What Happens When the Economy Improves?

[tirian]

Warner Weiss wrote another great "Yesterland" article, but this one should be titled "Tomorrowland." It's about the construction projects at the Bonnet Creek Resort, that area within WDW property boundaries that Disney couldn't purchase. The best part of the article is the last sentence, where Weiss slyly takes a dig at the current business model for WDW. You see, two massive resorts will soon open at Bonnet Creek, and Disney has sold land to the Four Seasons to develop a high-rise east of Fort Wilderness. Along with the new BLT and DAK DVCs, Disney and other developers are clearly expecting the economy to improve.

Where will the new Guests go?

The MK hasn't expanded; in fact, it has lost attractions. Ditto for Epcot. Don't count on DHS, because no matter how many PIXAR rides are added, the park will always suffer from tiny walkways and crowd control. DAK has plenty of room for expansion, but it's fighting two battles. A JTTCOTE-type area was supposed to break ground this month, and obviously didn't. Also, no matter how great DAK is, Disney advertises the MK (and for our European friends, Epcot) as "WDW." This means that Guests expect to visit the MK and Epcot first, then continue to DHS and DAK—so the MK and Epcot will always have higher attendance.

With no new projects in the pipeline at WDW, what do you think will happen when the recession ends and WDW has plenty of new hotel occupancy?

Please offer opinions and suggestions. A bit of armchair Imagineering wouldn't hurt, either.

Read the article here: http://www.yesterland.com/bonnet.html

 

[wdwmagic]

The new super deluxe resorts like the Waldorf and the Four Seasons don't make sense to me. Is WDW really an area where people will pay that kind of money when they will be spending the vast majority of their time in the parks. Then it begs the question that if you are going to spend lots of money on your resort, why not be on site at a super deluxe suite at one of the onsite properties?

 

[Figment632]

Just to add my thoughts and please im not trying to be political so please dont kill me. The way that things are currently being handled I dont see the recssion ending soon and I see the economy in the long term getting a lot worse. Again not trying to be political!!!

I think iF Disney is smart they should probaly launch a big marketing campain that promotes AK and DHS when they are updated.

 

[Pioneer Hall]

I think that it is going to be very interesting. Disney is expanding their room offerings more quickly than their park offerings. I think this is why you no longer see "off-season" in the parks. People are being forced to visit at what used to be the slow periods because the crowds are maxed out during the more popular seasons. With the addition of festivals, special events, marathons, etc during whatever used to be a slow season; don't expect Disney attendance to ever be near slow levels again. Eventually Disney will see a need to expand the parks to a certain point, but 2000+ capacity attractions will have to become a building norm.

 

[tirian]

The new super deluxe resorts like the Waldorf and the Four Seasons don't make sense to me. Is WDW really an area where people will pay that kind of money when they will be spending the vast majority of their time in the parks. Then it begs the question that if you are going to spend lots of money on your resort, why not be on site at a super deluxe suite at one of the onsite properties?

The only reason I see for adding more high-end resorts is that none of Disney's current hotels are truly 5-Star, luxury resorts. Have you stayed at the Grand, Poly, Contempory, or Yacht Club hotels? I have. They're okay, but they don't compare to a Four Seasons, W, or Ritz-Carlton, and they cost MORE!

Even though Guests basically only sleep in their hotel rooms, the Poly and CR Tower are often booked solid. People are willing to spend the money to stay in a Deluxe resort, even if they're never there AND the hotel rooms don't compare to a real 4- or 5-star hotel in NYC or London (yet cost just as much).

It doesn't make sense to me either, but it's true. :shrug:

 

[tirian]

I think that it is going to be very interesting. Disney is expanding their room offerings more quickly than their park offerings. I think this is why you no longer see "off-season" in the parks. People are being forced to visit at what used to be the slow periods because the crowds are maxed out during the more popular seasons. With the addition of festivals, special events, marathons, etc during whatever used to be a slow season; don't expect Disney attendance to ever be near slow levels again. Eventually Disney will see a need to expand the parks to a certain point, but 2000+ capacity attractions will have to become a building norm.

Yep, and they're not adding anything except a single hot-air balloon. :lol:

I miss the loss of a true off-season, but I understand that a resort the size of WDW needs to maintain a certain level of occupancy to operate properly. That doesn't change the fact that the MK has fewer attractions than any other "Kingdom" except for Hong Kong, and the MK is the most-visited park!

 

[tirian]

Just to add my thoughts and please im not trying to be political so please dont kill me. The way that things are currently being handled I dont see the recssion ending soon and I see the economy in the long term getting a lot worse. Again not trying to be political!!!

It's a fact. It's not political at all.

I think iF Disney is smart they should probaly launch a big marketing campain that promotes AK and DHS when they are updated.

It wouldn't work. The castle is WDW in the public conscious. Period.

 

[CaptainMichael]

What happens when the economy improves?

Jay Rasulo will get a big bonus check for being truly awesome and having the forsight to get WDW through these troubled times, and WDW will continue to fall into disrepair and stagnation.

 

[mro415]

Personally, the economies spending has improved over the past months. I think this recession we are living in is being made out to be more than it really is. Just as many people are going on vacation. When it comes to Disney, Some people save up their whole lives to go and spare no expense. So in this economic "crisis" that we are supposibly living in, the people who have planned their trips are still going to go. No one is taking any less vacations from what I have seen. My opinion dont bash me on it. And i have seen people who spend more time in their rooms than in the parks so hotels liek Four seasons, Waldorf and The Grand are hotels for people who maybe do not want to be in the parks all day every day.

 

[marni1971]

What happens? People go see Rip Ride and Rocket, Potterland and Manta. Well...If only.

TDO is trading off the name and image, not the place. They know WDW will pull `em in no matter what. Sadly this is how WDW is being run.

 

[CaptainMichael]

Personally, the economies spending has improved over the past months. I think this recession we are living in is being made out to be more than it really is. Just as many people are going on vacation. When it comes to Disney, Some people save up their whole lives to go and spare no expense. So in this economic "crisis" that we are supposibly living in, the people who have planned their trips are still going to go. No one is taking any less vacations from what I have seen. My opinion dont bash me on it. And i have seen people who spend more time in their rooms than in the parks so hotels liek Four seasons, Waldorf and The Grand are hotels for people who maybe do not want to be in the parks all day every day.

Nevermind that people are losing their jobs daily, the value of the US dollar is awful, the US is falling into more and more debt with each bailout, etc.

The people going to WDW right now are there primarily on the 3 for 4 deal (or whatever it is), managers are getting laid off, hours are being cut, and merchandise is discounted in every store.

It's bad and people should really take it more seriously.:wave: We must learn from our mistakes...if we don't, what's the point?

 

[Craig & Lisa]

As someone has commented the Disney resorts are not 5 star, or are so so, but for the family and I, we do not go to WDW for the resorts, as do the majority of others, we go for the parks, and yes they are in need of expansion, the parks that is. The resorts are not falling apart tho, I see no need to expand on the amount of rooms they offer now. There are plenty, themed for all interests. And when the economy improves, it will be some time before the great hordes of people that went before will be back, just not right away. But as people pay their bills they will eventually have extra to enjoy vacations, and they will head back to WDW as they did before. The extra rooms they are building seem to fit into their plans to accomodate them because there will be an overwhelming amount of people who will need a place to stay?:shrug:

 

[epcotWSC]

The dollar has been in worse shape though. Let's not forget that a few months ago we were at 1.70 to the Euro. Now it's 1.35. It was about 1.20 not long ago though, so that's not a good sign. Of course gas prices are starting to creep back up too. It's all a mess but no one really knows how it's going to play out.

 

[Master Yoda]

I am personally am seeing signs of us pulling out of this recession. Existing house sales are up a little more than 5%, new construction rose 22% and the stock market seems to be righting itself. I am starting to see spec houses again from builders on a regular basis which is something I have not seen in nearly 3 years. By the end of the year we will be well on our way back to normal.

With that being said Disney has been very short sited during this recession. They should of been using this time not only to build their resort properties but to increase what actually makes people stay in their resorts....the theme parks and the attractions.

For the last 3 years construction has been in the toilet in the state of Florida. Because of this contractors have been willing to do work at or below cost just to keep the cash flowing and their doors open. A Fantasyland expansion should be being built on the 20k plot. The expansion of AK should have broken ground early and Pixar place should have accelerated their construction plans as well . Had they started those projects 1 to 2 years ago they could have been built for much less than it will cost them to build in the near future and had the time to complete them properly.

I feel that we have times of very packed parks and very disgruntle guests in front of us. Disney will also have to play catch up which means attractions are going to get rushed and corners will get cut. Major refurbs of the SSe and HM caliber simply will not happen because park attendance will be too high to shutter them.

 

[wdwmagic]

The only reason I see for adding more high-end resorts is that none of Disney's current hotels are truly 5-Star, luxury resorts. Have you stayed at the Grand, Poly, Contempory, or Yacht Club hotels? I have. They're okay, but they don't compare to a Four Seasons, W, or Ritz-Carlton, and they cost MORE!

Even though Guests basically only sleep in their hotel rooms, the Poly and CR Tower are often booked solid. People are willing to spend the money to stay in a Deluxe resort, even if they're never there AND the hotel rooms don't compare to a real 4- or 5-star hotel in NYC or London (yet cost just as much).

It doesn't make sense to me either, but it's true. :shrug:

I believe the reason for the Poly and CR Tower being solid is the monorail, view of the MK, and it being a "Disney" resort. I just dont think there will be demand that close to the parks for that true deluxe level. I would be worried if I were operating any of those hotels.

 

[SleepingMonk]

"Obama's budget would double national debt over decade."

http://news.yahoo.com/s/mcclatchy/20090320/pl_mcclatchy/3193602_1


We haven't seen the worst of it yet I'm afraid. This administration will be nothing short of disastrous to our nation and our economy. When this budget is pushed through it will lead to the inevitable increase in taxes and not just on the upper one percent they love to harp on. Every family that pays taxes will see an increase. Dark days ahead folks.

 

[Figment632]

I think any improvement (which is not much) will only be temporary. The ressesion was not as bad as it was made out to be and the current administration rushed all these bailouts that were probaly not needed. Again don't label me an Obama basher but it's a little scary that he has been in office for two months and already spent more money than the Bush administration did in 8 years. So because of the trillions being addded to the debt I see the economy getting worse in the long run. I'm not trying to offfend any one that is just how I see it.

As far as these new super resorts go while I would never pay that much I don't care if they are built. If people want to pay it who cares but I don't think it will have a huge effect on park levels.

 

[DisneyJoe]

With no new projects in the pipeline at WDW, what do you think will happen when the recession ends and WDW has plenty of new hotel occupancy?

I believe there is always a pipeline, we just don't always see it.

Once this "recession" ends, I believe that some new projects will get the go ahead and will be built.

 

[alecshawn]

My family is not participating in this "recession" or slowdown or even depression as some of the doom and gloomers like to call it...:zipit:
We are doing fine and will continue to vacation at Disney and elsewhere.
As for Disney, i see a MUCH stronger and efficient company when all the dust settles down.
Disney probably should have made these cutbacks long ago personell wise.
I think a year from now Disney will be a better place.
As for the recession being overblown by the media? Who knows, but i DO know that each one of us are 110% responsible for our lives.
WE have to ensure that we are secure economically. No one else, especially the Govt. can do that.
I do know that folks have lost their jobs just about everywhere and every industry around, i hope and wish them the best. Stay positive and dont give up, all will be well.

 

[Master Yoda]

The recession will end. One man....rather one child will make the ultimate sacrifice and save us all. Who will that child be you may ask?

Kyle Broflovski