Budget cuts coming to DCL?

[MKRuns 26]

With all the staffing and entertainment cut backs happening at WDW & DL lately because of the budget overruns with Shanghai Disney, do you think these cuts will also effect DCL? If so, will there be fewer character M&G and activities on the ships, etc or would DCL cut back the CM who work on land?

Sorry if this topic has already been posted.

 

[mmouse37]

You never know but it takes a certain amount of CM and crew to run the ship and I can't imagine them cutting staff. All the staff are on contracts so unless they start shortening the crew contracts I doubt it will happen. I think there is more leeway with staff at WDW/DL. Of course this is just my opinion and I can be totally off base.

MJ

 

[DHSbutcher]

It could definitely affect shoreside cast, but those on the ship are under contract so it would be gradual if so.

 

[Flossbolna]

To a certain level I think DCL is in a different place than WDW when it comes to that. DCL has direct competitors that follow the same model with exemplary service. Also, in order to keep charging the prices they charge, they need to keep up the little extras. However, I can see more up charge possibilities being added, like the bar food menus, the ice cream shop on the Dream, etc.

 

[DisneyWishes14]

DCL is a separate corporation from parks and resorts, so it is operated separately. If they make any cuts, it would be for their own bottom line and would have nothing to do with any Disney parks.

 

[truck1]

DCL is a separate corporation from parks and resorts, so it is operated separately. If they make any cuts, it would be for their own bottom line and would have nothing to do with any Disney parks.

DCL is a separate business unit, not corporation. Same thing with DVC, and Pixar.

From the way I understand it, because of Shanghai, the parks division is making cuts to help offset Shanghai. At least until it opens. I cant see where other then mentioned shoreside, that DCL can make cuts. At least not noticeable ones. About the only cuts I can see is not replacing positions right away and using floaters to cover. For example, Capt John recently retired, so instead of hiring another Capt, they can use qualified Staff Capt, to fill his spot until DCL is ready to hire more. Capt Tom will be spending more time shoreside in Celebration and Germany with the new ships, so theres another spot that will be filled with floaters. Another option would be to slow a ship down at sea by 1 or 2 knots. That would conserve a couple hundred tons of fuel per trip. This is all assuming that DCL is required to make cuts, but I doubt that they will be. Vacation Club maybe since they are tied to the resorts but they will have the same restrictions as the resorts like going from 40 hours to 30, not using all of the available check in areas, cutting back on bell hops, house keeping etc.

 

[RedSox68]

Plus if DCL felt the need to cut staff for budgetary reasons, I don't think they would have commissioned two more ships.

 

[Jess_S]

To a certain level I think DCL is in a different place than WDW when it comes to that. DCL has direct competitors that follow the same model with exemplary service. Also, in order to keep charging the prices they charge, they need to keep up the little extras. However, I can see more up charge possibilities being added, like the bar food menus, the ice cream shop on the Dream, etc.

I agree with you 100%. But I hope that DCL's management is smart enough to realize that if they get carried away with upcharges, they are going to start losing customers to lines with a lower base price. I'm also a fan of NCL, which is known for "nickle and diming" -- but I don't feel grumpy about upcharges there because the base rate is low. At a premium base rate, I expect good food, entertainment and activities included in my fare.

 

[msb578]

DCL is a separate business unit, not corporation. Same thing with DVC, and Pixar.

I thought DCL and Pixar are wholly-owned subsidiary companies.

 

[blondietink]

I would not expect to see many/of any cuts at DVC because the revenues there are tied to yearly maintenance fees/dues. If anything, they would raise those. They could also tweek the benefits on a yearly basis. For example, DVC is tied to the old price for adding on the DDP until the end of the year. Come January first, I'm sure that anyone staying on DVC points will have to pay the higher price on any DDP they want to have.

 

[truck1]

I thought DCL and Pixar are wholly-owned subsidiary companies.

AFAIK they are business units. But the term subsidiary works also. They are in the class so to speak as the Walt.Disney Animation Studios, Marvel and a bunch of other things. Disney as a whole has multiple business units subsidiaries to keep liability down. For example if a disaster hit say Aulani, the fall out would only affect the Vacation club side. Same thing with ESPN. If it failed tommorrow, went bankrupt and say it owed 1 billion in fees, it would only affect the sports unit not the company as a whole. Pixar I'm almost positive is now Disney Pixar. Reading the way Disney is structured Pixar is equal to the Disney Studios but they are separate entities. It was done deliberately so Pixar can keep its identity but still come under Disney's heirarchy. It's almost as complicated as the Marvel acquisition

 

[jrabbit]

DCL has made some cutbacks over the years -- even though I'm old, I think that I remember that on the Classic Ships there used to be about a dozen cruise staff onboard running activities. I think that they are down to about 8 now. That makes a difference - but people must not have noticed.

On the other hand, guests noticed when DCL stopped giving out "Sleepy Chocolates". At 50 cents per room for crappy chocolates, returning guests were up in arms and DCL reinstated the chocolates (and it cost them at most $400 / day)

They have dropped the "Live Bands" onboard because they weren't bringing people into Fathoms / Wavebands / Evolution / The Tube at night in large enough numbers so they changed over to DJ's. Pay for only one person - much less expensive and the same 12 people per night show up. Like I said earlier, I'm old so i found the live bands AND the DJ"s way to loud. I've enjoyed the various bands in the past for the few minutes before the nightly show and right afterwards - always a bunch of talented people, but I didn't like my ears bleeding. blah, blah blah and "no one" complained, so DCL continues with this "cut".

These are just a couple of examples of cuts. There's probably many, many others that DCL has made over the years. And they WILL continue to make cuts, and only by enough guests making comments on their cards at the end of the cruise will positive changes happen.

Off the Soapbox now.

 

[over50visits]

As long as they don't cross the critical juncture of too many cuts so it becomes newsworthy, they will continue to make all the reductions in offering/service as PPs have noted. Plus, their price increases continue above inflation, so they are protected there. The parks suffer from overcrowding that the ships will not (talk about perfect crowd limitation), and the parks recently spent $2B on the data mining MDE program, which will take time to recover in increased crowd behavior control and targeted advertising. You can have a nice cruise without spending much at all over the cruise fare, but Disney has plenty of great hugely overpriced profit centers (photos, cabanas, spa) that people line up to spend their money on, and with the recent prohibition of liquor carryon their bar income shroud rise. So, they can continue to make relatively small cuts that don't seem to much to guests, increase fares in response to demand, and nurture the 50+ ways to spend more money. They're doing fine.

 

[JW9DVC]

I thought DCL and Pixar are wholly-owned subsidiary companies.

That's what they said above.

 

[truck1]

DCL has made some cutbacks over the years -- even though I'm old, I think that I remember that on the Classic Ships there used to be about a dozen cruise staff onboard running activities. I think that they are down to about 8 now. That makes a difference - but people must not have noticed.

On the other hand, guests noticed when DCL stopped giving out "Sleepy Chocolates". At 50 cents per room for crappy chocolates, returning guests were up in arms and DCL reinstated the chocolates (and it cost them at most $400 / day)

They have dropped the "Live Bands" onboard because they weren't bringing people into Fathoms / Wavebands / Evolution / The Tube at night in large enough numbers so they changed over to DJ's. Pay for only one person - much less expensive and the same 12 people per night show up. Like I said earlier, I'm old so i found the live bands AND the DJ"s way to loud. I've enjoyed the various bands in the past for the few minutes before the nightly show and right afterwards - always a bunch of talented people, but I didn't like my ears bleeding. blah, blah blah and "no one" complained, so DCL continues with this "cut".

These are just a couple of examples of cuts. There's probably many, many others that DCL has made over the years. And they WILL continue to make cuts, and only by enough guests making comments on their cards at the end of the cruise will positive changes happen.

Off the Soapbox now.

I remember the live bands. They used to have a trio that played island music on the little areas by the main stage by the pool. The chocolate thing was started in Cali, atbthe DLH, with the soaps etc, and people compalined so it came back.
They also stayed in ports later then what they do now. Nassau they left at about 2 am. Now, 530. I'll wager it's so DCL can save on time tied to the pier which they get charged for it.

 

[truck1]

Plus if DCL felt the need to cut staff for budgetary reasons, I don't think they would have commissioned two more ships.

The new ships wouldn't be affected by budget cuts. They become a line item in the budget. Right now DCL is only fronting a few million to develop the new ships. If they truly are an improved Dream class, all they really are doing is taking an existing plan and modifing it, and not starting from scratch. DCL won't have to pay for the new ships until the delivery date in 2021. Then it becomes a billion dollar check. They won't even start to worry about staffing until 2019 at the earliest.

 

[Tonka's Skipper]

Plus if DCL felt the need to cut staff for budgetary reasons, I don't think they would have commissioned two more ships.

With all due respect. those ships are 5 years off. The DCL personnel who will be involved for the next 2 years or so will be minimum and already part of the staff, also involved in the operation of the other 4 gals.

They will not be hiring appreciable additional staff for the new gals until the last year before DCL take possession of them.


AKK

 

[Plaid Princess]

The parks lose money on AP holders and make less money off people who stay offsite... the Cruise Line makes money on every person who steps aboard, so the budgets are bit more predictable (and as previously mentioned, operate separately from Parks and Resorts).

 

[NH Disneyfan]

Ships are expensive to maintain and they have to keep them running. It is a confined space, so people need to be entertained, served, etc. I can't imagine them cutting back too much.

 

[Snowwhyt]

On the other hand, guests noticed when DCL stopped giving out "Sleepy Chocolates". At 50 cents per room for crappy chocolates, returning guests were up in arms and DCL reinstated the chocolates (and it cost them at most $400 / day)

They were better in 2010 in 2014 they were garbage I must admit. Such a disappointment.