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

[Mike S]

And Uni, in soft opening of HP at Universal Hollywood with an opening set for April 7th (already showcased in ads for visit California), with the opening of a 5th hotel in the near future, an amazing looking water park and the recent acquisition of an additional 435 acres, is laughing....

The list goes further but the point is made. Yup.

 

[LAKid53]

My fear isn't for star wars, but everything else that was supposedly attached to the DHS redo. The extra phase beyond toy story playland.

You still have to be concerned about stock price if aspects of a major publicized expansion are scaled back due to cost overruns else where. Because then investors and their advisors will start to question the competency of management.

 

[LAKid53]

Well when you pay your executives primarily in Stock, they become fixated on the Wall Street boys and that stock price.

This is simply a byproduct of that mentality.

Yup. Sadly.

 

[LAKid53]

Tokyo Disney also has the advantage of being in a country that LOVES Disney and all things cute....I can't say the same for Paris or possibly HK or Shanghai

Yup, how else do you explain Hello Kitty...

 

[prberk]

Well when you pay your executives primarily in Stock, they become fixated on the Wall Street boys and that stock price.

This is simply a byproduct of that mentality.

You know, that concept (of stock ownership gives incentive to make decisions best for the company) normally has a lot of merit. But that assumes a long-term strategy among management and stockholders in general. These days the great volatility of media stocks (and stocks in general) has exacerbated a problem that already existed: too many people, including stockholders and managers/owners looking too short into the term.

Stock ownership should ALWAYS be a long-term investment (with perhaps RARE exception). But these days even the big stockholders seem to have forgotten that.

 

[raven]

Are you bragging about the cuts?

No. Just quoting some people on here who always think Disney can do no wrong.

 

[Sped2424]

You still have to be concerned about stock price if aspects of a major publicized expansion are scaled back due to cost overruns else where. Because then investors and their advisors will start to question the competency of management.

The thing is Star Wars land is too far along for them to fumble it up. They have as you said to much stacked against them to ruin it.So I think that will be executed just fine, it's the rest I am worried about because they haven't announced anything. I think the gen pop wouldn't question star wars and toy story being the only things coming because Disney hasn't really stated what the 5 year plan is for hollywood. That gives them the freedom to slash it up beyond those two aspects as much as they want.

 

[Zummi Gummi]

And Uni, in soft opening of HP at Universal Hollywood with an opening set for April 7th (already showcased in ads for visit California), with the opening of a 5th hotel in the near future, an amazing looking water park and the recent acquisition of an additional 435 acres, is laughing....

Don't forget the King Kong attraction.

Or the fact that they built an entirely new land (Diagon Alley) from the ground up in less time than it took Disney Springs to build a parking structure.

But yes, you're 100% right.

 

[Andrew C]

No. Just quoting some people on here who always think Disney can do no wrong.

Fair enough.

 

[LAKid53]

You know, that concept (of stock ownership gives incentive to make decisions best for the company) normally has a lot of merit. But that assumes a long-term strategy among management and stockholders in general. These days the great volatility of media stocks (and stocks in general) has exacerbated a problem that already existed: too many people, including stockholders and managers/owners looking too short into the term.

Stock ownership should ALWAYS be a long-term investment (with perhaps RARE exception). But these days even the big stockholders seem to have forgotten that.

THIS. Investment 101. Until you sell it, it's only a paper loss. But you are correct. A few pennies decline in stock value for such a branded entity as Disney can cause ripples throughout the company and shareholders. And it shouldn't.

 

[hopemax]

And that would cause the Wall Street boys to devalue what Iger and the BOD care about..... You cannot make a splashy announcement about a new land tied to one of the most profitable franchises, crow about the receipts from the latest installment of that franchise, hype to death an upcoming TV special about said new land and then scale back or scrap that new land without the market guys making you pay where it hurts.....

But 3 or 6 months after the splashy land opens, can you start making Ops cuts like the ones we're talking about in the rest of the thread?

 

[PhotoDave219]

Yup, how else do you explain Hello Kitty...

I'm envisioning every fanboi and lifestyler parading around in Hello Kitty garb now....

 

[FigmentPigments]

This is one of those small details that make a visit memorable. The Disney Difference. Even though in most big cities they have these curb side greeters....even at your most mid priced hotels. That's hysterical...you pull up to a $400 a night hotel and no one is there to open the door for you while you schlep your luggage.

I know what you mean. I remember I was visiting the Saratoga Springs resort, (not even staying there, just a quick look around), and there was a curb side greeter dressed in finery. He held open the door for me, wished me a magical day, and gave me a Mickey sticker. At the time I thought, "This is the place to stay." I still remember this even 2 years later. I have to admit the thought of someone like that not being there is a little disheartening, like a little bit of the Disney touch is being lost.

 

[LAKid53]

But 3 or 6 months after the splashy land opens, can you start making Ops cuts like the ones we're talking about in the rest of the thread?

Can you? Yes. Should you? Maybe. Depends on who you are going to listen to. Your customer or the market boys. My bet is on the boys on Wall Street. Unless and until WDW sees a serious decline in attendance, TWDC is going to listen to them. Because Wall Street is factoring increases in attendance into share value. Even if the experience is diminished by a lack of attractions, overcrowding, and lower level of service. We are an economy based on consumption. And as long as there are enough consumers of the Disney brand, including many on this forum, I doubt what has been announced will have a serious impact on EPS.

 

[prberk]

THIS. Investment 101. Until you sell it, it's only a paper loss. But you are correct. A few pennies decline in stock value for such a branded entity as Disney can cause ripples throughout the company and shareholders. And it shouldn't.

I know that it is not technically about stocks, but this kind of reminds me of the end of "The Walt Disney Story" (movie that was behind the attraction that sat in town square theatre on Main Street, USA, for so long)... when Walt starts to philosophize about 40 years in this business, and he even idealizes his brother, a postman who never had to worry every day about picture grosses, etc. The main thing I got from it was that, while Walt had to do a lot, and risk a lot, to get where he was, in the end it was a long-term approach, and he recognized the value sometimes of just going fishing and let things simmer for a while (even if he himself hardly got to do it).

Check out the whole video if you have not, but the part I am talking about most is at the very end, starting around 20:18 and following:

 

[GhostHost1000]

I wonder if the universal Comcast execs see all this and laughing their butts off?


...then again they have their own set of issues I guess

 

[Andrew C]

I wonder if the universal Comcast execs see all this and laughing their butts off?


...then again they have their own set of issues I guess

haha, yeah....they have their own worries for sure.

 

[rioriz]

I too remember when the Navi River Journey was on the chopping block or pushed back to Phase two...what a difference a year can make...

 

[asianway]

This is one of those small details that make a visit memorable. The Disney Difference. Even though in most big cities they have these curb side greeters....even at your most mid priced hotels. That's hysterical...you pull up to a $400 a night hotel and no one is there to open the door for you while you schlep your luggage.

Disney is below Hampton Inn standards so why not?

 

[asianway]

Except most shareholders meetings are tightly scripted and you're not going to get in unless you actually own a share....

So $90 and enough brains to get past a screener? I guess not all of us can get over that hurdle...