Crazy Tuesday at the Vacation Kingdom

[yankspy]

Recessions don't affect everybody, and those who aren't affected like to think everyone else is just making it up. Since the current recession started, over 5 MILLION jobs have been lost. 663,000 alone were lost in March. And these are based on unemployment claims. The number is most likely higher, since the government has no way of counting the unemployed who don't collect unemployment. But according to some people here, the Magic Kingdom is packed, so the recession is just in the minds of the 8.5% who have lost their jobs. People who can afford to go are going while it's cheap...you'd almost be a fool not to. And as has been stated, the Magic Kingdom's capacity is based on number of attractions, cast members, security, food, drink, and shops available. So a packed park doesn't necessarily mean there are any earth shattering records being broken. And with all the discounts, at MOST Disney might break even with last year...but they unlikely will make any profit gains.

What are you basing that statement on?

 

[WDW1974]

The rescession is still not even as bad as the one from the late 70's, we are no where near a depression.

I disagree. So do many experts. Hell, so does the UK prime minister.
People love trying to make comparisons to an era that no longer exists (believe me, I do with WDW all the time!)

In the 70s, we weren't a nation so divided between the very wealthy and the very not. We had a huge legit middle class. We manufactured things. We didn't off-shore jobs.

We didn't have vast amounts of people who were invisible when unemployment was counted because they either had given up looking for employment, were living off/with family, were consultant/contractors who were considered 'self employed', we didn't have people losing $80,000 a year white collar jobs picking up two shifts a week at Target or Starbucks etc ...

We didn't have mass foreclosures and people living in tent cities.

We didn't have banks and corporations becoming part of the government.

So, I don't really care what the media is feeding people ... this is a very bad period for most Americans ... even the ones who are busy defending the man all the time.

I'd love to say more, but Mom doesn't seem to like me so why bother?

I was in the fan store at a Ranger game in MSG a couple of days ago and people were spending like crazy. I had the same reaction as some of you, I was thinking isnt there a recession?

I saw huge crowds at Fort Lauderdale Beach over the weekend ... bars and cafes and hotels were/are packed.

You see how busy Disney (and all the O-Town parks) is ...

There are folks with money and credit who are spending it. That doesn't mean the country isn't in a world of hurt.

~Wonder how long this will last~

 

[WDW1974]

I should think that they would be happy to have a "very typical week" in terms of crowds when many businesses are not having typical weeks. Even with discounts and such I can't imagine that they are losing money on those people who are coming.

Losing money?

No. Disney isn't losing money on the people there.

But the amount of revenue ... of profit ... they are bringing it will still be way down when compared to last year.

Giving a majority of guests three free nights during peak season and selling merchandise at big discounts ... and having people buying less all will show the reality a bit more than people foaming over crowds that are pretty typical.

~Anyone Remember The WDW Easter Parade?~

 

[WDW1974]

Recessions don't affect everybody, and those who aren't affected like to think everyone else is just making it up. Since the current recession started, over 5 MILLION jobs have been lost. 663,000 alone were lost in March. And these are based on unemployment claims. The number is most likely higher, since the government has no way of counting the unemployed who don't collect unemployment. But according to some people here, the Magic Kingdom is packed, so the recession is just in the minds of the 8.5% who have lost their jobs. People who can afford to go are going while it's cheap...you'd almost be a fool not to. And as has been stated, the Magic Kingdom's capacity is based on number of attractions, cast members, security, food, drink, and shops available. So a packed park doesn't necessarily mean there are any earth shattering records being broken. And with all the discounts, at MOST Disney might break even with last year...but they unlikely will make any profit gains.

Personal Foul: 15 yards, No. 76, Fosse For Intelligent Posting.

~Fourth Down.~

 

[yankspy]

I disagree. So do many experts. Hell, so does the UK prime minister.
People love trying to make comparisons to an era that no longer exists (believe me, I do with WDW all the time!)

In the 70s, we weren't a nation so divided between the very wealthy and the very not. We had a huge legit middle class. We manufactured things. We didn't off-shore jobs.

We didn't have vast amounts of people who were invisible when unemployment was counted because they either had given up looking for employment, were living off/with family, were consultant/contractors who were considered 'self employed', we didn't have people losing $80,000 a year white collar jobs picking up two shifts a week at Target or Starbucks etc ...

We didn't have mass foreclosures and people living in tent cities.

We didn't have banks and corporations becoming part of the government.

So, I don't really care what the media is feeding people ... this is a very bad period for most Americans ... even the ones who are busy defending the man all the time.

I'd love to say more, but Mom doesn't seem to like me so why bother?



I saw huge crowds at Fort Lauderdale Beach over the weekend ... bars and cafes and hotels were/are packed.

You see how busy Disney (and all the O-Town parks) is ...

There are folks with money and credit who are spending it. That doesn't mean the country isn't in a world of hurt.

~Wonder how long this will last~

I should think that strong statements like that would be reserved for countries like Poland, 1939.

Losing money?

No. Disney isn't losing money on the people there.

But the amount of revenue ... of profit ... they are bringing it will still be way down when compared to last year.

Giving a majority of guests three free nights during peak season and selling merchandise at big discounts ... and having people buying less all will show the reality a bit more than people foaming over crowds that are pretty typical.

~Anyone Remember The WDW Easter Parade?~

But see that's it. They still may turn a profit. They should consider themselves lucky. You simply can't always assume that you are going to increase profits by insane margins every quarter, nor can you spend based on that assumption. It's a poor and dangerous practice. It just sort of makes me laugh how a company that turns a profit can somehow be viewed as being in trouble. (Not saying that you said that, just many others)

 

[marni1971]

I disagree. So do many experts. Hell, so does the UK prime minister.

Please don`t quote him as an example....
Please

 

[yankspy]

Personal Foul: 15 yards, No. 76, Fosse For Intelligent Posting.

~Fourth Down.~

Yet you seem to disagree with some of it.
Fosse says that they will unlikely make any profits, you say profits will be down but they will still make one. My basic point is that none of us knows what their balance sheet will look like at the end of the year.

 

[CBOMB]

Please don`t quote him as an example....
Please

....but the P.M. and our prez are best buds. The whole world loves both our countries now.

By the way have you all converted over to 115 VAC at 60 Hz. yet?

 

[Pumbas Nakasak]

....but the P.M. and our prez are best buds. The whole world loves both our countries now.

By the way have you all converted over to 115 VAC at 60 Hz. yet?

Nowt wrong with Gordon, its just the moaning Southern Shandy drinkers are having to wake up to the reality that the Scots have been running the place for years, its just the Blair didnt have the accent, or a cod gob.

As for the usual suspects, the talk of a recession is a little distraction from the rotating turnstiles at Disney that isnt actually happening. Things are tough but maybe people are weary of the media machines attempt to maintain an air of fear and decided to take advantage of deals. And lets face it in consumer driven economies we need consumers spending to get things moving.

 

[devoy1701]

....but the P.M. and our prez are best buds. The whole world loves both our countries now.

By the way have you all converted over to 115 VAC at 60 Hz. yet?

lets not forget that the first lady is now best buds with the French President's wife...

so glad everything is becoming right in the world.

btw, maybe we all should start rating who is and isn't posting intellegently...


ps. a few more:

 

[CBOMB]

Nowt wrong with Gordon, its just the moaning Southern Shandy drinkers are having to wake up to the reality that the Scots have been running the place for years, its just the Blair didnt have the accent, or a cod gob.

As for the usual suspects, the talk of a recession is a little distraction from the rotating turnstiles at Disney that isnt actually happening. Things are tough but maybe people are weary of the media machines attempt to maintain an air of fear and decided to take advantage of deals. And lets face it in consumer driven economies we need consumers spending to get things moving.

I believe you are on to something. What's going on at WDW definetly goes against everything the analyst have said. The 2nd quarter figures should be released soon. We should get a better picture of how the parks are actually fairing then.

I know attendance has to drop off after Easter it always does. I would really be curious about the per person spending during this time also.

 

[kc1296426]

I'm 100% sure that one of the big reasons why the MK was in Phase 4 on Tuesday was because of the cold, and people were avoiding the water parks.

 

[Glasgow]

I'm 100% sure that one of the big reasons why the MK was in Phase 4 on Tuesday was because of the cold, and people were avoiding the water parks.

I think this deserves another 15 yard penalty .. good point.

So, apparently big discounts + cold weather + yellow journalism = Phase 4??

 

[rooneymouse]

Well Jim Cramer says the recession is over so everything is fine now.

 

[fosse76]

Yet you seem to disagree with some of it.
Fosse says that they will unlikely make any profits, you say profits will be down but they will still make one. My basic point is that none of us knows what their balance sheet will look like at the end of the year.

With Disney covering 42% of many of its guests' vacations, add to that they offered value resorts at off-season rates to those who didn't participate in the 7 for 4 deal and very little in-park spending (on top of offering free dining in the fall, which most assuredly loses them money) I foresee very little opportunity for them to make much in the way of profits. Add to that the free admission on one's birthday (or a giftcard), which when added to all the other promos they have is starting look like a bad move, they really are in trouble. As I've stated in other threads, theme parks in general could essentially offer free admission and still be profitable, since the vast majority of their income comes from in-park spending. And, unlike other parks, Disney allows guests to bring in their own food. Perhaps the layoffs will tilt their bottom line in the profitability column...but that's a disingenuous way to make a profit.

They may make a profit, but it will be because of cost-cutting measures that eliminate necessary and unecessary expenditures...it won't be because of increased guest spending. Lool at their annual report. In all the notations about higher profits at the parks, they attribute every one of the increases to increased prices, not increased guest spending. There's a difference. If all of their resort profits came from increased prices, what's that going to do when they are only charging guests 58% of the "street" value of their trip?

 

[Pumbas Nakasak]

I was going to post something insightful and intelligent about fixed costs, capital expenditure and reduced revenue from discounts, but then I realised Im not that bothered, I cant realy be that arsed, besides those who have an agenda would just ignore it anyway, and unlike some I really am not a boring twat who likes the sound of my own drone with an inflated value of self worth.

Besides the shabby parks will be bankrupt by Christmas.

 

[CBOMB]

I was going to post something insightful and intelligent about fixed costs, capital expenditure and reduced revenue from discounts, but then I realised Im not that bothered, I cant realy be that arsed, besides those who have an agenda would just ignore it anyway, and unlike some I really am not a boring twat who likes the sound of my own drone with an inflated value of self worth.

Besides the shabby parks will be bankrupt by Christmas.

Not if they can pack'em with Brits on Holiday!

 

[Pumbas Nakasak]

Not if they can pack'em with Brits on Holiday!

Ahhh says Disney............I have a cunning plan