Len Testa Crowd Analysis

[MaximumEd]

Those continuous load attractions get longer waits because of reduced capacity elsewhere.

This is exactly right. Reducing staffing and running one side of a ride or a lesser number of ride vehicles has a cascading effect on every ride in the park given enough time.

 

[HauntedMansionFLA]

Well...they were all inflated...so it’s “suck sandwich” any way you slice it.

I’m very interested to see what they do in the next few months.

1. We are WAYY overdue for a recession...ticking time bomb
2. 2019 bookings/attendance is not gonna be banner uear
3. They’re expecting major upsells and price increases 2020-2021...so do they “let it ride” for 19?

I’m not just talking operational cuts...pass discounts should roll out but the hour is getting late.

I could see another housing crisis. The mortgage broker said “ you qualified for an extra $75,000 for your house. There will be foolish people that will go ahead a up their budget.

 

[Nubs70]

Going further, MDE gives operations a good look at how busy the park will be on any given day and allows them to make staffing decisions based on big data forecasting.

WDW wants to have the same wait times in every queue regardless of the time of the year. Staffing level throttles ride capacity which in turn maintains queue wait times. Ideally, this will hold constant CM$/guest.

 

[Sirwalterraleigh]

I could see another housing crisis. The mortgage broker said “ you qualified for an extra $75,000 for your house. There will be foolish people that will go ahead a up their budget.

I had a similar experience recently on a refi...

90% of equity and roughly $250,000 more than I was asking for...

 

[Sirwalterraleigh]

WDW wants to have the same wait times in every queue regardless of the time of the year. Staffing level throttles ride capacity which in turn maintains queue wait times. Ideally, this will hold constant CM$/guest.

It feeds the upsell monsters...

Everyday on a holiday weekend in magic kingdom this past week

 

[KikoKea]

I don’t. I think it was a disaster.

Len, is there evidence that WDW caught any damaging flak over this that made a difference to them? I guess it would have to be a financial hit that would get their attention.

 

[Sirwalterraleigh]

Len, is there evidence that WDW caught any damaging flak over this that made a difference to them? I guess it would have to be a financial hit that would get their attention.

Nobody blinked

 

[lentesta]

Len, is there evidence that WDW caught any damaging flak over this that made a difference to them? I guess it would have to be a financial hit that would get their attention.

It's safe to assume that guest satisfaction declined far more than the cost savings could justify. There were other internal cost-saving measures taken at the same time, that continue today. So the guest feedback part of it was apparently the key.

 

[flynnibus]

WDW wants to have the same wait times in every queue regardless of the time of the year. Staffing level throttles ride capacity which in turn maintains queue wait times. Ideally, this will hold constant CM$/guest.

Wanting attractions to be utilized better and more uniformly would be more accurate. Not that they want lines equal

 

[Nubs70]

Wanting attractions to be utilized better and more uniformly would be more accurate. Not that they want lines equal

Yes, with best utilized as modeled by principles of industrial load balancing.

 

[KikoKea]

It's safe to assume that guest satisfaction declined far more than the cost savings could justify. There were other internal cost-saving measures taken at the same time, that continue today. So the guest feedback part of it was apparently the key.

Thanks, Len.
Let's hope they put as much attention to reducing wait times and increasing guest satisfaction. Seems to me, that would help their bottom line better than anything else.

 

[Disorbust]

WDW is operating under Chapek's double digit growth at all costs. Somehow cost cutting and layoffs is considered "growth". I don't see this getting any better any time soon.

 

[Sirwalterraleigh]

WDW is operating under Chapek's double digit growth at all costs. Somehow cost cutting and layoffs is considered "growth". I don't see this getting any better any time soon.

Reduction of longterm costs is “growth” by today’s standards...when it used to show recognition of a lack expansion/profit potential.

Jack Welch theory

 

[Disorbust]

..and we see how well that worked out for GE.

 

[Sirwalterraleigh]

..and we see how well that worked out for GE.

Indeed...

The minute a ceo says “we can make more with what we already have!!!”...that company or unit is in decline.

And competition starts to move in and look for ways to slice you up...either directly or through new development/trends

 

[wdisney9000]

WDW is operating under Chapek's double digit growth at all costs. Somehow cost cutting and layoffs is considered "growth". I don't see this getting any better any time soon.

Have they never seen the Michael J Fox movie, Secret of My Success? Young Brantley showed them that cut backs and red tape will not improve anything

 

[monothingie]

Indeed...

The minute a ceo says “we can make more with what we already have!!!”...that company or unit is in decline.

And competition starts to move in and look for ways to slice you up...either directly or through new development/trends

Nonsense

If you don't make more with what you have, the competition will come and slice you up because your organization is not operating efficiently.

What TWDC has done with Parks and Resorts is a good example of taking it too far to and intentionally exceeding their available resources. "We can make more by cutting below our minimum"

When you have bean counters who have no concept of the hospitality industry and whose only goal is to make the quarterly numbers good for investors, rather managing a division to build and grow it, you end up with noticeable problems.

 

[Sirwalterraleigh]

Nonsense

If you don't make more with what you have, the competition will come and slice you up because your organization is not operating efficiently.

What TWDC has done with Parks and Resorts is a good example of taking it too far to and intentionally exceeding their available resources. "We can make more by cutting below our minimum"

When you have bean counters who have no concept of the hospitality industry and whose only goal is to make the quarterly numbers good for investors, rather managing a division to build and grow it, you end up with noticeable problems.

So you go hard right on the first paragraph...then go “but, but, but” on the second part.

Be sure to enjoy the cake and the icing when you come to my realization:
People and business are inherently stupid because greed cancels IQ

 

[Thelazer]

I don't think there is any panic yet in the TDO halls and plenty more ideas of ways to cut costs are on the table.

 

[monothingie]

So you go hard right on the first paragraph...then go “but, but, but” on the second part.

Be sure to enjoy the cake and the icing when you come to my realization:
People and business are inherently stupid because greed cancels IQ

You are just spouting your usual lunacy.

Companies need to have an organizational structure that maximizes efficiency and minimizes waste. Make more with what we have is a laudable goal for operational efficiency. Where it turns negative is when you run too lean and as a result, in this case, the guest experience suffers greatly.

Efficiency is a good thing, Happy guests are a good thing, happy stock holders are a good thing. They all mesh and must be balanced to ensure the TWDC can continue to deliver a competitive product. And as much as you like to rant about how awful it is now, just remember 10-15 years ago what it was like and see where things have come since then. And I hardly consider myself a pixie duster.