Why Hollywood Studios is being rebuilt

[pheneix]

I think you're right about the next few years being tough on Disney in Orlando. They're having to adapt to competition in the market they've never dealt with before, and they're slow to turn the ship. One thing I'd hedge on though: I really don't think MK will see significant declines. As you said, MK is the benchmark, and I think that's the one park that everyone will continue to go to, regardless. I'd expect MK to continue to gain business as more people vacation in the Central Fl market, actually, but maybe not the large gains they have seen in the past. I don't think there will be a huge shift in pattern where people forgo Disney, I think Universal will gain days out of the Disney vacation. Some will switch their entire plan from only visiting Disney to only visiting Universal, but not the majority. It will take a while to really gain critical mass for people to look upon Universal as equal to the Vacation Kingdom.

Universal doesn't need to be seen as an equal to Walt Disney World. It just needs to be seen as better, and more importantly it needs to be seen as being a better value. This doesn't mean being cheap. It means delivering a better experience at a lower price than WDW. Universal is well equipped to do this. As Universal does this, their growth story writes itself and it will come from Disney losing every full freight, cash paying customer that is not tied down to DVC or free dining or some kind of irresistible loyalty to the Disney brand that is beyond trying to break.

MK will not be THE tentpole of an Orlando vacation in 2015. It will be a fixture of the Orlando vacation for sure, but it will not be the main reason people are coming to Florida. Proof of this is already in the pudding in California where DCA has lured a significant amount of daily attendance away from Disneyland since Cars Land was unveiled. Of course, in Anaheim this balancing out of the resort attendance was actually healthy as DCA is still dramatically growing DLR attendance as a whole. But it does serve as a clear example that as soon someone builds a theme park with new, relevant product that is perceived as just as high quality as a Magic Kingdom branded park, business can and will shift.

 

[articos]

Universal doesn't need to be seen as an equal to Walt Disney World. It just needs to be seen as better, and more importantly it needs to be seen as being a better value. This doesn't mean being cheap. It means delivering a better experience at a lower price than WDW. Universal is well equipped to do this. As Universal does this, their growth story writes itself and it will come from Disney losing every full freight, cash paying customer that is not tied down to DVC or free dining or some kind of irresistible loyalty to the Disney brand that is beyond trying to break.

MK will not be THE tentpole of an Orlando vacation in 2015. It will be a fixture of the Orlando vacation for sure, but it will not be the main reason people are coming to Florida. Proof of this is already in the pudding in California where DCA has lured a significant amount of daily attendance away from Disneyland since Cars Land was unveiled. Of course, in Anaheim this balancing out of the resort attendance was actually healthy as DCA is still dramatically growing DLR attendance as a whole. But it does serve as a clear example that as soon someone builds a theme park with new, relevant product that is perceived as just as high quality as a Magic Kingdom branded park, business can and will shift.

Agreed on the first paragraph. Not so sure on the second. I think patterns move slower, especially with something as entrenched as Disney World and Magic Kingdom as the trendsetter. Those in the know will catch on and realize Uni has something better down the road. But there's far more who don't read the boards or don't know any better, and they will continue to want to share a Disney vacation with the kids/family/friends, and hey, they've heard that that Universal park down the road is pretty awesome as well, so we'll go to that too. Even in Anaheim - CarsLand and the redo of DCA has definitely had an effect, but people still think of DLand first, DCA second. They now want to go to both, whereas before, DCA was not on the radar, but still, it's "we're going to Disneyland...and CarsLand" not "we're going to Disney California Adventure, and if we have time, we'll go to Disneyland".

That said, I completely agree with your point, which is if someone builds a new, relevant product with quality, the business will shift, and I think that is absolutely starting to take place in Orlando. But I think that's a slow burn, and will take 10-20 years to really make a striking difference in society, and I think Disney will take notice and make the changes they need to - grudgingly, maybe - before that 10-20 years is up. Whether they execute with any success or quality is up in the air, but I think 2015 is too soon to make a difference to anyone except maybe the accountants within WDPR as they start to see the internal numbers shift - which they already have.

 

[WDWDad13]

I run a travel agent on the side and sell a lot of Disney vacations. I can tell you with a fact that the trend is vacationers getting less tickets (number of days) at Disney, opting against the dining plans, and spending 1-2 days at universal while staying on Disney property

 

[Longhairbear]

Universal doesn't need to be seen as an equal to Walt Disney World. It just needs to be seen as better, and more importantly it needs to be seen as being a better value. This doesn't mean being cheap. It means delivering a better experience at a lower price than WDW. Universal is well equipped to do this. As Universal does this, their growth story writes itself and it will come from Disney losing every full freight, cash paying customer that is not tied down to DVC or free dining or some kind of irresistible loyalty to the Disney brand that is beyond trying to break.

MK will not be THE tentpole of an Orlando vacation in 2015. It will be a fixture of the Orlando vacation for sure, but it will not be the main reason people are coming to Florida. Proof of this is already in the pudding in California where DCA has lured a significant amount of daily attendance away from Disneyland since Cars Land was unveiled. Of course, in Anaheim this balancing out of the resort attendance was actually healthy as DCA is still dramatically growing DLR attendance as a whole. But it does serve as a clear example that as soon someone builds a theme park with new, relevant product that is perceived as just as high quality as a Magic Kingdom branded park, business can and will shift.

Whoa nellie on the DVC comment. We are NOT tied down at all, in fact we are the jumping off point to Orlando in general, and I think Disney hasn't realized that yet. We haven't been in 3 years, and once we do get back, any leftover points of our DVC membership are spent at DLR, and/ or DCL. I love reading your posts, and what you say colors my future plans for vacations. I'm totally spending time at UNI, we really have been myopic about staying on property at Disney.
As we live in Palm Springs where mid century homes (we live in a restored one), and Modernism Week brings in tourist dollars by the millions, you don't think we couldn't resist a stay at Cabana Bay? We're planning that already, and then moving to our DVC. We're trying to figure out how we can get Magical Express under those plans. So far we're thinking book the ME, and just not show up at the counter, and take a Mears bus or taxi to UNI. And then get the free ride back to the airport at the end of our trip.

 

[PeterAlt]

I think something is actually in the works. Whether it will be ready for an announcement in Aug. is a totally different story. I think they would like it announced then, but if it's not ready, it's not ready - and we just need to show a little patience.

 

[Rodan75]

COMCAST CAN OUTSPEND THE WALT DISNEY COMPANY AND THERE IS NOTHING ON PLANET EARTH THE WALT DISNEY COMPANY CAN DO ABOUT it

I agree with everything but this last part. Comcast has shareholders that are just as crazy as Disney's, if this next round of expansions under-perform in any way, the dynamic will shift. Plus, Comcast has a capital intensive cable industry to keep up with. An industry that has tremendous pressure on it at the moment from folks like Google and hungry and desperate Telecoms. Comcast is doing the right things at the moment for most of NBCUniversal, but it is still very early in the game to make long term assumptions.

 

[DocMcHulk]

Really?
Is if necessary to go into the whole thing about how:
A) The attendance estimates for DHS are way too high
And
B) The attendance DHS does get is primarily early day "first clicks" by guests who leave the park by early afternoon after hitting the "must do's" and spending very little on food and merch?

Hasn't that been settled? Or has it just been settled for everyone -1?

Get's old explaining the same stuff all the time...

When my family and I go, we rarely stay past 2 or 3pm.

 

[NoChesterHester]

Wow... Head off the bed at 1:30am and this thread gets phenomenal. Thank you @WDW1974 @pheneix and @articos for some great reading this morning.

 

[Nemo14]

We need that smiley of bashing your head into a wall back...

It is impossible to carry on a discussion with someone who insists on clinging to incorrect assumptions.

Good night, all...

Here you go @Lee !

 

[unkadug]

Sign of a thread truly off the rails, grammar police!

Grammar police rule. Without them all of the internet would look like comments from YouTube.

 

[Mister Boo]

Apologies to those of you who love the Osbourne Lights, but I kind of hope they do indeed go; I want to see what happens when pixiedustmaker's world view so completely shatters.

 

[NoChesterHester]

Apologies to those of you who love the Osbourne Lights, but I kind of hope they do indeed go; I want to see what happens when pixiedustmaker's world view so completely shatters.

Pixiedustmaker is obviously a bot based in the TDO mainframe. Changing paradigms do not compute.

 

[Mister Boo]

Pixiedustmaker is obviously a bot based in the TDO mainframe. Changing paradigms do not compute.

FAIR.

 

[Taylor]

Pixiedustmaker is obviously a bot based in the TDO mainframe. Changing paradigms do not compute.

I think a bot would know that irregardless isn't a word.

 

[NoChesterHester]

I think a bot would know that irregardless isn't a word.

Awesome.

 

[SJN1279]

Too much of a good thing is a problem as well. Look at Transformers and Springfield. A nice expansion by Universal is being completely overlooked because of a new attraction opened at the same time a few 100 feet away. Too many major new attractions at one time is overkill. That is why most theme parks limit things to 1 new attraction per year.

Remember Hogwarts was the major expansion, everything before or after will not have the same bump.

 

[unkadug]

Pixiedustmaker is obviously a bot based in the TDO mainframe. Changing paradigms do not compute.

I think you are giving him too much credit.

 

[Mister Boo]

I think you are giving him too much credit.

Disagree. He's roughly as functional as NextGen at this point, so, the shoe fits.

 

[GLaDOS]

Too much of a good thing is a problem as well. Look at Transformers and Springfield. A nice expansion by Universal is being completely overlooked because of a new attraction opened at the same time a few 100 feet away. Too many major new attractions at one time is overkill. That is why most theme parks limit things to 1 new attraction per year.

Not really sure what you're trying to say here. Are you saying Simpsons is being overlooked? Because the imperical evidence is saying the exact opposite. It was a big story on internet media sites like AV Club, IGN, Buzzfeed, as well as other smaller sites. It was the number 1 post on Reddit for a few days. The restaurant has had a line just to enter it just like the "hallowed" Be Our Guest. Bloggers from Attractions and Touring Plans have been lauding the food choices.

I'd say that's far from overlooked.

Also, management doesn't see it as a major attraction. It was a beautification project for one of the ugliest areas of the park, as well as a way to boost that side of the park's food and beverage revenues. And for kicks they threw in a family friendly attraction.

If you really think this and Transformers opening in the same year was a bad thing, I assume you think Test Track and FLE opening in the same year was bad as well, right?

Remember Hogwarts was the major expansion, everything before or after will not have the same bump.

You're really desperate for this to be true after seeing your posts in other threads.

Maybe if you keep saying this it'll magically come true.

 

[asianway]

More fun with numbers from the same reports:

Universal Parks and Resorts revenues from 2012: $2.1 billion. That all came from two theme parks in Orlando, a water park, ownership stakes in three hotels, and a small park in California.

WD P&R 2012 revenues: $10.3 billion. That income was derived from six theme parks, two water parks, four cruise ships, 30+ hotels that Disney owns in full, don't even care to elaborate more there is no need.

Universal is better at pulling cash out of its theme park operations than Disney. Another new reality that Disney needs to confront.

NOTE: WDC chose to present a data table that excludes international parks and resorts from 2012 revenues. The numbers I presented are from that data set but ARE an accurate comparison to Uni P&R revs as their reporting does not include foreign park licensing and royalties.

I agree there is no further need to elaborate but before some simpleton tries to argue that 5x revenue for 2x the parks is a good thing...I wanted to point out that domestic P&R also includes a timeshare sales organization selling 50 year land subleases that start in the mid-ten thousands a pop for new members in addition to a bank writing mortgages on those purchases at interest rates approaching your neighborhood pawn shop.