Is WDW really doing well??

[cherrynegra]

By Kevin Baxter
Posted via 24.10.43.162 on June 11, 2004 at 1:09 AM (MST)
Statements below are the work of their authors and not necessarily the opinion of Theme Park Insider.

S__________G IN FLORIDA
Orlando Sentinel - Jun 7

Walt Disney World has been basking in an improved economy, but is the resort doing as well as Eisner claims? The resort's hotels are offering $30 discounts on Budget hotels, $60 on Moderate hotels and $85 on Deluxe hotels to Florida residents between July 5 and August 28. Meanwhile, Universal is not offering any discounts and bookings are up by double-digit percentages over 2003.

So, is WDW hurting? Considering the discount covers WDW's busy summer season, this is certainly a sign. As I mentioned earlier this year, just because WDW attendance is up, it doesn't mean hotel attendance is up. And the hotels are where WDW makes the vast majority of its Orlando profits. With the film division doing so poorly this year, Michael Eisner's promised 30% increase will have to come mostly from the parks. This could be interesting.

 

[wdwmaniac]

You can't compare Universal to Disney in hotel size. Universal only has three and Disney has close to 30. Also Universal doesn't own or operate the hotels Loews does so they would have to discount them. Lastly, it's to the FL residents not entire public, if it was that way then there might be a problem.

 

[speck76]

Working in revenue management for 8 hotels in Orlando, I think I am a bit more qualified to speak on the state of Orlando hotels than most people.

Universal's hotels book a lot of conventions, and they have been offering very low room rates to many groups. When you get that base business in, and fill 75% of your hotel with a convention, you really do not need to offer any transient discounts.

Disney does not really have any convention hotels except Coronado....which is a lower end convention hotel. Contempory has some space, but not enough for most groups to work with.

 

[TravisMT81]

you would be surprised how much convention business disney does :animwink:

 

[BRER STITCH]

Disney Discount Resort Codes are published for the general public for use through July,so I guess that makes them available to more than just locals....

We have our (Fortune Top 10) company convention in Orlando each December but choose to stay at the Hilton near Downtown Disney because the facilities are better equipped to handle the size and needs of our group.

We use Disney for special night events at the parks though...

While Disney may be not hurting for business, it could always be better!

 

[MrPromey]

As far as I know Disney, while not making tons of cash over the past few years, has not been loosing money on their theme park division. As a matter of public record, Universal lost about $52.2 million last year on their Florida complex and $51.75 million the year before. They have actually lost money every year since 2000 according to regulatory filings… mostly due to heavy debt as a result of IOA..

You can’t use Universal as the watermark for how Disney is doing because they are in two entirely different ballparks when it comes to the management of funds and assets in central Florida. I would say this though: They wouldn’t have chosen to open Pop Century at this time if they were going to loose money on it. I think Disney is probably making less profit per guest at this time than they have in the past but that doesn’t mean they aren’t making money. For consumers this means a great chance to vacation at WDW with deals that won’t be around forever. For Disney, it means getting what you can by making as many rooms available at attractive prices while the economy works its way back up.

 

[speck76]

you would be surprised how much convention business disney does :animwink:

Not really, the same leads go through all of our hotels.