Disney Quarter 1 Earnings Report

[smiths02]

I have two kids, 9 & 6, they should be prime targets, yet... they never watch Disney channel. They used to enjoy Jake & the Neverland Pirates, Sophia the First and Mickey Mouse Clubhouse, but, my 9 year old is past those shows, and my 6 year old pretty much follows what her big brother does. They do not enjoy any of their live-action shows. They far prefer to use Netflix and just pick and choose whatever they want to watch, or You Tube.

We don't have cable, and my 10 year old boy definitely watches YouTube stuff. He also likes some of the Amazon and Netflix series...Lemony Snicket and Gortimer Gibbons stand out. Couldn't Disney make shows like that? Shows that I can stand watching.

 

[ChipnDale79]

And this is the real problem they have and an interesting dynamic unfolding.

I have no doubt that everything they've done over the last 5-10 was to find the point where they couldn't charge anymore...and knowing their delusions they honestly didn't believe that point existed.

Burbank, we have a problem. If a significant chunk of the business goes away - due to high prices? They will not be able to respond effectively.

It will become clear the minute we see iger's chute open...

What's Eisner up to these days?

How many people have we read about on here and other boards that have said..."We've gone every year for so many years, we're sitting this year out." And then someone always replies..."Someone else will just take your place." You and i know the second part isn't true. The only way someone takes their place is if the parks are at capacity every day, and thats just not the case.

What we're seeing are repeat customers that have either stopped going, or taking a break. IMO, its harder to win those back than it is to get new people to come. The 5% decrease in attendance is a big decline.......

Actually I'm glad to see the decline in attendance. Disney has to address it at some point, which is only good for the consumer.

 

[LSLS]

How many people have we read about on here and other boards that have said..."We've gone every year for so many years, we're sitting this year out." And then someone always replies..."Someone else will just take your place." You and i know the second part isn't true. The only way someone takes their place is if the parks are at capacity every day, and thats just not the case.

What we're seeing are repeat customers that have either stopped going, or taking a break. IMO, its harder to win those back than it is to get new people to come. The 5% decrease in attendance is a big decline.......

Actually I'm glad to see the decline in attendance. Disney has to address it at some point, which is only good for the consumer.

For what it's worth, we are going down for the Dark Side Race. This is the first time in a very long time we are staying off site (the values were like $160). After looking at costs and debating, we figured it was about the same price to go on a cruise as it is to spend the week (well, 5 days) at Disney, and we went with that option instead. If it is really great, I could see it replacing a lot of Disney trips. Just kind of goes to your point.

 

[rteetz]

For what it's worth, we are going down for the Dark Side Race. This is the first time in a very long time we are staying off site (the values were like $160). After looking at costs and debating, we figured it was about the same price to go on a cruise as it is to spend the week (well, 5 days) at Disney, and we went with that option instead. If it is really great, I could see it replacing a lot of Disney trips. Just kind of goes to your point.

I assume it's not a Disney cruise because that would be more expensive than going to WDW.

 

[lockedoutlogic]

I assume it's not a Disney cruise because that would be more expensive than going to WDW.

Most other cruises can be had for less than disney world...it depends on category and line greatly

 

[rteetz]

Most other cruises can be had for less than disney world...it depends on category and line greatly

That's why I said I assume they are not cruising Disney because DCL is typically more expensive than WDW.

 

[OldsDr]

How many people have we read about on here and other boards that have said..."We've gone every year for so many years, we're sitting this year out." And then someone always replies..."Someone else will just take your place." You and i know the second part isn't true. The only way someone takes their place is if the parks are at capacity every day, and thats just not the case.

What we're seeing are repeat customers that have either stopped going, or taking a break. IMO, its harder to win those back than it is to get new people to come. The 5% decrease in attendance is a big decline.......

Actually I'm glad to see the decline in attendance. Disney has to address it at some point, which is only good for the consumer.

I am one of the every yearers. But as the price increases corresponded with the size of my family increasing it has been about 4 years since I've gone. Unfortunately for Disney it has allowed me to see that my kids can get wonderful family memories for 1/3 of their cost.

We are most likely going back next year. But I don't anticipate WDW ever being an annual thing for me like it was from 1994 - 2013.

 

[ChipnDale79]

I am one of the every yearers. But as the price increases corresponded with the size of my family increasing it has been about 4 years since I've gone. Unfortunately for Disney it has allowed me to see that my kids can get wonderful family memories for 1/3 of their cost.

We are most likely going back next year. But I don't anticipate WDW ever being an annual thing for me like it was from 1994 - 2013.

My wife and i went on our honeymoon in 2008, we went every year, and some times 3 or 4 times per year until our oldest son was born in 2011. We went back in 2014 and 2015, took last year off because of the insane cost of it. We're going back this year, but may not go back until 2019 or 2020. Its simply because of how expensive its gotten. We spent a week at the beach for literally half the cost a disney vacation would have cost us last year. Of course we didnt have all the stuff to do that you do at disney, but we had an absolute blast. My kids loved it.

Our plan all along was to be the every year family, we've changed our mind about that. It's just not financially smart (for us anyways) to do that anymore.

 

[mshanson3121]

I am one of the every yearers. But as the price increases corresponded with the size of my family increasing it has been about 4 years since I've gone. Unfortunately for Disney it has allowed me to see that my kids can get wonderful family memories for 1/3 of their cost.

We are most likely going back next year. But I don't anticipate WDW ever being an annual thing for me like it was from 1994 - 2013.

Definitely. We're going back to New Hampshire this year. We rented a 3 bedroom waterfront cottage for a week, and we'll spend 4 days at their theme parks, and it'll cost us a fraction of Disney.

Now, I still can't wait to go back, but I also know that there are just as nice/better trips out there.

 

[OldsDr]

Definitely. We're going back to New Hampshire this year. We rented a 3 bedroom waterfront cottage for a week, and we'll spend 4 days at their theme parks, and it'll cost us a fraction of Disney.

Now, I still can't wait to go back, but I also know that there are just as nice/better trips out there.

We discovered something similar in southern Maine.

 

[LSLS]

That's why I said I assume they are not cruising Disney because DCL is typically more expensive than WDW.

It is a DCL. I can get into all of the numbers if you want, but looking at a moderate (I just can't do values anymore), WDW was within 10% of DCL when you factor in $50/adult, $20/child per day in food (since food is free on the ship), and that does not include a lot of other little things such as much cheaper beer and the free child programs if we want to do something with just my wife and me. Like I said, we will see what we think of it, but looking into a cruise to replace a WDW vacation would have never entered my mind in the not-so-distant past. And if the prices weren't similar, we wouldn't be doing it this time either.

 

[rteetz]

It is a DCL. I can get into all of the numbers if you want, but looking at a moderate (I just can't do values anymore), WDW was within 10% of DCL when you factor in $50/adult, $20/child per day in food (since food is free on the ship), and that does not include a lot of other little things such as much cheaper beer and the free child programs if we want to do something with just my wife and me. Like I said, we will see what we think of it, but looking into a cruise to replace a WDW vacation would have never entered my mind in the not-so-distant past. And if the prices weren't similar, we wouldn't be doing it this time either.

Interesting. When we have looked into it for a family of five DCL has always been more expensive than WDW. DCL is quite pricey compared to other cruise lines like Royal or Carnival.

 

[LSLS]

Interesting. When we have looked into it for a family of five DCL has always been more expensive than WDW. DCL is quite pricey compared to other cruise lines like Royal or Carnival.

Hmm, maybe we are just getting a killer cruise deal then and don't even know it.

 

[rteetz]

Hmm, maybe we are just getting a killer cruise deal then and don't even know it.

Now we haven't looked into a cruise is over a year now so maybe it has become closer in price. I'd have to look into it again.

 

[eastendlights]

Ding ding ding ding...we have a winner.

I keep hearing people say, "that's exactly what disney wanted, less crowded parks and increased revenue".

No, its simply not. They want as many people in the parks for the highest price they can charge.

Disney does not care if you think the parks are too crowded, they wanted as many bodies in that park for the highest price they can get. Period.

I would add that Disney wants as many bodies for the highest price with the least amount of CM's working and the parks open the least amount of hours that they can get away with.

 

[maltdizzy]

Is Disney renting rooms thru Oritz. Orbitz site indicate they are
https://www.orbitz.com/Orlando-Hotels-Disneys-All-Star-Movies-Resort.h200707.Hotel-Information

Well, this seems to be a tangent, but Orbitz, Costco and others are able to offer rooms and packages offering the same promotional rates Disney offers directly (and some time at their own discounts lower than Disney offers directly) and have for as long as I can remember. That is part of the travel service outreach. But since Orbitz isn't Disney Travel, some things like DDP are not offered. That's why it's best to shop around when booking.

To come back to the topic at hand, I think it's interesting that for 3 or 4 quarters now Iger has claimed they have reached the "right" price balance, since profit is up with bookings down. That would seem to be at risk as prices continue to rise if bookings don't turn around. It already seems odd that bookings continue to drop and spending continue to rises fiscal quarter after fiscal quarter, somewhere therein lies a red flag.

 

[jade1]

We're taking advantage of the lower crowds, again.

 

[rteetz]

We're taking advantage of the lower crowds, again.

Crowds really aren't down that much. When they say crowds are down they are saying compared to this time last year. Compared to say 10 years ago crowds are up.

 

[jade1]

Crowds really aren't down that much. When they say crowds are down they are saying compared to this time last year. Compared to say 10 years ago crowds are up.

Well they are not up, they are down some, (especially XMAS week was), but coupled with FP+ which seems to bring in "shifts" of guests we have noticed.

But we can go with attendance is not down, doesn't matter to me in the least, having too much fun here.

 

[rteetz]

Well they are not up, they are down some, (especially XMAS week was), but coupled with FP+ which seems to bring in "shifts" of guests we have noticed.

But we can go with attendance is not down, doesn't matter to me in the least, having too much fun here.

I will agree that attendance was down some during Christmas week. However after New Years due to when the holiday fell it was more crowded than normal.