Current Disney management considers its domestic theme parks a "mature" businesses - meaning that the cost of attracting new visitors is too high when compared to just maintaining the cost of the existing attendance levels. So the only place to grow the Attractions business unit is off-property. Throughout the years, Disney has come up with many plans for this - DisneyQuest being just the latest. We had Mickey's Kitchen, Disney Regional, and several other that never went past a single test facility.
The original announcement for DVC included many off-site properties including New York City, Colorado and others. DVC had already bought land and fully designed for a large development in Newport Beach, California (everything was sold to Marriott and they built essentially the same facility). But after huge shortfalls at Vero Beach and Hilton Head, Disney decided to concentrate at WDW. In fact, when I was last at WDW I was walking down the New York Street Backlot at the Disney/MGM Studios and they had a dress store display in one of the windows for DVC - including all the places they had planned to build.
Disney is trying again, this time more focused on resorts. Based on the company's announcements and various whispers and rumors floating about, Disney is aiming at two markets. The first is to build stand-alone resorts at existing tourist destinations - like Hawai'I or Texas. The idea is that families looking to travel to that destination will choose "Disney" because of the strength of the brand name. It's exactly the way in which Disney markets the
Disney Cruise Line - "Disney" means "quality family entertainment". Disney can charge a premium for that. Disney hopes to draw families from the Sheratons, the Marriott’s, and the Four Seasons level of resort.
It's thought that these hotels, besides offering "family accommodations", will also include additional activities such as water parks, recreational facilities or other entertainment to compete with the existing ancillary activities already in the area. Not only will this make Disney more competitive as a resort, it will also keep Disney’s guests at the resort rather than heading out the local Wet ‘n Wild.
The second line would be more city focused and cater to families looking for a full on “Disney Experience” for a long weekend or such. The emphasis would be on character breakfasts, Mickey Mouse phones in the room, Disney-brand shopping and entertainment complexes. In fact, it’s possible that most of these hotels would include a “Downtown Disney” element to attract even more local business. The market is the flip side of the one desribed above – there people would go to see Washington D.C. and choose to stay at Disney’s Grand Virginia Resort; in the second case a family would decide to spend a weekend at “Disney” and go to Chicago.
Now it is possible that, just like Disney’s Grand Californian Hotel will have, that there may be a few DVC units included with this new breed of resort. Disney’s great fear has always been that DVC will grow tired of traveling to WDW year after year and would soon look at alternatives. Units at off-site properties would allow DVC members keep their wallets tied to Disney. It’s been hinted that these hotels will be clones of Disney’s “Grand” hotels – the Grand Floridian, the Grand California, the
Disneyland Paris Hotel or the Hollywood Hotel from Hong Kong.
Now, don’t run out and make your reservations yet –and don’t buy property in Branson and expect to make a killing. Disney has had a very bad time expanding beyond Anaheim and Florida and it’s unlikely they will jump massively into this new idea. What I’ve written is just a compilation of rumors and conjectures…no mortal knows Disney’s real thinking or their real plans yet. Rumors are swirling that an announcement is due soon; my guess is we might (and I mean
might) hear something around either earnings announcements or probably the stock holders meeting.
