Attendance Down, Revenue Up

[Boski]

This is what happens when you invest in a ride rationing system instead of net new additions to the parks.

Which probably would have cost less!

 

[carmelhp]

This is the 2nd bad earnings report in a row for DIS. The stock price is down 20% from it's highs. These greedy Disney executives are foaming at the mouth in anger over this. They have lost hundreds of millions in personal wealth because of the decline. At this very moment they are having a meeting demanding more ways to cut services and raise prices at theme parks. You thought it was getting bad, wait until you see what's coming.

Maybe they'll be really successful at decreasing "throughput" and no one will come. How would they like that? The golden goose is being killed.

 

[rteetz]

I believe that in part they are. I also think that rapid uptick in costs when coupled with reduced services and staffing also are linked to the quarterly reports. I have never believed that within a corporation as large as Disney, any one event is responsible for changes, charges, or increased gains or losses. If you look at Shanghai or My Magic+ as individual slices of a pie, would either be enough ruin the numbers? I don't know.

If the overruns on MyMagic+ are true I think it would be enough.

 

[hauntedcity]

I'm very surprised to see an attendance drop, in light of the out-of-control wait times. If you've been following the touringplans.com crowd calendar, you'll see that wait times have been above average for the last 1-2 years. If there are actually less people in the parks, are the longer waits due to FastPass+ issues? Or perhaps, lowering the capacity of the rides to save money (less maintenance, less wages)?

 

[Nancyg56]

If the overruns on MyMagic+ are true I think it would be enough.

I think that the issue is really a perfect storm of decisions that are not paying off. If MyMAgic+ worked out the way some idealist proposed, well how awesome would it be? But when a company makes a decision to lay off IT folks and yet the company has a huge IT network that is "needy" at best...well who does that? Or a company that has some crazy notion that if they make people schedule their attractions in advance these people will kill time spending all their Disney dollars buying sweet tarts in Goofy candy shop, well again.....who thinks these things up? Let's add raising the cost of food, lodging and tickets, all at once, multiple times, and then someone so surprised guests were not banging down doors for the chance to book. Seriously??? Who comes up with these plans? Real people book their passes, go on the attractions when they are scheduled, and get the heck out of Dodge to swim for free. Real people have a finite amount of money to spend and will not kill time happy as clams buying useless junk. Guests will not continually spend hours trying to e=deal with a network that fails as often as it is running. People want to begin a and end ther actions feeling as though the money was well spent. Once this is questioned, there will be losses in return revenues. And no matter who insists DIsney is interested in first time guests, they need to respect it is the folks who leave happy ho are responsible for the next round of first timers.

To me, all of the problems that Disney is facing in regards to this profits and losses stem from a think tank mentality. A group of people locked in a room with no experience dealing with the ideas they propose. ALl agreeing with each other, and isolating anyone who may try to change the mindset. If anyone of them had real experience with the guests and how we all vacation, they might not have gotten into the mess they are in now. I will say that whoever got them involved with Shanghai needs to go. Yesterday.

 

[rteetz]

I will say that whoever got them involved with Shanghai needs to go. Yesterday.

That would be Iger...

 

[lugnut33]

Clearly the cuts and the price increases were done to hide the serious declines in the parks and elsewhere (ESPN, Infinity, etc). Without the cuts and price increases the quarter would have been much worse and Iger would have had more tap dancing to do. As for now, his bonus is safe. His golden parachute just keeps getting bigger and he'll have those that are happily willing to pay more and more to thank.

 

[Nancyg56]

I'm very surprised to see an attendance drop, in light of the out-of-control wait times. If you've been following the touringplans.com crowd calendar, you'll see that wait times have been above average for the last 1-2 years. If there are actually less people in the parks, are the longer waits due to FastPass+ issues? Or perhaps, lowering the capacity of the rides to save money (less maintenance, less wages)?

I think that that the wait times are a combination of reduced ride capacity and more people in one park than the others at any given time. I know that I avoided DAK and DS for a long time because I cannot stand the walls. Attractions that never had a line really, now routinely have lines that I never experienced b

 

[Laz]

We have not gone to WDW since the start of FP+, opting for DLR instead (didn't I read that DLR attendance was up?). We have talked about a trip to WDW, but will be waiting until the construction projects are completed. Could others be thinking the same way?

 

[Nancyg56]

That would be Iger...

Figures. It is not a secret even to folks like me who have no business sense, that dealing with the Chinese government is much more complicated than dealing Florida officials. ANd way more expensive.....

 

[mom2rtk]

I think that that the wait times are a combination of reduced ride capacity and more people in one park than the others at any given time. I know that I avoided DAK and DS for a long time because I cannot stand the walls. Attractions that never had a line really, now routinely have lines that I never experienced b

Agreed. One of Josh's recent posts on EasyWDW commented on how they were running at lower capacity. Cut one track from Great Movie Ride and wait times quickly double. Add in the addition of FP+ on that ride, and something that used to have fairy short lines is a whole new creature.

 

[jade1]

Of the four scenarios, I'm not even sure which I would pick.

Leaning towards #2 so it gives them rev to do whats needed to increase attendance, #1 might be rev but slow down any urgency for attendance, #3 and #4 might slash expansion and more cost cutting, not sure what it would do to pricing.

Certainly consequences of good and bad for each.

With expansion budgets looking amazing, kinda leaning towards a "Rev Up" for sure so the slashing doesn't start. Torn on attendance-not sure what Up or Down of that would/will lead to.

1) Rev Up, Atten Up
2) Rev Up, Atten down
3) Rev down, Atten Up
4) Rev down, Atten down

 

[rteetz]

Of the four scenarios, I'm not even sure which I would pick.

Leaning towards #2 so it gives them rev to do whats needed to increase attendance, #1 might be rev but slow down any urgency for attendance, #3 and #4 might slash expansion and more cost cutting, not sure what it would do to pricing.

Certainly consequences of good and bad for each.

With expansion budgets looking amazing, kinda leaning towards a "Rev Up" for sure so the slashing doesn't start. Torn on attendance-not sure what Up or Down of that would/will lead to.

1) Rev Up, Atten Up
2) Rev Up, Atten down
3) Rev down, Atten Up
4) Rev down, Atten down

Disney wants scenario 1 everytime which they have been getting a lot lately until yesterday's report.

 

[tlmadden73]

I think that that the wait times are a combination of reduced ride capacity and more people in one park than the others at any given time. I know that I avoided DAK and DS for a long time because I cannot stand the walls. Attractions that never had a line really, now routinely have lines that I never experienced b

The thing is .. "wait times" are just for those who don't get a Fast Pass.
If families come late, do their three fast Passes, grab lunch, watch the parade, catch a show or two (that don't have lines), grab a snack, use a 4th or 5th fast pass (available from their phone!), have dinner, shop and then watch the fireworks, the long wait times (for them) didn't mean a thing.

While wait times are up for those who like to do a LOT of rides in one day, I bet the general experience for the average guest is just fine if they use Fast Passes.

I just feel that because of fast Pass .. posted wait times are meaningless since there is no way to control when the people with Fast Passes will show up.
You could be at the end of 15 minute line .. but all of a sudden EVERY person who has a Fast Pass for the next hour shows up at the SAME time and heads into the Fast Pass lane. My guess is that your 15 minute wait will be a LOT longer.

And the reverse is probably true. The posted wait time is really huge because there is a lot of people in the Fast Pass line, but then no one shows up to get into the Fast Pass line for 15 minutes .. the standby line will zip faster.

 

[jade1]

Disney wants scenario 1 everytime which they have been getting a lot lately until yesterday's report.

But what did you want to see?

 

[rteetz]

But what did you want to see?

It really doesn't matter what you or I want. I don't own stock in Disney. If I did I would want revenue up and I don't think attendance would matter as much.

 

[jade1]

It really doesn't matter what you or I want. I don't own stock in Disney. If I did I would want revenue up and I don't think attendance would matter as much.

None of this discussion matters, I just meant as the consumer and informed WDW guest-would you have a preference and why?

The title of discussion thread.

 

[rteetz]

None of this discussion matters, I just meant as the consumer and informed WDW guest-would you have a preference and why?

The title of discussion thread.

As just a regular guest I don't care. If crowds are down good but prices are higher than ever. If I was a stock holder I would want revenue up for sure but attendance I could go either way.

 

[jade1]

As just a regular guest I don't care. If crowds are down good but prices are higher than ever. If I was a stock holder I would want revenue up for sure but attendance I could go either way.

No preference then on these quarterly reports for Revenue and Attendance, I can see that.

 

[rteetz]

No preference then on these quarterly reports for Revenue and Attendance, I can see that.

I think if attendance continues to go down you'll see changes whether it be less price increases or more additions to the parks.