Euro Disney Earnings Bloodbath

[The Empress Lilly]

Once Studios builds up to be a full day park, (which I agree would be the imperative next step in the process), I think keeping all the hotels will make a lot more sense. The hotels have an average of 18% vacancy right now, but turning Studios into a full day park will likely fill them up. After all, many more people will want to stay overnight if there are two parks that take a full day each to see. And once the hotels get the reputation of becoming fully booked, they can raise their prices substantially.

As for closing up in the winter, wouldn't it be difficult to gear up the place again after such a long layover? And keeping a workforce from year to year will be hard if they are essentially furloughed for a few months every year. Also, given the labor laws in much of Europe, DLP may still have to pay them full (or nearly full) wages during that time of layoff. It's not like here where laid off workers receive unemployment comp benefits but that actually costs only a little bit extra to the employer. In Europe paying workers nearly full wages to do nothing is often a huge ridiculous expense.

My feeling, if they're going to close up at all, pick a day in the week. According to Marty Sklar's book, Disneyland would close a day or two every week up until relatively recently like the 1980's, which somewhat boggles my mind. Day closings allow for hassle-free maintenance time, and gives CM's scheduled time off (not layoffs or furloughs), thereby cutting the workforce costs substantially. I think once Studios becomes a full day park, closing one park on, let's say, Tuesday and the other on Wednesday would potentially make sense. If guests show up, they'll at least have one of the two parks to visit.

I also think that Europe may eventually go the way of the U.S. in which lull times of the year even out. We usually go to WDW in mid-November because it's less crowded, but that's changing. There are far fewer lull times than there used to be, and I'm thinking that Europeans may eventually clue in on this and come during non-peak times as well. Or maybe not.

For the foreseeable future, I think it will be impossible to close the castle gate. The Studios can't carry the resort, not even for a single day. I can see them closing the Studios for several days a week, or even seasonally.

Seasonal closings for the entire resort could work. Every other park in northwest Europe does so. From November until March it's just no fun to be outside in a theme park. Except for Christmas, during which DLP should be open, to cater to the Christams holidays (not everybody can get days off in November, least of all school-age kids).

 

[Ralphlaw]

I agree. This plan would only work once Studios becomes a full day park.

 

[flashinghelmet]

Comeon, UK is way to rainy, Germany is bloody cold, even worst than Paris.

Actually, Paris gets more rain than London.

 

[Ralphlaw]

Yeah, but the combination of cold, rain damp and fog is what probably makes the London climate a bit more challenging.

 

[lazyboy97o]

While Disney had hoped that more Brits who enjoy Walt Disney World would make short trips to Disneyland Paris, I think some of that same thinking (outside of government incentive packages) prevented the Resort from being in the United Kingdom. Disney was sort of oblivious to the notion of other Florida attractions also being a draw and probably feared that being too close would cause people to entirely skip Walt Disney World.

 

[The Empress Lilly]

I think the UK was probably the last option. All the poor weather of northern Europe, and poorly accessible to the ninety percent of West Europeans who do not live on that island.

Also, Britain in the eighties was a poor country, back then much poorer than Italy for example, and was plagued by strikes, wars, terrorism, and civil war. Thatcher's Britain was a grim and gloomy place.

 

[Ralphlaw]

Yeah, I was there in 1985, and France was definitely more happening than England at the time. But England was coming out of the doldrums. Starting a new small business, for example, was nearly impossible at the time in England. It was actually Thatcher's reforms that eventually turned things around, but this is no place to get political.

 

[The Empress Lilly]

this is no place to get political.

Dang it!

 

[Bolna]

As for closing up in the winter, wouldn't it be difficult to gear up the place again after such a long layover? And keeping a workforce from year to year will be hard if they are essentially furloughed for a few months every year. Also, given the labor laws in much of Europe, DLP may still have to pay them full (or nearly full) wages during that time of layoff. It's not like here where laid off workers receive unemployment comp benefits but that actually costs only a little bit extra to the employer. In Europe paying workers nearly full wages to do nothing is often a huge ridiculous expense.

Every other theme park here in Europe closes for the winter, so it certainly can be done despite our labour laws.

I also think that Europe may eventually go the way of the U.S. in which lull times of the year even out. We usually go to WDW in mid-November because it's less crowded, but that's changing. There are far fewer lull times than there used to be, and I'm thinking that Europeans may eventually clue in on this and come during non-peak times as well. Or maybe not.

Part of the problem of DLP is that attendance is to a large degree driven by locals which get very cheap APs (actually every one can buy them, but it is a bit of a hassle) and all kind of promotions. So a lot of people only pay a fraction of the price of a one-day ticket. This also leads to the parks being very crowded during the weekends (which is of course also the preferred time to come for other travellers). But during the week in the off season the park can be very empty.

In my opinion they need to scale back the ticket specials which drive attendance but don't really add a lot to the bottom line. And they need to look at their resort pricing structure which starts to be totally ridiculous. I started reading DLP brochures when I was just starting college in 1992. And while a trip to DLP then was expensive for a college student, it was not out of the world. Now I am a rather well paid professional and I still cringe at DLP prices - and even more than I did in 1992! And then they counter those ridiculous prices with all kind of special offers which vary all the time and are different from country to country. Even though you can book any country's offer as long as you find it. Makes prices totally untransperant and booking a vacation a stupid guessing game. For my next trip I managed to get a 40% discount and since we are going in the midst of winter (my boyfriend is a bit crazy and seriously hopes for snow at DLP...) I feel we are actually paying a price that is adequate for what we are getting. But summer at full price? I truly wonder who is able to afford that? I would love to know what DLP is truly getting on average for one night per room!

 

[The Empress Lilly]

I've got an annual pass for a Paris region citizen for €119. Or $160!

Who says Disney parks are overpriced?

 

[RonAnnArbor]

OMG -- people comment on these threads without understanding it at all...
DLP remains the number one tourist attraction in Europe -- its raking in money hand over fist. Lines are as long as they could possibly be on weekends and any peek weeks. The hotels are always full.
The loss of money has NOTHING to do with day to day or year to year park operations. It has to do with financing and banking. DLP could be making 4 times the annual earnings and STILL not be able to make payments based on the horrendous loans they took out up front.
Folks, before lamenting DLP and thinking it has something to do with the park, do some reading, and try to understand finances not park operations.

 

[Animaniac93-98]

I truly wonder who is able to afford that? I would love to know what DLP is truly getting on average for one night per room!

A hotel can have a good occupancy level, but low ADR (average daily rate) and RevPar (revenue per available room). I suspect this is the case with most nights sold at DLP hotels.

Even if you get a lot of convention business (which DLP appears to get), they're still paying a negotiated rate that is less than the rack.

DLP is probably also using the same strategy as WDW where they set the rack at an absurd rate to make the discount look like a great deal.

 

[Ralphlaw]

I must say, these are some of the smartest comments I've ever read on these boards. You people really seem to understand the business end of things. For what it's worth, DLP must attract a savvier person. Congratulations, one and all. I'm learning a lot. "Horrendous Loans", "ADR", "RevPar". So often the writers seem to be blind to finances and basic economics: "Who cares how much it costs? Build a monorail to the Orlando airport."

Again, thanks for elevating the discussion. BTW, can anyone recommend a good book on the history of DLP? I'd love to read up on it before our trip in June.

 

[lazyboy97o]

Again, thanks for elevating the discussion. BTW, can anyone recommend a good book on the history of DLP? I'd love to read up on it before our trip in June.

Once Upon an American Dream: The Story of Euro Disneyland by Andrew Lainsbury is the only history book of which I know, but would love to know of others.

Disneyland Paris: From Sketch to Reality by Alain Littaye and Didier Ghez is really only about the design itself, not the politics and finances, but is still a fascinating book that I would say is a must for any Disney bibliophile's collection.

 

[Ralphlaw]

Thanks.

 

[Crazydisneyfanluke]

This is what i think they should do to reduce the amount of money lost per day:
1. Reduce the hours in the evening.
2. Reduce the amount of shows played each day.
3. Turn off all lights during the night to reduce the electric bill.
4. Reduce the amount of CMs by putting special operating hours on attractions.
5. Increase the cost of park admission by a few euros.
6. Reduce the amount of pyro used in all shows.
7. Reduce the amount of merchandise stock.
8. Reduce the amount of major deals done.
I have never been to DLP. I just hope that by them reducing debt, they can start stimulating their economy around them, and making DLP a better place to work and visit.

 

[Bolna]

This is what i think they should do to reduce the amount of money lost per day:
1. Reduce the hours in the evening.
2. Reduce the amount of shows played each day.
3. Turn off all lights during the night to reduce the electric bill.
4. Reduce the amount of CMs by putting special operating hours on attractions.
5. Increase the cost of park admission by a few euros.
6. Reduce the amount of pyro used in all shows.
7. Reduce the amount of merchandise stock.
8. Reduce the amount of major deals done.
I have never been to DLP. I just hope that by them reducing debt, they can start stimulating their economy around them, and making DLP a better place to work and visit.

All those measure that you mention have been in place since the beginning of this century more or less - except number 8, which however is paired with hiking up the "regular" prices to astronomical heights.

Doing all these things is one of the reasons why DLP is in trouble: it does not seem like a good value for money to many people.

 

[unkadug]

All those measure that you mention have been in place since the beginning of this century more or less - except number 8, which however is paired with hiking up the "regular" prices to astronomical heights.

Doing all these things is one of the reasons why DLP is in trouble: it does not seem like a good value for money to many people.

Thank you...kind of the same thing they have been doing to WDW...declining by degrees and steadily increasing admission.

 

[Crazydisneyfanluke]

All those measure that you mention have been in place since the beginning of this century more or less - except number 8, which however is paired with hiking up the "regular" prices to astronomical heights.

Doing all these things is one of the reasons why DLP is in trouble: it does not seem like a good value for money to many people.

Thanks. i Was not aware of this. They should make sure it doesnt Look cheap. Keep the place clean and have small refurbs. It should not be that hard to make the place look cheap.

 

[|Q|]

Thanks. i Was not aware of this. They should make sure it doesnt Look cheap. Keep the place clean and have small refurbs. It should not be that hard to make the place look cheap.

Yeah, but usually when you're being cheap you end up looking cheap...