Disney job freeze due to war...expects lower crowds

[jenniferhouston1]

I have posted a Reuters news story below about Disney's financial planning. May give you some insight behind Disney's frame of mind regarding potential discounts for the summer:

LOS ANGELES, Feb 19 (Reuters) - Walt Disney World theme park has frozen hiring as jitters over a potential war between the United States and Iraq slows travel, Walt Disney Co. said on Wednesday.

Disney, the world's largest theme park operator, was scrutinizing all expenses at Florida-based Walt Disney World and California-based Disneyland, although Disneyland has not frozen hiring outright, spokeswoman Leslie Goodman said.

Seasonal jobs at the Florida parks are not covered by the freeze, she said.

Disney has 53,500 positions at Orlando. Florida-based Disney World and about 20,000 at Disneyland.

"We think it is the prudent and precautionary step that we need to take in the face of uncertainty -- not just the threat of war, but even the dialogue and the concerns about war are things that impact our business," Goodman said.

The threats of terrorism and war have cast a pall over travel worldwide, which in turn has hurt business at Disney and other destinations.

Disney executives for months have said that travelers were waiting until the last minute to book vacations and that European travel had slowed, remarks they repeated during the company's earnings conference call on Jan. 30.

Disney has targeted local theme park visitors as international attendance has flagged, and its stock has moved strongly in reaction to the perceived threat of war.

Shares fell 45 cents, or 2.6 percent, to close at $16.85 on the New York Stock Exchange on Wednesday.

Disney rival amusement parks Busch Gardens in Tampa, Florida, and SeaWorlds in Orlando and San Diego have not instituted freezes, said a spokesman for Busch Entertainment Corp, the parks subsidiary of Anheuser-Busch Cos. Inc..

"It's pretty hard at this point in the year to tell what our business is gong to be like," Busch spokesman Fred Jacobs said.



© Copyright Reuters Ltd.

 

[lizzie64]

My mother in law sent me that same article this morning. I think she's starting to worry as our May trip is approaching.

I guess you can take it two ways. 1) Disney will need to fill as many rooms as possible so they will offer good discounts to get people to their parks and resorts. This is my belief.

or 2) they can't afford to take such cuts on room prices, so their discounts won't be as great.

Either way, I think it we may have to wait for the ap rates and codes to come out.

 

[Ratpack]

I, too, am hoping that the code rates will be a lot better this summer in order to get more people to travel.

 

[n2mm]

I hope we don't get a repeat of the job freeze after 9/11. Yes the crowds may be low, but the level of service drops too. Shorter hours, shows not running everyday, rides not operating everyday, resorts closing and people getting moved at the last minute, closed restraurants, the list goes on. We were there in October after 9/11 and several times we were the only people at the restaurants (we were at LT and had the entire room to ourselves, and at Boatwrights--before they closed that winter--we were the only ones in the entire upper section). It was sad. If airfare would become reasonable, I'm sure there would be more people traveling. We canceled our Feb trip to WDW because airfare was so high. I told CRO the airfare reason when we canceled. Of course I have 4 more trips planned for this year, so cancelling is not a real big deal for me.

 

[CarolynU]

We are regular visitors to WDW from the UK, usually going at least three times per year, but I cannot believe how much our air fare has risen.To give an example, last year I was paying $450 approx per person X 4. A total of $1800 for August flights with any of the major carriers. This year the best deal I can get is around $750 approx per person X 4. A total of $3000. That is a huge increase, and it now means that at this price I will have to cut down on 1 or 2 trips, or choose somewhere else. What a shame, and of course Disney will lose out on similar people to us.

 

[lizzie64]

You know, I too noticed a sharp increase in prices for airline rates. Considering 9/11 and how miserably the airlines are doing, I would have thought that they would do anything to get people flying.

I tried to get decent rates out of Newark, but that was ridiculous. Having just moved from NY where I could have flown jet blue or spirit out of Kennedy or Laguardia, Newark was a rude awakening.

That goodness someone on these boards noticed where I was from and mentioned Atlantic City airport. I would never have known about it. Now I was lucky and booked my airfare back in July and got $180 round trip for the 6 of us.

 

[DeeCeeSW]

...has an airport? What carrier are you flying? It's too late for me since I already booked nonrefundables for September ($211 r/t from Newark).

 

[lizzie64]

DeeCeeSW-

I didn't know that either. I'm flying spirit. I don't think it's as big as a Kennedy or Newark, but I think alot of the airlines fly out of there. Would make sense because of all the tourists going to the casinos.

 

[cindyfan]

DeeCeeSW....what carrier are you on?
I know Newark is a hub for Continental.
We have r/t from Cleveland on Cont. for $216 for April ...which is the lowest we have seen for r/t to Orlando in a very long time.
We do have to leave on a Wed.....the weekend trips were considerably higher....$315...I think.

 

[jenniferhouston1]

Why was this thread hijacked to the UK community?

 

[lizzie64]

I was wondering that myself.

 

[rob@rar.org.uk]

Seems to have been. It's nice to see so many American friends in our little community board for this side of the Atlantic!

Regards

Rob

 

[jenniferhouston1]

Rob,

It is definately more civilized on this board. How about a spot of tea?

Jennifer

 

[rob@rar.org.uk]

We like to think we're a friendly and civilised bunch! However, I'll have to decline your offer of tea. Can't bear the stuff. Only coffee will do. Coffee, coffee, coffee. Yum.

Regards

Rob