DISNEYLAND summer visitors UP 15%

[momrek06]

http://ocresort.freedomblogging.com/...st-year/24943/

DISNEYLAND PARK attendance increases.
November 12th, 2009, posted by Sarah Tully

Attendance at Disney’s local theme parks spiked 15 percent in recent months as the company offered deals to lure more guests.

Walt Disney Co.’s latest financial report showed that the two Disneyland Resort parks increased visitation even with the economic downturn. On Thursday afternoon, the company released its figures for the end of the fiscal year, which concluded Oct. 3.

From July through September, Disneyland and Disney’s California Adventure brought in 15 percent more visitors than they did during the same period last year, said Thomas Staggs, Disney’s chief financial officer, during a conference call. At the same time, visitation in Disney’s Florida parks dropped 3 percent.

Overall, however, Disney tourists bought fewer Mickey ears and princess dresses: Visitors spent about 10 percent less on merchandise at the domestic parks, Staggs said.

Both locations saw hotel bookings dip during that three-month period.

Disneyland Resort’s three hotels had 4 percent fewer hotel stays compared to the previous year, Staggs said. That meant an 84-percent overall occupancy - the same as Disney’s Florida properties.

Hotel stays for next year are already falling behind, with bookings about 5 percent down, Staggs said. However, reservations started increasing when Disney announced new promotions this week. Disneyland, for example, is offering two free hotel nights to visitors who stay three nights and buy five-day park passes in the spring.

Over the past year, Disney has offered several promotions, including free park passes on birthdays and free nights as part of hotel packages. At Disney World, guests also could get free meals.

Those deals have helped drive attendance up, even though revenues dropped, said Bob Iger, Disney president.

“Parks spent a fair amount of time watching the marketplace and waiting before extending a discount,” Iger said. “When the marketplace warrants discounting … it’s a good thing to do even though we receive less revenue.”

Parks and resorts’ revenues dropped by 7 percent to $10.7 billion in the most-recent fiscal year compared to the prior year.

[cari12]

It would also appear that the huge increase in SoCal AP's that has been talked about in many threads also contributes to higher traffic but lower hotel and merchandise revenues. I hope they keep the discounts coming for those of us that have to travel and stay in the hotels!

[kerickson]

I'm wondering if these deals are going to end up hurting Disney in the log run. Looks like all they did was increase crowds w/in the parks, didn't drive up revenue or hotel bookings. That may end up backfiring if people start to book fewer trips due to the aticipated crowds...

[momrek06]

Originally Posted by cari12

It would also appear that the huge increase in SoCal AP's that has been talked about in many threads also contributes to higher traffic but lower hotel and merchandise revenues. I hope they keep the discounts coming for those of us that have to travel and stay in the hotels!

I paid the same amount in Sept 2008 as I did in Sept 2009 for my AP.

[DangerMouse]

Originally Posted by momrek06

I paid the same amount in Sept 2008 as I did in Sept 2009 for my AP.

Not increase in price, increase of how many people in S. Cal now have AP's. The increase over the last year was crazy. There are now over 800,000 AP holders.

[momrek06]

Originally Posted by DangerMouse

Not increase in price, increase of how many people in S. Cal now have AP's. The increase over the last year was crazy. There are now over 800,000 AP holders.

Well it just shows how much we all LOVE DISNEYLAND!!!!!

[cari12]

Originally Posted by kerickson

I'm wondering if these deals are going to end up hurting Disney in the log run. Looks like all they did was increase crowds w/in the parks, didn't drive up revenue or hotel bookings. That may end up backfiring if people start to book fewer trips due to the aticipated crowds...

It's not the hotel deals that drove the crowds up, it's the increase in AP holders that come for the day and do not stay in the hotels. With the economy recovering, the deals will bring people to the parks that will spend vacation dollars in the parks.