Disney resort occupancy

[Tinkerbellie16]

I was reading this article:

http://www.disunplugged.com/2012/02/10/higher-prices-help-drive-10-increase-in-theme-park-revenue/

And noticed this statement:

“Average per room spending at our domestic hotels was up 6%, while occupancy was flat. The increase in per room spending was driven by higher pricing and a reduction of promotional room nights.”

I find it interesting that occupancy was flat. And it is also interesting that revenue was still higher ... due to a reduction of room discounts. So maybe if everyone stayed offsite, we could push the discounts back?? Well, it's worth a thought

 

[Reddog1134]

But they would probably increase the prices again to make up the loss.

 

[Polydweller]

I'll give you my hoteliers perspective. Flat occupancy while reducing the promotions is very good. It means that I was able to reduce the number of discounts without losing any customers. In fact, revenue went up. That's a great result when you are trying to get customers to not expect discounts. As a hotel owner I can continue weaning people off discounts.

 

[padawans]

I am interested to see how crowded the Poly and GF are vs BC. The public discount at the Poly this year was only 20%. 2 years ago it was 40%. I have a feeling many people that normally stay at a monorail resort are going to be staying at an Epcot resort. The epcot resorts are cheaper to begin with and the discount was better.

 

[sndral]

I missed this quarter's earnings stmt., but since I haven't owned DIS stock in years, I don't follow them that closely. I attribute the increased spending to the increase in prices (food, tickets, room rates, higher weekend rates, etc) more than the decrease in room discounts, Disney upped prices by about 10% in 2011, despite the horrible economy, so an 8% uptick suggests to me that guests are buying less than they bought last year but paying more- if that makes sense. Was the % v. last quarter or last year? Also, wonder how that flat occupancy compares to pre- economic crash numbers and market share. But yes, for several quarters Disney has mentioned weaning consumers away from discounts.

 

[GeorgiaHoo]

I am interested to see how crowded the Poly and GF are vs BC. The public discount at the Poly this year was only 20%. 2 years ago it was 40%. I have a feeling many people that normally stay at a monorail resort are going to be staying at an Epcot resort. The epcot resorts are cheaper to begin with and the discount was better.

This is exactly why we are at Beach Club for our trip this May instead of Polynesian. We stayed at Poly two years ago with the 40% discount, but with the way they did discounts this time its almost $700 less for a week stay at Beach Club.

 

[Tinkerbellie16]

I'll give you my hoteliers perspective. Flat occupancy while reducing the promotions is very good. It means that I was able to reduce the number of discounts without losing any customers. In fact, revenue went up. That's a great result when you are trying to get customers to not expect discounts. As a hotel owner I can continue weaning people off discounts.

Well, flat is only good if the occupancy rate was good before. If you are at 10% occupancy and then flat the next year, not so good But seriously, I was not saying their occupancy was good or bad (and we wouldn't really know since they do not release that information) but rather found it interesting about the hotel occupancy and the discounts...or lack there of!

I missed this quarter's earnings stmt., but since I haven't owned DIS stock in years, I don't follow them that closely. I attribute the increased spending to the increase in prices (food, tickets, room rates, higher weekend rates, etc) more than the decrease in room discounts, Disney upped prices by about 10% in 2011, despite the horrible economy, so an 8% uptick suggests to me that guests are buying less than they bought last year but paying more- if that makes sense. Was the % v. last quarter or last year? Also, wonder how that flat occupancy compares to pre- economic crash numbers and market share. But yes, for several quarters Disney has mentioned weaning consumers away from discounts.

If you look in the article I linked in the first post, Disney does say what they are attributing to the revenue - including an increase in prices around the parks (food, merchandise).

It would be interesting to know historical data, even if just relative (flat, decrease, increase).