News Park attendance showing significant softness heading into the Fall 2018

MickeyMinnieMom

Well-Known Member
You make some good points. I do agree that younger people want to spend on experiences more than goods for the most part. I think the percentage of them that are willing to bypass the next hottest Apple device or phone/tablet/whatever in order to put back the money it will take to get to WDW isn't as high as it was 20 years ago. My kids vary in age quite a bit but don't have the patience to watch the same video over and over as I did with Bedknobs and Broomsticks. They get on Youtube and watch 5-10 minute clips from content providers that upload twice a day sometimes. Content is always new and fresh; quality is very debatable. I could make some wide generalizations on brand loyalty for young people but I'm not knowledgeable enough on the subject to cast more than an opinion from my own experience.

My only issue with what you wrote is when you state they have an established track record of making pricing adjustments if they hit an existential threat. I feel like that is a low bar to judge their pricing flexibility and ability to decrease as needed. They have obviously never decreased prices in their history so track record is consistent but this has always been a bull market for them (outside of 9/11 and 2008ish) so they haven't needed to as it relates to a threat. I think any company in the world will choose to decrease prices if that is what stands between them and doom. If they ever decreased year-over-year prices I'm not sure Wall Street would have the guts to keep from panic selling.
Thx. :)

And yes -- about the prices -- I wasn't clear. I was thinking a little wider, about Disney being more malleable as a company with its offerings and its evolving (some might say devolving!) brand. Disney is still listed in many top 10 lists of things like "most loved global brands" -- it's still going strong. Can that change? Sure. Has it? Doesn't seem to have yet. That suggests to me that it still has staying power. The more diversified the company gets, the more levers it can pull across SBUs to adjust to a changing leisure spending landscape.

I think that in an Armageddon scenario they'd have to show extreme flexility wrt decreasing prices, but agree that they have not faced that imperative outside of deep recessions/downturns -- and their reductions have come not in terms of reducing posted ticket prices as we know, but in offering myriad discounts which decrease the effective price (and making cuts in offerings, of course, that they built back up later). But where they have faced that shorter-term downturn pressure, it's hard to argue that they did not adjust and bounce back quite successfully.
 

LSLS

Well-Known Member
Yesterday, Monday, was pretty crowded at all the parks.

Looking at the times for rides, not as busy today, but nothing popular is a walk-on.

I don't know. Right now (1:30 on Tuesday), I see 10 minutes Pirates, 10 minutes Splash, 10 minutes Big thunder, 15 minute ToT, 20 for Everest, 20 for Safari, 20 for Space, 30 for Soarin, 45 for Peter Pan, 55 for FoP.
 

Kingtut

Well-Known Member
Geekza - This is a very well thought out analysis and I thank you for the time you took to develop it.

I have come to believe that the Disney Company of 2018 is not focused on improving the long term outlook for any of the parks. They have spent minimal ( in big corporate terms) money to update any of the US parks. the corporation sees the parks as a cash register that is to be used as long as possible while they develop a way to monetize eyeballs looking at the 5 inch screens in our hands. The growth is in online entertainment and not in physical bodies buying mouse ears. If conditions and park experience were truly important to corporate then we would not have reached the current situation -where many ( Note - I say many but not all) long time fans see less and less value in the parks - would not have been allowed to occur. There would be additional capacity being built in both new gates or new experiences in the existing parks. Disney has for some reason made a decision that the current size and capacity in Orlando is all they wish to have and support. All of the new construction is not adding significant capacity to a physical plant that is already filled to the point of being uncomfortable for the "guests"on a majority of the days each year. While the company tries to sell each day as many times as possible. I am of the opinion that they are building parks overseas in order to introduce their IP's to new audiences that did not grow up watching the World Of Disney. If they could think of another way to do this then they would not spend the money on anything like a park today. If Walt had never built a park the current corporate mindset would never build a park in California, Florida, Paris, China or the moon.

I would not be surprised to see in 10 years or so that Disney decides to split the company into a "Park Company" and "Everything Else they want to keep Company" saying that the demands of the two businesses are so different that a single management team cannot adequately address them. The synergies of having these different segments are becoming less everyday. A Guardians Coaster in Orlando is not going to sell more Groot toys in Chicago. It's more profitable to have you order toys by clicking on them than it is to have you carry them out of a store.
 

Scuttle

Well-Known Member
That's a big drop from this morning. But then again, it's freaking hot in Orlando right now... feels like 93.
Side note.. I was at Disneyland last week for 12 hours straight and didn’t sweat once. What a difference to leave after all day and not smell my butt on the ride home.


Sorry, I went off track there a bit. Smell is one hell of a memory trigger.
 

Tony the Tigger

Well-Known Member
True... value (or perceived value) is the heart of most of our vacationing decisions. For Example, I saw that the Yacht Club dropped the Visa Cardholder discount from the rack rate of $446 to $290 a night. To me, that's a good value for a deluxe hotel. The Swan and Dolphin are actually a little higher than the Yacht Club currently, so my perception is that it's a good value.

There's a Visa Cardholder room discount?

I know about the merch and dining discounts, but never heard of the room discount.

We stayed at Yacht Club about 3 weeks ago and both the FL Resident and AP rates were the same $290, though.

I think the jury is very much out on that. The younger set appears wiling to spend on experiences even more so than goods. Disney crafts experiences for people, especially with some of the excellent tours they offer. I think there is a hook there -- one that people on boards will complain about forever, as they include the dreaded up-charge.

I look at it like this:

WDW, like Disney animated films, is aiming for more than one audience at a time. Parents watching Finding Nemo may get a joke their kids don't get.

So in addition to catering to different income levels, they are catering to different experience levels.

People going for the first time, or only time, may spend quite enough on their room, tickets, and food.

In our case, we "graduated" to different experiences. Once you have an AP and you're going several times a year, "the basics" are kind of a given, so you look for "upcharge" experiences like the tours, the special dining, etc.

Even Food & Wine will have the booths for the newbies (and whoever else) but now we focus more on the F&W luncheons. Eventually I'd like to go more for the other special F&W limited dining events, but we'd have to line up our trip with the dates and obviously pay more.

I don't have to do everything every time. This keeps the experiences fresh!
 

Clamman73

Well-Known Member
There's a Visa Cardholder room discount?

I know about the merch and dining discounts, but never heard of the room discount.

We stayed at Yacht Club about 3 weeks ago and both the FL Resident and AP rates were the same $290, though.



I look at it like this:

WDW, like Disney animated films, is aiming for more than one audience at a time. Parents watching Finding Nemo may get a joke their kids don't get.

So in addition to catering to different income levels, they are catering to different experience levels.

People going for the first time, or only time, may spend quite enough on their room, tickets, and food.

In our case, we "graduated" to different experiences. Once you have an AP and you're going several times a year, "the basics" are kind of a given, so you look for "upcharge" experiences like the tours, the special dining, etc.

Even Food & Wine will have the booths for the newbies (and whoever else) but now we focus more on the F&W luncheons. Eventually I'd like to go more for the other special F&W limited dining events, but we'd have to line up our trip with the dates and obviously pay more.

I don't have to do everything every time. This keeps the experiences fresh!
It's a 35% discount for Visa card holders....I haven't seen a Disney Visa card discount for a room only for some years though...maybe goes along with the "softness" of attendance.
 

Lensman

Well-Known Member
<- click here to read @geekza's whole post if you haven't already. It's worth it
...
Fast-forward to the present. Disney is omnipresent in our lives because of the rise of cable television and the Internet. They've bought up many beloved franchises and have made sure that everyone knows that Disney is in charge of them now. With that said, our cultural connection to Disney is now a fragmented one. Everyone is exposed to Disney in one way or another, but you don't have entire families connecting with "Disney" through a shared experience. Kids and tweens have the Disney Channel. Young boys have DisneyXD. Comic and Action film fans have the Marvel and Star Wars films. They market themselves to women with their various "lifestyle brands." The upshot of this is that, though the numbers of people who are attracted in one way or another to a Disney property has grown, by diversifying and fragmenting so much, they aren't developing the staunch loyalty that they once did. Another effect of this expansion has been that the central core values and identity that originally earned the almost-fanatical love and loyalty to the parks have been diluted to near-extinction in the name of chasing fads and targeting specific demographics in order to quickly bolster the bottom line on quarterly earnings reports. Meanwhile, all of this acquisition and rush to capitalize on trends and IP exploitation is costing the company a lot of money. In order to pay for these things, the public are paying more and more each day for their "Disney Tax" if they want to go to the parks. If they could charge you for each raindrop that falls in the summer in Orlando, they would, and would sell umbrellas and Minnie Ears that say, "Moisture Magic!" Increasing revenue also comes from decreasing things like attraction and building upkeep, decreasing staffing, and either eliminating little things that used to be given to guests at no charge or else beginning to charge for them (at a substantial markup).
...
This is one of the most thoughtful and detailed posts in this thread, and gets to something that I wanted to contribute. There's the short-term softness and there's the medium term annual attendance trends, but it's always struck me that Disney's long-term strategic marketing attempts to have identify Disney as part of who they are - to have being "Disney" people as part of their identity. And so all of the things I've emboldened in @geekza's post above could be even more successful in creating people who identify as "Disney people" than they were to the Wonderful World of Disney generation if Disney successfully executed this strategic marketing. And that's still an open question. I'm not even sure they do it and only an insider could tell us, I suppose.

As I look at the major IP that Disney have purchased over recent years, I see them buying property that has succeeded in creating characters who we deeply identify with - or at least want to. Through this, they increase the number of people who identify as Disney. Who didn't want to be Luke Skywalker or Princess Leia at some point? But more to the point, there's someone out there who saw themselves in Spiderman or wanted to see themselves in Captain America.

You can even see another aspect of this back in the '90s in the expansion of the resort system. In making each new resort so distinctive and unique, they got people to not only identify as Disney people, and as WDW people, but as Port Orleans French Quarter people. I think they had the roots of this when the Polynesian Resort people got created in the '70s.

From this perspective, their biggest strategic mistake was in not acceding to whatever creative control Rowling wanted in order to obtain the park rights to HP. The identity draw from that property will empower generations of kids and young adults. (Though I do see how from a financial standpoint that it was more valuable to Universal than to Disney) But this is another story.

I'll end with a funny property - Hello Kitty. Somehow, Hello Kitty has been successful enough in Japan to have resulted in this. (And it's not just the outside!) How do they do it?
JRW-500_V2_20180701_HelloKitty_Shinkansen_in_Himeji.jpg

By Rsa [GFDL (http://www.gnu.org/copyleft/fdl.html) or CC-BY-SA-3.0 (http://creativecommons.org/licenses/by-sa/3.0/)], from Wikimedia Commons
 

MickeyMinnieMom

Well-Known Member
I look at it like this:

WDW, like Disney animated films, is aiming for more than one audience at a time. Parents watching Finding Nemo may get a joke their kids don't get.

So in addition to catering to different income levels, they are catering to different experience levels.

People going for the first time, or only time, may spend quite enough on their room, tickets, and food.

In our case, we "graduated" to different experiences. Once you have an AP and you're going several times a year, "the basics" are kind of a given, so you look for "upcharge" experiences like the tours, the special dining, etc.

Even Food & Wine will have the booths for the newbies (and whoever else) but now we focus more on the F&W luncheons. Eventually I'd like to go more for the other special F&W limited dining events, but we'd have to line up our trip with the dates and obviously pay more.

I don't have to do everything every time. This keeps the experiences fresh!
Agree on all of this! The dreaded upcharge events are a definite focus of our trips. We see every trip as visiting “old friends” every time (Haunted Mansion, Main St, etc) AND doing something new every time. And often that something new is a new attraction or show as well — but the add-ons are a huge draw for us.
 

eddie104

Well-Known Member
Just my opinion - Guys like Chapek think people have their kids watch Disney Channel, they buy merchandise, then they visit WDW, and then they have customers for life. I'm sorry to say that isn't the case, that it takes a lot more than that to develop customers for life. Previous management knew and understood that, probably because they knew or worked with or listened to the teachings of some old dead guy...

If Disney wants to (still) be considered a premium product, they need to do more than charge a premium price these days. They can't build a FoP once every dozen years and think that's good enough (A phrase that seems to be more aligned with their philosophies these days, sadly). Build something new and unique every 2-4 years instead of the current feast-or-famine approach to building. Slow and steady wins the race.
See that is where people confuse Disney for Six Flags or Cedar Fair which needs to constantly build attractions to keep attendance. I agree Disney needs to be continuously building good rides for people to enjoy. But a long time ago Dis figured out that even with prices increasing people will still come. Because of the atmosphere and other entertainment they offer they provide something regional parks frankly can’t afford or dream of offering to the quality set by Dis.
 

Horizons '83

Well-Known Member
In the Parks
No
It's a 35% discount for Visa card holders....I haven't seen a Disney Visa card discount for a room only for some years though...maybe goes along with the "softness" of attendance.
They have had the room only discount at least the last 3 years I have had the card. The discount only is worth having the card. No annual fee, and I really only use it to book the initial package/room.
 

trainplane3

Well-Known Member
This is one of the most thoughtful and detailed posts in this thread, and gets to something that I wanted to contribute. There's the short-term softness and there's the medium term annual attendance trends, but it's always struck me that Disney's long-term strategic marketing attempts to have identify Disney as part of who they are - to have being "Disney" people as part of their identity. And so all of the things I've emboldened in @geekza's post above could be even more successful in creating people who identify as "Disney people" than they were to the Wonderful World of Disney generation if Disney successfully executed this strategic marketing. And that's still an open question. I'm not even sure they do it and only an insider could tell us, I suppose.

As I look at the major IP that Disney have purchased over recent years, I see them buying property that has succeeded in creating characters who we deeply identify with - or at least want to. Through this, they increase the number of people who identify as Disney. Who didn't want to be Luke Skywalker or Princess Leia at some point? But more to the point, there's someone out there who saw themselves in Spiderman or wanted to see themselves in Captain America.

You can even see another aspect of this back in the '90s in the expansion of the resort system. In making each new resort so distinctive and unique, they got people to not only identify as Disney people, and as WDW people, but as Port Orleans French Quarter people. I think they had the roots of this when the Polynesian Resort people got created in the '70s.

From this perspective, their biggest strategic mistake was in not acceding to whatever creative control Rowling wanted in order to obtain the park rights to HP. The identity draw from that property will empower generations of kids and young adults. (Though I do see how from a financial standpoint that it was more valuable to Universal than to Disney) But this is another story.

I'll end with a funny property - Hello Kitty. Somehow, Hello Kitty has been successful enough in Japan to have resulted in this. (And it's not just the outside!) How do they do it?
View attachment 317843
By Rsa [GFDL (http://www.gnu.org/copyleft/fdl.html) or CC-BY-SA-3.0 (http://creativecommons.org/licenses/by-sa/3.0/)], from Wikimedia Commons
Japan's interesting to me just because of they can market something to the masses. They can slap a IP on something and market the ever living crap out of it and be successful because it's usually something really unique. I think Star Wars is known over there but not to the same level it is in the US even though Disney pumps $$ into marketing campaigns around the world.
Another fun train thing too:
ax4Hde0.jpg

Something barely known about in the US had a dedicated bullet train as well and it's a 20 year old series (plus many other things). And like the Hello Kitty train, it was a fully themed experience. It actually ended its' running a couple months ago.
Another point is anything with a giant robot catches on.... (but Evas aren't robots...)
https://kotaku.com/the-evangelion-bullet-train-looks-truly-magnificent-in-1737292763
 

marni1971

Park History nut
Premium Member
Daily figures
How would you look at it? I was approximating. What would you estimate DHS attendance to be in 2020?
sorry, got distracted. Talking about capacity and crowds it’s more applicable to look at daily attendance figures. Which obviously aren’t common knowledge.

For example I was at Epcot recently at there were approximately 24,000 guests left in the park by early evening. If that were every day it’d be 8.7 million a year which we know is incorrect.
 

geekza

Well-Known Member
This is one of the most thoughtful and detailed posts in this thread, and gets to something that I wanted to contribute. There's the short-term softness and there's the medium term annual attendance trends, but it's always struck me that Disney's long-term strategic marketing attempts to have identify Disney as part of who they are - to have being "Disney" people as part of their identity. And so all of the things I've emboldened in @geekza's post above could be even more successful in creating people who identify as "Disney people" than they were to the Wonderful World of Disney generation if Disney successfully executed this strategic marketing. And that's still an open question. I'm not even sure they do it and only an insider could tell us, I suppose.

As I look at the major IP that Disney have purchased over recent years, I see them buying property that has succeeded in creating characters who we deeply identify with - or at least want to. Through this, they increase the number of people who identify as Disney. Who didn't want to be Luke Skywalker or Princess Leia at some point? But more to the point, there's someone out there who saw themselves in Spiderman or wanted to see themselves in Captain America.

You can even see another aspect of this back in the '90s in the expansion of the resort system. In making each new resort so distinctive and unique, they got people to not only identify as Disney people, and as WDW people, but as Port Orleans French Quarter people. I think they had the roots of this when the Polynesian Resort people got created in the '70s.

From this perspective, their biggest strategic mistake was in not acceding to whatever creative control Rowling wanted in order to obtain the park rights to HP. The identity draw from that property will empower generations of kids and young adults. (Though I do see how from a financial standpoint that it was more valuable to Universal than to Disney) But this is another story.

I'll end with a funny property - Hello Kitty. Somehow, Hello Kitty has been successful enough in Japan to have resulted in this. (And it's not just the outside!) How do they do it?
View attachment 317843
By Rsa [GFDL (http://www.gnu.org/copyleft/fdl.html) or CC-BY-SA-3.0 (http://creativecommons.org/licenses/by-sa/3.0/)], from Wikimedia Commons
Thanks for your kind comments. I think that there are a lot of folks around here who think that, because some of us are critical of the current company, we obviously hate everything having to do with Disney. Nothing could be farther from the truth. I'm critical because I care about a place that has had a tremendous positive impact on my life, from the time I was a small child. I've seen it at its best and, like other long-time visitors, know what a truly unique and special place it has been and could be again. I have no problem with Disney making money. I want them to make money so that a place like WDW can endure and continue to enthrall subsequent generations with its magic. If I didn't believe that the right management decisions could ensure WDW's continued success and, yes, growth and evolution, I wouldn't bother. I may have no direct power over whether or not this happens, but pointing out observations and experiences in support of raising guest expectations can be, I believe, useful and constructive.
 

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