Disney cutbacks...

[pktbMouse]

I remember the day when you could buy a basic Disney ticket and it never ever expired..I used to think that was the most amazing magical thing about Disney ..yeah sure you can still get one but at a price...that took a little bit of magic away for me when they changed that. ( I know that was a while back)

 

[HenDuck]

Let's see...the last two years have been the worst of my life. We have had one thing after another go terribly wrong - and I'm not just talking about the economy all but KILLING my DH's business.

BUT...We're still going to take our once-in-a-lifetime-three-generational trip to WDW in August.

WHY?

The grandparents aren't getting any younger (neither are we for that matter).

But really, you know how people worry about their kids being too young to remember Disney? Well, I'm worried about waiting until the grandparents are too old to know that they're IN DISNEY! (I'm not kidding).

HOW?

We have "cashed in" all our FFM (and I mean ALL)!

We are bringing our budget-game with us - staying in a vacation home, cooking and eating there, ebaying and CL-ing our way there, using Sunshine rewards and asking for Disney dollars for spending $, recycling cans, saving change, not eating out for lunch or dinner (or anything else), haven't seen the inside of a Starbucks in months - you get the idea.

If WDW has cut back too - I completely understand, and I don't care! We're going, we're going, we're going.

Did I mention I don't care?

Seriously, the economy is NOT going to turn around for months, possibly years. I am not going to wait until things are better for my DH's business and for the national economy or for WDW to flourish. We're going NOW (well, in August, but you know what I mean ).

As long as they don't close down all the major attractions (or at least the ones that aren't at DL), I could not be happier to be going.

Ok, I'm done.

Thanks for letting me vent.

 

[Goofy'slady]

Nope. Some cutbacks bother others and I don't even notice them so I think it's all realitive. We'll be there from 5/3-5/11 with bells on looking for nothing but a good relaxing time. Who's got time to spend on their vacation trying to figure out if they're cutbacks, I certainly don't.

T.

 

[lugnut33]

I guess I am fearless, like most people seem to be. I'm going anyway. I'm glad that Disney is being financially responsible so that they can keep the parks open.

Umm, it's not like they are about to lose money, in the last QUARTER "The Theme parks made a profit of 382 million". What they are trying to do is lose as little a percentage as possible in order to keep shareholder value up. If the parks only made 300 million in a quarter, but they were able to maintain those magical services, would that be so bad?

 

[bicker]

If the parks only made 300 million in a quarter, but they were able to maintain those magical services, would that be so bad?

If keeping its money in Disney means an institutional investor will see a return of X%, but putting its money in Acme means it will see a return of X% + Y%, then it will move its money to Acme, and that will hurt Disney.

 

[WDSearcher]

Umm, it's not like they are about to lose money, in the last QUARTER "The Theme parks made a profit of 382 million". What they are trying to do is lose as little a percentage as possible in order to keep shareholder value up. If the parks only made 300 million in a quarter, but they were able to maintain those magical services, would that be so bad?

Yes, but while the operating income was at $382 million for last quarter, that's still down 24% from what it was in Q1 last year. So imagine that your personal income was down 24% from what you earned last year. Are you still going to spend at the same rate as you did when it was 24% higher? Is your life going to be the same as it was with that other 24%?

 

[lugnut33]

If keeping its money in Disney means an institutional investor will see a return of X%, but putting its money in Acme means it will see a return of X% + Y%, then it will move its money to Acme, and that will hurt Disney.

Those actually visiting a Disney parks are also investors in a sense. They can also move their money to Y% by deciding on a different vacation location. Investor value is really dependant on park traffic, not the other way around.

 

[lugnut33]

Yes, but while the operating income was at $382 million for last quarter, that's still down 24% from what it was in Q1 last year. So imagine that your personal income was down 24% from what you earned last year. Are you still going to spend at the same rate as you did when it was 24% higher? Is your life going to be the same as it was with that other 24%?

Dude, you can only milk so much out of cow, how much is too much? Where is that line that where the pursuit of shareholder value becomes greed. I don't know where that line is, but a business like Disney needs to make sure they don't cross it because it would be very damaging ot their reputation.

And don't think it can't happen, just look at AIG, nobody thought they would do that.

 

[Stittsville]

Yes, but while the operating income was at $382 million for last quarter, that's still down 24% from what it was in Q1 last year. So imagine that your personal income was down 24% from what you earned last year. Are you still going to spend at the same rate as you did when it was 24% higher? Is your life going to be the same as it was with that other 24%?

This is a bad analogy. It is not gross income that is down 24%, but net income. For someone's personal income that is more like saying after all your expenses are paid: taxes, housing, car, food, clothing, kids, utilities etc., etc., then your remaining income was reduced by 24%. For most people, I think this probably works out to be only a couple of % of their total personal income.

 

[bicker]

Those actually visiting a Disney parks are also investors in a sense.

There's a difference between reality and "in a sense". First: With reality, there is the law. Second: With reality, there is the fiduciary obligation. Third: With reality, there is much more immediate financial sensitivity.

Remember, individual people don't account. Focus on what vast numbers of people do.

 

[khiguchi]

I LOVE the way that teachallday put it! AMEN!


Also, yes, the new dining system is slowing things...I work at a satellite office for the Disney Reservation Center and since we have not all been trained, we are to transfer guest calls that go beyond the 90+ booking at this time.

 

[lugnut33]

There's a difference between reality and "in a sense". First: With reality, there is the law. Second: With reality, there is the fiduciary obligation. Third: With reality, there is much more immediate financial sensitivity.

Remember, individual people don't account. Focus on what vast numbers of people do.

If vast numbers of people don't go to the park, Disney's financial obligation will be the reality of bankruptcy. You can have lots of investors, but if there's no market then it doesn't matter. Look at New Coke as an example.

The core of a business is not and should not be shareholder value, unless the only thing that concerns the CEO is his big fat bonus.

 

[Hook's Girl]

I'd rather they cut Fantasmic! than my job

Sorry.

 

[lugnut33]

I'd rather they cut Fantasmic! than my job

Sorry.

Me too. However, unless there were Fantasmic shows that were empty, then they shouldn't cut it down to two days only.

 

[DisneyDon1]

We are going in Nov. to celebrate 3 yrs no cancer. I can not wait. I am so looking foward to this trip. I have been in the hospital 10 times in the last 3 yrs and have missed 9 months of work. The feeling I get when I walk under the Train Station or when I see Spaceship Earth, The Tree of Life or see The Hat is the best. No amount of cuttbacks will change how I feel when I am at Disney.My dd7 and DW have been through so much. They deserve this trip more me. The celebration begins in 266 days.

 

[bicker]

If vast numbers of people don't go to the park...

You're missing the point. The impact of violating their fiduciary responsibility to investors is much more immediate and catastrophic. Just look back at the last 25 years, how many times they've ebbed and flowed with regard to operations, but they've never ignored the investor.

I think some folks think the people who run companies are idiots. Generally, they're not!

 

[arielsleepingbeauty]

The recession isn't going to stop me from taking my girls. Even though I am a single mom, we save and save all year long. After all the time i tell my children " I don't have money for that" well it's because i have it for disney. I am willing to sacrifice all year just to go for one week. It will always be a magical place, as long as we see Mickey, the castle, go in the pool at 11PM, etc. . For us it is away from reality. We don't worry about anything and it's all paid up front. We need that much needed vacation. It is place we go every year and look forward to AND it is worth it for us even with their cutbacks.

 

[CanadianGuy]

This thread has little to nothing to do with planning a visit to the themeparks at this point, moving to the Rumors and News Board.

 

[mkmcguire]

I think the crowds will be larger because of the great deals they have out there. I tried to get a room for friends at the same resort where I have reservations and it's full. This is the first two weeks in June so I thought that far in advance I would surely be able to get them into the same resort. Nope. People are seeing the great deals and taking them. I think Disney is being smart. What do you want them to do - go broke like so many other big corporations?

 

[Mouseaholic!!!]

I think the crowds will be larger because of the great deals they have out there. I tried to get a room for friends at the same resort where I have reservations and it's full. This is the first two weeks in June so I thought that far in advance I would surely be able to get them into the same resort. Nope. People are seeing the great deals and taking them. I think Disney is being smart. What do you want them to do - go broke like so many other big corporations?

Question - is the resort actually full....or are the discounted rooms sold out.

Don't forget, Disney is only earning 53% of 2008's $1.00. In order for them to match last year (which was not their strongest), they will have to attract 189% of last year's guests.

Now THAT's a full park!!!