alphac2005
Well-Known Member
A recession albeit not one on the scale of the prior is a given in the business cycle mixed in with economic weakness in most of Disney's major targeted guest markets, and a strong U.S. dollar truly is a recipe for trouble based on their business plan when, not if, all three components converge. It'll be interesting. They've never gone through that cycle with pricing that is so economically unviable for many. @ParentsOf4 rightly notes that the business of Disney is built on the masses. When times are lean, there simply aren't enough high earners left to make it work particularly if overseas visitors are slumping.
A great example is where I live in ATL: Faux rich people mortgaged to the hilt, leasing luxury vehicles, no money going into savings, loans against 401Ks, taking the obligatory annual WDW trip as another component of keeping up with the proverbial Joneses while maxing out their credit cards. I've seen it and know of so many here in this situation that it's simply pathetic. Those people are the bread and butter target of the current WDW business model and it'll be something when those types can't do any creative financing in a downturn.
