What's going on at WDW right now is successful brand marketing.
U.S. families with young children treat WDW as a rite of passage while WDW is better than anything in South America. It's those two market segments that are keeping the WDW engine chugging right now. (Even if the Magic Kingdom steam engine might soon disappear.
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Universal is benefiting from International tourists as much as WDW, something that would have been unheard of in 2009. Universal also is benefiting from smart investments in new lands and attractions producing impressive organic growth.
At WDW, there are signs of multiplying quality issues while recent Parks & Resorts investments have been ineffective. WDW remains financially successful today because of wise investments in prior decades coupled with much higher prices. There hasn't been any appreciable organic growth at WDW in the 21st Century.
Ticket prices can only go so high. WDW price increases have far outpaced people's ability to pay them. As I've posted elsewhere, ticket prices have increased at a rate about 5 times faster than Median Household Income in recent years.
For those of you keeping track, a WDW 3-day
base ticket is the same price as a Universal Preferred Annual Pass. WDW might have 4 theme parks but it doesn't really matter if families cannot afford 4-day WDW tickets.
We are seeing the effect of WDW's higher ticket prices in WDW's hotel occupancy rate, which was at 79% in 2013, down from 89% in 2008. IMHO, consumers are beginning to forego their onsite stays in order to be able to afford WDW's higher ticket prices.
Wall Street is not stupid. They look at the 10-K filings; they know this. This is why for the last 5 straight quarters they've repeatedly asked Iger and Rasulo for some sign that MyMagic+ is working. They want to see organic growth at WDW.
Like Detroit auto makers in the late 1960s and early 1970s, WDW currently is surviving off brand loyalty and a lack of competition in certain market segments. It took the Japanese knocking Detroit on its butt and a government bailout to effect change.
WDW is not Detroit but if Universal starts targeting lands and attractions at WDW's core family audience, then WDW could be in for a world of hurt.