The Spirited Seventh Heaven ...

[seascape]

Really? only if your WDW. Uni very much cares about growth. Their market share is growing at an alarming rate. They care very much. WDI thought the market was mature and decided to go another way. How many times has this been said? Do you just choose to ignore simple facts?

Disney cares about growth. In fact in 2016 Disney will have growth of 30 million or more that year alone and their total attendance worldwide will be well over 220 million. That means they between now and then Disney will grow more than what Universals total attendance will be in 2016. It is not a matter of not wanting growth it's a matter of knowing where it will come from and Disney saw the future in Asia. Six flags sees the future is in Asia and is still looking at European expansion. Universal's next international theme park is in European Russia. Universal will grow in Orlando. They may someday build a second gate is California but not until well after DLR has a third gate out west. If what you care about is Orlando then universal may win but if you want worldwide growth they are falling in importance not growing. Shanghai Disney will draw close to 15 million in 2016. Hong Kong and both Tokyo parks will keep growing. Europe should be growing by then and the US parks will keep growing. Universal will grow also. In 2016 they will attract over 50 million but it's not going to grow at the rate Disney is worldwide.

 

[WDF]

RV camping is a style choice - not just 'who has the best rate'. Hang out with some of those folks.. they want the environment, the pace, the flexibility. It's their vacation, not just a place to sleep.

The ability to keep your pets with you is also really nice.

 

[PhotoDave219]

Did Spirit take a faux 1% July Vacation!?

Yes.

 

[Funmeister]

<--------Wishes there was an application/interview process in order to be allowed to view/interact with "Spirited" posts.

 

[Lee]

Did Spirit take a faux 1% July Vacation!?

Yep. For about 3 more days.
It's to help him recouperate from the month-long one he just got back from.
It ain't easy being the Spirit...

 

[Stevek]

Oh, I think there have been posters here on this thread that said exactly that - that WDI just can't deliver anymore because they don't have the creative ability. It might not be what you are discussing, or @WDW1974 (if he ever comes back to his thread...), or many others. But I have read it quite a few times over the last weeks.

I've heard this as well. There are quite a few creative folks there but much of what gets proposed gets cut or changed due to budgets. I have no doubts that given proper budgets and perhaps a change in leadership, WDI could deliver top notch attractions and experiences on par with DA. Unfortunately, that doesn't appear to be likely to happen as long as the internal politics and organization remain in place.

 

[GoofGoof]

Interesting read about Disney stock price:
http://finance.yahoo.com/blogs/mich...-17-000--disney-preps-next-act-181916722.html

Towards the end an analyst lists MyMagic + as one of the 3 key potential drivers of growth and increased stock price for the company. I think that answers the question of whether Wall Street cares about MM+. This next earnings release should be interesting. I expect to hear more questions on returns from the project.

 

[seascape]

Interesting read about Disney stock price:
http://finance.yahoo.com/blogs/mich...-17-000--disney-preps-next-act-181916722.html

Towards the end an analyst lists MyMagic + as one of the 3 key potential drivers of growth and increased stock price for the company. I think that answers the question of whether Wall Street cares about MM+. This next earnings release should be interesting. I expect to hear more questions on returns from the project.

Keep it quite that goes against everything we keep reading on the site that it's a failure.

 

[wm49rs]

Keep it quite that goes against everything we keep reading on the site that it's a failure.

Where did someone say TWDC stock was a failure? Indeed, many of the decisions made at a WDW are on account of the quarterly reports and stock prices....

 

[Mike S]

This thread has gone on too long with the Disney versus Universal junk. Disney has been building in Asia while Universal has built in Orlando. Which company made the better decision? If you only looked on this site the answer is clearly Universal.

The problem is that there are not just two theme park companies. While Universal has spent in Orlando, Merlin has continued to expand all over the world and Six Flags has come out of their we 2008 financial problems and bankruptcy. They are now back and will be building around 10 new theme parks in China and maybe the company that actually builds in Dubai. Their expansion will more than double their worldwide attendance to we'll over 50 million. The other questions I have is with their new partner in China will they be able to get a few Pandas for the Jackson Safari? Will they finally have the size to leverage dark ride development into their parks? If the can then with the DC rights they could give Disney and Universal problems.

Now back to the theme park rankings. What is more likely to happen? Universal passing number 2 ranked Merlin? Number 4 ranked Oct park passing number 3 ranked Universal? And finally can number 5 ranked Six Flags Pass Universal? How about this. China companies have been buying out American companies so isn't it obvious that Oct Park will buy an American theme park company and pass Universal anyway? Yes. Once that happens there will be more mergers. The problem for Disney and Comcast is due to anti trust they can't buy any other American theme park company. Disney is too big and Comcast can't because of the cable ownership and broadcasting and other IP issues. So in ten years what will the theme park rankings look like? Number 1 will still be Disney but the to Disney Parks will be in China and Japan and Disney will be Building in India and Brazil. Number 2 will still be Merlin and they will still be expanding all over the world. Number 3 will be Oct Park and they will own an American theme park company most likely Sea World. Number 4 will be Six Flags after their worldwide expansion which will continue. Number 5 Universal but the will be drawing 30 million in Orlando double their current Orlando attendance. Remember the theme park industry is a business and it's worldwide and while Orlando will still be the number 1 location overall in 10 years it's importance will continue to drop, so who has made the better investments over the last few years Universal or Disney? Wall Street knows the answer, Disney because they invested in China in a big way and Universal didn't.

Universal has invested in Asia unless you conveniently forgot about their parks in Japan, Singapore and two future parks opening in South Korea in 2016 http://en.wikipedia.org/wiki/Universal_Studios_South_Korea and also Beijing in 2018 http://hollywoodreporter.com/entry/view/id/109944. Japan is also set to open its own Wizarding World next week, what do you think that'll do for the attendance at the already #1 most visited Uni park? Universal also had plans for Dubai (not sure how that's going right now).

You lose.

 

[Bolna]

<--------Wishes there was an application/interview process in order to be allowed to view/interact with "Spirited" posts.

For years I never would have considered to use it, but now I have started to find the ignore feature quite handy...

 

[ChrisFL]

I've heard this as well. There are quite a few creative folks there but much of what gets proposed gets cut or changed due to budgets. I have no doubts that given proper budgets and perhaps a change in leadership, WDI could deliver top notch attractions and experiences on par with DA. Unfortunately, that doesn't appear to be likely to happen as long as the internal politics and organization remain in place.

From what I've seen in videos, both Mystic Manor and Ratatouille are high quality attractions made by WDI recently...both of which feature an amazing ride system that may never see the light of day at WDW...that's the problem

 

[Lee]

From what I've seen in videos, both Mystic Manor and Ratatouille are high quality attractions made by WDI recently...both of which feature an amazing ride system that may never see the light of day at WDW...that's the problem

Exactly. WDI aren't the problem.
The problem is that they aren't being given orders to build attractions of that nature in the US, at least not often.

 

[Smiddimizer]

Ok guys, make sure your cellphones are turned on before entering the theme parks.

 

[Lee]

Ok guys, make sure your cellphones are turned on before entering the theme parks.

Because....?

 

[rioriz]

Interesting read about Disney stock price:
http://finance.yahoo.com/blogs/mich...-17-000--disney-preps-next-act-181916722.html

Towards the end an analyst lists MyMagic + as one of the 3 key potential drivers of growth and increased stock price for the company. I think that answers the question of whether Wall Street cares about MM+. This next earnings release should be interesting. I expect to hear more questions on returns from the project.

Silver lining...returns are showing sip expansions should be coMing

 

[ABQ]

Because....?

Are the park security folks now going to follow the latest TSA deal that non functioning phones won't be allowed inside the parks?

 

[WildcatDen]

Because....?

One of my favorite Beatle's songs. I even like the Alice Cooper cover from the Sgt. Peppers movie.

 

[PhotoDave219]

Are the park security folks now going to follow the latest TSA deal that non functioning phones won't be allowed inside the parks?

That's for international flights entering the US. According to an aviation buddy of mine, it's not for domestic travel.

 

[ParentsOf4]

Keep it quite that goes against everything we keep reading on the site that it's a failure.

What? Nothing except that MyMagic+ is a failure on this site?

Looks like I have to repost something I wrote a couple of months back on another Spirited thread ....

Disney has made a horrible mistake with MyMagic+.

Now that I have your attention ...

No, I’m not bashing MyMagic+. Quite the opposite. The just-released Q2 company financial results suggest that MyMagic+ could have been a key driver to financial success, if leveraged properly. However, it looks like Disney leadership is letting a tremendous opportunity slip away.

Let’s focus on a single passage from the company’s press release for this quarter and consider what Disney’s 10Q filing tells us about it:

"Higher operating income was due to growth at our domestic parks and resorts driven by increased guest spending at Walt Disney World Resort, higher attendance at Disneyland Resort and increased occupied room nights at both resorts. Higher guest spending was due to higher average ticket prices and food, beverage and merchandise spending. These increases were partially offset by higher costs which were driven by spending on MyMagic+ and labor and other cost inflation, partially offset by lower pension and postretirement medical costs."

As disclosed in the 10Q, domestic theme park attendance is up 3% but that number is artificially low as a result of Easter shifting to Q3 this year. As indicated in the press release, it appears most, perhaps even all, of the quarter’s gain is driven by DLR. WDW attendance essentially is flat.

Flat attendance at any Orlando theme park is pretty good performance right now, especially with the loss of Easter week.

Historically, theme park attendance tends to decline before the unveiling of a major addition. Park goers tend to defer their visits, waiting for the big opening.

Although it’s debatable whether Seven Dwarfs Mine Train (SDMT) qualifies as a truly major addition, it is WDW’s best addition since Expedition Everest in 2006. That’s 8 years; practically a lifetime between rides when it comes to amusement parks. For Disneyphiles, SDMT represents the best thing in years.

There should be no debate that Diagon Alley is a huge addition in Orlando.

With Diagon Alley and SDMT rolling out this summer, it’s likely that large numbers delayed their Orlando vacations this year. Even with the addition of Diagon Alley, Universal remains a 2 or 3 day vacation for most, giving WDW the opportunity to draw these guests into their resort for 3 or 4 days. This summer, Diagon Alley will increase attendance at both Uni and WDW.

All things considered, flat attendance at WDW right before the opening of Diagon Alley and SDMT is pretty good performance. WDW remains as popular as ever.

Another number from the 10Q to consider is Per Capita Guest Spending (PCGS). This represents the amount spent per person at the theme parks. This is up only 4% 2Q2013 vs 2Q2014.

For corporate Disney, this is bad, really bad. In recent quarters, 8% has been the norm. WDW has raised ticket prices an average of 12% over the last 12 months. Food, beverage, and merchandise prices are up considerably too.

A 4% PCGS increase along with much higher prices suggest WDW theme park prices are reaching a breaking point. Rather than simply pay Disney’s higher prices, guests are reducing spending. That means fewer meals; fewer drinks; fewer t-shirts. All these are high margin items. This adversely impacts profitability. Disney simply cannot keep charging more for the same old same old. Their paying customers are starting to revolt.

Taken together, the attendance and PCGS numbers suggest that guests still love WDW but just can’t stomach the prices anymore.

Disney needs to slow down theme park price increases and look for revenue elsewhere.

Guess what? They have it at the hotels if they are not afraid to use it.

What do I mean?

Unlike the theme park numbers, which are roughly split 2-to-1 between WDW vs. DLR, the 10Q hotel numbers are nearly 90% of what’s happening at WDW. Overwhelmingly, these numbers represent what’s happening in Orlando.

And this quarter’s hotel numbers are good.

Really good.

Both for Disney and for consumers.

MyMagic+ was rolled out to onsite guests in October and was announced before then, just in time to influence guest hotel choices for the just-reported quarter.

Guests responded tremendously. Whether frightened at the prospect of being treated like second-class citizens and being forced to stand in those sometimes ungodly FastPass+ kiosk lines or simply being attracted by the idea of preselecting 3 attractions before arriving, guests decided to stay onsite.

Occupancy skyrocketed from 80% to 86% year-over-year, one of the largest jumps in the history of WDW. Available Room Nights remained flat, suggesting this surge in occupancy was real.

This is not some correction easily attributable to external factors such as the economy or cheap travel. The improved occupancy represents a significant rethinking by WDW guests on the way they selected their hotels.

Remember, pre-selection of FastPass+ wasn’t made available to offsite guests until April, after the end of the quarter. Throughout the entire second quarter, onsite guests had a distinct advantage over offsite guests. The second quarter results show a customer base ready to respond to this advantage by purchasing more high-margin hotel stays.

Also helping this surge were flat hotel rates.

Per Room Guest Spending (PRGS) represents the amount spent per occupied room night at the hotels, including “guest spending on food, beverage and merchandise at the hotels”. PRGS was up only 2.6%. Think about that for a moment. Taking into account food, beverage and merchandise price increases at the hotels and actual room rates were flat.

Taken together, MyMagic+ along with flat hotel rates helped fuel a surge in onsite hotel stays.

Did I mention that WDW’s hotels are obscenely profitable?

Once a hotel reaches a certain occupancy rate, the incremental cost of filling extra rooms is minimal. At Disney’s occupancy rates, the incremental cost of filling extra rooms is perhaps $20 or $30/night. Yet PRGS was $275/night. That’s a lot of profit.

WDW has nearly 24,000 hotel rooms. Until the most recent quarter, over 5,000 of these were going empty most nights. $275 X 5,000 X 365 nights per year equals, well, it equals a lot of money every year.

Whether you like it or not, MyMagic+ could work as a tool to increase the number of onsite hotel stays. MyMagic+ could be used to fill those empty rooms, even justify the construction of additional rooms.

With Disney’s incredible margins, increased hotel stays are WDW’s next chance to cash in big.

Yet WDW management is letting this opportunity slip away.

Offsite guests now are able to make their FastPass+ selections 30 days in advance, considerably reducing the appeal of onsite stays. Piling on top of that, MagicBands now are for sale for a measly $12.95. Rather than representing a badge of distinction for onsite guests, MagicBands can be purchased for about the same price as those cheap metal pins Disney sells by the tens-of-millions.

Offsite and local guests won’t like the suggestion but, if kept as an exclusive onsite perk, MyMagic+ was a potential gold mine or, in the spirit of SDMT, a potential diamond mine.

Fortunately for offsite and local guests, Disney management was afraid to leverage MyMagic+ to its full potential.
It just goes to show that WDW continues to be mismanaged, both creatively and financially.

WDW desperately needs strong leadership with vision.