See here: Oriental Land Group’s 2024 Medium-term Plan
In which OLC outlines goals to make their company more profitable. Which, from a business standpoint, is standard stuff. But, don't we all know that "Disney is a bizness!" is bad? And isn't OLC supposed to be the anti-Disney that gets it all right? Below is a reprint of the text with commentary from me in red.
April 27, 2022
Company name Oriental Land Co., Ltd.
Oriental Land Group’s 2024 Medium-term Plan
The Oriental Land Group (“OLC Group”) hereby announces its newly formulated 2024 Medium-
term Plan covering the period from FY2022 ending March 31, 2023 to FY2024 ending March 31,
2025.
The OLC Group has positioned the period covered by the 2024 Medium-term Plan as a phase to
recover from the impact of the coronavirus disease 2019 (COVID-19) and execute on challenges for
the future. The new Medium-term Plan will kick-start the Group’s endeavor to establish a system for
flexibly addressing potential environmental changes and achieve “Our Goal for 2030.”
Under the 2024 Medium-term Plan, the OLC Group will give top priority to enhancing Guests’
experience value while at the same time striving to restore its financial performance to put itself on a
path to medium- and long-term growth.
1. Background to formulation of 2024 Medium-term Plan
Conventionally, the OLC Group operated its Parks with an emphasis on welcoming as many
Guests as possible. Amid the COVID-19 pandemic, however, the Parks were operated with
limits imposed on attendance, which gave rise to a number of eye-opening insights.
Furthermore, the OLC Group considers it crucial to take flexible actions to address the risk of
long-term business suspension, which has materialized due to the pandemic, in addition to long-
recognized issues such as the shrinking consumer/working-age population resulting from a
lower birth rate and population aging.
2. Goals set under 2024 Medium-term Plan
1) Enhance Guests’ experience value
The OLC Group will aim to offer a comfortable Park environment by bringing down the
daily attendance limit to below the level before the COVID-19 pandemic started. Furthermore,
the Group will take flexible actions to meet diversifying Guest needs and roll out decisive new
measures to help Guests find new experience value, thereby enhancing the value they gain from
experience.
2) Restore financial performance
While taking steady steps to attract Guests back to the Parks, the Group will aim to restore its
financial performance in phases. By expanding its capacity through the opening of Tokyo
DisneySea® Fantasy Springs and attracting Guests at a higher level, the Group will aim to
achieve in FY2024 a consolidated operating profit of at least ¥100.0 billion, a record high
consolidated operating cash flow, and a return on equity (ROE) of at least eight percent.
3. Strategies under 2024 Medium-term Plan
1) Theme Park Segment strategy
・Enhance quality of Park experience
By bringing down the daily attendance limit from the pre-pandemic level, the OLC Group
will aim to provide a Park environment that offers consistent comfort whenever Guests visit.
The appeal of the Parks will be further enhanced with the addition of new contents to be
launched during the new Medium-term Plan period including Tokyo DisneySea Fantasy Springs
and the remodeling of existing facilities. Furthermore, the Group will offer new optional
experiences in an effort to meet Guests’ high expectations and needs.
The execution of such measures aims at ensuring high-quality Park experiences, which will
hopefully lead to increased earnings.
・Seek to even out attendance levels
In addition to setting a lower limit on daily attendance compared with the pre-pandemic level,
the OLC Group will also seek to minimize the difference in attendance levels throughout the
year—that is, across weekdays, holidays, the high season and low season—and raise the overall
annual attendance. The attendance in FY2024 is projected to reach around 26 million.
・Establish efficient Park operations
Reducing the maximum attendance numbers per day from the pre-pandemic level will
enable the OLC Group to better control the use of required resources on an ongoing basis and
establish an operational structure capable of addressing environmental changes.
2) Hotel Business Segment strategy
The OLC Group will make its hotels more appealing by providing Disney Hotel guests with
services more deeply tied to its Parks and strengthened Disney contents during their stay. In
addition, Disney Hotels, which will be expanded to six hotels during the 2024 Medium-term
Plan period, will be effectively leveraged as management resources by the entire resort business
to establish a long-term sustainable earning base.
3) Human resources strategy
With the aim of increasing employees’ job satisfaction and maximizing the performance of
individuals and organizations, the OLC Group will develop human resources and organizations
capable of enhancing Guest services with outside-the-box thinking and driving forward
operational reform. In addition, the Group will also create a personnel system equipped to take
flexible measures against environmental changes and consistently deliver high added value with
a limited number of staff. Another initiative is to improve the digital setting to build a more
comfortable workplace for employees.
4) Investment strategy
During the five years from FY2022 to FY2026, Tokyo DisneySea Fantasy Springs, currently
under construction, will open, and existing attractions will be remodeled to increase their
appeal. These measures will serve as stepping stones to rendering a complete revamp of “Space
Mountain” and its surrounding environment, which will propel Tokyo Disney Resort® further
forward.
Furthermore, as part of the Group’s new growth strategy, management resources will also be
allocated to investment for sowing seeds in new fields within and outside Tokyo Disney Resort
as well as for initiatives pertaining to sustainability, including investing in human capital.
END
In which OLC outlines goals to make their company more profitable. Which, from a business standpoint, is standard stuff. But, don't we all know that "Disney is a bizness!" is bad? And isn't OLC supposed to be the anti-Disney that gets it all right? Below is a reprint of the text with commentary from me in red.
April 27, 2022
Company name Oriental Land Co., Ltd.
Oriental Land Group’s 2024 Medium-term Plan
The Oriental Land Group (“OLC Group”) hereby announces its newly formulated 2024 Medium-
term Plan covering the period from FY2022 ending March 31, 2023 to FY2024 ending March 31,
2025.
The OLC Group has positioned the period covered by the 2024 Medium-term Plan as a phase to
recover from the impact of the coronavirus disease 2019 (COVID-19) and execute on challenges for
the future. The new Medium-term Plan will kick-start the Group’s endeavor to establish a system for
flexibly addressing potential environmental changes and achieve “Our Goal for 2030.”
Under the 2024 Medium-term Plan, the OLC Group will give top priority to enhancing Guests’
experience value while at the same time striving to restore its financial performance to put itself on a
path to medium- and long-term growth.
1. Background to formulation of 2024 Medium-term Plan
Conventionally, the OLC Group operated its Parks with an emphasis on welcoming as many
Guests as possible. Amid the COVID-19 pandemic, however, the Parks were operated with
limits imposed on attendance, which gave rise to a number of eye-opening insights.
Furthermore, the OLC Group considers it crucial to take flexible actions to address the risk of
long-term business suspension, which has materialized due to the pandemic, in addition to long-
recognized issues such as the shrinking consumer/working-age population resulting from a
lower birth rate and population aging.
2. Goals set under 2024 Medium-term Plan
1) Enhance Guests’ experience value
The OLC Group will aim to offer a comfortable Park environment by bringing down the
daily attendance limit to below the level before the COVID-19 pandemic started. Furthermore,
the Group will take flexible actions to meet diversifying Guest needs and roll out decisive new
measures to help Guests find new experience value, thereby enhancing the value they gain from
experience.
2) Restore financial performance
While taking steady steps to attract Guests back to the Parks, the Group will aim to restore its
financial performance in phases. By expanding its capacity through the opening of Tokyo
DisneySea® Fantasy Springs and attracting Guests at a higher level, the Group will aim to
achieve in FY2024 a consolidated operating profit of at least ¥100.0 billion, a record high
consolidated operating cash flow, and a return on equity (ROE) of at least eight percent.
So far, they're saying that want to make more money. The goal of a business. By providing "value." The kind of value people will pay more for. To wit...
3. Strategies under 2024 Medium-term Plan
1) Theme Park Segment strategy
・Enhance quality of Park experience
By bringing down the daily attendance limit from the pre-pandemic level, the OLC Group
will aim to provide a Park environment that offers consistent comfort whenever Guests visit.
The appeal of the Parks will be further enhanced with the addition of new contents to be
launched during the new Medium-term Plan period including Tokyo DisneySea Fantasy Springs
and the remodeling of existing facilities. Furthermore, the Group will offer new optional
experiences in an effort to meet Guests’ high expectations and needs.
The execution of such measures aims at ensuring high-quality Park experiences, which will
hopefully lead to increased earnings.
They noticed, just like Iger did, that guests are happier in less crowded parks. And so, they're going to limit attendance like they did for the pandemic, and just like WDW and DL are doing. Tho, it's nice they're investing in the guest experience. Both things add 'value.' Why do you want more value?... You can't reduce attendance and make more money unless those that do attend pay higher ticket prices (and more for food and merch).
And what exactly are "new optional experiences" if not upsell/upcharge events and services?
・Seek to even out attendance levels
In addition to setting a lower limit on daily attendance compared with the pre-pandemic level,
the OLC Group will also seek to minimize the difference in attendance levels throughout the
year—that is, across weekdays, holidays, the high season and low season—and raise the overall
annual attendance. The attendance in FY2024 is projected to reach around 26 million.
・Establish efficient Park operations
Reducing the maximum attendance numbers per day from the pre-pandemic level will
enable the OLC Group to better control the use of required resources on an ongoing basis and
establish an operational structure capable of addressing environmental changes.
While they don't say they're going to use surge pricing... I'm expecting it. Costs more in peak times, less in off-peak. Ideally the same number of people show up every day so that you can schedule the perfect amount of CMs to handle it at peak financial efficiency. Just like WDW is attempting.
2) Hotel Business Segment strategy
The OLC Group will make its hotels more appealing by providing Disney Hotel guests with
services more deeply tied to its Parks and strengthened Disney contents during their stay. In
addition, Disney Hotels, which will be expanded to six hotels during the 2024 Medium-term
Plan period, will be effectively leveraged as management resources by the entire resort business
to establish a long-term sustainable earning base.
More perks for those staying in Disney hotels (and with that extra value comes extra costs?).
3) Human resources strategy
With the aim of increasing employees’ job satisfaction and maximizing the performance of
individuals and organizations, the OLC Group will develop human resources and organizations
capable of enhancing Guest services with outside-the-box thinking and driving forward
operational reform. In addition, the Group will also create a personnel system equipped to take
flexible measures against environmental changes and consistently deliver high added value with
a limited number of staff. Another initiative is to improve the digital setting to build a more
comfortable workplace for employees.
We're increasing job satisfaction by eliminating jobs and moving guest services as much as possible to apps.
4) Investment strategy
During the five years from FY2022 to FY2026, Tokyo DisneySea Fantasy Springs, currently
under construction, will open, and existing attractions will be remodeled to increase their
appeal. These measures will serve as stepping stones to rendering a complete revamp of “Space
Mountain” and its surrounding environment, which will propel Tokyo Disney Resort® further
forward.
Furthermore, as part of the Group’s new growth strategy, management resources will also be
allocated to investment for sowing seeds in new fields within and outside Tokyo Disney Resort
as well as for initiatives pertaining to sustainability, including investing in human capital.
END
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