The wost is still comeing. More layoff's cutbacks, etc.. what have you @ WDW

[peter11435]

This affects planners, bookers, back office people, managers, etc. Right down the line.

Lets talk about those better wages someone mentioned. $18.00 an hour @ Disney. VS $8.00 an hour at the new AV company. Yes I said that correctly they offered a $10 PAY CUT if you wanted to work at the new company. Disney is well known for actually paying on the higher side of the market in this area.

For all the posters who are telling me that Disney needs to focus on its core business. Please tell me what that is? Is it the custodial folks who've been outsourced? Is it the IT people? Is it the A/V Techs? Is it imaganeering? The shops? The bus drivers? All those items as a whole make up what Disney is. Can we outsource making the magic sure but as you strip them away you loose those people and the magic they make. You replace them with people who are paid less and thus save you money (Isn't saving money the main reason a company outsource something?)

How much can you outsource before there is nothing left?

Bus Drivers have not been outsourced (yet). That aside Disney's core business is operating theme parks and resorts. While I agree conventions make them a ton of money (and they should still have them) there are ways to operate the Disney’s convention business more efficiently. Disney will be sure that the new company will operate up do their standards. You always seem to be the sky is falling type of person (no chicken little joke intended). Sometimes things that seem bad really are not. Disney has not yet outsourced any positions that affect guests in anyway. IT department, AV people are all behind the scenes. Only third shift custodial at the resorts was outsourced, hardly anything the guests will notice, some stores have been operated by third parties since the 70's, bus drivers have not been outsourced, and Imagineering (you can't even spell that) is an entirely different situation.

 

[billybluenose]

Lets talk about those better wages someone mentioned. $18.00 an hour @ Disney. VS $8.00 an hour at the new AV company. Yes I said that correctly they offered a $10 PAY CUT if you wanted to work at the new company. Disney is well known for actually paying on the higher side of the market in this area.

If what you say is true (and I find it hard to believe, but don't know for sure) then I don't expect anyone can fault Disney for cutting positions that paid $10 more than their market value.

But like I said, I find it hard to believe that a somewhat skilled position at an audio/visual company pays less than a checkout person at 7-11.

-Billy

 

[mkt]

hmm... are you positive it's $8.00/hr... I swear IATSE would have something about that

 

[artvandelay]

hmm... are you positive it's $8.00/hr... I swear IATSE would have something about that

Absolutely. The IA would not go for it.

I was talking to my sister, who plans meetings for a large company, about the layoffs. She said DEG people were 'in house' production people who were expensive to use. Most shows bring in their own people, and A/V equipment, to do this stuff.

My sister's big meeting is in January '06, and she's getting p/o'd about all the rehabs going on then. This is a large meeting that's taking a signifigant amount of rooms at the Yacht and Beach.

It's nice having a sister who gets invited to all the big events, she's put her request in to go to EE opening, and takes me with her. We had a great time last May for 50th party.

 

[speck76]

Call it what you want, just don't call it good.

The resort A/V Teams (the folks who setup the AV for meeting rooms on Disney property) as well as the DEG group (the folks who produce all the large business meetings on property) are going to be outsourced starting sometime in January.

Rumor has it that a few folks have already been let go and there is much more of this to come. Mind you this is not something your average day guest might notice, but it affects a good amount of technicians and management.

Most meetings do not use in-house AV departments. The change since 9/11 with the meetings segment has been that most companies that hold meetings have eliminated their in-house meeting planners, and thus, now use professional meeting planners (Maritz, Conferon, etc...). Most of these intermediaries have their own AV companies, and will not use the in-house AV departments that the hotels provide. They also will handle their own production....as by providing these services to their clients, they are able to make more money from the association or corporation.

 

[Thelazer]

Yes the offer was $8.00 and at this time the IA has no resposne.
It was quite a surpise to them when it happened.

I don't think I'm the "Sky is falling" type. However I'm not the type to sit here with rosy glasses and think that Disney is always right either.

 

[speck76]

Yes the offer was $8.00 and at this time the IA has no resposne.
It was quite a surpise to them when it happened.

I don't think I'm the "Sky is falling" type. However I'm not the type to sit here with rosy glasses and think that Disney is always right either.

they have to change as the client has changed.......the same thing has already occured at most of the "real" convention resorts off property.

 

[PhotoDave219]

Disney Event Group employees a bunch of Photographers.... could be a financial blessing for myself, if it expands the freelance opportunities.

 

[wedway71]

I may be stupid but i dont see how Disney can outsource planners and management ,sales and marketing roles.I can see the a/v and technical jobs getting outsourced.
So a big company wants to do a convetion at WDW.The company calls and they will no longer have anything to do with Disney?I have no problem with backstage roles being outsourced but cant see an outside company making convention decisions at Disney hotels.

So from now on Disney will have every aspect of conventions 100% outsourced thus the disneymeetings.com websight will be changed and ran by a outsourced company?

 

[fillerup]

One of my neighbors, a retired school teacher, works in convention setup all over Orange County, including Disney.

She works a semi-skilled position and makes $22/hour and her employer is begging for employees. I considered doing this part time but was told that in the first quarter of 2006 that full time would be required and to expect 60 or so hours per week.

The AV positions in her company pay a good bit more.

Disney has, as one of its obligations, to provide a quality product at a fair price to its customers.

As a publicly traded company, it has an equally important fiduciary responsiblity to return profits to its shareholders and improve its financial performance to increase the stock price.

 

[speck76]

I may be stupid but i dont see how Disney can outsource planners and management ,sales and marketing roles.I can see the a/v and technical jobs getting outsourced.
So a big company wants to do a convetion at WDW.The company calls and they will no longer have anything to do with Disney?I have no problem with backstage roles being outsourced but cant see an outside company making convention decisions at Disney hotels.

So from now on Disney will have every aspect of conventions 100% outsourced thus the disneymeetings.com websight will be changed and ran by a outsourced company?

I am not quite sure you realize how meetings are sold and serviced.

 

[wedway71]

I am not quite sure you realize how meetings are sold and serviced.

Actually,to be honest Im trying to figure it out.Whats actually getting outsourced? Is it only a/v and technical and then the setup cms and then setup management or is it marketing,sales,and other mgt?

 

[mkt]

give me some contact info on the $22/hr job. I'll take it

 

[speck76]

Actually,to be honest Im trying to figure it out.Whats actually getting outsourced? Is it only a/v and technical and then the setup cms and then setup management or is it marketing,sales,and other mgt?

In most cases:

There is a sales person that works for the hotel.....they have the relationship with the intermediary.....they sell rooms/catering based on the needs of the end-user.......think broad strokes here.....you will utilize 1800 rms on XX pattern with xx rooms on peak, at XX rate. You will have $750K in catered events. XX square feet of meeting space is being held based on your proposed agenda. This can happen 3 weeks to 15 years in advance of the meeting.

A few months out, things are more ifnalized from a hotel end. In the mean time, the intermediary (if they do not do it themselves) has hired a production company, which will handle creating the stages, video screens, rigging, fog machines, video production and whatnot for the meetings.

Many companies specialize in this, therefore, they can bid much lower than in-house departments.

It is not smart for hotels to invest a lot in this area ofr a few reasons:
1. The equipment is expensive, and changes often
2. The jobs are technical, and expensive to staff.
3. Most companies will not guarantee that they will use your in-house department, so the business level could fluctuate greatly.

Typically, the only thing that a hotel provides for a meeting is rooms, food, tables, and chairs.

 

[wedway71]

Ok now I get it.I thought that sales and marketing etc was getting outsourced.


So basically it will go as follows.....
(hypothetically)

a-Ford Motor Company wants their annual sales retreat at WDW.They contact a sales person(Disney employee).

b-Disney gets with the outsource company to set up the banquets etc and all the a/v technical aspects are handled by the outsource company.

 

[speck76]

Ok now I get it.I thought that sales and marketing etc was getting outsourced.


So basically it will go as follows.....
(hypothetically)

a-Ford Motor Company wants their annual sales retreat at WDW.They contact a sales person(Disney employee).

b-Disney gets with the outsource company to set up the banquets etc and all the a/v technical aspects are handled by the outsource company.

Almost


A. Ford contacts a fewintermediaries/meeting planning companies and tells them they want to have their annual sales retreat in either Orlando, Las Vegas, San Antonio, or Washington DC.

B. Each intermediaries contacts hotels that they have relationships with in each of the 4 cities, and presents back to Ford their "best offer"

C. Ford picks an intermediary, which then will typically contract with the hotel.

D. The hotel provides guestrooms, meeting rooms (with chairs and tables), and food.

E. The intermediary will either contract a production company, or produce the meeting themselves. The production company will provide sets, staging, lighting, rigging, and the overall production/direction of the event. Typically, this is limited to the general session...as most breakouts or co/lo meetings do not have significant sets..

 

[BwanaBob]

That sounds about right.

We actually contract with an outfit in Atlanta for ALL our a/v needs. They go where we need them...

 

[speck76]

That sounds about right.

We actually contract with an outfit in Atlanta for ALL our a/v needs. They go where we need them...

and your company always has high catering

 

[BwanaBob]

and your company always has high catering

Yeah, well.....

What do you expect from an outfit that has Aerosmith do a private concert to one of it's annual meetings... as well as closing IOA for half a day for our personal use...

I would have liked a little extra on that yearly bonus, myself.

 

[bgraham34]

in all fairness, most hotel and convention centers outsource all of their AV work. The DEG people that will get laid off will almost certainly find jobs quickly in one of the companies that Disney will turn to for its AV needs.

Yup its true.