Disneyland Paris declaring bankruptcy?

[George Lucas on a Bench]

I heard a rumor recently this would happen. Then, I saw this:

http://disneyandmore.blogspot.com/2014/10/dlp-announced-emergency-meeting-for.html

What's happening over there?

 

[lazyboy97o]

Bankruptcy would be a rather shrewd move, but one that if noticed could seriously backfire. Euro Disney SCA is controlled and operated by The Walt Disney Company, who is also now the sole entity holding their debt. The only reason I could see for involving courts is to get around shareholders of The Walt Disney Company who want 'their' money back, but they would probably be pretty annoyed that 'they' approved the bankruptcy that causes them tools 'their' money.

 

[tor29c]

Here's the latest from BBC News... http://www.bbc.com/news/business-29503360

 

[Ralphlaw]

It's a mammoth investment worth billions, but the return on that investment constantly disappoints. Who knows why? To me, it seemed to be a lot of frosting with very little cake underneath. Looks good. Should be fun. But where's the grandeur of Epcot, with things to be learned, foods to be tried, and experiences to behold?

The castle projection/fireworks show is incredible, the best anywhere. The tunnels and trails between Adventureland and Frontierland and under the castle were a highlight, but not very "wow"ing. More of that is needed to truly elevate the place to attract more of the fickle Europeans. Face it, the place drips with American culture, and American culture just isn't what Europeans seem to want right now. Instead of a Hollywood Studios, they probably should have built a place that salutes diversity and world culture like World Showcase, which is very much in right now. Oh well, live and learn.

 

[Daffodil]

The mistake was building the park in France. The French aren't renowned for good customer service and this shows when you visit the park. I remember having a discussion about the choice of France to build the park before it was built. No-one could understand why it was being built in France. One of my friend's comments at the time was, "Nobody likes the French - not even the French!" I could understand them maybe not wanting to build it in the UK if they wanted to be reasonably sure of warmish weather, however, the weather in the Paris area isn't much different than the UK. If they wanted to be sure of the weather maybe they should have built it in Spain. Maybe they should have just done better research to find out exactly what we wanted in Europe and where it should be built, and what sort of prices people would be willing to pay as it is very expensive for what it is. Things are what they are now though and I hope it works out for them, particularly for all the employees there.

 

[Ralphlaw]

We all have to think back to the 80's when EuroDisney was being planned. England was considered too wet and cold (and across a body of water that did not yet have a Chunnel).

Italy was slow, late, and not known for workmanship and hospitality. It was also known for crime, including thefts from tourists.

Spain had not yet had the Olympics, which was in 1992, and whichthen elevated the status of Barcelona rather dramatically. Back in the 80's, Spain was known for bullfighting and a dictator named Franco. Spain was also considered at the time to be a wonderful place to get mugged and beaten.

Overall, France was seen as the right compromise at the time, but indeed it was a compromise: Pretty good weather but not great, advanced infrastructure(with they say the best train and subway system in Europe), close to a huge tourist destination of Paris, a pretty good work force (although not overly friendly), and relatively low crime rate against tourists. Compromise, but in hindsight Barcelona probably would have been better.

 

[Animaniac93-98]

I don't remember exactly, but didn't France offer DLP the best deal for the land that was eventually purchased?

 

[BigTxEars]

We all have to think back to the 80's when EuroDisney was being planned. England was considered too wet and cold (and across a body of water that did not yet have a Chunnel).

Italy was slow, late, and not known for workmanship and hospitality. It was also known for crime, including thefts from tourists.

Spain had not yet had the Olympics, which was in 1992, and whichthen elevated the status of Barcelona rather dramatically. Back in the 80's, Spain was known for bullfighting and a dictator named Franco. Spain was also considered at the time to be a wonderful place to get mugged and beaten.

Overall, France was seen as the right compromise at the time, but indeed it was a compromise: Pretty good weather but not great, advanced infrastructure(with they say the best train and subway system in Europe), close to a huge tourist destination of Paris, a pretty good work force (although not overly friendly), and relatively low crime rate against tourists. Compromise, but in hindsight Barcelona probably would have been better.

I would have opted for Belgium myself. Smurfs and waffles as well as Waterloo....throw in Disney and that's sweet vacation.

 

[FutureCEO]

Poorly managed probably. One of the top attractions in Europe and yet losing money!

 

[GenerationX]

Part of the reason Paris was chosen, from what I understand, is the population density surrounding the park. Within a 500 mile radius there are many major cities in wealthy countries.

The park itself is beautiful, the attractions are extremely well done, and I found the CMs there to be helpful and friendly. I'm not sure why it isn't more successful.

 

[AndyS2992]

Some reasons why Disneyland Paris is failing is because:
1. It has a massive debt from the construction of too many hotels and going over budget during construction. This means maintenance suffers, staff are over worked and new rides and shows are a long time coming. Disneyland park has not had a new ride since 2005.
2. Disneyland in Europe is seen as a place for children and that's it. This perception needs to change.
3. Maintenance is awful. Areas of the parks look as if they are about collapse and this often gets news coverage giving the resort bad publicity. The parks are also unfortunately highly vandalised and you will find graffiti almost anywhere which is very sad. You do not see this in the US.
4. It's in France. The French don't have a good reputation/image with other European countries and so people refuse to visit.
5. Disneyland Paris is VERY expensive and a two week holiday to WDW is about the same price as a four day stay at DLP and Europeans rather visit the 'real thing' than the cheap poorly run European version.
6. Marketing is poor. There are commercials on tv almost constantly but the commercials are pretty poor and do not make people want to visit whereas the WDW ones are much better.
7. People generally visit Paris for Paris, not some tacky American theme park down the road.
8. Most countries in Europe have their own major theme parks eg Alton Towers (UK), Europa Park (Germany), Port Aventura (Spain) which are cheaper and offer more thrills so people visit there instead.

 

[Padraig]

"Incredibly rude staff, glacial service, run-down attractions" were my wife's take away when she went with her family three years ago. She's not at all keen to return. I'd still like to see it, but her experiences coupled with the fact that it's better value to go to WDW makes that unlikely.

 

[216bruce]

It's a mammoth investment worth billions, but the return on that investment constantly disappoints. Who knows why? To me, it seemed to be a lot of frosting with very little cake underneath. Looks good. Should be fun. But where's the grandeur of Epcot, with things to be learned, foods to be tried, and experiences to behold?

The castle projection/fireworks show is incredible, the best anywhere. The tunnels and trails between Adventureland and Frontierland and under the castle were a highlight, but not very "wow"ing. More of that is needed to truly elevate the place to attract more of the fickle Europeans. Face it, the place drips with American culture, and American culture just isn't what Europeans seem to want right now. Instead of a Hollywood Studios, they probably should have built a place that salutes diversity and world culture like World Showcase, which is very much in right now. Oh well, live and learn.

Agree so, so much. We were there this summer and the place is visually breathtaking, or at least was at one point; before the maintenance slacked. Rude service at the Disneyland Hotel, horrible park upkeep in places and a surprising number of attractions listed on the map and actually closed. Just a mess. The place should have been built in Spain, near or in Barcelona.
But yeah, the castle show- better than DL's or WDW's and even better than DL's Fantasmic or World of Colr in DCA. Best Disney show I've ever seen. It almost made up for the mess that the rest of the park is.

 

[Ralphlaw]

Don't forget the ultra-high cost of the workforce. I wrote about that somewhere else on these boards, but the workers at DLP seem to get paid far better than their American counterparts, and I also imagine that the tradition of huge worker rights and long vacations cuts down on productivity. And if management tries to tighten up, the threat of a strike is very real. Add to all that the high cost of European taxes, and that vacation does become very expensive.

Yes, flying across the ocean to Florida for many is far cheaper. Unbelievable if you really think about it.

 

[The Empress Lilly]

Some reasons why Disneyland Paris is failing is because:
1. It has a massive debt from the construction of too many hotels and going over budget during construction. This means maintenance suffers, staff are over worked and new rides and shows are a long time coming. Disneyland park has not had a new ride since 2005.
2. Disneyland in Europe is seen as a place for children and that's it. This perception needs to change.
3. Maintenance is awful. Areas of the parks look as if they are about collapse and this often gets news coverage giving the resort bad publicity. The parks are also unfortunately highly vandalised and you will find graffiti almost anywhere which is very sad. You do not see this in the US.
4. It's in France. The French don't have a good reputation/image with other European countries and so people refuse to visit.
5. Disneyland Paris is VERY expensive and a two week holiday to WDW is about the same price as a four day stay at DLP and Europeans rather visit the 'real thing' than the cheap poorly run European version.
6. Marketing is poor. There are commercials on tv almost constantly but the commercials are pretty poor and do not make people want to visit whereas the WDW ones are much better.
7. People generally visit Paris for Paris, not some tacky American theme park down the road.
8. Most countries in Europe have their own major theme parks eg Alton Towers (UK), Europa Park (Germany), Port Aventura (Spain) which are cheaper and offer more thrills so people visit there instead.

Lots of those, yes, good summary.
One of the things that strike me about DLP is how it has an audience problem. In 1992 when I visited the visitors where German and Dutch middle class families. This audience seems to have been lost. Now there are smoking French youth, screaming and shoving Hispanophones, plus a diverse assortment of the mentally ill of Europe's underclasses.

I put the blame on Disney positioning itself too low on the cultural ladder, and of DLP never understanding what constitutes a holiday break for Europe's middle classes. Perhaps the new hotel + water park will remedy that - that is exactly what North European families love to visit for a midweek break.

As for point four, the unpopular French, the rest of Europe should speak. Personally I visit France for the delight of the courteous manners and kindness of the educated French. If I have to board a boat on Pirates it is not the French visitors whom I try to avoid...

 

[The Empress Lilly]

I heard a rumor recently this would happen. Then, I saw this:

http://disneyandmore.blogspot.com/2014/10/dlp-announced-emergency-meeting-for.html

What's happening over there?

Meh. Haute finance voodoo. DLP is always on the brink of bankruptcy. But then, neither Google nor Starbucks ever officially make any profit in Europe and pay less taxes than I do. Still they all seem to be doing alright.

I'm more worried by that decline in visitors and hotel nights recently.

 

[croboy82]

Just to add another reason is that Germany itself has many good amusements parks so why should a family actually travel to expensive Paris when they can have a good time around the corner? It's not Disney but not everyone is "rich".

 

[HolleBolleGijs]

3. Maintenance is awful. Areas of the parks look as if they are about collapse and this often gets news coverage giving the resort bad publicity. The parks are also unfortunately highly vandalised and you will find graffiti almost anywhere which is very sad. You do not see this in the US.

Maybe I just need to look a little more closely, but where is this graffiti you speak of? I didn't notice any...

2. Disneyland in Europe is seen as a place for children and that's it. This perception needs to change.
5. Disneyland Paris is VERY expensive and a two week holiday to WDW is about the same price as a four day stay at DLP and Europeans rather visit the 'real thing' than the cheap poorly run European version.

50% of DLP's visitors are from France. And APs are ridiculously cheap (like €209 at their most expensive when a one-day park-hopper is €70). On top of that, they are discounted if you're buying for your family. Plus, there are a lot of "partner hotels" in the area that are less expensive than the on-property ones.

I feel like a lot of French people will buy the annual passes for their family and stay off-property, because DLP has made it a lot cheaper to do that. Plus, Parisians can easily take the train - no need to stay in a hotel at all.

They are trying to appeal to more than just children, I think, with their student annual pass, but I don't know how well that's working...

 

[Animaniac93-98]

I'm more worried by that decline in visitors and hotel nights recently.

The attendence decline is based on the last fiscal year, of which Ratatouille was only a part of for the last 3 months. I think many simply put off going until they knew the new ride was open.

Rat has helped to raise attendence at WSDP and most like it, but there is the opinion that people are spending more time at the studios and less at DL because there is nothing new there this year.

 

[cdd89]

5. Disneyland Paris is VERY expensive and a two week holiday to WDW is about the same price as a four day stay at DLP and Europeans rather visit the 'real thing' than the cheap poorly run European version.

Maybe that's the driving reason behind the huge redesign effort of the English version of the Disneyland Paris website. It's been re-done to match the look, feel and (most importantly) writing style of WDW and Disneyland Ca.

This page is new, and particularly interesting in its attempts to counter some of the reasons (especially the perception of "less than magical service") that you cited.

I definitely agree with the point about the WDW/DLP cost equivalence. Just as nobody would dream of going to Florida for a weekend trip (well, I have been thinking about it...), very few people would spend a week at DLP over a week at WDW. And just by looking at the wait times on my app occasionally, weekday attendance (especially outside summer) is clearly pretty poor.