In order to "catch up" don't you have to be in a recognized race with someone that is way ahead? .
No. Disney needed to catch up in terms of the standards they used to have. They even show in the profit margins in terms of the Park and resort Division. The fact Disney had to increase their amount of charged events for increasing a profit margin of the Park and Resort Division shows how bad AK, DHS, and Epcot is for stuff to do in the parks they have everyday of the year.
Personally I am not Universal Fanboy. I also didn't even mention Universal in my post. Disney was behind at Disney Hollywood studios and Animal Kingdom because they lacked attractions. They fact is you don't need FP+ to know AK and Disney Hollywood Studios needed more attractions from a capacity point and for keeping guests in the park for speeding money. The way you get guests spend more in parks is keeping them busy and Iger failed in that early in his tenure.
Disney gross margins in the Park and Resorts was 22 percent under Eisner compare to Iger's 14.7 percent. The percentage difference is more than Universal. It was a sign of Disney getting stale and needed Discounts to draw guests into the park at a time they raise hotel, theme park admission and food.
In the First 3 years, Iger's percentage 16 percent, but from 2009 to 2011 that percentage went down to
12.9 percent despite an increase of guests at Walt Disney World and Disneyland despite being a recession.
That 12.9 percent should be troubling for the Park and Resort division because that
was at all Time low according to Parentof4. The stuff I underline is because they very important. Parentsof4 is the financial person of the forums matter of fact.
What caused that 12.9 percent was Disney lowering the amount of money spent P&R capital expenditures under Iger from 2006 to 2008. Eisner understand how to increase profits in the parks is by spending money in the parks in order to the gets in the parks and that is something the people under Iger didn't always get.
When Iger took charge in late 2005, he immediately slashed P&R investments. P&R capex was cut from $1.4B (Eisner’s last year) to $0.9B (Iger’s first year). It would be one thing if it were a one-year blip. However, P&R capex remained low for 3 years.
For amusement parks, capex is what drives future growth. The money spent this year pays for the new attraction next year.
In Disney’s case, projects take multiple years to develop. Thus, when Iger reduced capex from 2006 to 2008, it wasn’t until 2009 to 2011 that its effects were felt. All the information I underline is stuff that Parentsof4 posted earlier in this thread.
I hope you get the point that guests spend less in the parks when your product doesn't have anything new and continue to raise prices.
If you still don't believe that Disney Hollywood Studios is behind, how do explain them needing a redo of most of the park and is showing up by closing up 3 attractions this year in stuff that the guests have to do? This problem with Studios is going to show up in the holiday season coming up and throughout next year.
This problem even shows up even more next year because Disney Hollywood Studios in the short term is really going hurt with even more attractions going down next year. Disney isn't going to stop by closing only 3 attractions at DHS based on the rumors even more going attractions closing down permanently with the information from insiders on this forum.
