Disney Parks Doing Well Despite the Economy

[mshoo1]

Disney released its Q3 earnings report this afternoon. For everyone wondering if the economic slump has impacted Disney theme parks, the answer appears to be "not yet." Third-quarter operating profit at the parks and resorts rose 3.2 percent to $641 million despite the loss of Easter holiday attendance, which came in the fiscal second quarter this year. Sales rose 4.6 percent to $3.04 billion.

During the company's conference call with analysts, Disney's CFO stated that hotel bookings at its domestic theme parks were flat in the current quarter, but "modestly ahead" of a year before.

 

[zulemara]

that's because they raise prices and outsource cast members!

 

[WaltD4Me]

I really think Disney will start to feel the effects of the economy probably early 2009. Disney is something most people plan way ahead for, I have a trip coming up in October and it's 90% paid for, so I won't be cancelling, but I'm already wondering about my trip for May 2009.

I don't know about anyone else, but I notice alot less people eating out. Places that used to have 1 to 2 hour waits are down to 30-40 minutes, except on Saturday night, seems like that is still the eat out night, but other than that, I'm seeing alot of emtpy tables.

And it's not just gas...it's everything going up and I think people are really going to start feeling the impact much more as time goes on if prices stay high or keep going up and they will really start re-thinking things like vacations, even to Disney.

 

[BigGreen73]

I think WDW will feel a little more of a hit coming with the holiday months. Folks just might not have the extra cash to pay for gas, heating oil, X-mas presents etc etc on top of the coming WDW price hikes and airlines increases.

 

[MM32830]

Also, remember that just because we are feeling a slump in the economy, our dollar's weakness means that the pound is much stronger and worth more. We could very well see many more visitors from across the pond.

Armand

 

[catycatcat4]

maybe they will give us locals some good deals.

 

[robind]

Also, remember that just because we are feeling a slump in the economy, our dollar's weakness means that the pound is much stronger and worth more. We could very well see many more visitors from across the pond.

Armand

That is very true. I have been flying back and forth to Europe for the last seven months for work and every flight has been packed - even in the middle of winter. Mostly the folks are going to the states to shop. I've had people tell me they bring one empty suitcase or buy a new one when they get there.

So, I'm sure they are vacationing there as well, and they have the time to stay several weeks which helps up the amount they are spending.

 

[DISNUT21]

I agree with most on the boards in stating that Disney will definitely feel the hit of the slipping economy come this Christmas season, however, with that being said, having worked for a major stock rating company... Disney is one of those companies which the street always predicts their next quarter earnings will drop at a rapid pace. However, it is something that we have been awaiting now for about 4 consecutive quarters and in fact Disney has been beating estimates and steam rolling most analysts predictions. But, with the US Dollar now being close to rock bottom many foreigners will plan on visiting the US as their money is worth more here, driving tourism to different cities such as Orlando, New York, Las Vegas, and Los Angeles. Hopefully, this drive in tourism will be sustained long enough to assist in somewhat of a recovery in these local markets, thus keeping Disney and other theme park companies in the green. But that’s just me giving my two cents.

 

[karibritt01]

I don't know about anyone else, but I notice alot less people eating out. Places that used to have 1 to 2 hour waits are down to 30-40 minutes, except on Saturday night, seems like that is still the eat out night, but other than that, I'm seeing alot of emtpy tables.

I know this was one of the first things to go for my family. We used to eat out about once a week. We broke down and ordered pizza 3 weeks ago for the first time in 2 months.

We are taking a cruise in October, but we started planning and saving for it 18 months ago. While I did get the cruise paid off, my spending money has been greatly impacted. At this point we are only planning 1 excursion, and taking all of our alcohol to trim expenses. We had hoped to go to Kennedy Space Center before coming home, but that may end up being trimmed as well. We are also now cramming into a crossover vehicle for the drive instead of taking our Suburban that we usually use for vacations.

I wonder how much Disney will really be impacted by the economy even on the homefront. Many people like the "all-inclusive" vacation Disney offers with their packages, and the fact that they can pay it off up front and over time. I imagine many families will opt to go with a lower resort, and spend less additional money, but still visit the parks.

 

[DSNY4ever]

I started this thread on the budget board: http://disboards.com/showthread.php?t=1903021

It is about what people are cutting out of their WDW vacations in order to make it more affordable. I think it is interesting to see how many people are significantly changing their plans vs. the people who aren't.

We are still waiting to hear if we will possibly get to go this Christmas season, but our airline tickets are eating the majority of our budget (they will cost more than all of our other expenses combined).

 

[BigGreen73]

Found this thread while cleaning out my subcriptions. I was kinda curious on people thoughts now on this matter now. From what I have been reading even WDW is starting to take a hit with attendance and stocks.

WDW is running a huge about of deals to build attendance. IE but 4 get 3 free, kids are free, free dining etc. I wonder if they are worried about 2009.

 

[karibritt01]

I am trying to plan a trip for Oct 09. We have a lot of bills that we need to get paid off before we can go, though. I am keeping my fingers crossed that it will all work out, but won't know for sure until April. I am keeping it a secret until it is finalized... just in case I can't work everything out.

 

[Cruz Family]

The only reason they did so well is because of my families recent visit. If I am not mistaken we spent approximately 2 million on souvenirs, 1 million on an ECV rentals for my grandmother, 5.6 million on food and drinks (thank goodness for my tables in wonderland card or that would have been much higher), and I almost forgot....$82,000 on pins and pressed pennies!!!!

DISNEY.....YOUR WELCOME!!!!!