Rasulo offers a peak at "blue-sky" ideas
In an address to Disney investors last Wednesday night, Walt Disney Parks & Resorts chairman Jay Rasulo gave a glimpse into what the future might hold for Disney's theme parks division. Rasulo started by talking about expanding the existing businesses with "investment in exciting new attractions and entertainment, innovative new services, and consumer-focused pricing" and entering emerging international markets such as the Asian travel market, where the Chinese market is expanding at an enormous rate. He then moved on to how Walt Disney Parks & Resorts would broaden its footprint in the travel & leisure market.
He stated that he was going to "pull back the curtain and share some of the ideas our business team and Imagineers are thinking about" while noting that all ideas discussed were in the "blue-sky" stage (the brainstorming phase of planning where anything goes and everything might or might not see the light of day). While he noted that "clearly, we're not going to do all of them, or maybe even any of them", Rasulo painted an intriguing portrait of the future might hold for Walt Disney Parks & Resorts.
Disney's flagship hotels at each of its resorts were over 90 percent occupancy at rates of $350 per night and up, giving an indication that establishing Disney-branded hotels in other locations might be a profitable enterprise. Since the average theme park visitor returns every four years, this would give them a chance to have a closer, shorter, more convenient Disney resort experience. These could be regional resort properties located outside of metro areas, urban hotels in major family tourism destination cities, or destination resorts in exotic locations or boutique-branded hotels at various price points.
With the success of the two Downtown Disney retail, dining & entertainment districts, Disney has been considering creating high-quality centers in downtown areas of major cities, either as the master planner or as the lead tenant. They hope that this would create another entertainment destination.
Disney is also considering the creation of a unique brand of water park in new markets, including the possibility of indoor parks.
Finally, Disney is also considering the creation of smaller, deeply immersive "niche parks" that would provide a more intimate setting, high-end immersive theme park entertainment, more interactive shows, more one-on-one experiences and unique attractions for an "all-inclusive admission pricing that would be several times what our guests pay today." These parks could fit perfectly either into already-existing markets or even new markets.
In speaking later about the
Disney Cruise Line, specifically as it related to the long-anticipated third ship, Rasulo said, "We have ongoing contact with the shipyards. If we can generate superior returns based, in part, on contract terms and pricing, then we'll pull the trigger."
The Disney Vacation Club also gained some notice as a money-generator, with Rasulo stating that Disney had "already recouped the entire investment for Saratoga Springs four months before the third phase ever opened." The fact that members are trading points for access to other destinations like Mexico, Hawaii or the Caribbean is helping Disney to identify potential off-property locations for expansion of the timeshare portfolio. Rasulo stated that the DVC will expand both at Walt Disney World and around the world.
Adventures by Disney has already sold out half of its trips for the 2007 season. Noting that the infrastructure is easily expandable, Rasulo reported that the concept would be well-positioned to expand to include international tourists visiting the U.S. and looking for guided tours.
Rasulo summed up by noting that "the possibilities to bring Disney entertainment to our guests around the world are almost endless. By continuing the entertainment revolution that Walt started 50 years ago, you can see why we believe the potential for Walt Disney Parks & Resorts is truly limitless."
