Having just read "Disney War", it explains corporate Disney's behavior regarding the theme parks. Some random thoughts I took away from the book:
- Disney's top executives spend very little time thinking about the theme parks. Their focus is on movies and tv.
- What little time they spend thinking about the theme parks is mostly negative. Eisner thought of the theme park executives as "monkeys" (quoted from the book), meaning that running a theme park was so easy a monkey could do it.
- Eisner cut corners on theme park maintenance, trying to squeeze every penny of profit out of them. This despite acknowledging that theme parks were one of the few divisions that consistently made money. For a multi-millionaire, Eisner was amazingly cheap.
- One of the first things Eisner did when he took control in 1984 was raise ticket prices. For example, an Annual Pass went from $100 in 1983 to $155 in 1986, a 55% increase in 3 years!
- Roy Disney constantly complained that Eisner kept trying to do the theme parks "on the cheap". The exception being Euro Disney near Paris. Eisner had spent some of his early years in Paris and wanted to impress the locals. He insisted on opening it near Paris despite warnings about the weather and the different vacation habits of Europeans. Euro Disney was a financial disaster and should have gotten Eisner fired but he successfully blamed others for his bad decisions.
- Disney's current CEO, Robert Iger, was loyal to Eisner and inherited many of Eisner's business opinions, including his views of the theme park business.
- Disney's senior executives are among the elite rich, the top 0.1% in the country. They see the prices of WDW and DL vacations as bargins. It makes sense when you attend million dollar fundraisers on weekends and fly on private jets to Aspen to stay in your second (or third or fourth) mansion for Christmas.
Fundamentally, corporate Disney sees the theme parks as a way to pad their substantial annual bonuses. They've completely lost site of Walt Disney's original vision (cited many times) of creating the theme parks so all parents would have a nice place to take their children and share an experience together.
Unfortunately, I don't see this corporate culture changing in the foreseeable future. I so wish Walt Disney were alive today.