The marginal guests are almost pure profit. On a night like NYE super profit since they also probably paid a boat load for their hotel room as well. There is very little incremental cost for a hotel room on NYE vs a Tuesday in Sept. For the parks you may need to bring on extra staff for cleaning or crowd control during high crowd times, but the extra revenue has to be exponentially more. If for example they brought on an extra staff member for every 100 guests in the park that’s up to $10,000 in extra revenue vs max $150-$200 for a 10-12 hour shift in labor costs. There may be some extra fuel and electricity costs as well for busses and boats but again, the revenue is huge compared to expense.Thanks. That makes sense, but now I'm curious of how much labor cost is 'fixed' and how much are the CMs that would be considered 'variable'. I am also curious about how revenue and profit moves with crowds - how much more does WDW take in and net on NYE, or other 10/10 day vs September 16th or some other 1/10 day. Seeing the differences in the aggregated quarterly numbers isn't quite that interesting.
I've always viewed the marginal guest as almost pure profit. You're not changing staffing, but have another $100+ for a day ticket.