Disneyland, Japanese tourists, and increased attendance? News & Financial link added

[YellowMickeyPonchos]

Sigh. You guys never ask us DL Correspondents what we think about these things.... Here's my two cents...

If you read the full Disney report and related news stories, their hotel occupancy has been steadily dropping at DLR hotels (10% last year and an additional 7% this year to date), as well as at local Anaheim hotels, meaning only one thing...

IT'S US LOCALS!!!!

Attendance has been steadily rising at DL for the two years - ever since they began the Annual Passholder monthly payment plan for Southern California residents. This plan allows more people to take advantage of buying annual passes and there are no additional charges to use it.

Add on the fact that there are special 2-Fer (and sometimes 3-Fer) tickets sold multiple times throughout the year, those are powerful incentives to bring us in. These special tickets are available at local grocery chains like Vons and Albertsons, and must have first use by a certain date. Then (depending on the promo), you have up to 30 days to visit the park again. Each visit is a single park pass, but they give 2 visits for the same price as a single day ticket.

I'd buy the Japanese argument if this were Hawaii, but not here. They have a DL in Tokyo and Disney Sea, which kicks serious tush. Why would they need DL over WDW?

BTW - neither Ian nor I can remember the last time we saw a Japanese tourist at DL (and we're there several times a month).... Tom offered to help me do a body count of them for y'all, when we are all there this weekend.

 

[IWISHFORDISNEY]

Nancy I completely agree. Disney would sell way more tickets to locals in my area if they offered the monthly payment plan. I have actually herd people say this. So if they are smart this is what they would do here too. Most people here just can afford that large amount at once but monthly payments are doable. So I think you are onto something.

 

[PeterPan09]

Nancy I completely agree. Disney would sell way more tickets to locals in my area if they offered the monthly payment plan. I have actually herd people say this. So if they are smart this is what they would do here too. Most people here just can afford that large amount at once but monthly payments are doable. So I think you are onto something.

I agree! Friends have told me that they chose Universal over Disney simply becasue of the monthly payment plan that Universal offers. Yes, you can put your Disney AP on your credit card and then effectively have a monthly payment, but with Universal you have the option of using a debit card as well which makes it easier for some folks.

 

[Merry Mousketeer]

I don't know if Disney actually wants more APs since it seems like I hear cast members comment a lot about how APs are crowding the parks, not purchasing food or souvenirs and have a sense of entitlement that the park is their personal playground. I have no idea if all of these observations are true, because the APers I know are very considerate and appreciate the hard work of the cast members and enjoy the whole Disney experience.

If Disney wants to attract APers that spend money on souvenirs, stay in the parks and on-property hotels, then I suggest they extend the monthly payment plan for APs state-wide in California. We know lots of APers from Northern California who come down to DL frequently - some once a month - and spend quite a lot of money because DL isn't in our backyard so we tend to behave more like tourists than like locals.

When we come down with our Northern California APers or by ourselves we always eat on property, stay on property (although we did become DVC members when the GCA was announced) and purchase so much loot we have to arrange to have it shipped back home! Bring on the AP monthly payment plan for Nor Cal!

 

[ImTooExcitedToSleep]

Bring on the AP monthly payment plan for Nor Cal!

Don't forget the Central Californians!!!

I went back and listened to Kathy's report. What she said was declining ATTENDANCE at the other resorts was offset by increased ATTENDANCE at the Disneyland Resort.

Nancy, do you have the figures for food and merchandise? Because, like PP said, locals don't stereotypically spend that much on food and merchandise. It would be interesting to see how increased attendance affected those numbers.

 

[YellowMickeyPonchos]

Tom - I haven't read the report that in depth, since I am swamped with the day job. It would be interesting to note though!

If you get a chance to look at it today, can you post up? I'll see if I can find the link I have to it, in case anyone wants to look at it.

BTW - this is from the Orange County Register's Disney Blog email feed (FeedBlitz) (Looks like the auto-links broke when I pasted, so here's the original URL....

http://ocresort.freedomblogging.com/2010/02/09/disneyland-parks-attendance-jumps-15-percent/34015/

PDF for Disney's First Quarter 2010 Financial Report http://corporate.disney.go.com/investors/quarterly_earnings/2010_q1.pdf
Last Quarter 2009 Finanacial Report http://corporate.disney.go.com/investors/quarterly_earnings/2009_q4.pdf


Attendance at Disneyland Resort parks jumped 15 percent in winter months compared to the same period the previous year — the second quarter in a row that Anaheim venues experienced the same increase.
The Walt Disney Co. today released its earnings for the first quarter of 2010, which runs from Oct. 4 to Jan. 2.
Top Disney officials credited the attendance hike partly to the big-drawing New Years holiday, which fell in the second quarter of the previous year. The week between Christmas and New Years Day is traditionally among the busiest of the year at the Disneyland Resort.
But late summer and early fall months also had a big jump in attendance with a 15 percent hike in the last quarter of the 2009 fiscal year.
In the first quarter of 2010, Disneyland and Disney’s California Adventure fared better in luring guests than Florida parks, which saw a 1 percent drop in attendance, said Jay Rasulo, chief financial officer for the Walt Disney Co., during a conference call with investors. Overall, domestic park attendance went up 9 percent.
Fewer visitors, however, stayed at Disneyland Resort’s three hotels: Grand Californian, Paradise Pier and Disneyland hotels. There, occupancy was about 78 percent — 7 percent lower than the prior year, Rasulo said. Disneyland Resort hotel guests also spent less money.
So far since January, hotel bookings are down 10 percent compared to the previous year, Rasulo said.
Last year, Disney parks ramped up discounts, offering free nights, dining and gift cards with hotel packages as a way to bring in more tourists during the economic downturn. Southern California residents also could get multi-day passes at reduced rates. But Disney officials are starting to reduce the discounts and are unsure when they will stop offering such promotions.
“We look at every quarter as we can, gauge the response to the consumer and act accordingly,” Rasulo said.
Worldwide, revenues stayed flat for Walt Disney Parks and Resorts, taking in about $2.7 billion. Profits dropped about 2 percent to $375 million, mostly because of decreased attendance and hotel stays at Disneyland Paris.
Last month, Disney released its annual report, which gives more specific figures for the Disneyland Resort. Here are some of the key numbers from fiscal year 2009:
• Disneyland and Disney’s California Adventure’s attendance jumped 7 percent. Overall, domestic parks’ attendance was up about 2 percent, the same as the year before.
• Disneyland Resort visitors spent 9 percent less than they did the previous year.
• Occupancy and spending also were down at the three local hotels. About 80 percent of the rooms were filled on average, compared to 88 percent the year before.
• Hotel visitors per room spent about $315 on average — $24 less than the prior year.
Photo of Sleeping Beauty Castle courtesy of the Disneyland Resort.

 

[Merry Mousketeer]

Don't forget the Central Californians!!!QUOTE]

I must admit that like many Northern Californians, I consider everything north of Bakersfield to be Northern California and everthing south of Bakersfield and north of San Diego to be Los Angeles. So you are definitely in!

And I'd like to apologize for everyone in the regions I just named for my being so Northern California-centric. But we are just one big happy state, right? So lets all get the AP monthly payment plan!

See ya at Disneyland!

 

[ImTooExcitedToSleep]

Thanks Nancy.

So, attendance was up 15%, but occupancy was down 7% and spending was down 9%.

Interesting. We still don't know how that translates to an increase in revenue.

 

[YellowMickeyPonchos]

Nothing was said in the orginal report about increased revenue Tom. It's always been about attendance. John remarked about how it had to be the Japanese, since their beneficial economy (stimulus) means they are the only ones who can afford to travel there. I think that is where you got the idea for revenue, unless of course you've been dipping in the raisins again?

Like I said, Disneyland isn't Hawaii.


Michael - give my best to Carol. Hope to see you out and about down here again soon. Of course, you could come hang with me, Tom, and Ros this weekend....

 

[ImTooExcitedToSleep]

Nothing was said in the orginal report about increased revenue Tom. It's always been about attendance. John remarked about how it had to be the Japanese, since their beneficial economy (stimulus) means they are the only ones who can afford to travel there. I think that is where you got the idea for revenue, unless of course you've been dipping in the raisins again?

Quoting Kathy:

Theme Park revenue was flat at 2.66 billion as a decline in attendance at Disneyland Paris and Walt Disney World was offset by higher attendance at Disneyland in Anaheim, California.

That's where!