Mightymoc said:
It sounds like it should be common sense until you look at the money aspect. Certainly a broader range of product will attract more people. No problem here. The issue is whether or not the additional people (aka incremental revenue) would be enough to justify the expense of opening a new park. The parks that have taken aim at a more thrill-loving customer base (e.g. IOA) have not seen the necessary business level to justify such an expense on Disney's part. Those parks have attendance levels that languish significantly below those of the 4 existing Disney parks in FL. The people who seek such forms of entertainment obviously do not spend enough time and money for a proper return on investment. If people are staying on Disney property and visiting IOA or BGT for a day, their major cash is spent at Disney. Not much incremental benefit for the House of Mouse. If people are staying off property and visiting both Disney and IOA or BGT, a new Disney park is not likely to keep those people from visiting the non-Disney parks, as the type of rides involved in such a park can easily be "trumped" in terms of thrill or excitement potential. Disney could not count on simply taking market share away from other parks. In the business world, that almost never happens. The concept of such a park requires a continued investment in new technology at a much quicker pace than is currently necessary at WDW. The required "new" business to support such a concept would almost certainly exceed its realistic potential.
That uber-paragraph has a lot of conclusions that I just don't feel follow.
Of course keeping people on property the entire time increases the bottom line - but neither of us is qualified to say by how much.
I totally agree that Disney cannot count on taking away share from other parks, and I have been making that point throughout this thread. They need to BROADEN their horizons.
Again, IOA is but an example not the model. I simply think you are incorrect about people and money - both you and speck made comments about "obviously 'thrill' seekers don't have money to spend", which is just BS. They spend it - JUST NOT IN ORLANDO.
You are also focusing too much on the term "thrill". It's also about a park not just physically pushing more limits, but thematically as well. There IS an audience out there for more sophisticated fare - and many people who crave that have much higher disposable incomes than Mommy and Daddy Smith with their 2.5 kids - they are upwardly mobile people who don't have the expense of children.
In the end, I think Lynx post above was 1/2 right. Yes, Disney has said in the past they have no immediate plans to build a new park. The chances of this happening anytime very soon are slim.
However, I simply disagree with this idea some people would have you believe that the number of visitors to Orlando is some fixed statistic. That's what people just don't get - that was the reason DAK didn't work to increase attendance, NOT what a new type of offering would.
Again, I'll use the analogy of a restaurant : if a restaurant menu has six types of steak, and they just keep adding more types of steak, it's not going to increase how many people come there for...steak. You start to add other items to the menu - chicken, fish, maybe a veggie dish, and you start to open it up to a whole new clinetele.
I guess I just don't think inside this "Orlando is stuck in a fixed state" box. If they gave a broader range of a people a reason to go, I believe they would. Using IOA as an example is just that, an example and not proof of anything.
AEfx