Why is TDO so cheap?? Seriously, because I was watching the opening to toy story land in paris and it looks great!! But my question is aren't or weren't they in some debt?? So how come they pumped money to them? Financially WDW I would think is more stable with cash and could certainly afford another big project aside for fantasy Land. So is it because the Studios park in paris was in trouble with attendance and needed a boost like CA?? So is it there thinking that WDW is fine the way it is??
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Serious Question!
- Thread starter floridabill
- Start date
Kamikaze
Well-Known Member
Sorry. Had to.
It isn't really 'TDO' that is cheap.
TDO gets a budget from above them. They chose how to spend it. Are they bonused if they don't spend all of it? Possibly. Probably. But they are spending a lot of money on FLE. And Star Tours 2.0 isn't cheap, either.
Don't forget - WDW has a lot more to deal with than the other properties, and upgrades and infrastructure costs far above DLR or DLP. We always forget the costs to maintain the ridiculous amount of hotel rooms on property. And the bus fleet. And everything else.
Sorry. Had to.
It isn't really 'TDO' that is cheap.
TDO gets a budget from above them. They chose how to spend it. Are they bonused if they don't spend all of it? Possibly. Probably. But they are spending a lot of money on FLE. And Star Tours 2.0 isn't cheap, either.
Don't forget - WDW has a lot more to deal with than the other properties, and upgrades and infrastructure costs far above DLR or DLP. We always forget the costs to maintain the ridiculous amount of hotel rooms on property. And the bus fleet. And everything else.
:ROFLOL::ROFLOL: why so serious, that was great!! Yes I guess we all forget myself included, that WDW is like a city in size, I just wish they would treat each of there parks equally..I feel the other 3 parks don't get as much tender love and care, especially Animal kingdom.
SeaCastle
Well-Known Member
Some of it has to do with the arrogance of the executives. If they go over budget, it comes out of their bonuses. TDO wants attendance numbers steady or rising, and there are a couple of ways to do that. One is a "if you build it, they will come" strategy that involves spending money on attractions/upgrades to achieve results. This was prevalent at WDW in the early '90's, and to an extent, Disneyland today. Another strategy is using discounts to bring guests in, whilst raising prices. TDO favors this strategy since it's not costing them to make more money.
Now, before this comes to a WDW vs. DL ing contest, you must remember that Disney World is not Disneyland. Never was, never will be, never meant to be. They appeal to entirely different markets (Disneyland arguably being the most popular regional park). Comparing the two, their rides (to an extent) and the way they are run is comparing apples to oranges.
Now, before this comes to a WDW vs. DL ing contest, you must remember that Disney World is not Disneyland. Never was, never will be, never meant to be. They appeal to entirely different markets (Disneyland arguably being the most popular regional park). Comparing the two, their rides (to an extent) and the way they are run is comparing apples to oranges.
While I agree with all of that, and it certainly makes sense! Frankly it sickens me!! It upsets me because I remember the old WDW fixing every attraction making sure everything is perfect! And when a new threat comes to town PULL OUT THE BIG GUNS! I mean when universal was build they built a whole new park in response!!! Now universal builds a y 20 acre land, and disney does nothing....And when they do it's fantasy land opening in 2013 :brick: The people running this place now are a joke! They are only money hungry executives, and IMO they are ruining WDW! you have to spend a little to make a little. Not charge ridiculous amounts to get in to discount and never give us anything new!!!!
Did you see what actually opening in Paris? If that opened in Orlando people would be throwing an absolute fit. They are carnival type rides, at an even lower level of Dino-Rama. The DLP fans obviously wanted Toy Story Mania, but ended up with a few themed off-the-shelf kiddie rides.
CoffeeJedi
Active Member
Horizonstta
Active Member
Arrogance of the executives? Where are you getting this information from? You realize TDO management doesn't operate in a vacuum, as it gets an operating budget and performance metrics from the top, right? Said another way, if WDW earns a $1b profit in 2010, TDO doesn't have the ability to spend that $1b in 2011. Rather, it goes into the worldwide financial results with the profit allocated based on how top leadership wants to invest it. Sometimes profits are used to cover operating losses or shortfalls from other divisions. Sometimes the profits are returned to the shareholders or used to fund new acquisitions or investments.
Who knows what metrics TDO executives have to meet each year. However, going over budget typically isn't something that is looked at in a positive light. Unless you know what their metrics are and understand how the cash is allocated within the entire organization, I'm always amazed when I read statements like this.
Yea but universal had 1 billion dollars in debt, yet still built potter at 200 million!!! So there is no excuse for WDW anymore, there is just no defending them anymore they are screwing up!!!
Horizonstta
Active Member
You may not like the way global funds are allocated within the organization, but putting the blame solely on TDO is nuts. Don't get me wrong, I'm sure TDO is primarily to blame for several things that have impacted my enjoyment over the years, but most seem to blame them for just about anything.
erinshaneb
Member
Maybe I am having a duh moment (one of many for the day), but TDO ??
Pioneer Hall
Well-Known Member
These arguments are getting to a point of insanity already, and they are happening on a daily basis. NO ONE here (at least that we know of) knows the inner workings of TDO (Team Disney Orlando for the poster who asked) or the WDC as a whole. You cannot begin to fathom the amount of decision making and financial modeling that goes into even the smallest decisions in creating a budget as massive as what they have to deal with. I have spent quite a bit of time learning the WDW financial process and even after that I can only really find the basics of the financial planning process.
As far as the debt that DLP was once known to have. Years ago, Disney realized the financial trouble that they were facing with DLP. They were able to find larger investors (such as the Saudi Prince that owns over 10%) and get themselves out of their hole. Now that the property has become more of a resort destination with greater international appeal, they are operating in a much better financial position. Disney only owns about 39% of DLP to date.
I hope this doesn't sound arrogant (because I do not want it to), but it seems that a lot of the complaining are from people that think Disney has bottomless pockets and don't seem to necesarilly understand how the business process works. Sure they are a gigantic company...but at the end of the day they have a board and shareholders to answer to. Whether you like it or not they have a reasoning for what they are doing that THEY think works the best for the property. When a more Sr Manager thinks otherwise, the executives change.
As far as the debt that DLP was once known to have. Years ago, Disney realized the financial trouble that they were facing with DLP. They were able to find larger investors (such as the Saudi Prince that owns over 10%) and get themselves out of their hole. Now that the property has become more of a resort destination with greater international appeal, they are operating in a much better financial position. Disney only owns about 39% of DLP to date.
I hope this doesn't sound arrogant (because I do not want it to), but it seems that a lot of the complaining are from people that think Disney has bottomless pockets and don't seem to necesarilly understand how the business process works. Sure they are a gigantic company...but at the end of the day they have a board and shareholders to answer to. Whether you like it or not they have a reasoning for what they are doing that THEY think works the best for the property. When a more Sr Manager thinks otherwise, the executives change.
kaos
Active Member
I WANT MY DIVIDENDS!!!
And can we just keep the cheapness threads relegated to their own subforum in the future?:shrug:
Kamikaze
Well-Known Member
I understand the workings of business, I am going to school for it. But they are going to start losing customers and losing money, then they will be answering to angry share holders. All these other parks around disney have built new things while the economy has been down. and some even in debt like universal. I am not the only one who feels this way, and we are free to post whatever we want here. I personally feel they are being cheap they had plenty of opportunity to take advantage In the down economy and grow with great attractions, but they did not due so because they are cheap!!
So, it's less about them being cheap and more about the fact you don't like the attractions or other construction they are planning to undertake?
And no one (including the moderator you're attempting to berate) said you didn't have the right to your opinion. Just as she has the right to his.....
the-reason14
Well-Known Member
I guess another serious question would be why continue to spend money on a cheap regressive product? :shrug:
Horizonstta
Active Member
I don't believe attendance numbers have dropped, but someone will correct me if I'm mistaken.
Well, there is a $1 billion investment being made on the west coast, in addition to whatever the actual investment amount is for Star Tours, the Fantasyland expansion, and other projects going on here. Like everyone else, I wish Disney had unlimited funds to do a lot of things. But since I don't know what their financial projections look like, the internal rate of return budgeted for the various different business segments, including the theme parks, or their overall long-term plans, I can't say they are being cheap. Of course, you can think whatever you want but I don't think it's a fair statement to say TDO is being cheap.