While me and my buddy were discussing Profits, and I was digging through decade old SEC filings I came across this line from a 2002 10 K. Now I know it's old, but I think it's still relevant even today:
"Lower guest spending at both Walt Disney World and
Disneyland was driven by ticket and other promotional programs as well as a higher mix of local guests, who have higher annual pass usage and tend to spend less per visit"
The locals, and APs are the enemies. They only hurt Disney during times of prosperity like these. They're also the last ones to give up on Disney when times are bad. Insurance.
I've not run into that. I actually knew someone who just went over Christmas Break (I know), and wasn't expecting much. He ended up having fun. I guess it goes both ways.
Different thread...same issue...
Not understanding the way the gator swims in the swamp.
Locals and APs form the backbone of the customers...now with "distant locals" - DVC.
Do they buy the junk where the real money is made? No... So management doesn't like them.
But they always go running back to them when times are bad...and make NO mistake...it will happen again...and again... Until the place closes it's doors...
2002 was the strangest year (and worst) in the history of wdw and in many ways - Los estados unidos...
It is hard to explain the fog that was present over southwestern orange and northwestern Osceola counties ...but I lived it.
It's very hard to draw a lasting model based on that time...with the EXCEPTION of the collapse of the Eisner era and specifically what was perceived as his lost touch in parks...
And that... Is the take away...when the phoney money is NOT free flowing and even the blind customer starts to ask "what am I paying for?"
Iger's retirement plan is as see through as Saran Wrap...
They feel as though they can build their own "bubble" that insulates themselves for a particular amount of time...they're thinking princess/pixar/star wars/ and avengers...
It's a pretty good plan...
How long can you keep
Air in the bubble? I bet 3-5
Years - conservatively...
Hmmm...that's funny. 10 marvel movies...5 (which is kinda ridiculous) Star Wars movies...5 or so Pixar (including the heaviest hitters)...and new cranking at disney studio animation...
It's like there's a timetable or something...
Hmmm
So what would happen if it breaks in say...2019?
Answer: nobody cares.
Why are they gonna name Staggs as CEO?
My theory?
He's disposable...he's a steward that the board (you know...talking to apple/Pixar people...and soon Iger) can easily dispose of as a release valve....if you need a "controlled drain"'on the Disney bubble.