Here is a valid reason why Disney should reduce their prices.

[Northernlites]

Financial statements for the year ending September 30, 2012, showed resort revenue (including parks and hotels) at $17 billion and operating expenses at $ 1 billion, (which means profit of $16 billion from that segment) plus $3 billion in revenue from consumer sales and operating costs of those sales at $ 857,000 million. This info is filed with the US Securities Exchange and is available free online through EDGAR. I found the info when searching the stock price for Walt Disney Company

 

[dis-happy]

Financial statements for the year ending September 30, 2012, showed resort revenue (including parks and hotels) at $17 billion and operating expenses at $ 1 billion, (which means profit of $16 billion from that segment) plus $3 billion in revenue from consumer sales and operating costs of those sales at $ 857,000 million. This info is filed with the US Securities Exchange and is available free online through EDGAR. I found the info when searching the stock price for Walt Disney Company

I read the entire shareholders report each year, down to the numbers, and there's a lot more to the big picture than those couple of numbers.

 

[cglaura]

They aren't going to reduce prices on something that is selling well.

When people stop going and they see a drop, then they'll reduce (or stop raising).

We are taking a different tack next trip. We've been very interested in all of the new things happening at Universal, so will be staying on-site there, and just doing 4 days at Disney and some SeaWorld too. Usually we stay 10 days Disney and take Mears to 1 or 2 Universal days.

They are not going to say, "Hey these rooms/tickets are selling like hotcakes! Let's reduce the price."

They are going to say, "Hey these rooms/tickets are selling like hotcakes! Let's bump it up and see if they still sell."

I still love Disney, it is apples to oranges comparing to other parks, but we are just choosing more oranges this time

 

[Srbright]

Not sure were you got those figures but according to their 10k filings found here:
http://thewaltdisneycompany.com/investors/financial-information/annual-report
Their revenue from all parks AND resorts domestic and international was 11.7 billion with operating income of 1.5 billion which is likely EBITD or EBIT.

I think you read it wrong becaue they have 10 billion in expenses and 1.5 in operating income (which isn't profit).

Do you have a link to the Edgar or SEC filing?

Stacy

 

[aea71]

I suggest a thorough review of the latest 10-K report for 9/30/12 available on the Disney Co. investor relations website. Total revenues for Parks and Resorts were just under $13 billion with a little less than $2 billion for operating income. However, keep in mind, there are corporate expenses that then get allocated to each division along with debt service requirements that need to be paid from cash flow. The 10-K helps to better explain income as well.

 

[mrsklamc]

How is that a valid reason for them to reduce their prices? Their goal is to make a profit and they did.

 

[maxiesmom]

How is that a valid reason for them to reduce their prices? Their goal is to make a profit and they did.

I think some people forget Disney is a huge business with the goal of making money, just like every other business. And as with most products, it is for those who can afford it.

 

[Aliceacc]

Disney is in business to make money.

At which point should they stop making money? It's not a charitable organization, it's a business.

 

[mdsoccermom]

If anything, that is proof that they should NOT lower prices. They've proven that they can make a profit with current pricing. That's their number one goal, to make a profit. You know, like all businesses.

 

[sk!mom]

Interesting premise, OP. So you think that companies base their pricing on, "we've made enough so let's lower prices?" If it were only so then we could all look forward to reductions in our grocery bill, health care costs, etc... Think of the new pricing structure at Wal Mart if this was the way it worked.

However, companies keep raising until they reach the max people will pay. When Disney sees numbers falling, that's when they will look at pricing and offer deals.

 

[nunzia]

How is that a valid reason for them to reduce their prices? Their goal is to make a profit and they did.

Over time I have purchsed quite a lot (for me) Disney stock and still do monthly. It has had a nice return for the over 25 years I've had it and I hope it continues to be. Look at it this way..they had reduced prices for quite awhile to stimulate visits..now that the parks are packed and the rooms full they can bring prices back up and not have the discounts.

 

[robsmom]

Since Disney is something that everyone is entitled to, I think the big bad profitable company should stop making money for the people who invested in it and make Disney cheaper. In fact, I think that people who have low income should be allowed to go to Disney for free. Those that make more than 250K should have to pay twice as much to go. This way everyone will be treated equally.

 

[JB2K]

Financial statements for the year ending September 30, 2012, showed resort revenue (including parks and hotels) at $17 billion and operating expenses at $ 1 billion, (which means profit of $16 billion from that segment) plus $3 billion in revenue from consumer sales and operating costs of those sales at $ 857,000 million. This info is filed with the US Securities Exchange and is available free online through EDGAR. I found the info when searching the stock price for Walt Disney Company

Ummmm...it sounds like a lot, but...

The Walt Disney Company, collectively speaking, is way more than those 4 theme parks/resorts in Florida (and 2 in California).

On top of what followers of this board know and love, you are looking at countless other assets, to include:

• The namesake Movie Company (on which everything was built)
• The ABC Television Network (and certain ABC/Disney owned/operated large TV stations such as WABC in NYC, KABC in L.A., and WLS in Chicago)
• Cable Networks (ESPN, Disney Channel, ABC Family, etc.)
• Anything related to Pixar
• Anything related to "The Muppets"
• Anything related to Marvel Entertainment (The Avengers, etc.)
• Anything related to Lucasfilm (Star Wars)

Granted, much of that stuff are money-generating "cash cows", but Disney also has to pay for talent, technology, etc. to make it all work.

In other words, in OP's opinion, sure, it sounds like a lot of money to go to "a theme park", but Disney, as a whole, is a major media congolmerate...

 

[mm1971]

Financial statements for the year ending September 30, 2012, showed resort revenue (including parks and hotels) at $17 billion and operating expenses at $ 1 billion, (which means profit of $16 billion from that segment) plus $3 billion in revenue from consumer sales and operating costs of those sales at $ 857,000 million. This info is filed with the US Securities Exchange and is available free online through EDGAR. I found the info when searching the stock price for Walt Disney Company

These numbers are not accurate when you look at all the numbers. You can;t just pick and choose the numbers you like to make an argument. With that said, you do realize that Disney is a corporation whose financial goals are to maximize stockholder value, right?

First, they have lowered prices the last few years. They have just done it a different way. Free dining, room discounts....These are all ways of lowering the cost to entice more guests to book vacations.

Second, with the room bookings up and more people vacationing there I don't see any reason to discount anything. They have a lot of sales and marketing people that research how much people are willing to pay for their services. As long as rooms are full and guests are happy, there's no need to lower prices.

Third, I own Disney stock and smile every time I cash that dividend check. I know when I pay for a vacation that it is expensive. I also have not found any other place where I get the "Disney" experience for my money. They need to continue running the business to assure long term value to it's stockholders and make sure they have the assets to provide their services long term.

Last, it's not any less expensive to go to most other destinations. I spent less on my last Disney vacation for 7 days than I did to go to Niagra Falls for 5 days.

 

[sydneysmom]

How is that a valid reason for them to reduce their prices? Their goal is to make a profit and they did.

exactly. I don't understand why people think that it's "evil" for corporations to make a profit. If you were a small business owner, would you give away any money you make? Of course not. Because that money doesn't just get "spread around amoung the big wigs".... that money is then used to put back INTO the corporation to build / refurbish / update...etc. Look at new Fantasyland... the money came from somewhere.... chances are excellent that it was paid for by profits made in previous years. That is what businesses do.

 

[Sparkly]

Disney World is more affordable then it's ever been. Special offers, passholder discounts, AAA discounts. Value resorts, free dining, offsite. There's a ton of ways to do it that doesn't cost the earth anymore.

 

[mel&me]

Financial statements for the year ending September 30, 2012, showed resort revenue (including parks and hotels) at $17 billion and operating expenses at $ 1 billion, (which means profit of $16 billion from that segment) plus $3 billion in revenue from consumer sales and operating costs of those sales at $ 857,000 million. This info is filed with the US Securities Exchange and is available free online through EDGAR. I found the info when searching the stock price for Walt Disney Company

This just shows that people are going to spend at Disney even if the economy is slow. They are not going to cut there profits. they are a corporation. Mean make as muck as they can. Its a reason for them to raise prices. People will pay.

 

[Alesia]

Financial statements for the year ending September 30, 2012, showed resort revenue (including parks and hotels) at $17 billion and operating expenses at $ 1 billion, (which means profit of $16 billion from that segment) plus $3 billion in revenue from consumer sales and operating costs of those sales at $ 857,000 million. This info is filed with the US Securities Exchange and is available free online through EDGAR. I found the info when searching the stock price for Walt Disney Company

It always surprises me how many communists there are on the disboards.

 

[jls886]

Since Disney is something that everyone is entitled to, I think the big bad profitable company should stop making money for the people who invested in it and make Disney cheaper. In fact, I think that people who have low income should be allowed to go to Disney for free. Those that make more than 250K should have to pay twice as much to go. This way everyone will be treated equally.

If you were the CFO at Disney, would you seriously say, "Well, I'd say we've made TOO much money this year, so much so that it just isn't fair. We should definitely lower our prices so we don't make so much money next year." The answer to that question is, no.

 

[EMAW_KSU]

It always surprises me how many communists there are on the disboards.

Scares me.