Disney earnings: How long will theme park promotions continue?

[Hooked On The Mouse]

There seems to be quite a strong feeling about the quality of food for some people. On another thread someone posted that they hope Disney cuts discounts so that "low class" people can't afford to go there any more. I have to honestly say that I don't think the quality of Disney food is bad; maybe not top-notch, but when we eat a TS meal we are there for the quality of the experience, which is always top-notch, and it's not really about the food. I just wonder if Disney cuts out all dining promotions and lowers the volume of their TS dining customer base, will the quality of the food necessarily improve to a level that will impress the gourmands? And if it does work out to increase food quality, won't the lower customer volume require price increases and potentially require downsizing in the number and variety of TS restaurants? There don't seem to be MANY(notice I didn't say any) successful businesses out there that have the size and name recognition Disney has, which operate by providing deluxe service to a smaller number of customers. Most seem to go for volume.

 

[jlewisinsyr]

There don't seem to be MANY(notice I didn't say any) successful businesses out there that have the size and name recognition Disney has, which operate by providing deluxe service to a smaller number of customers. Most seem to go for volume.

Most do go for volume on both sides of the equation, the business and consumer. This can be seen in the love for Walmart, but there is a very strong segment of the population that prefers Nieman Marcus. So you have to question, which model is most beneficial to the business environment, do you tier service offerings further, etc?

We know Walmart is huge, brings in huge profits, etc, but should the be the role model of others? Should Disney look to tier their services more, create more distinct lines between economic opportunities?

I'm not saying the opportunity for anyone to go to Disney shouldn't be there, but at what cost to the business and what model should Disney follow, a distinct "Walmart" model, a "Nieman Marcus" model or a tiered shopping mall one, that offers different tiers based on the consumer willingness to spend. We know Disney has started to lean closer to the "Walmart" model, but will this model produce the same high profits that Walmart actually retains, or will it fail?

I'm not sure any of us know the answer, but we know Disney is definately feeling uncomfortable with their current model and they are looking to change things up.

 

[Lewisc]

Disney's ability to reduce discounts is somewhat limited by the number of offsite hotels. You can get book a resort on PL for less then the rack rate of a value hotel most of the year. Alternately you can book a 4* hotel for half the rack rate.

You can book a hotel like Gaylord Palms using discounts frequently available on sites like DIS for less then the rack rate of a moderate resort, even when add in the resort fee and parking fee.

Disney may be able to reduce the discounts but I don't think Disney will be able to go to rack rate.

Restaurants like the Olive Garden and Outback are more popular with famlies then restaurants like Il Mulino and Shula's. Disney made a decision to make the restaurants more attractive to famlies.

Those (few) guests looking to pay more for a better dining experience should consider restaurants in the Swan and Dolphin.

 

[skiingfast]

Keep in mind that when comparing profit. Would you rather get $1,000 from 10 customers or $10,000 from 500? It looks simple who cares you want the 10k. But then you divide it by the numer of shareholders, and you could own the 1k business on your own, share it with nobody. But you have to share the 10k company with 100 people and you only get $100.

Disney by itself would rather the larger amount because it all goes to the single entitie's coffers.

The resturants are Disney's assets for creating income and thier main objective is to fill the seats. That is what the dining plan is about. That is also what the free dining plan is about. If nobody is eating there is no money being made.

The restuarants are design to suit the most people possible. Not catering to one customer or the other is the idea or effeincy.

As far as pricing, having 8 people pay $9 is better than 10 paying $7. In the end the higher rate with less customers nets more. You can be sure that Disney is keenly aware of what these pricing levels are to have the highest income.

They know this wether is applies to T-shirts, deserts or hotels.

 

[Adrienne]

very pertinent points

 

[Donut23]

Guess it's a matter of perspective then. I'm a regular so little things like price and quality matter I guess a lot more (not saying it's not important to you. ) I'm lucky time is a minor consideration because I'm a dvc member and I know I'll probably be back very soon (God willing) Let me also say, that I grew up in my grandfathers and uncles NYC restaurant so I'm probably a little more aware of mediocracy in meals.

I've went to Olive Garden right outside of DTD in the crossroads. Plate of spaghetti and meatballs $11 bucks, plate of same at Tony's 17 bucks. So if every thing is roughly 6% more that adds up especially with 4 people PLUS any time Olive Garden food is better than your sit down, IMO that's a problem and no where else but disney could you consider Tony's good italian food.
I hate when I look forward to a meal and it's consistently mediocre. I will say I've never had a bad meal but I have seen a steady decline in offerings, quality and orginality. it always makes me laugh when I see reviews on Le Cellier and the best thing people rave about is the soup! LOL, you go to an expensive steak house and the best thing is the soup?

Sorry, didn't mean to go off on a tangent and hijack the thread.

THANK YOU for commenting on Le Cellier. We used to love it but when they allowed the Jiko chef to walk and transferred the Le Cellier chef to Jiko....things changed at Le Cellier.

I have gotten physically ill the last two times we dined there and I actually returned food (which I never do) because I couldn't eat it. I CAN give an in-depth report of ALL the ladies rooms surrounding WS...

The menus changed a year ago (same food at Boatwrights as Cindy's castle) only more expensive in the castle. Food quality changed.

It was Disney's way to save $$$.....and it still hasn't helped profits.


I'm all about making a profit and all about visiting Disney 20 years from now...but not at the expense of quality.