Expect more premium events with recent organizational changes

geekza

Well-Known Member
Fluctuations in attendance at WDW are not unusual.

You are correct. However, let's break down the numbers from the TEA report available at the link below. (I am not a business analyst and math tends to make me break out into hives. So if anyone here is better at analyzing data, please feel free to chime in.)

http://www.teaconnect.org/images/files/TEA_235_103719_170601.pdf

Attendance was up overall in Orlando in 2016. 77,489,000 in 2016 compared to 74,706,000 in 2015.

What is significant isn't the relatively small drop in attendance figures for the Disney parks in 2016. What is significant is the shift in market share. In 2015, Disney had 72.3% of the market share in Orlando with Universal having 21.3% and SeaWorld having 6.4%. If we look at the 2016 numbers, however, Disney slips to 69.3%, Universal grows to 24.9% and SeaWorld dips to 5.6%. That's a loss of market share to Universal of 3%. 2,324,670 attendees is a substantial number of admissions to lose.

Mind you, the increasing costs of attending a Disney park in 2016 made up for the loss in attendance. Still, I'm sure Disney is concerned about the attendance report as it could hurt their stock should the trend continue.
 

Nubs70

Well-Known Member
You are correct. However, let's break down the numbers from the TEA report available at the link below. (I am not a business analyst and math tends to make me break out into hives. So if anyone here is better at analyzing data, please feel free to chime in.)

http://www.teaconnect.org/images/files/TEA_235_103719_170601.pdf

Attendance was up overall in Orlando in 2016. 77,489,000 in 2016 compared to 74,706,000 in 2015.

What is significant isn't the relatively small drop in attendance figures for the Disney parks in 2016. What is significant is the shift in market share. In 2015, Disney had 72.3% of the market share in Orlando with Universal having 21.3% and SeaWorld having 6.4%. If we look at the 2016 numbers, however, Disney slips to 69.3%, Universal grows to 24.9% and SeaWorld dips to 5.6%. That's a loss of market share to Universal of 3%. 2,324,670 attendees is a substantial number of admissions to lose.

Mind you, the increasing costs of attending a Disney park in 2016 made up for the loss in attendance. Still, I'm sure Disney is concerned about the attendance report as it could hurt their stock should the trend continue.
To channel Meghan Trainor, "it's all about the trend ". Did DIS forecast a drop in market share with static to drop in attendance?
 

geekza

Well-Known Member
Nobody knows what Disney predicted except for Disney. They don't typically release that kind of information. Even the numbers in the TEA report are estimates; however, they've been at it long enough that their estimates are considered accurate.
 

Viget

Active Member
I'm going to play devil's advocate here and say that I'm not really sure that they care there was a drop. In fact it may be even desired.

The customers they lost (to universal, somewhere else, six flags, whatever) may have been the most price sensitive customers that typically aren't going to be big spenders in the parks. They're certainly not the whales that Disney craves (and hence why these upcharge events keep proliferating like a cancer). And if you look at the last earnings call, I think they even forecast that attendance might be down, but per guest spending and revenue IS UP. That's what they really care about.

In a way, they WANT to drive people away (especially those who aren't paying) because it results in a better, more satisfying experience for those that do. Not to mention, lower labor costs, due to their dynamic staffing models from MM+.
 

Biff215

Well-Known Member
I'm going to play devil's advocate here and say that I'm not really sure that they care there was a drop. In fact it may be even desired.

The customers they lost (to universal, somewhere else, six flags, whatever) may have been the most price sensitive customers that typically aren't going to be big spenders in the parks. They're certainly not the whales that Disney craves (and hence why these upcharge events keep proliferating like a cancer). And if you look at the last earnings call, I think they even forecast that attendance might be down, but per guest spending and revenue IS UP. That's what they really care about.

In a way, they WANT to drive people away (especially those who aren't paying) because it results in a better, more satisfying experience for those that do. Not to mention, lower labor costs, due to their dynamic staffing models from MM+.
And don't forget, lower attendance also means they can get away with the same capacity, so less new attractions and more replacements instead.
 

IanDLBZF

Well-Known Member
Hmm, what report are you reading? Attendance is up...
Per the Q2 Earnings call...
Operating income growth at our domestic parks and resorts was due to higher volumes, driven by increased attendance and guest spending on food and beverage, as well as higher operating participant income from Disney Springs.
By the looks of it, seems like Q2 17 vs Q2 16 seems like attendance was higher now than it is then.
 

Casper Gutman

Well-Known Member
I've got another idea that will really harpoon those whales!

Unlimited fast passes for all rides at a park for, let's say, $1750 a day. Fast passes become exclusive to people who will pay that.

I am completely OK with folks who are... "affluent"... enough to shell out that kind of money and ONLY those folks getting to jump to the head of the line. The rest of us all go back to waiting.

Oh... oh... and booking dining half a year in advance adds $50 per person to the bill. Everyone else has to make reservations the day of.

Disney has made all these great "improvements" to the park experience, they deserve to be rewarded for them! The rest of us poor folks will have to content ourselves with going back to the way the park used to be before FPs and ADRs and character meet and greets and desert parties - poor us.
 

HauntedPirate

Park nostalgist
Premium Member
I've got another idea that will really harpoon those whales!

Unlimited fast passes for all rides at a park for, let's say, $1750 a day. Fast passes become exclusive to people who will pay that.

I am completely OK with folks who are... "affluent"... enough to shell out that kind of money and ONLY those folks getting to jump to the head of the line. The rest of us all go back to waiting.

Oh... oh... and booking dining half a year in advance adds $50 per person to the bill. Everyone else has to make reservations the day of.

Disney has made all these great "improvements" to the park experience, they deserve to be rewarded for them! The rest of us poor folks will have to content ourselves with going back to the way the park used to be before FPs and ADRs and character meet and greets and desert parties - poor us.

Don't forget - these "enhancements" would be a direct result of guest requests and guest feedback. Remember, Disney is just giving the guests what they are asking for - More MAGIC!!!
 

MichWolv

Born Modest. Wore Off.
Premium Member
There's a right way to do this and a wrong way. Offering unique experience which enhance a trip while at the same time not detracting from the normal ticket is the right way. The wrong way is basically the opposite, with more "basic" amenities suddenly upcharged.
Quoted for agreement. Every silly upcharge event is fine with me as long as it doesn't take from regular guests. To that end, I don't like the viewing parties when they take prime viewing spots away from the regular guest. And Preferred Parking really es me off. But the monorail-hopping dinner, early opening at MK, after-hours Frozen ride, Wild Africa Trek, Segway tours, Living Seas diving...sure.
 

MichWolv

Born Modest. Wore Off.
Premium Member
I am not sure why everyone is in an uproar. Let me think. Ive had an AP for quite a long time and I cant think of any "options" Ive lost with it. I stay on and off property but again, trying to think about what resort or park experiences they have taken away and are now charging for. Hmmmm, I cant think of any so could you go ahead and remind me of things that have been taken away from my experience I have to pay for now? Its a company and they do need to generate revenue. I guess as someone who is involved in financial decisions, deals with ROI every day, and has to think long term as to whats best for our customers and generates revenue to keep the company growing, I must look at things in a far different way than some people here. The little "extra" stuff WDW offers are specifically to generate revenue AND hopefully improve the guests experience. When they dont work, it shows, as people talk with their wallets. I would assume the reason they took away the Harambe Nights is one of those that wasnt a guest dislike, it probably didnt generate revenue to cover costs.Its pretty simple, if you dont like the extra stuff, dont pay for it. best way to speak is with the wallet. And Im still trying to figure out what things Ive "lost" and have to pay for now.
Generally, I'm with you. I don't buy the arguments that Disney would concentrate on other things if they weren't concentrating on upcharge events. And if you can use existing assets to generate more profit, that's generally good for everybody.

But certain of the upcharge things do take away from the regular guest. I think Disney has gotten away with them because they are small takeaway. I speak of the fireworks viewing parties that take what would otherwise be good viewing locations; preferred parking that takes away better parking places; special dining parties that close off restaurants to those who would like to eat there at regular prices. These are small things so far, but they do take away from non-upcharging guests.
 

flynnibus

Premium Member
I think it was more to do with the fact that the headphone jack took up a huge amount of internal space that could be better used and it was analog. The future is wireless and digital. Like a lot of legacy ports, Apple was the only one brave enough to make the change. And they did include an adaptor in the box of every iPhone sold to support legacy headphones, so it was not primarily a money making move in my opinion.

It's a nice story...

Try watching a movie on your iphone on your next flight over and see how much good that adaptor does you :)
 

flynnibus

Premium Member
It was also done at the behest of the MPAA to close the 'Analog Hole' because once you have the signal in analog form you can use it in a variety of fashions including uploading it in a DRM free format. Most do not have the skill necessary to build a bluetooth audio adapter.

Except the same music is sold on other platforms without issue (computer)... and apple music has been DRM free for how many years now? Apple, not the labels are the big boy on the block.
 

ford91exploder

Resident Curmudgeon
Except the same music is sold on other platforms without issue (computer)... and apple music has been DRM free for how many years now? Apple, not the labels are the big boy on the block.

As you say Apple's MUSIC has been DRM free for years,

Apple's VIDEO is not DRM free and I expect the disappearance of the 3.5MM jack is due to movie studio pressure to close the 'analog hole' The WWDC should be interesting if the new laptops continue the trend of removing analog I/O which if they do so will confirm that the move was to close the 'analog hole'
 

flynnibus

Premium Member
I always watch the fireworks in all parks from exactly where I used to watch them. And since you can still watch them or even use an FP yourself, thats not a loss. I realize you are not on either side of the debate, just saying that I dont see that as a loss of anything. Nothing my AP gave me access to before is no longer available or do I have to pay extra for

disney-iraqi.png
 

flynnibus

Premium Member
As you say Apple's MUSIC has been DRM free for years,

Apple's VIDEO is not DRM free and I expect the disappearance of the 3.5MM jack is due to movie studio pressure to close the 'analog hole' The WWDC should be interesting if the new laptops continue the trend of removing analog I/O which if they do so will confirm that the move was to close the 'analog hole'

Yes, because lifting the sound track off of videos is the big boogy man in the closet. Holy cow you'll dig deep...
 

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