Cuts coming to every area of parks and resorts - thanks to Shanghai and Paris

[PhilharMagician]

I disagree, Iger is not trying to cut and chop the major investments. He is the reason, along with Staggs, we are having major investments. Taking a major investment from Blue Sky to actual attraction is a natural process every major attraction goes through dating back to Walt and even prior to him. This is far from Cut and Chop. Examples of not cutting.... Under them Hyperion Wharf became Disney Springs, and Princess Meet and Greets became the 7 Dwarfs Mine Coaster and the Original World of Color, at Igers urging, had the theme song completely reworked from the original version which was more like the actual TV series, in which you still heard in the first few opening bars of the show.

The reason their is all this investment in WDW is the competition down the street which has been on a serious run of park improvements. These improvements and additions have all been the Disney quality of old.

Those project have also had budget cuts and theming removed. Every time we see a projects press release and concept art it is almost a guarantee that not all will come true.

I am in no way complaining that Bob Iger did something wrong for the shareholders. He and his minions are doing their job and cutting as much fat out as they can. It is all about profit. Unfortunately it always seems that WDW it the one resort that takes the brunt of the cuts. The most profitable resort and visited by the most blind group of guests in all of the Disney parks who see no bad.

I am very curios to see how deep these cuts go.

 

[Brad Bishop]

In this day and age, I wonder why anyone is shocked when these cuts get made.

This is not Walts company anymore.

It will never have anything to do with Walt ever again.

Disney owes you nothing, yet you owe them a hundred bucks to enter their nirvana.

Once people figure that out, instead of writing emails that will never get read, maybe real change can happen.

Especially when the parks are having record attendance...

Jimmy Thick- Happy, like the song.

I really think that this is true. I don't think emails and phone calls will make much difference. You may has well tweet out #FixWDW. I think that the only real difference will be made when the current crush of people dies off and fewer people return because of the cost and condition of the parks. People will pay a premium and even be happy about it if they see value returned for it. It's like going to a fine restaurant where the chef actually comes out to chat with you and, while you may be a few $hundred lighter, you're thinking, "Wow - that was an awesome experience." Conversely, paying all of that money and feeling like you're in a Chili's is actually worse than being in a Chili's. Now you're just soured to it. You feel ripped off.

I don't think they're there, yet. I just think that you're far better off having people feel like they got value and an amazing experience for the premium they paid (which is what they're selling) than for them to feel like, "Yeah, it wasn't all that I thought it'd be..." - that won't keep them from coming back.

I think what the bean counters don't realize (not just Disney) is that what they offer today affects them for years to come. If you cheapen your product today then you may have a few years before people, in mass, really catch onto it. After that, though, it's REALLY tough to convince those same people to come back.

 

[AMartin767]

I hope that they do not allow any cuts to the planned projects for AK and HS. Especially the Star Wars expansion. If Disney cuts any corners, ANY corners or short-changes on any details that make the Star Wars experience anything less than spectacular, they will not recover from the the backlash. It will be the end, sadly. This is truly do or die for the parks. If they fall short, they will continue to decline steadily beyond the point of no return.

 

[AMartin767]

https://www.washingtonpost.com/news...ke-disney-world-left-the-middle-class-behind/

Though I agree with most of the precepts put forth in this article, I think it's important to note that the trend I see first hand is that of the people who CAN afford it that are slowly siphoning off to spend their money elsewhere.

 

[ford91exploder]

Also, I wonder (fear) if any of this cutbacks will impact planned capital projects? @ParentsOf4 has mentioned that spending in the domestic parks is finally increasing to pre-Iger levels and there are plans for much needed and overdue improvements to the domestic parks -- it would be tragic to see those budgets cut or abandoned.

It's only a matter of time before the capital expansions get cut as well when these cuts don't work.

These are not the actions of a healthy company, I'd say the countdown to failure of the TWDC begins now.

 

[Rteetz]

I don't know if this was mentioned or not but the site that shall not be named, said that only one showing of fantasmic, and one nightly run of MSEP are also part of the cuts. Rather than having them run twice during busy times they only run once.

 

[ToTBellHop]

I don't know if this was mentioned or not but the site that shall not be named, said that only one showing of fantasmic, and one nightly run of MSEP are also part of the cuts. Rather than having them run twice during busy times they only run once.

That should go over well during Spring Break and this summer. They are going to create a dangerous crowd control issue in the MK after spending tens of millions to improve guest flow.

 

[asianway]

"Most" might be the word that allows the statement to pass because it certainly wasn't always the case, although the park was designed with later hours for WS in mind. For any of us lucky enough to be there from the start, we always wondered why they listed both sections of the park separately because from 1982 until sometime in the park's second decade (around 93 or 94, perhaps) the park was always run with everything opened the same hours. Indeed, in slow months like September that meant EC would 'only' be open from 9-8 daily. But it also meant that in April or July you would see 8-midnight daily. Of course, back in those days they actually had these things to do called attractions, so it wasn't all about walking around looking at shuttered facilities while waiting for a lunch or dinner reservation while drinking.

But it was not until George Kalogridis took over as EPCOT VP in 1995 that the staggered hours became a permanent fixture of operations, This I know for a fact, from the man himself and being around the operation. Even when the holidays came like Christmas week, they might do a FW schedule of 8-8 and a WS of 10-10, but they staggered them.

I don't even think that is an issue anymore(although I do recall plenty of angry folks when they first started opening WS at 11 a.m. -- and briefly post 9/11 at noon). The issue is then staggering everything in the park and appearing like WDW, one of the most profitable entertainment ventures in the world, is about to go out of business.

I wish folks would stop making excuses for corporations behaving badly, but I realize that in the 21st century it is the American thing to do.

This would be a great year to carpet bomb the weatherman with tough questions at the share holders meeting, ya think?

 

[deeevo]

Since we are Passholders and locals (St. Pete) this should not effect us BUT if I begin to sense the magic is going away and my experience is not what is once was then I will walk away. I love Disney and the parks as much as anyone here. I grew up in them. It is my stress relief from working long hours. Once I go over I leave it all behind. But I can ALMOST accomplish the same thing by packing up the car and heading south to Naples or Sanibel for the weekend and come out a lot cheaper. I will throw hundred dollar bills at WDW all day long but as soon as I notice a change I'm out. Not sure they care though.

 

[wdisney9000]

Cutting costs is not equal to charging more for less. And, you really have to look at the big picture in running a business. Cost cutting in the short term could be a strategic decision if it helps the company remain profitable and in business for the long term (to use a very broad brush). Plus, as long as attendance continues to climb, I don't see these changes are being made at the expense of loyal guests. When attendance drops because of decisions, then you have a valid case. Until then...

I'm guessing that each of us has our opinions and we are not going to change each other's minds through a debate on this forum. But, I appreciate the opportunity to swap opinions with you.

Not disagreeing with you there, but you made a good point. -"Cost cutting in the short term could be a strategic decision if it helps the company remain profitable and in business for the long term" . Disney would remain profitable and very much in business for the long term even without these cuts.

My problem is more that they prefer to claim these 'cuts' as profits towards the bottom line when presenting numbers to the BOD. To me, thats a good way to hinder growth. It would not be so bad if this were a rare occurrence, but theyve been doing it since NGE's inception and now theyre creating somewhat of a bubble with continuing to bleed in Shanghai and cutting service in the profitable domestic parks.

 

[noidwork]

It's not just Shanghai and Paris causing problems, but apparently Hong Kong as well. Lost $19.2 million last year due to attendance falling from 7.5 million down to 6.8 million.

http://variety.com/2016/biz/asia/hong-kong-disneyland-in-loss-1201706466/

 

[tissandtully]

I can see transportation budget getting slashed. I parked at DHS Saturday morning and hopped on a nearly empty bus at 9 a.m. to MK, it was so nice and definitely the best way to get to MK. Seems too good to stick around like that, or any of the park to park buses anymore.

 

[Horizons1]

Disneyland Paris was Einser's tribute to himself as Shanghai Disneyland is Iger's tribute to himself. Hmmm...

 

[The Mom]

"Most" might be the word that allows the statement to pass because it certainly wasn't always the case, although the park was designed with later hours for WS in mind. For any of us lucky enough to be there from the start, we always wondered why they listed both sections of the park separately because from 1982 until sometime in the park's second decade (around 93 or 94, perhaps) the park was always run with everything opened the same hours. Indeed, in slow months like September that meant EC would 'only' be open from 9-8 daily. But it also meant that in April or July you would see 8-midnight daily. Of course, back in those days they actually had these things to do called attractions, so it wasn't all about walking around looking at shuttered facilities while waiting for a lunch or dinner reservation while drinking.

But it was not until George Kalogridis took over as EPCOT VP in 1995 that the staggered hours became a permanent fixture of operations, This I know for a fact, from the man himself and being around the operation. Even when the holidays came like Christmas week, they might do a FW schedule of 8-8 and a WS of 10-10, but they staggered them.

I don't even think that is an issue anymore(although I do recall plenty of angry folks when they first started opening WS at 11 a.m. -- and briefly post 9/11 at noon). The issue is then staggering everything in the park and appearing like WDW, one of the most profitable entertainment ventures in the world, is about to go out of business.

I wish folks would stop making excuses for corporations behaving badly, but I realize that in the 21st century it is the American thing to do.

I was there, and knew that if I bypassed Future World (where guests were lining up for the attractions) and went directly to WS, I could have a leisurely stroll around the pavilions without any crowds. We have multiple photos of my daughter with costumed characters - not a meet and greet, but actually sitting with them on a bench - that date from that time. We even had a private breakfast with " colonial" Mickey because we were the only ones in the QS restaurant at the American Pavilion. The characters wandered around, rather than only being seen on their way to or at a character meal, or scheduled meet and greet.

But, I suppose it was too expensive to pay CMs to be working when there were very few guests in an area. And many of today's guests don't know how to behave around costumed characters.

 

[G00fyDad]

My two cents....

I am by no means an expert in these matters, but it seems to me. in my lay observations, that building a Disney park in other countries was a very bad move from the start. Let me explain before pitchforks start coming out. Disney is an American tradition. As such it has done very, very well.... in the USA. Building a park in another country may have seemed like a good idea at the time, but the people in those countries do not have the same investment in the Disney brand as do people here in America. Maybe it has worn out it's welcome/newness/wow factor and is now seeing the decline in return visitors. After all, return visitors make the US parks very successful.

 

[marni1971]

(Btw, does anyone know if cost overruns at Pandora are also a contributing factor?)
.

Avatar land blowing its budget, mymagic blowing its budget, Shanghai blowing its budget.

But who's really to blame? And should blame lie in unrealistic budgets or budgets that are syphoned off into the historic hierarchy?

 

[disneyflush]

What kind of cuts are going to happen when profits and/or revenue goes flat for a quarter?

 

[Animaniac93-98]

Building a park in another country may have seemed like a good idea at the time, but the people in those countries do not have the same investment in the Disney brand as do people here in America.

Tokyo Disney proves otherwise on a daily basis.

 

[prberk]

The simple method of 'charge more for less' is hardly "strategic". Every kid who ever had a lemonade stand figured this out. But Im sure Disney had 15 MBA executives in a room for weeks to come up with this plan. Meanwhile, the Imagineers continue to waste paper designing what could actually produce profits instead of cost savings budget slashes. Yes, it is behaving badly and its at the expense of your loyal, high paying customer.

ETA: Id love to know what 30% of all the executive bonuses are compared to savings they will gain from all these cut backs. Or compared to the annual salary of 100 front line, low wage CM's.

Wouldn't you just love to see Bob Iger go on "Undercover Boss" and be trained as a custodial or foodservice or maintenance or customer service CR, and just see how their restrictions play out among the living?

In all seriousness, I would really like to see that. Maybe then they would understand the balance of it all, and the impact that these decisions have on the bread-and-butter of the company (customers and CMs on the front lines of a service business). Some hard decisions, for sure, are always necessary -- but at least when you can put a face (or several) to them, you are more likely to think twice before doing it.

 

[disneyflush]

Avatar land blowing its budget, mymagic blowing its budget, Shanghai blowing its budget.

But who's really to blame? And should blame lie in unrealistic budgets or budgets that are syphoned off into the historic hierarchy?

Its also much easier to control a budget when the applicable budget timeframe isn't stretched out 3 times longer than it should be just to lessen the blow on the annual numbers.