Step 1: Economic Downturn; Step 2: ?; Step Three: Increased Profit!

WDWFigment

WDWFigment

Well-Known Member
Original Poster
Step 1: Economic Downturn; Step 2: ?; Step 3: Increased Profit!

So the speculated economic rationale as to why Disney is making entertainment cuts (Block Party Bash, Fantasmic) probably doesn’t hold much water with Disney releasing its fiscal third quarter numbers. Thanks to a 5% increase from Parks and Resorts over the same period the previous year, Disney announced an overall 9% increase.

http://online.wsj.com/article/SB121742630081796941.html

I’m sure this thread will be wrought by the usual complaining that it’s now too expensive to go to Disney, etc., but the increased profit shows how Disney is somewhat immune to economic reality. Looks like their “foolish” decision to increase ticket prices is not such a bad one. I wonder just when they will suffer a diminished return from increasing the prices and offering less?
 
Figments Friend

Figments Friend

Well-Known Member
WDW is in the favorable position to pretty much charge whatever admission price they want....so it is hardly surprising when there are rumours of ticket rate increases.

My guess would be the only thing down the road that may turn out to hurt their pursestrings in the end is the high costs of air travel. Again, maybe this will not matter as basically if people want to go to WDW bad enough, they will pay ANY rate...and Disney knows this of course.

Sure it is too bad they have to keep raising the prices..but when you look at the higher costs to keep things running ( exspecially fuel costs these days...eek!) i can totally understand and accept the price hike.

I'm going regardless...and they know that! :lol:

"See ya real soon ".....
 
Figments Friend

Figments Friend

Well-Known Member
Sweet..well good luck at college! Hey, maybe it will actually work out in your favor...i mean, you could ALWAYS join the Disney College Program! Hee Hee...no tickets needed there...lol

:D
 
sbkline

sbkline

Well-Known Member
WDWFigment said:
So the speculated economic rationale as to why Disney is making entertainment cuts (Block Party Bash, Fantasmic) probably doesn’t hold much water with Disney releasing its fiscal third quarter numbers. Thanks to a 5% increase from Parks and Resorts over the same period the previous year, Disney announced an overall 9% increase.

http://online.wsj.com/article/SB121742630081796941.html

I’m sure this thread will be wrought by the usual complaining that it’s now too expensive to go to Disney, etc., but the increased profit shows how Disney is somewhat immune to economic reality. Looks like their “foolish” decision to increase ticket prices is not such a bad one. I wonder just when they will suffer a diminished return from increasing the prices and offering less?
Click to expand...

Just to play Devils Advocate for a second, isn't it the common perception on these boards that these entertainment cuts are related more to projected attendance for next quarter, or next year, rather than last quarter?
 
RiversideBunny

RiversideBunny

New Member
When you see WDW cancelling Hoop-Dee-Do performances, then you will know that there is a serious downturn in projected attendance.

There are always some things in a system that are key indicators.
At WDW that's one.

:)
 
S

Skyway

Well-Known Member
Plus, aren't some speculating that the Fantasmic cuts have something to do with American Idol?? (I'm sure they want to promote their evening AI show as the big event, and might as well save Fantasmic $$ in the process)
 
sbkline

sbkline

Well-Known Member
durangojim said:
Yep, I don't think this years attendance is an issue, I think what will happen next year is more of a concern for Disney.
Click to expand...

Don't get me wrong, I'm not saying that I agree with the notion that Disney is concerned about attendance next year and that this concern is leading them to do things such as cutting Fantasmic. But since that DOES seem to be the speculation of many here on these boards, then how WDW did this past quarter is irrelevant in proving or disproving that the company is worried about attendance.
 
B

bliss

Member
Step 1: Economic Downturn; Step 2: ?; Step 3: Increased Profit!


Step 2 Blame "economy" for everything. Disney must Increase ticket price because its the economy, reduce entertainment because of the economy, cut hours because of the economy, reduce the magic because of the economy but its not Disney's Managements fault.


Step 3 When next quarters profits come in, Management will take full credit for surviving the downturn.
 
CoasterKing

CoasterKing

Member
LOL !! I wonder if anyone else got your South Park reference!!

Phase 1: Collect Underpants

Phase 2: :shrug:

Phase 3: Profits

A great episode, but I believe Disney is setting itself up for smaller attendance next year. With all the other price increases, disposable income is getting smaller. Therefore, something has to give. Maybe Disney already figured that and the increase in ticket prices will offset smaller attendance.

CoasterKing:king:
 
MaxsDad

MaxsDad

Well-Known Member
RiversideBunny said:
When you see WDW cancelling Hoop-Dee-Do performances, then you will know that there is a serious downturn in projected attendance.

There are always some things in a system that are key indicators.
At WDW that's one.

:)
Click to expand...

I called Saturday and booked it for next week. Cat 2 and 3 were still available less than 2 weeks out.

In June I booked Cat 1 about the same time out, and we were seated in the second row, dead center. There was no one at all in the balconey. It is my understanding that they seat based on Cat and when you book. We had great seats for it to be such short notice.
 
K

KaliSplash

Well-Known Member
A thought, a few years ago, Disney was promising it would have "double-digit" growth as its goal. So a 9 percent increase is not meeting that.

Which could explain the cuts and higher prices, got to get the increase back into double digits.
 
P

pheneix

Well-Known Member
Walt Disney & Co. (DIS) Chief Financial Officer Tom Skaggs raised concerns on Wednesday about weakness in attendance at the company's domestic parks and resorts amid a slowdown in the U.S. economy.

In a conference call with analysts following the entertainment company's third-quarter earnings release, Skaggs noted that its domestic theme parks were flat in the current quarter.

Investors are concerned about Disney's parks business, which makes up 29% of its total revenue and 20% of its operating income. The business continued to defy skeptics, posting a 3% gain in profits in the third quarter and a 5% increase in revenue, though there was a drop in attendance at the domestic parks that management attributed to a shift in the timing of the Easter holiday to the second quarter of 2008 from the third quarter of 2007.
Click to expand...

http://money.cnn.com/news/newsfeeds/articles/djf500/200807301745DOWJONESDJONLINE000941_FORTUNE5.htm

Funny how they attribute their "drop" in attendance to the timing of the Easter holiday this year. EVERYONE who works in this business knows that Orlando's peak Spring Break attendance occured will after the Easter holiday throughout the month of April.

These guys should take a que from Six Flags and start blaming the weather. It will work for at least a couple of quarters!
 
ClemsonTigger

ClemsonTigger

Naturally Grumpy
pheneix said:
http://money.cnn.com/news/newsfeeds/articles/djf500/200807301745DOWJONESDJONLINE000941_FORTUNE5.htm

Funny how they attribute their "drop" in attendance to the timing of the Easter holiday this year. EVERYONE who works in this business knows that Orlando's peak Spring Break attendance occured will after the Easter holiday throughout the month of April.

These guys should take a que from Six Flags and start blaming the weather. It will work for at least a couple of quarters!
Click to expand...

I admit I don't "work in the business", but I don't know that late April was peak spring break month. Most every college had theirs in March/early April (ie Easter this year) and at least in the northeast, schools were either the week before or the week after.

As for the dreaded downturn...all indicators don't seem to point that way as with this December thread:

http://forums.wdwmagic.com/showpost.php?p=3037956&postcount=1

Edit: And with the whole discussion around cutting back on Fantasmic etc as cost cutting...I just don't know....I would think they would identify that as an option, but not implement it until some real indicators were seen. May just be paralleling DL where Fantasmic and Fireworks are limited in all but peak season.
 
Kman101

Kman101

Well-Known Member
If the economy continues to suck into next year, NEXT year at this time should be a better judge of attendance, etc. Most people likely had travel plans for this year already in the works and likely paid for, so I don't see a whole lot changing just yet.
 
Harry456

Harry456

Member
CoasterKing said:
LOL !! I wonder if anyone else got your South Park reference!!

Phase 1: Collect Underpants

Phase 2: :shrug: (?????)

Phase 3: Profits (Profit!!)

A great episode, but I believe Disney is setting itself up for smaller attendance next year. With all the other price increases, disposable income is getting smaller. Therefore, something has to give. Maybe Disney already figured that and the increase in ticket prices will offset smaller attendance.

CoasterKing:king:
Click to expand...

lol....it is also a Internet meme which i was surprise to see on this forum!! i applaud you, WDWFigment !
 

Register on WDWMAGIC. This sidebar will go away, and you'll see fewer ads.

Back
Top Bottom