Rumor Guest Boat Rentals Not Returning

[mergatroid]

Honestly I would not anticipate this year.

Thanks, that's a shame. 5 of us going and an hour for $90 split is only $18 each.

 

[chriskbrown]

Well we maybe some of the last to ride. We rode the sprites after WDW shutdown, I think on Tuesday. Really sad - one of the great perks to staying on site.

 

[Love Ft Wilderness]

Aw man. I was planning on renting the sprites at Fort Wilderness this December. I'll hope for some watercraft to return. I know they had only fishing excursions last fall.

 

[FiestaFunKid]

If you haven't seen it, the sprites/mice/racers are officially gone, but pontoons are still available. Contemporary signage...


To me, this seems very shortsighted. The sprites rented much more frequently than pontoons. However, based on condition, they were next up for a purchase of new boats. Disney may have decided to end this longstanding offering (back to at least the 70s, if not all the way back to '71) b/c they chose a minuscule near term only cost savings.

More evidence it was better to be under 18 in the 70/s80s/90s.

 

[CaptainAmerica]

If you haven't seen it, the sprites/mice/racers are officially gone, but pontoons are still available. Contemporary signage...

To me, this seems very shortsighted. The sprites rented much more frequently than pontoons. However, based on condition, they were next up for a purchase of new boats. Disney may have decided to end this longstanding offering (back to at least the 70s, if not all the way back to '71) b/c they chose a minuscule near term only cost savings.

Net Present Value analysis is like the fourth day of class in Finance 201. If expected revenue is enough to offset the initial investment at Disney's required internal rate of return, they would greenlight the project.

 

[FiestaFunKid]

Net Present Value analysis is like the fourth day of class in Finance 201. If expected revenue is enough to offset the initial investment at Disney's required internal rate of return, they would greenlight the project.

One may think it's that simple, but I suspect current management is more focused on near-term budget impact vs previous regimes (even if it's positive EV long term). The other flaw in plain NPV is a lack of understanding of how these offerings impact the overall success of the resort. The Contemporary's high rates tread on location and nostalgia (see the new Lobby, Steakhouse 71, etc) and losing an activity guests have done for years will drive some to stay elsewhere at lower costs.

 

[flynnibus]

Net Present Value analysis is like the fourth day of class in Finance 201. If expected revenue is enough to offset the initial investment at Disney's required internal rate of return, they would greenlight the project.

And what day do they tell you spreadsheets don't lead the company?
Or which class do they teach how to manage things that are not individual Profit centers?
Or which class do they teach Hospitality isn't a finance industry?

 

[CaptainAmerica]

One may think it's that simple, but I suspect current management is more focused on near-term budget impact vs previous regimes (even if it's positive EV long term). The other flaw in plain NPV is a lack of understanding of how these offerings impact the overall success of the resort. The Contemporary's high rates tread on location and nostalgia (see the new Lobby, Steakhouse 71, etc) and losing an activity guests have done for years will drive some to stay elsewhere at lower costs.

This is almost certainly true when it comes to things like new attractions. Attaching future revenue to Guardians of the Galaxy: Cosmic Rewind is extremely difficult. For something as small as "refreshing a fleet of recreation boats that you farm out at $30/hr.," it's almost certainly as simple as a straightforward NPV calculation. They know the cost, they know the book rates, and it's unlikely that they attribute any value to "the overall success of the resort" to the Sea Raycer rentals.

And what day do they tell you spreadsheets don't lead the company?
Or which class do they teach how to manage things that are not individual Profit centers?
Or which class do they teach Hospitality isn't a finance industry?

Boat rental uptake was probably something like 0.1% of resort guests. Spending whatever they were spending to please 6 guests a day isn't good business.

 

[flynnibus]

Boat rental uptake was probably something like 0.1% of resort guests. Spending whatever they were spending to please 6 guests a day isn't good business.

Spoken like a true analyst... "Usage is down, so lets kill it" instead of "Usage is down, what are we doing to understand why and adapt?"

Usage is down is also often a fulfilling prophecy. Which is why you don't lead by spreadsheet alone.

 

[chriskbrown]

As much as I have nostalgia for the sprites when I was a kid, it did feel like over the years that the sprites just sat there.

 

[CaptainAmerica]

Spoken like a true analyst... "Usage is down, so lets kill it" instead of "Usage is down, what are we doing to understand why and adapt?"

Usage is down is also often a fulfilling prophecy. Which is why you don't lead by spreadsheet alone.

Usage is down because it's a product nobody wants.

 

[monothingie]

Boat rental uptake was probably something like 0.1% of resort guests. Spending whatever they were spending to please 6 guests a day isn't good business.

Spoken like a true analyst... "Usage is down, so lets kill it" instead of "Usage is down, what are we doing to understand why and adapt?"

Usage is down is also often a fulfilling prophecy. Which is why you don't lead by spreadsheet alone.

Usage is down because it's a product nobody wants.

Now do Disney's Magical Express.

 

[flynnibus]

Usage is down because it's a product nobody wants.

Is it?

Easy to spin that message when you put out a crappy offer at a poor price. "Hey look, no one is buying, guess we should punt and get out of this space..."

Funny how boat rentals are still a thing elsewhere... guess the Disney bubble works in many ways...

 

[FiestaFunKid]

Boat rental uptake was probably something like 0.1% of resort guests. Spending whatever they were spending to please 6 guests a day isn't good business.

Ha - maybe not the most popular offering, underrated I'll admit, but .1% is quite the laughable estimate. I guess that would mean the pontoons get rented twice a month by your estimation. They were around for 50 years or so, so I'd say a following is there.

The larger point professor is that we are continuing to see current management erode many aspects of the classic experience which drew many of us there (repeatedly)....Naturally, the first duty is to the business and shareholders, but in this case, the cost savings look essentially irreleveant.

 

[CaptainAmerica]

Now do Disney's Magical Express.

No argument from me on that one. Horrible decision. I'll defend Genie+ until the cows come home and I really love the morning EM(H)H change, but the decision to drop Magical Express is a miserable failure of a decision.

I'm also losing patience with the continued lack of daily housekeeping. Enough is enough already.

 

[flynnibus]

As much as I have nostalgia for the sprites when I was a kid, it did feel like over the years that the sprites just sat there.

When you move from 'the vacation kingdom' to the 'reservation kingdom' where you are paying $100/hr to do things faster it's hard to also convince people it's a resort where you should do things to slow down and take in recreation activities.

By Disney's take... Golf is a dead sport too because no one wants to play their courses either.

 

[chriskbrown]

Is it because we are conditioned to spend all the time in the parks? I loved these as a kid but there was one park. What's the break even on minigolf?

 

[tpoly88]

Maybe not with insurance.

It's interesting the shift in the resort from the 70s and 80s to today. I think part of it is that the population isn't very athletic anymore. Water skiing on the lake is long gone, boating is a bit of a skill that fewer and fewer people seem to want to bother with these days and nowadays you have to watch out for the boaters trying to land on ye olde discovery island (let alone being drunk). Same with the paddle boats - too much effort!

Also - people on the lake aren't... IN THE PARK spending more money and, likewise, parents that spend thousands to be here don't want to let a dime go to waste NOT being in the parks. C'mon - they got rid of the babysitting services which I thought was one of the most smartest services they could have so mom and dad could have a little "me" time - but it was probably the same thing - one part cost saving and one part people weren't using the service to maximize their dollar spent on their "vacation".

So I can see if as a "win" on both sides here.

If anything I bet Iger and Chapek are trying to figure out if they can just fill in the lake and put up some more DVC timeshares or another gate.

Honestly I'm hoping it's just a temporary measure if it's one at all - but they already shut down the parasailing at the Contemporary and said it wasn't coming back.

i agree with you on the skill needed and people doing dumb things with the water mice. i love these things and they are fun to go look at the old areas of discovery island, try to see the old wave machine and look at river country but good god do people do some dumb things on these boats. cutting off the ferrys, trying to dock at the MK area, getting out of the boat on discover island and island in middle of 7 Seas Lagoon, almost hitting other boats and what have you. i love these things but i can see this as huge headache and not worth the money made (if at all) on these boats. Plus i bet there is an environmental angle they will say. sad i enjoyed these.

 

[Mindy55]

Net Present Value analysis is like the fourth day of class in Finance 201. If expected revenue is enough to offset the initial investment at Disney's required internal rate of return, they would greenlight the project.

Hmmm… the revenue to offset is likely there, however, from a hospitality/ resort view there is a broader scope of consideration.. not the least of which is what’s being considered to replace these amenities or it could be that reducing resort amenities was a part of funding the DVC development. I don’t know if it’s another way of pushing guests to spend more time in the parks but I wouldn’t discount the idea either.

 

[flynnibus]

Is it because we are conditioned to spend all the time in the parks?

In large part... yes. Which is why you see so much of the resort activities parring down vs the past. Its not the vacation kingdom anymore it is "Four Theme Parks with themed hotels nearby".

Through its pricing structures, marketing, and portfolio Disney has turned the Park Commando into the model guest it pushes everyone to be. Stuff as much as you can into every day... except at night. Nighttime is now where Disney turns off and rolls up the carpets.