Has Disney’s Strategies To It’s Loyal Customers Finally Caught Up With It?

[ElyseInWonderland]

I'm REALLY hoping Josh D'amaro is seeing these crowd numbers and understanding that visiting the Disney parks has become an overwrought, expensive, kludgy mess that even more affluent families can't get excited about.

It could be the heat, the blackout dates, etc. but in addition to lower crowd numbers I'm hearing a lot of chatter about how the parks just aren't as fun as they used to be. You can take a pretty sweet European trip for less than it costs to take a family of 4 to Disney, and I think people are starting to explore other less complicated vacation options.

 

[Dcgc28]

Disney was prepped for a lower summer, a lot of people visited for the 50th and were always going to not visit this summer. I feel like summers are also slowing down because of the heat. I don't believe personally it's a price decision, I mean they were the most visited park in the world last year with really similar pricing. I personally hope it stays slow and empty for those of us who do enjoy going. But the sales for Halloween parties has been pretty good, and it'll be super crowded later this year for holidays and stuff.

Disney might have lost some of their fans but the idea that they've alienated their target market just isn't true. They will reign supreme as the most visited theme parks in the world for the foreseeable future.

Where they are lost as a company is the movie studios, they can't capture the magic they had in the 90s and seem to be losing the little bit they had in the 2010 years as well. But the parks aren't even close to being in trouble yet.

 

[irlandaise]

Last weekend, a number of variables led to my taking my kids to the local (Indiana) theme park (which I assumed - because it was a holiday weekend and prices had increased over both general weekdays and weekends before/after - would be significantly busy). It was a ghost town. The kids noticed it and I noticed it; even staff talked about it.

Someone just posted this comment in the Crowd Outlook thread: "Regional parks are going to be popular this summer because they're significantly cheaper, when you factor in the entire trip cost."

So I don't think anyone knows what's going on!!

 

[HokieRaven5]

Remains to be seen how the remainder of the year pans out, but from the business side Disney may currently be of the mindset that their parks strategies have so far been effective.

The Parks business (Domestic Parks, International Parks, Disney Cruise Line, Consumer Products) is on pace to have its most profitable fiscal year ever in both total Operating Income and its ratio vs its total revenue.

Current pace is $33B in revenue and over $10B in operating income. Over 31% OI vs revenues. Last fiscal year was at about 28% and nearly $8B in operating income.

Pre-Pandemic hardly ever exceeded 26% and maxed out just under $7B in operating income.

They still should come out with more expansion plans for the domestic parks to go along with their international expansions.

Also remains to be seen the reactions to any additional changes that will be implemented in 2024.

 

[wkrainey]

I'm REALLY hoping Josh D'amaro is seeing these crowd numbers and understanding that visiting the Disney parks has become an overwrought, expensive, kludgy mess that even more affluent families can't get excited about.

It could be the heat, the blackout dates, etc. but in addition to lower crowd numbers I'm hearing a lot of chatter about how the parks just aren't as fun as they used to be. You can take a pretty sweet European trip for less than it costs to take a family of 4 to Disney, and I think people are starting to explore other less complicated vacation options.

I've seen this in action. My wife and I did Cancun for a week for under 3k and it was all inclusive.

 

[ChipnDale79]

I know i can speak for my family, DVC was in the cards for us, but we decided to use that money on a camper instead, part of the reason was because of how expensive disney is now. i have a 10 and 12 year old, the new dining plan for us for a 7 days is over $2600. The level of insanity of how expensive these trips have gotten, have driven us to other things.

they've told us many times over the past few years, they didnt value the repeat customer.

 

[MinnieMSue]

Here now. MK on 7/2 was pretty good. Crowds seemed low. 7/3 animal kingdom started out pretty slow but crowds really built up. Oddly the lines for rides weren’t bad but walkways were quite crowded. Also your groups are here tho they didn’t seem to be as large as previously. 7/4 Epcot also started out low crowds but was understandably packed by evening. People seemed to be buying food at the festival booths and drinks more than riding. After the fireworks the skyliner line was backed up well into the yacht/beach club resort. It took us 35 min to get through it and we started up pretty far into yacht or beach ( we were well into a row of what looked like maybe blue building with tiny balconies. Not sure which if the hotels it was) . The line built significantly behind us too. I was impressed we got through as quickly as we did. It was quite intimidating. Curious to see how our next 3 days go. Today was springs and hoop de doo tonight

 

[Minnie1222]

Maybe Disney has been listening to their loyal customers. Perhaps they discover that the number of guests willing to pay more for a better experience exceeds the rest. Given that scenario, it would be more beneficial to them to service less visitors while making similar profit.

 

[ChipnDale79]

Maybe Disney has been listening to their loyal customers. Perhaps they discover that the number of guests willing to pay more for a better experience exceeds the rest. Given that scenario, it would be more beneficial to them to service less visitors while making similar profit.

if that were the case, they wouldn’t be offering the bounce back offer they are…

 

[New Mouse]

Maybe Disney has been listening to their loyal customers. Perhaps they discover that the number of guests willing to pay more for a better experience exceeds the rest. Given that scenario, it would be more beneficial to them to service less visitors while making similar profit.

The Yankee Stadium effect does work which is what this concept is. But in this case the upcharges product isn't really enhanced.

In Disney's case however, they make a huge play to have synergy across many divisions. That requires strong attendance to succeed.

 

[Minnie1222]

if that were the case, they wouldn’t be offering the bounce back offer they are…

I think you misread my post. I never said Disney doesn't want guests. Bounce backs, Dining plans et alia are options to entice guests. Disney will always want guests, but there's a possibility they only want the higher paying group and don't mind losing the rest if they can work with a smaller volume while making the same.

 

[Disdreamprincess]

Looking at the numbers Seven Dwarfs 120, Flight of Passage 110, Slinky Dog 90, Rise of the Resistance 90, Rock N Roller 150, Test Track 85, Ratatouille 85. To me, definitely not low crowds

 

[Minnie1222]

The Yankee Stadium effect does work which is what this concept is. But in this case the upcharges product isn't really enhanced.

In Disney's case however, they make a huge play to have synergy across many divisions. That requires strong attendance to succeed.

Sorry I don't know what Yankee Stadium Effect means.

 

[Jrb1979]

Someone just posted this comment in the Crowd Outlook thread: "Regional parks are going to be popular this summer because they're significantly cheaper, when you factor in the entire trip cost."

So I don't think anyone knows what's going on!!

I know Cedar Point and Kings Island have seen higher attendance so far this summer.

 

[Jrb1979]

I did see this article which is interesting.

https://www.fox13news.com/news/flor...sm-numbers-ahead-of-busy-summer-travel-season

"We've had a very busy year already. We're seeing traffic trending about 5% over the same period in 2019. So, 2019 was a record year for us. We're going to surpass that this year. We already saw about seven days during spring break that were record days," Emily Nipps, TPA Spokesperson said. "And we expect summer to be very, very busy, starting with Memorial Day weekend and running through mid-August."

 

[nycdisneygal]

Well they lost my family. We had APs, always stayed deluxe and usually club level. SIgnature restaurants. Even my 7 year old has no interest anymore. It was so much work our last trip she much prefers Universal now... we also have traveled to many interesting places instead. Spending our 10s of thousands per trip elsewhere.

 

[New Mouse]

Sorry I don't know what Yankee Stadium Effect means.

Wirh their new stadium, They sacrificed their less affluent fans including some lonnggggg time season ticket holders in order to build a field level vip section at $2500 a seat. Attendance was down but revenue was way up. Basically the model Disney hopes to copy.

 

[Jrb1979]

Wirh their new stadium, They sacrificed their less affluent fans including some lonnggggg time season ticket holders in order to build a field level vip section at $2500 a seat. Attendance was down but revenue was way up. Basically the model Disney hopes to copy.

Unfortunately it doesn't work for theme parks. They are built on having big crowds

 

[irlandaise]

I did see this article which is interesting.

https://www.fox13news.com/news/flor...sm-numbers-ahead-of-busy-summer-travel-season

"We've had a very busy year already. We're seeing traffic trending about 5% over the same period in 2019. So, 2019 was a record year for us. We're going to surpass that this year. We already saw about seven days during spring break that were record days," Emily Nipps, TPA Spokesperson said. "And we expect summer to be very, very busy, starting with Memorial Day weekend and running through mid-August."

I didn't know what "TPA" stood for--I thought it might be some regional theme park--but it turns out it was a typo for "TSA," so that's the "we" she's referring to. IOW, air traffic, on a national basis:

TSA reported record-setting levels this past weekend since the pandemic started with over 2.6M travelers at airports across the country on each of the Thursday, Friday, and Sunday travel days.

So people are flying more, but why, and to where? Maybe not so much to WDW...

 

[Jrb1979]

I didn't know what "TPA" stood for--I thought it might be some regional theme park--but it turns out it was a typo for "TSA," so that's the "we" she's referring to. IOW, air traffic, on a national basis:

TSA reported record-setting levels this past weekend since the pandemic started with over 2.6M travelers at airports across the country on each of the Thursday, Friday, and Sunday travel days.

So people are flying more, but why, and to where? Maybe not so much to WDW...

I wasn't a typo, TPA is the Tampa Airport. From the sounds of it people are still going to Florida just not the parks.