Budget cuts at Walt Disney World

[sachilles]

I agree...

Just not about the "marginal reduction" of hours.

8 hours is a big deal when you're in the neighborhood of minimun wage.

I agree 8 hours wouldn't be marginal.

The article states.

"Most of the reductions seem to be targeted around dropping employees two to four hours a week," he said.

 

[Eoghann]

Profit is as high as 95% in the giftshop...it's as low as break even at the ticket booth or lunch counter...it's just how the accounting works.

But my info is dated (15 years)...so the massive price increases - and they have bee just that - probably have outrun the operational costs.

Are you telling me the plastic sword I bought for $15 isn't Captain Jack's actual sword but was in fact made for 5 cents by a 12 year old chinese girl? I'm shocked, shocked I tell you.

 

[rteetz]

Disney has never had much success with resorts (or other similar enterprises) that aren't attached to their parks. I think without the draw of the park, the expense becomes higher than the magic quotient. They like the idea on paper, but they can't execute on it.

Correct. Disney had many plans for resorts all over the place but they never happened because the resorts that did, didn't do well.

 

[Ensusieasm]

Correct. Disney had many plans for resorts all over the place but they never happened because the resorts that did, didn't do well.

Yes, This^. Disney's Vero Beach was supposed to be a much larger resort, but Disney made huge cuts to that project and sold off the extra land. I really do love Vero, though, and split my annual trip to Florida between Disney World and Vero Beach. Wish I was still there. Snowing here in Maine as I type this.

 

[EricInPA]

If you had seen this happen at a restaurant where you eat back home, would YOU EAT AT THAT RESTAURANT AGAIN?

Don't read your local health departments report filings.

 

[lockedoutlogic]

I agree 8 hours wouldn't be marginal.

The article states.

Right...though the original articles did say 8.

I would argue that a 10% reduction is a lot when it its not a living wage to start with.

 

[book_junkie]

Don't know if today was a special day, a conference day, or what, but took my mom over to the GF (she loves to browse the shops there when in town), and there were 4-5 CMs with iPads inside waiting to help in front of the check-in desk. Weren't they supposed to be part of the staffing cuts, or do I have it wrong?

 

[rteetz]

Don't know if today was a special day, a conference day, or what, but took my mom over to the GF (she loves to browse the shops there when in town), and there were 4-5 CMs with iPads inside waiting to help in front of the check-in desk. Weren't they supposed to be part of the staffing cuts, or do I have it wrong?

That was supposed to be part of the cuts. Could have had a lot of club level guests coming in. They usually do a personal check in for club level guests.

 

[lockedoutlogic]

The systems could have been down or being upgraded and the pads were being used as subs...that happens sometimes

 

[Planogirl]

Don't read your local health departments report filings.

I have read those locally from time to time and I have to say that someone cleaning tables with a floor mop was a first for me.

 

[book_junkie]

The systems could have been down or being upgraded and the pads were being used as subs...that happens sometimes

Nope, desk CMs were helping those who just came off a Disney Cruise bus.

Here I was hoping it was a small positive as the GF guy who's been outside forever- off white suit, hat, spats, and looks like a good wind could knock him over- was still there as well.

 

[DDLand]

No I wouldn't go that far. You can't call it a turn around on a single year's data. You also can't call it a blip without further data.

You @DDLand tend to take an overly positive spin towards Disney, while the person I was responding to is taking an overly negative one.

The reality lies in the middle. For the last 6 years attendance has been stagnant, but the raw numbers are okay. Attendance isn't really the problem.

It is early, but I feel it's not an overstatement to say this is the beginning of a fundamental turnaround.

For the first time Disneyland Paris has enough capital to properly invest in their attractions and guests areas. They've worked on or are working on Adventureland, Tomorrowland, Frontierland, Small World, their hotels, etc. They're doubling down on meeting guest needs and desires and boosting entertainment availability. They're offering a superior product. They're working on new guest experiences and enhancing old ones.

For the first time they're not so burdened down by debt or mismanagement that they're unable to upkeep their attractions. They're ensuring that proper care is being taken.

So the guest experience is improving and will continue to improve. Their debt payments have been converted to long term maturation dates, leaving them free from those burdens for a time. Now I notice a correlation between rising Occupancy, Attendance, Guest Spending and improved management and offerings. You're right that it's too early to tell whether this will be successful, but all those indicators are moving in the right direction. I like where DLP is heading. It's in a good place and it's getting better.

A turnaround in my view.

 

[rteetz]

Nope, desk CMs were helping those who just came off a Disney Cruise bus.

Here I was hoping it was a small positive as the GF guy who's been outside forever- off white suit, hat, spats, and looks like a good wind could knock him over- was still there as well.

Richard is great I can't see them getting rid of him. He's one of the most famous CMs.

 

[lockedoutlogic]

It is early, but I feel it's not an overstatement to say this is the beginning of a fundamental turnaround.

For the first time Disneyland Paris has enough capital to properly invest in their attractions and guests areas. They've worked on or are working on Adventureland, Tomorrowland, Frontierland, Small World, their hotels, etc. They're doubling down on meeting guest needs and desires and boosting entertainment availability. They're offering a superior product. They're working on new guest experiences and enhancing old ones.

For the first time they're not so burdened down by debt or mismanagement that they're unable to upkeep their attractions. They're ensuring that proper care is being taken.

So the guest experience is improving and will continue to improve. Their debt payments have been converted to long term maturation dates, leaving them free from those burdens for a time. Now I notice a correlation between rising Occupancy, Attendance, Guest Spending and improved management and offerings. You're right that it's too early to tell whether this will be successful, but all those indicators are moving in the right direction. I like where DLP is heading. It's in a good place and it's getting better.

A turnaround in my view.

This is a new definition of "optimistic"

I think that the longterm problems of euro aren't going away.

Just a different clientele and a different market altogether...people waste time when they compare it to the US or Japan. And that is often the case

 

[aprincessatlast]

Apparantly Shanghai DL is so hard up that they are asking for foreign "volunteers" to help with the opening? Seriously?

http://shanghaiist.com/2016/03/06/shanghai_disneyland_looking_for_volunteers.php

 

[mom2rtk]

Apparantly Shanghai DL is so hard up that they are asking for foreign "volunteers" to help with the opening? Seriously?

http://shanghaiist.com/2016/03/06/shanghai_disneyland_looking_for_volunteers.php

Internal surveys probably told them they couldn't get away with selling the experience for $69.

 

[rteetz]

Apparantly Shanghai DL is so hard up that they are asking for foreign "volunteers" to help with the opening? Seriously?

http://shanghaiist.com/2016/03/06/shanghai_disneyland_looking_for_volunteers.php

Not surprising.

 

[EricInPA]

I have read those locally from time to time and I have to say that someone cleaning tables with a floor mop was a first for me.

Not to detour to far into HealthDeptBoards, but I've seen violations along the lines of "cleaned prep areas with dish water".

 

[DDLand]

This is a new definition of "optimistic"

I think that the longterm problems of euro aren't going away.

Just a different clientele and a different market altogether...people waste time when they compare it to the US or Japan. And that is often the case

They've welcomed in millions of guests. Their occupancy is decent and rising. Their guest spending is up. I know that it's been a constant laggard, but getting to the source of the problems related to poor show quality, poorly designed entertainment, lack of full build out, and debt will help. Europe loves Disneyland Paris. A few key upgrades can go a long way.

 

[DDLand]

Apparantly Shanghai DL is so hard up that they are asking for foreign "volunteers" to help with the opening? Seriously?

http://shanghaiist.com/2016/03/06/shanghai_disneyland_looking_for_volunteers.php

That's not even close to what's happening:
THE Shanghai International Tourism and Resorts Zone, which encompasses the Shanghai Disney resort as its centerpiece, will be looking for 700 volunteers in the rest of this month.

The volunteers are expected to help maintain order, give directions, assist physically-challenged tourists and serve as interpreters to foreigners when the zone is scheduled to open to the public at the end of April, city government announced on Saturday.

Tourists will be able to find the volunteers at the bus terminals, shuttle bus stops, Metro station, parking lots as well as entries and exits of the Shanghai Disneyland within the central area of the zone, which covers seven square kilometers, at weekends, national holidays and summer holidays when the largest numbers of tourists are predicted.

http://www.shanghaidaily.com/metro/...efore-Shanghai-Disneyland-opens/shdaily.shtml

Basically this opening is going to be huge and difficult logistically to execute. You're asking a Resort that has never seen a day of real operation to suddenly accept peak crowds all at once for opening. This is a huge undertaking and it involves a lot of people. It takes time to properly ramp up full cast member recruitment and training, and having these volunteers from local universities is along the lines of the Disney College Program. Not that this is actually Disney doing the recruitment, but still think along those lines.


Keep in mind that no one has ever gone to Shanghai Disney before. Many won't have gone to a major Disneyland style theme park either. During this opening you're going to have a lot of confused guests initially, and ensuring that they know what's going on is important. Also foreign interpreters will be important while so many visitors turn their attention to Shanghai Disney, and China wants to be show off its theme park to the world.

This is not a problem. This is exactly what they should be doing.

Internal surveys probably told them they couldn't get away with selling the experience for $69.

Why? Are you talking about Chinese consumers or the experience in general? Because at least from my American perspective of theme parks, this is shaping up to be one of their very best. Easily better than DCA, Epcot, DHS, WDS, and likely HKDL (time will tell). It could end up being one of the best theme parks ever.

http://shanghaiist.com/2016/03/08/shanghai_disneyland_sneak_peek.php

I do agree that it will be interesting on pricing and seeing how the Chinese consumer reacts.