What will Disney’s response be to Universals 4th gate?

[Sirwalterraleigh]

Uhh according to their Q3 reporting, Universal's attendance and revenue are up. Disney's Q3 earnings report however said this:

"The decrease in operating income at our domestic parks and resorts was due to higher costs and lower volume, partially offset by increased average per capita guest spending. Higher costs were driven by labor and other cost inflation and expenses associated with Star Wars: Galaxy’s Edge, which opened at Disneyland Resort on May 31. The decrease in volume was due to lower attendance, partially offset by higher occupied room nights. Guest spending growth was primarily due to higher average ticket prices and increased food, beverage and merchandise spending."

its luxury now...didn’t you hear? That’s what it has to be to sell DVC points for $200 a point at Caribbean Beach - 1988 Moto lodge

I know that Bob Chapek isn't the most popular, but who in his position have been popular. You guys hate whomever is working to balance creative with the realities of stock holders demands. He is currently the figure head in the massive alteration and updating of WDW. Not a small task or a small budget endeavor. Someone's got to be the scapegoat for fans frustration of them not always thinking the same way we do, but seriously, and I mean seriously do any of us think we could do a better job? If so why haven't we sent a resume to get those available high paying, high pressure jobs.

The reason we always hate that guy is because he’s the face of the mandate to increase prices greatly for mostly old stuff and trim corners wherever possible. So in a way...I agree with you.

I wonder, when they were in the planning stages for Universal Orlando in the 80s, was there a piece of property available that was large enough for significant future expansion, similar to WDW? I know that Orlando in the 60s, when Disney purchased the land, was smaller than it was 20 years later when Uni was built, so maybe a larger property wasn’t available by then? Maybe Universal didn’t have the $$ to purchase a large piece of property at that time, or didn’t want to go too far outside of the main tourist center of Orlando/Kissimmee?

i can give you an idea...

Interesting question that I don't know the answer to. I would guess that back when Uni was being built they didn't envisage it becoming as popular as it has, though they probably didn't have the money to buy more land at that time anyway even if it was available?

So the answer is this:

It was a completely different world.

Orlando was a farm town with a total area population of about 50,000 when Disney started gobbling up farmland.

It was an overdeveloped tourist Mecca by 1985. I-4 was “that new road” when wdw was announced...it was Lined with neon and chain restaurants by the time universal decided to show up.

The “blessing of size” that Disney got in Orlando was only because it was done in secret in the middle of nowhere...they were shrewd. But it was never going to happen again.

 

[ObscurityPoint]

My guess is more dance parties themed to the Incredibles, Frozen 2, or Star Wars.

 

[Victor Kelly]

Disney will cut costs, cut hours or operation, cut personnel and raise prices.

 

[Moka]

Disney will do Disney

 

[bUU]

Well, I know that I could do a better job. The first thing I'd do would be to take a sharp turn away from turning Disney World into little more than a shopping mall and food court.

And immediately be fired for failing to live up to your obligation to the stockholders.

As Goofyernmost said: The job is a lot harder than those who think they could do it think it is.

 

[RustySpork]

And immediately be fired for failing to live up to your obligation to the stockholders.

As Goofyernmost said: The job is a lot harder than those who think they could do it think it is.

I know how difficult the job would be. You're not necessarily failing to meet your obligations with a change of direction either.

 

[Heppenheimer]

"What will Disney's response be to Universal's 4th gate?"

How about a 4 seasons mountain resort complex?

Meh, as much as I would like to see what the Imagineers could design with such a concept, it's probably never going to happen. And neither would it really be a response to Universal. I also get the feeling that current Disney management has spent too much time in the south and the idea that people can actually enjoy the outdoors at temperatures below 50 degrees is a completely foreign concept.

One can dream, however.

 

[Hank Hill]

I think more things like the new Star Wars hotel will be built. Small, exclusive, and probably really expensive. It will offer a guest experience unmatched at a regular resort, and be almost a theme park experience in itself. I have seen mentioned and agree, Disney won't be opening a 5th gate, but rather will build smaller boutique experiences like the SW hotel, or SeaWorld's Discovery Cove. All inclusive, exclusive experiences, with limited guest capacity.

I think the fight between UOR and WDW is not the number of parks, but the hotels. With Endless summer coming online, they are offering prices better than Disney value resorts, that could be a huge boost to get people to stay at Universal and then go to Disney for a few days, rather than the other way around that a lot of people do today. $200 or more a night for All Stars is crazy. Personally, I would never stay at a value again at Disney, I found the rooms terrible, they are not worth the price. Plus the suites opening at Universal are actually pretty nice from what I see, and would help attract more guests. Once you get the guests in your hotel, it is easy to offer incentives to spend more time at your parks.

 

[Joeamc]

I think more things like the new Star Wars hotel will be built. Small, exclusive, and probably really expensive. It will offer a guest experience unmatched at a regular resort, and be almost a theme park experience in itself. I have seen mentioned and agree, Disney won't be opening a 5th gate, but rather will build smaller boutique experiences like the SW hotel, or SeaWorld's Discovery Cove. All inclusive, exclusive experiences, with limited guest capacity.

I think the fight between UOR and WDW is not the number of parks, but the hotels. With Endless summer coming online, they are offering prices better than Disney value resorts, that could be a huge boost to get people to stay at Universal and then go to Disney for a few days, rather than the other way around that a lot of people do today. $200 or more a night for All Stars is crazy. Personally, I would never stay at a value again at Disney, I found the rooms terrible, they are not worth the price. Plus the suites opening at Universal are actually pretty nice from what I see, and would help attract more guests. Once you get the guests in your hotel, it is easy to offer incentives to spend more time at your parks.

I agree. The Star Wars hotel will be duplicated.

 

[Heppenheimer]

I think more things like the new Star Wars hotel will be built. Small, exclusive, and probably really expensive. It will offer a guest experience unmatched at a regular resort, and be almost a theme park experience in itself. I'm wondering if the Star Wars hotel will serve as a sort of test case to see how viable this concept is. Given the underwhelming response to Galaxy's Edge, it seems to me that Disney both over-estimated the number of people who want to pay dearly to live in an immersive Star Wars environment, and failed to deliver the particular immersive environment that those fans might want. There's plenty of people who both have the money and willingness pay for an exclusive hotel stay (hence, the existence of the Four Seasons brand). But I would doubt there's a significant overlap with this group and people who would want an immersive Star Wars experience. But, hey, perhaps Disney has some market research that supports their plan.

What happens, though, if the Star Wars hotel underperforms and becomes another Disney Institute? Or Disney Quest?

 

[xdan0920]

I agree. The Star Wars hotel will be duplicated.

Disagree tremendously. I think the Star Wars hotel is going to flop. Normal adults don't want to LARP around a pretend spaceship for 3 days. The amount of people this thing is going to appeal to will be shockingly low. In the early days it may seem like a hit, but the target audience is quickly going to become exhausted and a couple things are likely to happen.

1. Discounts.
2. Shuttered.

 

[lazyboy97o]

Disagree tremendously. I think the Star Wars hotel is going to flop. Normal adults don't want to LARP around a pretend spaceship for 3 days. The amount of people this thing is going to appeal to will be shockingly low. In the early days it may seem like a hit, but the target audience is quickly going to become exhausted and a couple things are likely to happen.

1. Discounts.
2. Shuttered.

Add a pool and a princess breakfast and make it no different than any other hotel.

 

[larryz]

What happens, though, if the Star Wars hotel underperforms and becomes another Disney Institute? Or Disney Quest?

What's wrong with a 20-year run?

 

[Heppenheimer]

What's wrong with a 20-year run?

That the Orlando Disney Quest location stayed open so long was more due to lack of any better replacements and inertia rather than evidence of success. The other locations came and went pretty quickly.

 

[RustySpork]

That the Orlando Disney Quest location stayed open so long was more due to lack of any better replacements and inertia rather than evidence of success. The other locations came and went pretty quickly.

All Quest really needed was a bit of spit and polish, and the replacement of some of the dated tech. I still believe the only reason it failed is that Disney neglected it.

 

[Hank Hill]

Disagree tremendously. I think the Star Wars hotel is going to flop. Normal adults don't want to LARP around a pretend spaceship for 3 days. The amount of people this thing is going to appeal to will be shockingly low. In the early days it may seem like a hit, but the target audience is quickly going to become exhausted and a couple things are likely to happen.

1. Discounts.
2. Shuttered.

It is around 100 rooms, IDK that you need that many people to want to do it to be successful. We will have to see what is actually offered, but there will most likely be exclusive access and entrance to GE, maybe the whole park. I read it described almost like a cruise experience, if there is enough special perks offered, I could see it, and other themes, being successful.

People willingly paid for a breakfast they wouldn't eat just so they can ride a pretty unexciting coaster before park opening when New Fantasyland opened, maybe still do. People get a room they won't stay in just to have early access to booking FP. We've all read some crazy things people do. There is no shortage of WDW guests who will pay out the wazoo for some perks. Weather it is Star Wars or other themes, I see Disney going that direction. More exclusive experiences for those willing to pay in smaller venues.

Maybe a character hotel, in 2 days you can meet all the characters in themed rooms at the hotel, throw in some special ones that don't have M&G's. Now park time will not be wasted waiting to meet anyone. No going to the Halloween party and waiting hours to meet that special character. Maybe a nightly show at the hotel only for guests, a dedicated shuttle to get an hour in a park before others or something. Or a special entrance. There certainly things that could be offered that would entice people who are not necessarily fans of a particular IP.

 

[KaliSplash]

I am sure Mickey will take a deliberate, co$t-effective approach to the problem.

 

[The Pho]

All Quest really needed was a bit of spit and polish, and the replacement of some of the dated tech. I still believe the only reason it failed is that Disney neglected it.

Had it been treated like a 5th gate as it deserved it would’ve remained very popular. But they basically abandoned it.

 

[xdan0920]

It is around 100 rooms, IDK that you need that many people to want to do it to be successful. We will have to see what is actually offered, but there will most likely be exclusive access and entrance to GE, maybe the whole park. I read it described almost like a cruise experience, if there is enough special perks offered, I could see it, and other themes, being successful.

Even if it's only 100 rooms, I still don't see it staying full beyond the initial launch. Are there a million people out there who both, want to LARP as a random Star Wars character, and have the money to do so? I don't think so.

People willingly paid for a breakfast they wouldn't eat just so they can ride a pretty unexciting coaster before park opening when New Fantasyland opened, maybe still do. People get a room they won't stay in just to have early access to booking FP. We've all read some crazy things people do. There is no shortage of WDW guests who will pay out the wazoo for some perks. Weather it is Star Wars or other themes, I see Disney going that direction. More exclusive experiences for those willing to pay in smaller venues.

You are right, Disney loves an upsell, and the majority of the upsells work because todays guest is far less discerning and will seemingly pay anything, for anything, with an "exclusive" label.

Maybe a character hotel, in 2 days you can meet all the characters in themed rooms at the hotel, throw in some special ones that don't have M&G's. Now park time will not be wasted waiting to meet anyone. No going to the Halloween party and waiting hours to meet that special character. Maybe a nightly show at the hotel only for guests, a dedicated shuttle to get an hour in a park before others or something. Or a special entrance. There certainly things that could be offered that would entice people who are not necessarily fans of a particular IP.

This idea would probably work with today's guests. You should draw up a proposal and head on down to TDO, maybe you'll get hired.

 

[BoarderPhreak]

"But... We repainted Tomorrowland."