Mature WDW

[dizneycrazy09]

I usually read Jim Hill's articles mainly for entertainment value, and I know the opinions everyone on these boards have of him, but his article today really got to me today. Is the Disney company really loosing sight of what it is? and is WDW, now a "mature" park, slowly coming apart at the seams? Here's the article and I was just curious as to the feedback you guys have on it. :wave:

http://jimhillmedia.com/blogs/jim_h...inding-new-ways-to-milk-the-wdw-cash-cow.aspx

 

[Tim G]

I never comment to Jim Hill fairytails... :lookaroun

 

[dizneycrazy09]

I never comment to Jim Hill fairytails... :lookaroun

Like I said, I usually read it for entertainment value, but everything that was stated today was pretty much common sense of the current state of the Disney company. So leaving out the JH factor, is the Disney company loosing sight of what it is? That is, is the brand name slowling loosing it's dominance?

 

[kcnole]

As I stated on another thread, the simple fact that management thinks that we need to have a major promotion every year to drive people into the parks is proof that the brand name is losing its edge. The fact that management doesn't think they can rely on the parks being an amazing experience in and of itself and that we have to give people candy to come in is very telling. The fact is they're right. The parks aren't what they used to be, but the answer isn't to have big celebration after big celebration for that will only act as a band-aid to the situation. The answer is to get the parks back to the premiere vacation destination that they once were, and to make visiting the parks all the promotion they need.

 

[Cole'sMom]

Jim Hill is good for entertainment, but take what he says with a grain of salt. ETA: I agree with kcnole. I wish Disney would stop throwing yearly celebrations. They are getting old and unless it is a milestone, let people visit for the sake of it being WDW. I'm not sure how that would play out, though. Here in MI, the economy is down the drain. People are losing their jobs every day. I visit WDW yearly because I love what it is. It has changed tremendously since I started going, but I still love it.

 

[Pumbas Nakasak]

As I stated on another thread, the simple fact that management thinks that we need to have a major promotion every year to drive people into the parks is proof that the brand name is losing its edge. The fact that management doesn't think they can rely on the parks being an amazing experience in and of itself and that we have to give people candy to come in is very telling. The fact is they're right. The parks aren't what they used to be, but the answer isn't to have big celebration after big celebration for that will only act as a band-aid to the situation. The answer is to get the parks back to the premiere vacation destination that they once were, and to make visiting the parks all the promotion they need.

A strategy that almost all companies follow, its about maintaining your market presence. Or are the likes of Coke not the brand they once were either?

 

[RSoxNo1]

I had absolutely no problem with this article (although I generally don't have a problem with JHM anyways). It's true that the Disney World theme parks are in the mature state of their growth. Each individual park may not be at the same level but with the exception of arguably the Animal Kingdom, each park has reached maturity.

The problem with any business is turning the peak that is often considered maturity into a plateau, and then rising from that plateau. With Epcot and MGM we saw some regression after reaching maturity, Disney has since "fixed" parts of Epcot with Soarin', Test Track, and Mission: Space to get it to it's previous peak (if not higher). MGM is in the decline phase right now but that will probably just show up as a similar growth pattern to Epcot once Toy Story Mania opens. It won't have the effect that Expedition Everest had on Animal Kingdom, but it should help bring the popularity of MGM back to it's previous levels.

As for Animal Kingdom, you can argue that it's still in the growth phase, but with the additions of Expedition Everest and Finding Nemo, the park now houses two amazing E-Tickets as well as two of the best stage shows on property. If Animal Kingdom hasn't reached maturity yet, it's approaching it.

The Magic Kingdom has been at the maturity plateau for quite some time. The argument that it doesn't need a new e-ticket is relatively legitimate from a business stand point. Because of it's large reliance on timeless classics, Disney can afford to be somewhat stagnant with the Magic Kingdom. By cycling in less expensive dark rides, and rehabing existing dark rides they have kept the park relatively up to date. The overwhelming issue is that like all the other parks - there is room for development, and because that room exists, Disney fans feel that it's necessary to develop. Personally, if an Expedition Everest equivalent was slated for the Magic Kingdom, it wouldn't have the same effect on MK as it did on the Animal Kingdom. The necessity for a gatebuster ride in MK just isn't there - perhaps if the Harry Potter/robo coaster rumors are true we may see an impressive new MK e-ticket, but I don't see development for one beginning within the next 3 years. (this of course would imply that Islands of Adventure would draw crowds away from WDW)

 

[hokielutz]

As I stated on another thread, the simple fact that management thinks that we need to have a major promotion every year to drive people into the parks is proof that the brand name is losing its edge. The fact that management doesn't think they can rely on the parks being an amazing experience in and of itself and that we have to give people candy to come in is very telling. The fact is they're right. The parks aren't what they used to be, but the answer isn't to have big celebration after big celebration for that will only act as a band-aid to the situation. The answer is to get the parks back to the premiere vacation destination that they once were, and to make visiting the parks all the promotion they need.

Like Pumbas said earlier... Disney is following developed marketing strategies. As a company... they also are beholden to their investors. Like it or not.. companies are in existence to sell a service or product, make a profit, and improve their shareholders' value.

Marketing depts are going to come up with different campaigns to attract interest. The company doesn't want to rest on its laurels, but improve their park attendance and occupancy rates at their resorts. The parks are the company's cash cow. If attendance falls off of prior years... or their % occupied rates drop from prior years... its likely Wall Street and their shareholders will hold Disney Mgmt accountable.

Anyways... I understand your logic, but I think management may be trying to strike a balance between refurb, new additions, and marketing to keep up the image of the parks and a healthy bottom line for this part of the company.

 

[slappy magoo]

Disney's promotions remind me a lot of certain stores that artificially inflate their prices beyond what most people can or are willing to pay. So when they do offer a promotion or sale, which is still a price point WDW is willing to live with, still profitable, still safely "in the black," everyone jumps on the amazing deal. Meanwhile, there are still plenty of people willing to buy at the "usual" rate. They keep raising the normal price of a vacation to something out of the reach of a lot of people, or at least out of reach unless they make concessions (Value instead of moderate, 5 days instead of a week), and then when they offer a promotion, it seems so good, park fans do their darnedest not to pass it up. I understand WDW's desire to keep the prices high to give the impression a WDW vacation is really REALLY special, but I think what's happening is, the general public has now been trained to wait, anticipate, work their vacation schedule around the possibility of these promotions. Attendance has been generally strong of late, but I can easily forsee a time when SO many people hold off on plans until a promotion is announced, it starts to cut into attendance figures, and the company's bottom line. If/when this happens, it'll be interesting to see whether Disney reacts by making their pricing structure more stable, or by just doing away with such good promotions.

 

[kcnole]

A strategy that almost all companies follow, its about maintaining your market presence. Or are the likes of Coke not the brand they once were either?

Disney isn't all other companies. Disney reached the level it reached by b__________g the trends and setting something completely different. It wasn't afraid to innovate in a different way. Unfortunately that's no longer the case. I'm not advocating Disney sitting back and resting on its laurels and just saying here we are come on. They still have to market and they still have to innovate, but there's no need to do a massive celebration year after year. It dilutes the parks and makes them seem as if they aren't worthy of a visit in and of itself.

 

[Iakona]

I think another thing to consider is that we are only in the second year of the tourism levels recovering to pre-911 levels. I see YOAMD as a marketing campaign to ensure that Disney is on the minds of those people traveling again. I am not convinced that YOAMD was necessarily expected to surpass HCOE, but instead be a vehicle to continue to keep the Disney brand name fresh or on the lips of potential tourists minds. Without access to the marketing strategy, the attendance numbers, surveys etc. none of us really knows the answer.

So far every person saying YOAMD is failing or succeeding is basing there positions on anecdotal evidence (obviously that is all most of us have available to examine). For every person you know that doesn't know what YOAMD is others have people they know that do understand YOAMD. For the most part everyone agrees that the parks are full and "off peak" times are busier than in the 4 or 5 years post-911. I guess the disagreement is whether or not those crowds are a result of tourism going back to normal levels or HCOE and YOAMD.

 

[DisneyMusician2]

Is WDW mature? I think so. Is that a bad thing? Probably not. WDW is an established tourist destination, and they are trying to grow instead of stagnate. Travel on the whole is down and they are doing their best to add new experiences and improve the park situation on the whole. That being said, this new promotion is more than a bit lackluster, and their approach of constant expansion instead of rehabbing what they already have in palce can sometimes become a cumbersome way to do business. I suppose only time will tell if the parks can continue to grow and the area can maintain its hold on the tourist industry.

 

[Frosty689]

Jim Hill Media is a very intresting thing to read because I know for me, picking thru the facts, and sorting out the opinions is a tricky task. I'm very upset that Disney is bringing in 3rd party companies to create hotels. I don't see how anybody could justifiy bringing in 3rd party companies to create hotels on Disney property right now in Disney's state. I could understand the creation of the Swan and Dolphin in 1990 as the Disney "population" was booming at a rate disney couldn't handle. However, I think they should be able to build hotels without any outside help now. Walt Disney's dream was to create the best innovative, futuristic city/park in Florida. That dream IS slowly fading away in my own personal opinion, and I feel that the Disney Company is now becoming excessively influenced by money. (Innoventions is a prime example of this; Remember dreamcasts? Although it was a failed machine, the Disney company had maybe 15 of those systems in there before anyone else even had them!) They are a business, but they are also innovators and creators. Innovators and creators take chances, throw the cost of something to the wind believing in their projects. I do not believe other parks should be create around the world, there are enough around the globe now, that improvements, shows, and rides should now be put in place at exsisting parks.