Sirwalterraleigh
Premium Member
That to me looks like a guy who will keep the attendance down to Maximize prices at first...no promos.Was it this?
"Michael Nathanson -- MoffettNathanson -- Analyst
Thanks. I have two. One is, I wonder, for Bob Chapek. How do you staff the parks in anticipation of an opening? What signals do you look for and what drives your optimization? Is it the number of basically the experience you want to have measure up to a park at full opening? So any type of signals, any type of history you have to staff up in anticipation of an opening. That's one.
And then two for Christine, in answering Ben's question you were helpful in giving us the impact from COVID. But then you guys furloughed employees in April. So how would that answer change furloughed employee world. So how much of the cost base becomes variable post the furloughs? So those are my questions."
Bob Chapek -- Chief Executive Officer
"Yeah, in terms of the signals we look for park opening, our hypothesis is because of pent-up demand that if we open up at something less than 50% of our standard capacity that we're probably not going to have trouble filling that. So whatever level we stage that out, whether it's 10%, 25% or 50% of typical crowds, that's what we'll be able to have at our park. Therefore we will staff accordingly to that type of level, whatever that level will be eventually.
In terms of optimization and sort of how we'll approach that, obviously labor is a huge component of our cost base and so that will slide with the attendance. And that's why I said when we're looking at the decisions for what that level would be inside the parks and what we're going to be targeting for, it's really looked at as a contribution to net contribution and profit as opposed to saying that we're going to sort of cover the entire [Technical Issues]. Therefore, that gives us the ability to make our decisions on a variable basis and keep as much of that cost structure variable as possible. Obviously, we'll practice a yield strategy overall just like we always have."
It’s up to the consumers to regulate what they pay in the new world...actually it always is...but they’re rarely “up” to it.