Disney Announces Big Changes To Parks

[bdoyledimou]

Anyone know what the "Art of Animation" project mentioned in the arcticle means?

This is the new Family Suites resort across from Pop Century.

 

[JoShan1719]

I would have a hissy fit if they permanently got rid of Spectro for MSEP. When they brough MSEP to MK a few years back (during the Millenium Celebration maybe?) we were all sorely disappointed. Yea, it's a good parade, but to replace Spectro with MSEP is not a good idea to me. If they are going to get rid of Spectro at all, then I second the idea of creating something brand new and amazing. I am happy to see MSEP for the summer and (and the new fireworks show) but then I hope they send it on it's merry way in August.

I agree. I may be the only person on the boards who feels this way, but I hate MSEP. I'm glad it will (well, should) be gone by the time our trip rolls around in September.

 

[Donut23]

They said PROFITS were down.
Didn't see that attendance was down..?
Plus I thought Company profits were actually UP last year?
Don't get me wrong--they have to continually improve the Parks and attract new and repeat visitors.
It almost sounds like Universal and Harry Potter will put WDW out of business.
Somehow, I don't think so.

..


Sorry, but the last couple of quarters operating profits have been down....and remember, they are down from a year of recession. The company is not going to go out of business....but remember all the cutbacks, staff cuts, cut the quality of the food last year and profits still down from that......just not a good time for the hospitality business overall.

Luckily ESPN and ABC are kicking butt......the movie division is also doing very well so they can prop up the theme parks for a while. By the way, attendance was down last quarter by 6% but the "grownups" said it was simply Easter falling in a different quarter.

DL.....doing very well because their market is different in California. We try to go to DL at least once a year...Grand Cali is the most fabulous Disney hotel in our opinion. Ok..ok.....back to my note......each time we visit DL we are surprised how many locals we meet.

DH and I enjoy talking with others during our visits. DL has the advantage of being within an easy drive for millions of people. I know of one DISer who will drive an hour just to sit in the Grand Cali lobby for an afternoon.

The buzz for HP is big...and they have paid plenty for advertising compared to disney. Maybe disney is just throwing thier hands up for the summer and hoping things get better by fall.

Not sure....just know there are millions of children who have had a HP book in their hands. That is quite an audience.

 

[The_Admiral]

Harry Potter isn't changing anything long term and probably not much short term.

But, I also dont see how Disney could eliminate discounts. Their lodging rates, for Deluxe hotels anyway, are out of touch with reality. It would be one thing if they provided Four Seasons value but they charge Four Seasons rates and provide accommodations and service no better than your average Marriott or Hilton.

Ive stayed in Disney Deluxe resorts many times and rarely, if ever, paid their insane rack rates.

 

[Peter Pirate 2]

Harry Potter isn't changing anything long term and probably not much short term.

But, I also dont see how Disney could eliminate discounts. Their lodging rates, for Deluxe hotels anyway, are out of touch with reality. It would be one thing if they provided Four Seasons value but they charge Four Seasons rates and provide accommodations and service no better than your average Marriott or Hilton.

Ive stayed in Disney Deluxe resorts many times and rarely, if ever, paid their insane rack rates.

No offense but you kind of contradicted yourself. You say Potter probably isn't changing anything short term but in the next paragraph you say you can't see Disney eliminating discounts. But this would be a huge, huge concession to Potter all by itself. Then throw in all of these summertime upgrades at MK, which have never been offered before and I think you see a different picture. JMO though.

 

[The_Admiral]

Was not attempting to link the two issues.

The economy is driving Disney's use of discounts not what US is or is not doing.

 

[DC7800]

The economy is driving Disney's use of discounts not what US is or is not doing.

While the economy is a factor, what is primarily driving Disney's use of discounts is Disney itself.

Between declining quality (particularly in dining) combined with hefty price increases, and no major new attractions for two years (and a minimum of theme park investment prior to that), its little wonder Disney has to resort to steep discounts to get people in the door. Give people quality and with enticing new experiences they can't find anywhere else (you know- what Disney was once known for), and people will be lining up to pay even inflated prices.

 

[Peter Pirate 2]

Was not attempting to link the two issues.

The economy is driving Disney's use of discounts not what US is or is not doing.

OK, thanks. I see your point.

But I thought Disney already announced (or it was reported) awhile back that the discounts were coming to an end and yet with HP opening it seems they are even deeper discounts are on the way.

DC7800, nice post.

 

[dianeschlicht]

I haven't been over to this board in years, and I just wanted to say that this "news" is hardly news. I got something in mail announcing this over a month ago.

 

[MadToad]

I agree with most comments that HP will be the talked about event of the Summer and probably a bit beyond that. When I go this Fall for 10 days, Disney will lose one day's revenue from me when I venture over to see HP in all it's glory. And don't think Disney isn't conscience of losing that day - it's a full day of revenue that they will lose, and I won't be the only person doing it.

The flip side, however, is that while I'm in Disney this Fall, 3 other families will be joining us for 5 and 6 day stays, all with the intent to see HP for one day. Here's the kicker - they would not have scheduled the trip if HP wasn't opening. So while they'll lose my day (and one day from the others), they're going to gain 12 to 15 additional days that they would not have had HP not opened. That's a pretty nice off-set.

And as far as Iger announcing he'd like to end to the discounts, what better way to drum up immediate business? "Take advantage of them now while you can, because they won't be here forever"

Disney is a very well oiled marketing machine. They'll find a way to make owl salad out of owl feathers...

 

[FireDancer]

Harry Potter isn't changing anything long term and probably not much short term.

I agree with this. WWoHP is not a whole new park, it is a themed area of an existing park with some re-themed rides and what, one new ride? Back when we traveled to WDW we would always set aside one day for US. I think the majority of people, at least after the initial push, will still set aside one day for US or add a day onto their trips to do two days. I don't think very many of those days will come at the expense of Disney.

Of course there will be some people who will trade a day at Disney for US but I don't think anyone will replace their 4 or 5 days at WDW for 4 or 5 at US and skip WDW all together.

The most likely 3 scenarios as far as I can tell are these:

1. Family planned on spending x days at Disney at x at US/IoA anyway. They will still spend the same amount of days at both.
2. Family planned on spending x days at Disney and x at US/IoA anyway. They will spend the same amount of days at both but will sacrifice time at US for the extra time at IoA. Disney gets the same amount of time and US cannibalizes their own guests from one park to the other.
3. Family planed on spending x days at Disney and x at US/IoA. The WWoHP makes them want to spend extra time there so instead of staying less days at Disney they will tack on another day for their trip.

In all of those scenarios Disney loses nothing and in the case of #3 they actually gain if the guests are staying on property and driving to US.

We'll see if WWoHP makes any long term dents in Disney profits, and by long term I mean 5+ years, or if it is a short blip on time line. I'll be down there in Oct and Jan and won't be spending any time at US parks. If anything I will spend an evening at CityWalk.

As for big changes at WDW, the big change will be the Fantasy Land expansion. The rest of those mentioned are nice changes but I wouldn't call a temporary parade big. Iger wants to end discounts but the guests have gotten so used to them they have to be weened off of them like a heroine addict. I don't think HP had a lot to do with extending the discounts, perhaps some but even without WWoHP it would have been likely that some discount would have been announced anyway.

 

[Peter Pirate 2]

I agree with this. WWoHP is not a whole new park, it is a themed area of an existing park with some re-themed rides and what, one new ride? Back when we traveled to WDW we would always set aside one day for US. I think the majority of people, at least after the initial push, will still set aside one day for US or add a day onto their trips to do two days. I don't think very many of those days will come at the expense of Disney.

Of course there will be some people who will trade a day at Disney for US but I don't think anyone will replace their 4 or 5 days at WDW for 4 or 5 at US and skip WDW all together.

The most likely 3 scenarios as far as I can tell are these:

1. Family planned on spending x days at Disney at x at US/IoA anyway. They will still spend the same amount of days at both.
2. Family planned on spending x days at Disney and x at US/IoA anyway. They will spend the same amount of days at both but will sacrifice time at US for the extra time at IoA. Disney gets the same amount of time and US cannibalizes their own guests from one park to the other.
3. Family planed on spending x days at Disney and x at US/IoA. The WWoHP makes them want to spend extra time there so instead of staying less days at Disney they will tack on another day for their trip.

In all of those scenarios Disney loses nothing and in the case of #3 they actually gain if the guests are staying on property and driving to US.

We'll see if WWoHP makes any long term dents in Disney profits, and by long term I mean 5+ years, or if it is a short blip on time line. I'll be down there in Oct and Jan and won't be spending any time at US parks. If anything I will spend an evening at CityWalk.

As for big changes at WDW, the big change will be the Fantasy Land expansion. The rest of those mentioned are nice changes but I wouldn't call a temporary parade big. Iger wants to end discounts but the guests have gotten so used to them they have to be weened off of them like a heroine addict. I don't think HP had a lot to do with extending the discounts, perhaps some but even without WWoHP it would have been likely that some discount would have been announced anyway.

While I don't agree with all of it, this was a very good post.

One thing you and others haven't allowed for is people going to Universal/IOA for one day to see HP and end up really liking either HP or Universal/IOA or both. These are great parks and while they are different and smaller than the WDW experience, the smaller can really be a positive for some and a %, maybe not a great one, will find that most of what people refer to as Disney 'magic' is really just hoekum and a good time is available to them at Universal too.

 

[Donut23]

While I don't agree with all of it, this was a very good post.

One thing you and others haven't allowed for is people going to Universal/IOA for one day to see HP and end up really liking either HP or Universal/IOA or both. These are great parks and while they are different and smaller than the WDW experience, the smaller can really be a positive for some and a %, maybe not a great one, will find that most of what people refer to as Disney 'magic' is really just hoekum and a good time is available to them at Universal too.

You may be onto something. US is going to be attractive for families with older children who are ready for thrill rides....especially families with boys who have outgrown pixie dust. If they go over to checkout HP because the kids are begging to see it....and they notice everything else...this could be the beginning of a little problem. You know boys....they will want to ride the crazy thrill rides and WDW certainly has nothing to compete with US type thrill rides.

I'm not sure a family will spend a week outside Disney ....but if they venture over to Sea World....GREAT shows there, maybe a day at Kennedy Space Center....that could be 3 or 4 days away from Disney for families who have been "full-week'ers".

I'm not talking about the "rabid DISers" like we are.....but not all guests to Disney have the loyalty we have. Having said that...DH and our Disney travel friends are already planning a US/Seaworld trip extension to one of our regular disney trips in 2011. Don't worry....I'll be the SANE one quietly sitting on the bench with all the bags and cameras while the grown-up kids ride the crazy rides!

 

[skiingfast]

HP will not ruin Disney's summer. Be real, it's not a possibilty.

In thirty years Disney has just gone up and up. In this same time 3 competitors came in and didn't take Disney down. They just became and are a sideshow for some.

Disney has played it just right that a huge amount of people won't even come with a car and US isn't even on thier mind.

You can look at the few special cases where people are coming to see HP on thier WDW trip but this isn't the status quo.

 

[Peter Pirate 2]

HP will not ruin Disney's summer. Be real, it's not a possibilty.

In thirty years Disney has just gone up and up. In this same time 3 competitors came in and didn't take Disney down. They just became and are a sideshow for some.

Disney has played it just right that a huge amount of people won't even come with a car and US isn't even on thier mind.

You can look at the few special cases where people are coming to see HP on thier WDW trip but this isn't the status quo.

pixie dust.

 

[KINGBOBOFTHENORTH]

I don't think very many of those days will come at the expense of Disney.

I think you're being short-sighted. Had Disney purchased the HP franchise you'd be drooling all over yourself about it. Sure there are some purebred Disney fans that will never set foot in Universal. But there are a LOT of people out there that are going to be intrigued enough to give up 1-2 days of their Disney week to give Universal (and in particular Harry Potter) a try. Probably not the families with the little tykes in tow or only younger girls, but those with the older kids or just boys! Now that HP is open and the reports are flowing-in about how incredible it is, how it's taking theme park rides to the next dimension, etc, etc, the craze is only beginning to mount.

And following right on the heels of this is Legoland Florida which is going to cater to nearly everyone's smaller kids. Sure it's a day park but that's a another day lost by the Mouse.

BobK/Orlando

 

[Donut23]

HP will not ruin Disney's summer. Be real, it's not a possibilty.

In thirty years Disney has just gone up and up. In this same time 3 competitors came in and didn't take Disney down. They just became and are a sideshow for some.

Disney has played it just right that a huge amount of people won't even come with a car and US isn't even on thier mind.

You can look at the few special cases where people are coming to see HP on thier WDW trip but this isn't the status quo.

Disney just announced their advance reservations for the balance of this year is down 10% --- with an "uptick" seen recently. I guess it's the 40% discounts.

That's 10% down from 2009.

Here are comments from Orlando paper.


The top executive at the Walt Disney Co. said Wednesday that business is picking up at Walt Disney World and Disneyland.

Disney Co. President and Chief Executive Officer Bob Iger said hotel reservations at the two resorts have continued to improve in the month since the company reported earnings for the second quarter of its fiscal year. Although executives said at the time that future bookings were running 10 percent behind last year’s pace, they also noted that they had seen a very recent uptick.

With the brightening outlook, Iger said Disney remains committed to eliminating by next year the widespread discounts it has been using to sustain theme-park attendance during the economic downturn. Those promotions have helped keep Disney’s theme parks full but have also eroded their profit margins.

The accelerating bookings “would lead us to believe that our prediction in terms of weaning ourselves of the discounts was a good one,” Iger said.

During Disney’s second fiscal quarter, which ended April 3, attendance at the company’s U.S. theme parks fell 4 percent from a year earlier. That figure included a 6 percent drop at Disney World and flat attendance at Disneyland.

 

[skiingfast]

If you read the article closely it is talking about what happened a month ago. The current offers hardly affected those numbers.

Also I'll mention it again. The discounts this summer are not as large as the ones they ran last summer.

I'm also surprised it wasn't mentioned in the article but the fiscal quarters account for different days of the year in 2010 as compared to 2009. This absence was probably to drive the point home by the author.

This probably also explains why things are accelerating as well.

 

[Donut23]

If you read the article closely it is talking about what happened a month ago. The current offers hardly affected those numbers.

Also I'll mention it again. The discounts this summer are not as large as the ones they ran last summer.

I'm also surprised it wasn't mentioned in the article but the fiscal quarters account for different days of the year in 2010 as compared to 2009. This absence was probably to drive the point home by the author.

This probably also explains why things are accelerating as well.

You are absolutely right. With the low advance reservations they choose to offer discounts which drives reservations.

I don't know about you....but I think 40% is still a pretty good.


We have taken advantage of some exceptional castmember discounts....especially on the cruise ships this year. I admit...last year we couldn't get away enough to take advantage of all the castmember discounts.

I wonder how many will return next year if fellow castmember Bob eliminates discounting as he plans (actually he planned to do away with discounts THIS year). Many have gotten very comfortable with deep discounts....as you pointed out....not as great THIS year vs. last.

Attendance history has been down for a while and profits way down from 3 years ago. I know last quarter they said attendance was down because Easter fell in a different quarter than the year before. I suspect they are feeling the loss of many of our friends in Europe now that the exchange rate is not nearly as strong as before for them.

The good news for the parks is the movie division is kicking butt and taking some of the stress away from the not-currently stellar parks division.

 

[disneyphilip]

Give people quality and with enticing new experiences they can't find anywhere else (you know- what Disney was once known for)...

And is STILL known for!