Disney Park Profits up to $2.2b

[StarWarsJez]

Article here..
http://www.themeparkinsider.com/flume/201311/3763/

So Disneys plan of announcing new attractions early, but delivering them incredibly sloooowly (while upping ticket, food and merch prices) seems to have worked!

 

[PuppyJonathan]

Does this mean more new attractions??

 

[Robbi]

Does this mean more new attractions??

In our dreams

 

[Tink575]

Does this mean more new attractions??

No, it most likely means higher prices, more cost cutting and more schemes to cram every body possible into the parks.

I do have a (probably unrealistic) hope that FP+ had enlightened them to how few headliners they have. Epcot is well, ridiculous. Considering the revenue from Food & Wine etc. I doubt they care.

On the other hand Disney stock is up .95 today... but it was up $2 at one point.

 

[lockedoutlogic]

It just means we're paying more for the same old crap that was paid off decades ago...

Nothing to see here

 

[manning]

It just means we're paying more for the same old crap that was paid off decades ago...

Nothing to see here

And we keep coming back. I own DVC and hardly do parks anymore. Restaurants off site are even better. And most times cheaper.

 

[lockedoutlogic]

And we keep coming back. I own DVC and hardly do parks anymore. Restaurants off site are even better. And most times cheaper.

Can't argue...

We still like the look and feel of EPCOT... The hotels, blizzard and typhoon... The lakes and waterways...

But your point is dead on.

I can remember not TOO long ago coming out of restaurants and thinking "yeah, that was a little pricey...but it was fantastic"...almost every place and time

No if we an average meal the response is a shocked "hey...that was actually decent".

It seems to me that in their attempts to make the place more exclusive/profitable...they've actually made it far more ghetto. Which will lead to longterm erosion.

The problem of casting a net too large while squeezing every nickel on the molecular level.

Which is where the rubber bands are going...ultimately.

 

[Tekneek]

I wish some of those profits were at least put into training/compensation for CMs. The decline in CM quality is one of the determining factors for us. If they need to pay better to get better, then do it. If they need more training to be better, then do it. Only Wall Street and the executive compensation plans really benefit from massive profits. Guests and CMs benefit much more from re-investing the money into the business.

 

[lockedoutlogic]

I wish some of those profits were at least put into training/compensation for CMs. The decline in CM quality is one of the determining factors for us. If they need to pay better to get better, then do it. If they need more training to be better, then do it. Only Wall Street and the executive compensation plans really benefit from massive profits. Guests and CMs benefit much more from re-investing the money into the business.

I completely agree...

Which means that you and I know that there's no way in HELL that's gonna happen.

That's the hill they'll die on.
They are comfortable paying 1985 non-inflation adjusted wages. Good at the time - but completely unacceptable once it was increases in raw numbers expended. Not cutting into profits - just raw increases.

If this corporatist scam of "elimination of the minimum wage will help everybody - the market is always right" dogsh...I mean "dogma" ever gains ground...
The suits in the dwarve building will be donating their entire war chest to make sure it happens

They'll just try to hide it...you know... Can't be "anti-family"
And slitting throats might be perceived as such.

Yo ho

 

[Tekneek]

I can remember not TOO long ago coming out of restaurants and thinking "yeah, that was a little pricey...but it was fantastic"...almost every place and time

No if we an average meal the response is a shocked "hey...that was actually decent".

It seems to me that in their attempts to make the place more exclusive/profitable...they've actually made it far more ghetto. Which will lead to longterm erosion.

"Exclusive" is a marketing term. They should put less emphasis on "exclusive" experiences and more on "excellent" experiences. Disney, once upon a time, wrote the book on excellent service.

Now we have servers coming to tables and saying things like, "I can't get to the other side of the table, so someone will need to pass these around." I don't mind my family or friends talking to me that way, but for $50+ a seat I would actually appreciate being politely asked to pass drinks or food around the table (considering also that I am paying for the experience AND the mandatory gratuity for a party of 6 or more). When a ride goes down while waiting in the queue for an hour, and a CM comes through telling everyone they will get a FP on the way out, I don't expect a CM to be standing at the exit saying, "Sorry, we're all out of fastpasses" as if Disney does not have a way to generate more of these. These are insulting to guests who know better and taking advantage of guests that don't realize Disney can (and has in the past) do better.

Obviously, they're making a whole lot of money by winding down tough to measure things like guest service. It's a race to the bottom to provide as little of service quality as required to keep the profits rolling in. A great short term strategy, but one that could ultimately be destructive to the brand. They tried it with the movies and animation before, which ended up costing them a lot of money to restore the reputation to the brand. Shame to see they may have to learn that lesson elsewhere in the business as well.

 

[HIGHWIND]

Isn't this though the same model that we experience with every other business?

 

[beer dave]

I can remember not TOO long ago coming out of restaurants and thinking "yeah, that was a little pricey...but it was fantastic"...almost every place and time

No if we an average meal the response is a shocked "hey...that was actually decent".

Here's a question I raise to you as well as to myself-- Could the perceived quality of the meals/ experience be due to the fact that we are becoming bored with the same, as opposed to the offerings becoming worse? As in anything in life, when I first experience something enjoyable (or unpleasant for that matter) it is more enjoyable than the subsequent experiences ( like crack?) ( not that I would know) because of it being a new and exciting experience. Maybe this is a case of too much of a good thing? People inherently look for flaws, and with increased exposure comes increased scrutiny. The special becomes the norm.

Wait-- what is the title of this thread? Oh....sorry.

 

[lockedoutlogic]

Here's a question I raise to you as well as to myself-- Could the perceived quality of the meals/ experience be due to the fact that we are becoming bored with the same, as opposed to the offerings becoming worse? As in anything in life, when I first experience something enjoyable (or unpleasant for that matter) it is more enjoyable than the subsequent experiences ( like crack?) ( not that I would know) because of it being a new and exciting experience. Maybe this is a case of too much of a good thing? People inherently look for flaws, and with increased exposure comes increased scrutiny. The special becomes the norm.

Wait-- what is the title of this thread? Oh....sorry.

Maybe...I would say that's a "percentage"

But come on...it's wasn't hard to track the dining plan "rollout" and see what happened.
Right in clear view if you're looking

 

[lockedoutlogic]

Isn't this though the same model that we experience with every other business?

Disney had a standard model from 1955-1995...

They have abandoned many of the aspects that lead to their reputation since...and are kind of "playing out the string" now.

Disney ground employees were trained to tout "service" on a daily basis once upon a time.

Find one who'll whisper the word now...

 

[lockedoutlogic]

Isn't this though the same model that we experience with every other business?

In this case...it's a departure

 

[Hollowellfam6]

Disney had a standard model from 1955-1995...

They have abandoned many of the aspects that lead to their reputation since...and are kind of "playing out the string" now.

Disney ground employees were trained to tout "service" on a daily basis once upon a time.

Find one who'll whisper the word now...

Could not agree more with you locked...The service aspect has declined significantly and they are searching for new avenues. Iger, although a good CEO, really doesn't understand the parks specifically Florida parks. Look at EPCOT it is dirty and is need of some serious updating. Should be interesting over the next few years to see if profits still climb at the parks, with other offerings in the mix now...

 

[lockedoutlogic]

Could not agree more with you locked...The service aspect has declined significantly and they are searching for new avenues. Iger, although a good CEO, really doesn't understand the parks specifically Florida parks. Look at EPCOT it is dirty and is need of some serious updating. Should be interesting over the next few years to see if profits still climb at the parks, with other offerings in the mix now...

Remember Iger is gone in about a year... Give or take

And there's no way he stays - due to the roy Disney stockholder rebellion of 2003

That is fascinating...At least to me.

 

[Hollowellfam6]

I forgot he will be gone soon, that is interesting. As a stock holder I can at least have a few votes...

Maybe the new CEO will see the benefits of the parks, especially the Florida ones...

 

[Whatsthegoodword]

Are y'all sure that you LIKE Disney World???

I've been going since the place opened, and I still love almost all of the place. No, it's not perfect - but it is the best theme park in the world, by a WIDE MARGIN.

 

[lockedoutlogic]

People rarely criticize things they DON'T love...


So it is with me. "Better than everywhere else" is defeatist mentality...in my opinion. At least for a company like Disney.

They could be light years ahead if they wanted...but they have done alot of "sitting and counting" in recent years.