Disney answers Universal with a massive theme park investment

MrPromey

Well-Known Member
If attendance truly is that great I doubt they will see a need. As long as the place is packed to the gills I don’t think they care at a high level.

Which is funny because traditionally, you'd assume the opposite, right?

If attendance is going up, they'd be wanting to expand and capitalize on that, giving room for it to keep expanding.

Instead it's been a corporate game of Tetris to figure out the most efficient way to pack more and more people into the same spaces to make more money without increasing costs and in some cases, probably reducing them.

Now, thanks to G+ and ILL, they now make more money when capacity is less so there is actual financial incentive to make the experience on the ground less enjoyable.

People have shown a complete willingness to buy into this.

A number of people on this very forum seem to actually be delighted by it.

Unless it gets bad enough that people stop going and it hurts them financially, I don't see any reason they'd change and I'm not sure even then, the correct message will make its way through to decision makers.

My hopes and dreams are all pinned to Epic Universe at this point because it feels like the only thing that really could work is embarrassing them and with management that seems to have little pride or shame in their operations anymore, that's going to take a lot. If Disney keeps trying to bill themselves as THE premium destination experience and someone just down the road has something large and noticeably better and keeps it better maintained, that might force their hand to improve in the next 10-15 years.

But for that, I think Universal would need build the entire park at Wizarding World standards and that feels like a tall order.
 
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Purduevian

Well-Known Member
Now, thanks to G+ and ILL, they actually make more money when capacity is less so there is actual financial incentive to make the experience on the ground less enjoyable.
I actually though ILL would incentivize Disney to make more crazy E ticket rides with high capacity.

Compare what they are making today on 7D vs RotR assuming 70% capacity goes to ILL vs standby

7D is priced at $10 and runs 1440 people per hour. Magic Kingdom is open tomorrow (party night tonight) from 9 to 11pm or 14 hours. 7D will make ~$141,120 a day from ILL or $10,080 per hour

RotR is priced at $17 and runs 1600 (?) people per hour. Hollywood studios is open today from 8:30am to 9pm or 12.5 hours. ROTR will make ~$238,000 a day from ILL or $19,040 per hour.

If Disney is willing to go back to 2 ILL per park and built a ride experience like ROTR in each park... It would pay for itself. Heck ROTR if it stayed at $17 it will make the following money (assuming 12.5 hours operating days)

1 day $238,000
1 week $1,666,000
30 days (~1 month) $7,140,000
1 year $86,870,000
^This is on top of whatever extra merchandise, park tickets, hotel bookings, ect get added by building a new attraction.
 

MrPromey

Well-Known Member
I actually though ILL would incentivize Disney to make more crazy E ticket rides with high capacity.

Compare what they are making today on 7D vs RotR assuming 70% capacity goes to ILL vs standby

7D is priced at $10 and runs 1440 people per hour. Magic Kingdom is open tomorrow (party night tonight) from 9 to 11pm or 14 hours. 7D will make ~$141,120 a day from ILL or $10,080 per hour

RotR is priced at $17 and runs 1600 (?) people per hour. Hollywood studios is open today from 8:30am to 9pm or 12.5 hours. ROTR will make ~$238,000 a day from ILL or $19,040 per hour.

If Disney is willing to go back to 2 ILL per park and built a ride experience like ROTR in each park... It would pay for itself. Heck ROTR if it stayed at $17 it will make the following money (assuming 12.5 hours operating days)

1 day $238,000
1 week $1,666,000
30 days (~1 month) $7,140,000
1 year $86,870,000
^This is on top of whatever extra merchandise, park tickets, hotel bookings, ect get added by building a new attraction.

Except it now takes them more than half a decade to design and build e-tickets, even ones that are more-or-less clones. Then, once open, a new half billion attraction will "pay for itself" in ILL in about six years, not accounting for cast and higher costs for maintenance/upkeep which will be forever-expenses (just think about the low reliability of rise)...

That doesn't sound like an awful proposition, really, but the return isn't nearly as quick or as simple as a new DVC tower.

Also, you're asking a current CEO (Chapek who didn't last three years and now Iger who isn't supposed to last another two) to spearhead major investment in something that won't turn the corner in the way your describing until long, long after thy're gone vs. just milking what they've got to high-heaven and pumping all that free money, today.

It shouldn't have to be an either/or but they've been working quite a while now towards a low hanging fruit business model for the parks and it seems after SWL, Guardians, and Tron, they think they're set for at least a decade with what they have to do.

... unless an external force disrupts their blue ocean.

Hopefully, if that happens, their response will be something better than the laughable "Potter Swatter", aka NFL.
 
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DonniePeverley

Well-Known Member
total nonsense. Igor straight up said they are going in austerity mode for now


Why does austerity only hit theme parks?

The movie division never appears to bear the brunt of austerity. Despite the movie division being far riskier, where as theme parks and their resorts are doing very well, especially when they invest.
 

Comped

Well-Known Member
Becauses austerity only hit theme parks?

The movie division never appears to bear the brunt of austerity. Despite the movie division being far riskier, where as theme parks and their resorts are doing very well, especially when they invest.
Because people keep going to the parks, particularly in Orlando, with very little updates or changes, and without much of an attendance dip to speak of. Unlike in the days before DVDs or the internet, Disney cannot get by on re-releasing their films into theaters every so often, which is essentially the equivalent. One is a much more constant revenue stream than the other, especially with movies having short shelf lives in wide release, except for the very biggest films..
 

lazyboy97o

Well-Known Member
I actually though ILL would incentivize Disney to make more crazy E ticket rides with high capacity.

Compare what they are making today on 7D vs RotR assuming 70% capacity goes to ILL vs standby

7D is priced at $10 and runs 1440 people per hour. Magic Kingdom is open tomorrow (party night tonight) from 9 to 11pm or 14 hours. 7D will make ~$141,120 a day from ILL or $10,080 per hour

RotR is priced at $17 and runs 1600 (?) people per hour. Hollywood studios is open today from 8:30am to 9pm or 12.5 hours. ROTR will make ~$238,000 a day from ILL or $19,040 per hour.

If Disney is willing to go back to 2 ILL per park and built a ride experience like ROTR in each park... It would pay for itself. Heck ROTR if it stayed at $17 it will make the following money (assuming 12.5 hours operating days)

1 day $238,000
1 week $1,666,000
30 days (~1 month) $7,140,000
1 year $86,870,000
^This is on top of whatever extra merchandise, park tickets, hotel bookings, ect get added by building a new attraction.
They didn’t switch attractions from Individual Lightning Late to Genie+ because they were just making way too much money.

Can a park actually support three, four or five up-charge attractions? So we’re probably look at adding one or maybe two up-charge attractions per park. The desire to sell more Individual Lightning Lanes will push a desire for higher capacity, but higher capacity comes with greater upfront costs and often greater ongoing costs. Those increases are not linear so you likely push back your break even on investment. Then on top of that there is just the problem of how Disney’s costs keep rising.
 

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