Disney Parks: Has Efficiency Replaced Guest Service in Strategic Importance?

[Lee]

Lee: I hear that statement a lot. What did you think of the old Disney’s Dream Maker™ package?

Maybe I should start a thread on this topic.

Eh...never used it, never really looked into it.
But, I do know it didn't have the same negative effects, such as on walk-up dining, that DDP has had.

Really, I'm just against anything of the sort. Want to eat at a restaurant? Get an advanced seating a couple days before, or on the day.
I have no tolerance for advanced reservations six months out...or even six weeks out, really. Really has a negative impact on folks who just make spur of the moment trips or weekend getaways.
Not to mention the effect it has had on prices and menus....but I'll leave all that to the dining experts.

 

[MousDad]

In many cases management's bonus payout is directly related to how much money they save out of their allotted budgets, including maintenance. Therefore, in the interest of keeping costs down, preventive maintenance has given way to reactive fixing, causing guests to experience more instances of attractions in less than totally show-ready condition. (Remember, light bulbs used to be replaced at 80% of their expected life, preventing guests from ever seeing a burned out bulb.) Efficiency over show. Ugh.:hurl:

This is more like embezzlement over show.

 

[ClemsonTigger]

Yes, and Disney's market niche is better service than other theme parks. If they let service decline very much in attempting to cut short-term costs, they'll lose that reputation, and will then have to cut costs more and more to compete with the Universals, Busch Gardens and even Six Flags. Going very far down the cost-cutting road carries enormous risks.

You are part right, but I believe you missed alternate approaches to reconciliation.

Yes, if service declines due to short-term cost cuts, you may get diminished reputation. But while you may continue cuts further reducing reputation in that spiral, you may also respond by seeing the negative impact and reconciling to address improving reputation.

Many of us seem to forget that this is an ongoing review and adjustment process, not necessarily choosing one path and following it to the bitter end.

 

[Computer Magic]

Eh...never used it, never really looked into it.
But, I do know it didn't have the same negative effects, such as on walk-up dining, that DDP has had.

Really, I'm just against anything of the sort. Want to eat at a restaurant? Get an advanced seating a couple days before, or on the day.
I have no tolerance for advanced reservations six months out...or even six weeks out, really. Really has a negative impact on folks who just make spur of the moment trips or weekend getaways.
Not to mention the effect it has had on prices and menus....but I'll leave all that to the dining experts.

It didn't have the same negative and I'm trying to understand why? Maybe because Disney has leaned too far on effeciency on the change. The former plan allowed selections for tours, dining and special merchandise. So every "magic wish" wasn't spent on dining.

Coming from Chicago, I like to know I have a place to dine when I arrive. If Disney wants to change to 30 days, fine, we are all on equal grounds in getting an ADR. Disney can also hold a number a seats for that day if so locals can get in. I think it is a difference of planners and spontaneous type people.

What Disney isn't doing and it applies to this topic is balancing the two. Something for everybody. Disney has leaned towards efficiency as stated above. Disney needs to find that balance. I agree the menu selection and prices are big issues. But remember it is Disney forcing guests into this method.

 

[MousDad]

Despite their original announcement of 450 Florida layoffs, TWDC has announced today that they really laid of 900, in addition to cutting 500 opening positions.

I'm sorry, but 1400 lost jobs can't be good for the guest experience, no matter how they try to spin it.

Are we trimming the fat here or chopping all the meat off the bone?

 

[WDWFigment]

I have to wonder if Yee has ever been remotely involved in running a business and if he has I wonder how well he did as a whole. You simply can not run a business based on guest satisfaction alone. It sounds great on paper to do so but it rarely works in practice. Efficiency simply has to be a part of the equation.

My first couple of years in college I managed a quick lube, which is a business where guest service and efficiency are paramount. I could have kept a dozen mechanics on the clock at all times and had ever single car in and out in 2 minutes. My guest satisfaction numbers would be through the roof and my profit margin would be in the toilet. On the flip side I could have had only 2 mechanics on the clock and made more money per car but I would loose all my business because people would not be willing to wait. You have to strike a balance between service and efficiency. The trick is to find that balance.

I read Kevin's articles, and often wonder where he comes up with his logic. I agree that the way the parks are run now isn't correct. However, you cannot run the park on magic. You have to have efficiency and have to come up with ways to produce a profit. Disney is a publicly traded company which relies on its shareholders. If those shareholders aren't making money, then the company is going to be in a lot of trouble.

I think that Disney needs to look back and see how they can incorporate guest service more in to their algorithms. I also think that things of the past would now be hard to justify (such as 1am closings throughout the summer).

I don't think either of these statements are inconsistent with his article:

The same goes for maximizing efficiency to such an extent that guest experience is compromised. Disney still indoctrinates new hires with the "Four Keys to Our Success": Safety, Courtesy, Show, Efficiency… in that order. I could make a good argument that a short line at an attraction is good show and good courtesy. Certainly the reverse, a very long line at an attraction, could mean maximizing efficiency at the expense of courtesy. Take the argument to its extremes: you could run Space Mountain on a crew of three or four, probably, but lines would be three or four hours long. That's efficient, all right, but it's bloody bad show and courtesy. I'm aware that the opposite extreme is equally ludicrous: a crew of 75 people working one ride is inefficient. But surely the golden mean must be somewhere in the middle, not near one end of the spectrum (the end close to "ultra-efficient"). Yet that end of the spectrum is exactly where Jay is taking the company.

I have to say, it's one of the first Yee articles with which I agree (I don't know enough about the nuts and bolts of the company to know if it's truly Rasolu's fault; I get the impression it is from folks around here, but who knows what's true).

I think it's also important to note that there is a difference between short term efficiency and long term efficiency and profitability. "Show" is certainly a viable business strategy, in my mind. While it is often at-odds with short term efficiency, in the long term, "show" is one thing that sets the Disney parks apart from other theme parks, and "show" is what draws people back, bringing in more and more money for the company. While it may be a quicker buck to cut the "fat/show" for the company's shareholders, ultimately, I believe it will be harmful to the bottom line in the long term. I would hazard a guess that a lot of us are here, discussing WDW, because we really love the "show" behind the Walt Disney Parks. How many people are here because they admire the Disney Parks "efficieny"? (I'm sure there are a few business/economics fans who actually are, but my guess would be the "show" fans far outnumber the efficiency fans).

There are several hugely popular internet fan sites dedicated to the Walt Disney Parks. How many are there dedicated to Cedar Point? Six Flags? I don't really wonder why. What I do wonder is whether Disney Parks will have the same fervent fans in 10-15 years, or if it the fan community will have disappeared, with only a historical discussion of how great things "used to be."

 

[Computer Magic]

I don't think either of these statements are inconsistent with his article:



I have to say, it's one of the first Yee articles with which I agree (I don't know enough about the nuts and bolts of the company to know if it's truly Rasolu's fault; I get the impression it is from folks around here, but who knows what's true).

I think it's also important to note that there is a difference between short term efficiency and long term efficiency and profitability. "Show" is certainly a viable business strategy, in my mind. While it is often at-odds with short term efficiency, in the long term, "show" is one thing that sets the Disney parks apart from other theme parks, and "show" is what draws people back, bringing in more and more money for the company. While it may be a quicker buck to cut the "fat/show" for the company's shareholders, ultimately, I believe it will be harmful to the bottom line in the long term. I would hazard a guess that a lot of us are here, discussing WDW, because we really love the "show" behind the Walt Disney Parks. How many people are here because they admire the Disney Parks "efficieny"? (I'm sure there are a few business/economics fans who actually are, but my guess would be the "show" fans far outnumber the efficiency fans).

There are several hugely popular internet fan sites dedicated to the Walt Disney Parks. How many are there dedicated to Cedar Point? Six Flags? I don't really wonder why. What I do wonder is whether Disney Parks will have the same fervent fans in 10-15 years, or if it the fan community will have disappeared, with only a historical discussion of how great things "used to be."

During college in the early 90's, Disney was discussed in my Marketing class. Disney was never discussed in economics.

 

[WDWLOVER1957]

Good news! You'll be saving a lot of money on your next trip!:lol:

saved a lot at xmas, not a lot to buy very disapointing

 

[Bluewaves]

All in all you need to be efficient in order to stay in business, so some cutbacks here and there aren't a bad thing, personally if the company wants to make more money, #1 Dining Plan needs to go away #2 Dining Locations need to be brought back to a good quality and need quality staff in the kitchen and as wait staff. # 3 Give me something I'd actually want to buy in the parks like good quality merchandise not the same junk I can find at Wally world for a quarter of the price. Last time I was in the world I couldn't even find a decent quality plush to get for my step daughter, it was exactly the same stuff that walmart has.

Time to go back to being unique and standing apart, no McDonald's, no cheap rides, good quality stuff I can't find anywhere else and experience's that I can't have any were else and find the safest, courteous and most efficient way to operate them for an excellent show.