com_op_2000
DVC Member since '93; One Hour from WDW
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Disney continues to rein in hotel discounts
Disney appears to be making some progress in its long-running efforts to pull back on the discounts it relied on during the recession.
The company reported last week that advance room reservations at its domestic resorts for its fiscal third quarter are running 2.5 percent behind last year's levels. But while the company may be booking less summer business at this point than it did a year ago, it's getting higher prices for the rooms it's reserving. Room rates for those reservations are up by double-digit percentages from last year's rates, the company said during the second-quarter earnings call.
Iger said the company was going to keep prices where they are now to send a signal that the discounts Disney employed to draw crowds during the economic slump are a thing of the past.
"We worked really hard to wean the consumer of the discount, and it worked in the second quarter, where we had slightly improved if you factor out Easter attendance and occupancy rates and better pricing, which was really important," Iger said. "The goal remains the same for the third quarter."
Disney appears to be making some progress in its long-running efforts to pull back on the discounts it relied on during the recession.
The company reported last week that advance room reservations at its domestic resorts for its fiscal third quarter are running 2.5 percent behind last year's levels. But while the company may be booking less summer business at this point than it did a year ago, it's getting higher prices for the rooms it's reserving. Room rates for those reservations are up by double-digit percentages from last year's rates, the company said during the second-quarter earnings call.
Iger said the company was going to keep prices where they are now to send a signal that the discounts Disney employed to draw crowds during the economic slump are a thing of the past.
"We worked really hard to wean the consumer of the discount, and it worked in the second quarter, where we had slightly improved if you factor out Easter attendance and occupancy rates and better pricing, which was really important," Iger said. "The goal remains the same for the third quarter."
