FP+ = WDW Losing Money

[Pooksie]

You may think that Disney is going to lose money, and that's your opinion.

My opinion is that Disney will, at the end of 2014, have record attendance at it's parks, including WDW, and will post record profits.

The first fiscal quarter, ended on December 28, 2013 saw record attendance across it's parks, with DLR being flat and WDW attendance increasing. They saw double digit increases in operating income in the parks business (and the rest of their segments) as stated below.

The first fiscal quarter that ended December 28, 2013 posted the following earnings..:

BURBANK, Calif. –
The Walt Disney Company today reported record earnings for its
first fiscal quarter ended December 28, 2013. Diluted earnings per share (EPS) for the first quarter increased 34% to $1.03 from $0.77 in the prior-year quarter. Certain items affecting comparability had a $0.01 and $0.02 net adverse impact on the current and prior-year quarters, respectively. Excluding these items, EPS for the quarter increased 32% to $1.04 from $0.79 in the prior-year quarter.

“We had an incredibly strong first quarter, delivering a 32% increase in adjusted earnings per share and double-digit increases in operating income in all business segments,” said Robert A. Iger, Chairman and CEO, The Walt Disney Company. “These results reflect the strength of our unprecedented portfolio of brands, a constant focus on creativity and innovation, and the continued success of our long-term strategy.”

They were very happy with the MM+ system so far, as expressed by their answers to the two questions at the conference call. So there are three quarters to go in their fiscal year, time will tell, but personally I'm buying the stock, not selling it short.

 

[BudgieMama]

WHAT????

Aren't you arguing attendance will be down? not resorts specifically....

^ That.

We booked to stay on site before FP+ was happening in a big way, so it wasn't sold as one of the perks (though we liked the look of the perks they were offering). We're now INCREDIBLY grateful we booked to stay on site, because of how the FP+ system is currently working. For us, it looks like an extra perk to staying on site, not a lesser one!

I can understand it affecting someone who booked to stay offsite, but I don't really understand the point you're making about the WDW resorts.

 

[sonofanarchy]

I don't see this making much of a difference in hotel booking unless people decide that they don't like or love this system. Most people will likely not even notice a change.

Now high prices could eventually affect them. Maybe.

See, I think it will. We all know, that many, many people never even used (or knew how to use Fastpass), and that's all well and good. However, many people did, even if they don't stay as up to date as well all do. There's no doubt, on their next visit, they'll notice the change. They'll notice the machines being gone, longer standby (and fastpass lines), etc. It will have an effect.

 

[DebbieB]

I have already broke even on our investment in DVC many times over and actually my POS said nothing about buying a certain situation at the parks.

We bought luxury villas at a set price for 50 years, that is much less than rack rate, so please do not worry about us poor DVC owners, I can assure you the majority of us are very happy with our purchase.

We spend less and less time each year in the parks and more at our resorts and doing WDW Recreation anyway, so any changes really do not impact our stays.

However I love Fastpass+ and can't wait to see what the future will bring with it.

Totally agree. I used FP+ in November and loved it. The nice thing about being a DVC Member is you no longer need to be a "park commando", you know you will be back. I never used more than 3 FP per day in the past.

 

[Axel]

Except I thought guests at the WDW resorts can pick their FP+ times in advance where off-site guests had to wait until day-of when there may not be as many options.

I mean, that's a perk to me.

As for being a DVC owner, this doesn't change anything. I'm still really happy to be an owner (and now at the VGF, no less! ). We've owned DVC since 2004 (when SSR opened and the deeds reset so they're good until 2054 rather than those that expire in 2031) and, aside from the newest add-on purchase, have more than made back the purchase price because of how much we've saved on rooms at some of the best resorts. We didn't buy it for the "perks", though, we bought into it so that we could afford to visit our favorite place on Earth more often AND so that when I'm older and have kids of my own, I can bring them to the World for many years to come.

If anything, I think that in the long run, Disney does have plans to offer incentives in the FP+ arrangement to people a)staying onsite, b)people staying in deluxe resorts, and c)people who own DVC/have APs. Disney knows that this is their target audience. These are the people (like me) who will keep coming back to WDW and provide a reliable source of revenue and if they don't realize that they should keep us happy, then they're not the business I thought they were.

Right now, they're working out the kinks of a new system (and I'm sure it isn't helping that people are trying to use it like it's the LegacyFP system). My dad--who is 68, not tech savvy at all, and usually has a very high stress level--was just in WDW late last month and reported that MB/FP+ worked very smoothly for him. This is the guy who barely knows how to turn on a computer and has no idea how to do anything other than call or text on his smartphone. But he figured out the entire MDE/MB/FP+ system by himself. I think that some (not all, as I'm sure some people are having legitimate issues) people are making more trouble for themselves than there actually is with this system.

Personally, I feel like everything (except people who commit certain crimes) should be given a second chance--and sometimes a third. Sure, something isn't perfect the first time you use it, but try to find a bit of good in it, learn about it, and try it a second time. Who knows, maybe you're really missing out on some magic.

 

[CdnCarrie]

I think it is great you love staying on property. My point is that there are people who opt for onsite property for the perks. If the perks aren't there anymore more people will compare how their dollars are being spent. $124 for a glorified motel room at All Star verses a condo or private home minutes from Disney for much less. Most people don't like spending more and getting less.

The perks for staying onsite is still there. I don't understand your logic in the least. Can you explain better.

 

[keaster]

I was close to buying 2 years ago. I'm very thankful now that I didn't. With the perks and entertainment that has been taken away, plus the amazing work Universal has done with the resort, I'm spending more and more time there.

FWIW, it's clear many owners do feel this way, as resale listings are at an all time high. If that's not an indication as to how people feel about Disney right now, I don't know what is.

There are a myriad of reasons for selling and I'd say the majority of them have nothing to do with a love or hate of Disney. Death...divorce...home finances take a downfall...job loss. I'd say those are the top contenders for why people put their DVC on the market.

Yes, we are DVC members and have no plans on selling. We will be using FP+ for the first time next month. What we are also likely to do is use our points to visit Aulani, Vero Beach and some cruising if we think FP+ needs to have some more bugs worked out

 

[mom2rtk]

Totally agree. I used FP+ in November and loved it. The nice thing about being a DVC Member is you no longer need to be a "park commando", you know you will be back. I never used more than 3 FP per day in the past.

Then what's not to love about FP+? You didn't lose anything.

 

[patters3257]

I know in my case don't feel sorry for my family, we are DVC members and have really enjoyed 3 trips with FP+.

 

[AmyB2006]

I think it is great you love staying on property. My point is that there are people who opt for onsite property for the perks. If the perks aren't there anymore more people will compare how their dollars are being spent. $124 for a glorified motel room at All Star verses a condo or private home minutes from Disney for much less. Most people don't like spending more and getting less.

What perk has been taken away from people staying onsite?? The perks haven't changed.

ETA, also perks are in the eye of the beholder. The biggest perk to me is transportation and being IN the world. I love going and immersing myself into WDW and not having to drive my car anywhere if I don't want to. EMH are second for me, but I do still take advantage of them.

 

[rock_doctor]

The Walt Disney Company today reported record earnings for its
first fiscal quarter ended December 28, 2013. Diluted earnings per share (EPS) for the first quarter increased 34% to $1.03 from $0.77 in the prior-year quarter. Certain items affecting comparability had a $0.01 and $0.02 net adverse impact on the current and prior-year quarters, respectively. Excluding these items, EPS for the quarter increased 32% to $1.04 from $0.79 in the prior-year quarter.

I suspect this has more to do with constant 30% off deals then with FP+ or MDE. I personally don't care either way. I didn't use the old FP system and don't plan to use the new one.

Disney will never loose. They can keep the world at capacity if they want. I just wish they would use some of that 32% profit increase on making the parks larger... Indecently...Sea World showed a 300% profit increase last year...

 

[wuzzy6]

In the big picture, rest assured, Disney is not going to "lose money" over FP+. As someone else posted earlier, and I wholeheartedly agree, Disney will undoubtedly post record attendance and record profits for 2014.

 

[Minnesota!]

What it changes for us is - we are not buying park tickets. We will stay onsite (because we love the ease of it) but we are not visiting the parks. I don't want my vacation to be that scheduled, and tech-dependant

 

[jade1]

Totally agree. I used FP+ in November and loved it. The nice thing about being a DVC Member is you no longer need to be a "park commando", you know you will be back. I never used more than 3 FP per day in the past.

Us exactly, esp since we visit peak weeks. doing what we want every morning and afternoon, then 3 FP+ waiting for us will be awesome.

But as I have said-I think it will increase over time, and it may well be DVC ownership, purchase, add on.

Currently with 3-I can see that limiting some touring styles.

 

[jfelcie]

Another DVC owner here who is excited about not going "Park Commando" and rope drop. We will be at Board Walk in June and already planning nice walks to HS or EPCOT to enjoy the parks at our leisure and ride TSM and Soarin'. Last trip I never got to ride Soarin' . . . fastpass- were all gone by the time we got there. Love my DVC!!!

 

[amylevan]

In the big picture, rest assured, Disney is not going to "lose money" over FP+. As someone else posted earlier, and I wholeheartedly agree, Disney will undoubtedly post record attendance and record profits for 2014.

I have to wonder about this. My aunt and uncle are snow birds, and they used to go over to a park, grab a fp for something they wanted to ride and while they waited for the return time, they would eat dinner somewhere. Now, if they want to go over for a ride, they make a FP+ reservation and only go for the ride, eating dinner before they go over.

Surely there are other AP holders who are changing their touring/spending habits like this.

 

[robinb]

Except I thought guests at the WDW resorts can pick their FP+ times in advance where off-site guests had to wait until day-of when there may not be as many options.

I mean, that's a perk to me.

I agree. That is one of the reasons why I think that Disney will not open MDE to non-resort guests. Selecting FP+ in advance will be for resort guests only and that's a really big perk.

I don't see Disney losing any money over FP+. In fact, I think that they will fill their resorts more easily with people who want the MDE perk.

 

[Minnesota!]

What perk has been taken away from people staying onsite?? The perks haven't changed.

ETA, also perks are in the eye of the beholder. The biggest perk to me is transportation and being IN the world. I love going and immersing myself into WDW and not having to drive my car anywhere if I don't want to. EMH are second for me, but I do still take advantage of them.

The bolded is the exact reason we have not given up on WDW just yet. The all inclusiveness and "forget your outside world" that it enables us, just stepping on the Magical Express, is worth a lot to us. We are ok with not doing the parks and avoiding the FP hassle, to be able to have some downtime at a resort.

We are testing out FP+ again next month, for a day, and if we still find it unreliable, we will take our business to Universal next time...hoping that we can find some of that all inclusiveness there, but add in some thrills and stuff

 

[TDC Nala]

Before FP+, FP worked no differently for onsite guests versus offsite guests.

After FP+, it does work a bit differently. Right now you have to be onsite to book FP+ ahead of time...that's a bit of an advantage. That may end up changing though. We don't know yet.

Maybe the OP thinks FP+ is a bad deal no matter where you stay, so you might as well stay offsite where you can get superior accommodations for less. Not that onsite lost any perks it didn't already have.

If it works as a deterrent, i'd think it would be more likely to deter guests from visiting WDW at all. Not from staying onsite.

I'm sticking with onsite since I prefer not having to drive.

 

[DisneyMim]

We've been DVC owners since 1991 and have NEVER been commando style people and usually never even used that many fast passes. We just went this past Christmas and didn't even bother to get any fps ahead of time. The rides are just "fluff" for us. We enjoy being at Disney and doing other things. Nobody needs to feel sorry for us. There is a huge number of foreign travelers. I don't think Disney is going to have any issues at all with profits and attendance. Remember the Dis is only a small minority of people who go to Disney. I know a lot of people who have never heard of the Dis, aren't on here, but continue to go back to Disney. IMHO after awhile this whole fast pass thing will iron itself out and people will just think it's the way it is.

Enjoy The Magic!!