Iger "no more discounts" Do you think they actually do it?

[SugarSpice]

Iger announced this afternoon that there will be no more discounts after October. What's your opinion? Think they'll actually stop?

 

[Luv2Camp]

Didn't they release that same statement at the beginning of the year too? I've never seen so many discounts released as I have this year!

 

[golden2323]

I don't see it happening. They said the same thing at the beginning of the year, then said they were trying to "taper off" on the discounts- that hasn't happened.

Evidently free dining for this fall isn't selling as well as they hoped, as they just released a new room only discount for fall that is an even better discount than the summer room only offers. Plus, they're sending out pin codes like crazy (not to ME, of course ).

I think if they try it, they'll find occupancy so low, they'll quickly pull an offer out of their hats.

I understand they want to get back to not having to constantly offer discounts, but they're going to have to wait on the economy to recover more than it has to have any hope of filling their resorts with no discounts.

 

[disneydreamgirl]

What exactly did he say? Anyone have a link to the remarks?

 

[sjs314]

I know I read yesterday that Disney would release today the earnings for the first quarter of this year which I believe it said included the 4/3 promo, sure hope no more deals is not true

 

[Joshua_me]

Disney posts 55 pct jump in 2Q earnings



May 11, 5:52 PM (ET)

By ANDREW VANACORE

NEW YORK (AP) - The Walt Disney Co. said Tuesday that its earnings in the latest quarter jumped 55 percent on strong box office returns for "Alice in Wonderland."

Disney's earnings offer a partial reading on consumer sentiment. Its amusement parks and movie releases depend on people feeling confident enough to spend their extra cash.

A year ago moviegoers coping with a severe recession largely avoided Disney's "Confessions of a Shopaholic." In the most recent quarter, movie studio profits surged.

But the company is still trying to wean customers off its discounts at its theme parks. "Consumers are still out there waiting for bargains," Disney Chief Financial Officer Jay Rasulo said.

Net income for the company came to $953 million, or 48 cents per share, compared with $613 million, or 33 cents per share, from the same quarter a year earlier. Revenue rose 6 percent to $8.6 billion from $8.1 billion.

The results for the fiscal second quarter beat Wall Street forecasts. Analysts expected 46 cents per share on revenue of $8.4 billion.

Disney said "Alice in Wonderland" brought in $962 million in worldwide ticket sales. That helped boost revenue at the company's film studio by 7 percent to $1.5 billion. The segment's operating profit jumped to $233 million from $13 million.

Another quarter of strong results from ESPN lifted revenue at Disney's cable and broadcast TV unit by 6 percent to $3.8 billion. Operating profits were flat, held down by lower ratings and ad sales as well as higher expenses at the ABC broadcast network.

Revenue from the company's theme parks and resorts increased 2 percent to $2.4 billion, while higher fuel costs at the Disney Cruise Line cut the segment's operating profit by 12 percent to $150 million.

Shares of Disney, which is based in Burbank, Calif., fell 98 cents, or 2.7 percent, to $34.78 in extended trading after the release of results. Earlier, it rose 47 cents, or 1.3 percent, to close Tuesday at $35.76.



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[golden2323]

Revenue from the company's theme parks and resorts increased 2 percent to $2.4 billion, while higher fuel costs at the Disney Cruise Line cut the segment's operating profit by 12 percent to $150 million.

I think it's going to take more than a 2% increase at the theme parks and resorts, not to mention the 12% drop for the cruise line for them to be able to stop the discounts.

 

[NWOhioAngela]

I just got a pin code yesterday for room only discounts good "For stays most nights 10/3/10–11/23/10 and 11/28/10–12/24/10." I'm thinking discounts are going to be around for awhile.

 

[mikelan6]

As long as Disney has competition, there will be discounts. There are hundreds of hotels in the WDW and DL area that would love to welcome guests to their properties.

 

[Friendly Frog]

If they do drop the discounts they will see me less often . Universal will get more of my business or if no discounts are around I will just travel to Orlando less.

I received a free dinning pin code. It was no big deal. I think Disney heard how people were wanting pin codes, so now they are sending out more codes, but they are just not that big of a discount.

 

[Sphyrna]

Perhaps by "no more discounts" he was referring to advertised discounts to the general public. Maybe they'll be doing more pin codes? Personally I don't see them doing away with the discounts though. I plan to buy an AP and come down a few times within the year to use it. If they have discounts, I'll stay on-site. If not, I'll stay with my local friend. Their discounts will also determine just how many times I come down. I have no prob hopping a flight for a long weekend getaway.

 

[EastonCat]

I got a PIN code last night for steep room discounts in November and December. We immediately booked five nights concierge at The Contemporary Resort for about $350 a night.

I think it depends on how one defines a "discount"

 

[mainegal]

about $350 a night.

I think it depends on how one defines a "discount"

WOW!
That's a discount?

You are right, depends on how you define discount!

 

[mainegal]

I have no prob hopping a flight for a long weekend getaway.

Luck you! (she said enviously)

If I am paying $350 - $400 for a plane flight, I need to stay longer then a long weekend.

 

[jodiey]

I think they will lose a lot of business by not offering anymore discounts. With the way they raise ticket prices every year, not to mention the airlines and their foolish prices, how can they expect the average family to be able to afford a Disney vacation. I agree that people should not expect free dining or discounts but getting those discounts is definitely a plus and allows us to travel to the place we love once a year. Without them, we'd have to cut back on the amount of times we go.

 

[slapwhitey]

I have my flame retardent suit standing by as I know this will be an unpopular point of view but I for one would be happy if they stop will all the discounts already. It becomes increasingly more annoying to me not being able to get any sort of ADR's in the months of September or October. I know it's selfish but I also miss the few times of the year when the crowds were light. I know it is in their best interest to keep the parks full but I genuinely believe they are finding full parks doesn't necessarily mean more profit. I think they have enough "fans" hook, line and sinker and they will return discounts or not. Maybe they'll be staying value or moderate instead of deluxe but they'll be staying nonetheless.

Time will tell if this will in fact be reality but you can add me to the list of "It's about time".

Please be kind...I mean no harm.

Chris

 

[kbelle8995]

I think that in general tourists will be disappointed if there are suddenly no more discounts. There will always be discounts to be had. I think Iger has been saying that for some time but the reality might be completely different.

 

[exwdwcm]

well they dug themselves this hole.....it's like spoiling a child. they've offered these for so long now that people expect them. and people do WAIT for them and won't book until they get one or see one.

While discounts are great and i have used them in the past, now that I am DVC, i am fine and happy if they stop offering as many, since i can't use a lot of them anyhow. i know, selfish! lol and like someone else said, at least the crowds maybe wouldn't be so bad............good for me, bad for business though.

 

[bear_mom]

While I would be happy to have them announce a discount for early Dec. I will still be going either way. Actually no discount might not be a bad thing, crowds might be lighter ?!

Emily

 

[ADP]

As long as I've been going to Walt Disney World there's always been some kind of discount offered. Of course, some have been deeper than others, but there's always been something available.

Most of the disounts would be offered to AP and Florida Residents, but eventually some of those discounts would open up to the general public.

There's also AAA, CAA, AARP, and Military discounts available.

Bottom line...They'll still have discounts, the question is....How deep will they go.