he kept sticking to his goal and quote

I don’t make movies to make money. I make money to make more movies.

This is a garbage quote to run a business.

 

[Sirwalterraleigh]

Walt Disney was a once-in-a-century creative genius. Bob Chapek has a lot of flaws, but not being Walt isn't one of them.

Walt Disney also would have bankrupted his company by 1975 and would have been yelling semi-bigoted slurs from his front lawn in his golden years…

His legacy is what it is because he smoked 24 hours a day and didn’t live all that long. Lilly and Diane lived comfortably because of it.

 

[Sirwalterraleigh]

Souvenir prices to me was the most glaring increase... now with that being said wouldmt a well executed ride/attraction generate merchandise sales that would fit right into what you are trying to say?

It’s not the prices…it’s the pitifully low cost they pay for it.

Why are there two parks in China? Anyone believe that “booming middle class” that they used to use as the official excuse?

They’re more like a “trade delegation”

 

[Jrb1979]

Walt would be voted out if he kept sticking to his goal and quote

I don’t make movies to make money. I make money to make more movies.

This is a garbage quote to run a business.

At least with Walt he knew who the parks were for. Lex Luthor has no clue.

 

[floydbeatle]

The problem is Disney parks are not a “luxury” product

They weren’t conceived, designed, or built to function as such…and the economics don’t work without mass attendance.

Agreed. I think people need to get away from calling Disney a luxury experience for wealthy people. At best it is a premium experience designed to appeal to the masses but is often perceived as overpriced. For it to be a luxury experience there would need to be a reduction in capacity to the immediate post-covid but pre-vaccine caps. When I went in August 2020 and rode Space Mountain 6 times in a row to the point of boredom is the capacity limits you need to have for a luxury experience. Then and only then would I say it is a place for the wealthy because at that point the wealthy will need to pay a ridiculous amount per day to make up for the lack of revenue. When I think of luxury, I think of the Four Seasons Private Jet experience that was then copied by Adventures by Disney. When you have to drop $200k per person for a private jet trip around the world that includes at a minimum a personal physician for all on board that is when IMO we hit luxury levels.

The problem with Disney is that it refuses to recognize that as much as it pains me to say, prices are still TOO LOW. As much as Chapek may say he wants the family that comes every 5 years, the prices are at a point where the premium experience is watered down for all. Disney needs to make a choice as to what segment it wants. Straddling multiple just doesn't work when it is the in-park experience that folks are basing their opinions as to how well their vacation went.

I would love more domestic parks, more capacity, more rides, lower prices, lower wait times, but that is not the reality we live in. Disney is a business with a current vision/long-term plan that may or may not be for everyone. It is infuriating to me, but what can I do about it except not go to the parks. Based on their rhetoric there's 5 more families willing to take my place.

 

[el_super]

Hence why all the attractions do not need to be e tickets as been discussed a mixture of everything… just look at both TSL & SWL. Both underbuilt w no real restaurant to sit down and eat…

The whole capacity conversation gets more complicated from here... lower tier attractions and dining capacity just keep adding costs and more costs, with no real net benefit. A guest might find a satisfying dining experience when a restaurant is at 50% of capacity, but you don't build restaurants with the goal of hitting 50% capacity. You have to find another means of controlling the crowds.

Likewise with attractions. It doesn't make sense to build a lower tier attraction, with no real options for marketing it, with the hope that demand isn't so much that it causes complaints. They could build more high-capacity theater shows in the parks, and in theory solve the capacity issues, but if people don't want to see them, and they end up sitting empty, they become too expensive to operate and provide no net benefit.

 

[crazy4disney]

It’s not the prices…it’s the pitifully low cost they pay for it.

Why are there two parks in China? Anyone believe that “booming middle class” that they used to use as the official excuse?

They’re more like a “trade delegation”

well not to get in trouble thats why i laugh when people get into a tizzy w some things but never once have an issue that Disney is in bed w China....

 

[Lilofan]

At least with Walt he knew who the parks were for. Lex Luthor has no clue.

Walt Knew the parks but could run it like a profitable business? , not a clue.

 

[Lilofan]

well not to get in trouble thats why i laugh when people get into a tizzy w some things but never once have an issue that Disney is in bed w China....

Our country is also in bed. Approx 70% of our meds come from there.

 

[Rickcat96]

The problem with Disney is that it refuses to recognize that as much as it pains me to say, prices are still TOO LOW. As much as Chapek may say he wants the family that comes every 5 years, the prices are at a point where the premium experience is watered down for all. Disney needs to make a choice as to what segment it wants. Straddling multiple just doesn't work when it is the in-park experience that folks are basing their opinions as to how well their vacation went.

I would love more domestic parks, more capacity, more rides, lower prices, lower wait times, but that is not the reality we live in. Disney is a business with a current vision/long-term plan that may or may not be for everyone. It is infuriating to me, but what can I do about it except not go to the parks. Based on their rhetoric there's 5 more families willing to take my place.

Disney is riding the wave to get as much as they can because the future is clouded. With the fall discount release-look at 2nd half of December, folks aren't really jumping on these discounts as fast as before.

The looming recession and just everyday living needs are far more important.

 

[Jrb1979]

Walt Knew the parks but could run it like a profitable business? , not a clue.

So. He had people to help him with that. Something Lex Luthor doesn't have. He desperately needs some one to show him how to run the parks.

 

[crazy4disney]

Our country is also in bed. Approx 70% of our meds come from there.

& i will say the same thing w society they get into a tizzy over certain things but turn a blind eye to china... i dont want to be banned from this chat like i was from the splash one so ill end my comments here.... hypocritical if you ask me or just a sense of fake outrage or a fomo with what is hot on social media at that present time

 

[monothingie]

Seven hells, the CFO was giving a financial variance explanation in a financial presentation to financial investors and analysts. She wasn't demeaning your value as a human being.

If I sell Apples and Bananas, and Bananas are more profitable than Apples, but one quarter I sell more Apples and fewer Bananas than last year, that's "unfavorable product mix."

Aren’t we talking about AP vs day tickets?

Tomatoes? Tomatoes?

 

[el_super]

So. He had people to help him with that. Something Lex Luthor doesn't have. He desperately needs some one to show him how to run the parks.

To be brutally honest, as someone who agrees a lot with what Chapek is saying, I don't think he really understands it either. Chapek still strikes me as the person who is just parroting key points from a report written for Iger, without really knowing or understanding the WHY behind it.

Nothing really wrong with that. I trust that all the senior leaders in the parks group know what needs to be done. Hopefully Chapek puts a lot of trust in them as well.

 

[Jrb1979]

To be brutally honest, as someone who agrees a lot with what Chapek is saying, I don't think he really understands it either. Chapek still strikes me as the person who is just parroting key points from a report written for Iger, without really knowing or understanding the WHY behind it.

Nothing really wrong with that. I trust that all the senior leaders in the parks group know what needs to be done. Hopefully Chapek puts a lot of trust in them as well.

Personally I would love the US become what the Asian parks. Not owned by Disney but they work with the owner.

 

[Cliff]

As consumers, we dont want to pay attention to the principles of "cause and effect". What do we want? We want park prices to be low so that they are easily affordable for most people to take part in. We want Pirates, Space Mountain, Mansion and Splash to all be 5 min "walk on" attractions with no lines.

We want parks cheap and we dont want them crowded. We think this because we dont join the two concepts together in our minds.

Extreme scenerio #1 = Parks are empty and price goes way down to lift demand. #2 Parks are full to capacity every day and prices are incredibly high.

Either way..."we" set the price of everything in Disney parks because "we" determine the demand amount for their supply.

Want to lower Disney prices...if we ALL dont go for a year, then yes...by next year prices would drop and deals would be offered everywhere.

"We" are the cause of this price problem...not Disney.

 

[mysto]

I don't usually agree with Bob, but, I do think AP prices were too low *relative* to day prices before covid.

Please don't hate me. I guess my evidence is the pre-covid weekend crowds.

They have raised AP prices and they are probably closer to being balanced with day prices. I don't see the company's actions on this one topic as being outrageous or leading to the park's demise.

 

[danlb_2000]

Maybe a better description is "disposable" product/experience
They weren't designed to be exclusive or luxury but neither are they designed to be a necessity.

As much as I don't like it, I can't argue with Disney charging as much as they can for their product. As you say, it's not a necessity, it's not like jacking up prices on food of rent.