News Massive Parks Revenue Increase ($4.1B) for 2019!

[SeanNyberg]

Parks and Resort Revenue to jump from $20.3B in 2018 to $24.5B for 2019. While increased attendance in foreign markets (Disneyland Paris) is a contributing factor, another major factor is the increase in ticket prices for the domestic parks. While the price increases may lower attendance levels, the increased revenue from the price increase surpasses the loss from attendance drops. It also self selects the customers by setting a higher bar to attend, you tend to get a customer with access to more cash and is willing to spend more on food, lavish hotels, and merchandise.
I'll let Forbes do the talking regarding 2019's Parks and Resorts:
"The segment has added $4.1 billion to its revenue base, as sales increased from $16.2 billion 2015 to $20.3 billion in 2018, with revenue expected to increase at a faster rate to $24.5 billion in 2019 driven by strong performance in the domestic as well as international operations"
"Domestic revenue growth is driven by higher average ticket prices for theme park admissions and for cruise line sailings, increased food, beverage, and merchandise spending, and higher average daily hotel room rates, along with higher volume due to higher attendance and passenger cruise ship days."

Congratulations to Iger, Chapek and the rest of the Disney dream team for an astonishing 2019! Can't wait for 2020 with RotR, Avengers Campus, and Micky/Minnie Runaway RR in WDW. (Plus all the other park additions that are sure to come!!)

Here's the article. "What is Driving Disney's $10-Billion Revenue Surge in 2019"
https://www.forbes.com/sites/greats...0-billion-revenue-surge-in-2019/#583977f57d37

 

[Sirwalterraleigh]

Yep...that’s great.

Want to hear the bad news?

 

[Phroobar]

I don't understand the cheering for the world's largest media company making record profits at the sametime cutting entertainment, operational costs and raising prices. It's not like it is your money.

 

[Lilofan]

I don't understand the cheering for the world's largest media company making record profits at the sametime cutting entertainment, operational costs and raising prices. It's not like it is your money.

It is if you are a company shareholder

 

[Phroobar]

It is if you are a company shareholder

Are you?

 

[John park hopper]

At some point the goose that laid the golden egg (Disney fans) will have had enough

 

[Phroobar]

At some point the goose that laid the golden egg (Disney fans) will have had enough

We are seeing that right now.

 

[Hakunamatata]

I don't understand the cheering for the world's largest media company making record profits at the sametime cutting entertainment, operational costs and raising prices. It's not like it is your money.

Its fourth quarter. Budget overruns tend to get balanced in the fourth quarter by cutting expenses. Its been somewhat a regular thing and allot of businesses do it.

 

[Phroobar]

Its fourth quarter. Budget overruns tend to get balanced in the fourth quarter by cutting expenses. Its been somewhat a regular thing and allot of businesses do it.

Why cheer for record profits when people are losing their jobs for no reason except to make even more record profits?

 

[Hakunamatata]

Why cheer for record profits?

Well, why do fans cheer when their sports teams set records?

 

[FerretAfros]

Remember all those times people around here have asked if Disney ever tries to influence online discussions? This first-time poster extolling the virtues of simultaneous price increases and service cuts seems like a text book case of it.

Perhaps Mr Nyberg will stick around and become a regular part of our ongoing discussions and develop an online persona of his own (in which case: welcome, it’s nice to have you!), but I have my doubts. This ain’t my first rodeo!

 

[Phroobar]

Well, why do fans cheer when their sports teams set records?

Your cheering for a corporation to make money not a sports team to win games.

 

[Disstevefan1]

Fact is, for all who can still afford to go to Disneyparks this is good! There are lower crowds! Enjoy it while it lasts!

 

[networkpro]

Your cheering for a corporation to make money not a sports team to win games.

If you are a stockholder, then making money should be cheered. Sports teams too are businesses, but one with limited participation in ownership and revenue streams.

 

[Disorbust]

Yes that all looks great right now but what about the cost you don't see on the bottom line. Loss of Brand loyalty and perseived value. I am not a business person but if I were during a SWOT analysis I would serious be thinking of the threats in the future: Economy, Universals Epic park and their new hotels. Those who are no longer brand loyal will be easy to pull away from WDW.

 

[Phroobar]

I guess I don't understand the blind brand loyalty of the typical Disney fan. I have stock in Disney but I'm not going to jump up and down and cheering that they made x billions this year when I see the bigger picture of how they eroded the brand and fired a lot of people just so my stock when up a few points. I know it will all come crashing down very soon. I don't cheer for any corporation. It seems juvenile.

 

[Deleted member 107043]

"Domestic revenue growth is driven by higher average ticket prices for theme park admissions and for cruise line sailings, increased food, beverage, and merchandise spending, and higher average daily hotel room rates, along with higher volume due to higher attendance and passenger cruise ship days."

No wonder Iger said he wasn't concerned about SWGE's performance. Their strategy of increased ticket pricing may have lowered attendance this summer, but apparently it's pushing visitor spending through the roof.

 

[SeanNyberg]

I’m far from a Disney employee pushing some agenda. (I know. That’s what a Disney plant would say) lol
I’m a 37 year old attorney that lives with his boyfriend in the Seattle area. I don’t own any Disney stock and have no financial interests with the company. I’ve lurked on these boards for awhile now.
I don’t have the *fire Chapek, drag Iger into the streets* mentality. Yes. There are lots of us out here but we stay pretty quiet. I tend to support moves by companies that many don’t, if it shows to be effective. Yes. Sometimes they need to cut employees and cut back on entertainment to save some money for a bit, but if those moves bring us an E Ticket down the road I’m all for it.

 

[Model3 McQueen]

Congratulations to Iger, Chapek and the rest of the Disney dream team for an astonishing 2019! Can't wait for 2020 with RotR, Avengers Campus, and Micky/Minnie Runaway RR in WDW. (Plus all the other park additions that are sure to come!!)

This section reeks of Disney PR I can almost smell it like I smell the fumes from that industrial warehouse fortress power plant..

EDIT: Just saw your new post. Are you sure you're not related to one of the two Bobs in any way?

 

[Disney Analyst]

Also the entertainment cut happens every year around this time... end of quarter. Blame boards of directors, share holders, and capitalism. As that’s how that works. People also always get laid off after a major project has wrapped up...