I'll Just Leave This Here For Pete

[lugnut33]

NEW YORK (Dow Jones)--Tom Staggs, chief financial officer with The Walt Disney Co. (DIS), said Thursday that hotel bookings for 2010 at the company's theme parks division are down 5% compared with the year-ago period.

The decline reflects the continuing economic slump, but consumers are also booking vacations closer to their dates, Staggs noted on a conference call with analysts following the company's fiscal fourth-quarter release.

He said the company has used innovative promotions to buoy its financial performance throughout the downturn.

"We will continue to gauge the market and use promotions when we feel it's appropriate," said Staggs.

Fourth-quarter attendance at its parks division was up 3%, excluding an extra week of operations that affected comparisons to last year.

One thing that Pete and the podcast team are correct about is that people are indeed waiting for deals before they book a trip. The discounts are changing mentality, however they are also getting people in the park as evidenced by the 3% up. Perhaps it's not wise to be raising prices on everything?

However, the parks saw a 17% drop in profits and a 4% drop in revenue eventhough attendance was up. Problem is, those numbers include all Disney parks, so we'll have to sift through the numbers and see how WDW faired.

Right now it's a no decision on Meg "The Cleaning Lady" Crofton.

Another intereting fact, Jay Rasulo is no longer in charge of Disney Parks. Jay will now be CFO and the current CFO Tom Staggs will be the head of parks and resorts. So, we'll have a bean counter in there. This might not be good.

 

[DisneyKevin]

YAY!!!

More people are coming and we're making less money!!!!

YAY!!!

Let's not put up the Christmas lights this year and raise prices.

YAY!!!

 

[daneenm]

YAY!!!

More people are coming and we're making less money!!!!

YAY!!!

Let's not put up the Christmas lights this year and raise prices.

YAY!!!

Oh Kevin, tell us how you REALLY feel about it!

 

[aspen37]

YAY!!!

More people are coming and we're making less money!!!!

YAY!!!

Let's not put up the Christmas lights this year and raise prices.

YAY!!!

Oh Kevin, tell us how you REALLY feel about it!

I sent Disney an email yesterday and explained to them how I feel about what is going on.

 

[SpaceMonkey]

I can't believe that Disney is skimping out by not reinstalling the walkway lights in Epcot!!!!! While you at it Disney, why not skimp on the garland wreaths runinng down main street, that's obsolete technology too... WHAT THE HECK IS DISNEY DOING!?!?!? I sure some will probably not miss those lights, But I've yet to see them in person and I guess that's not going to happen now... I feel like Pete right now, "let's charge them more to get in and while we're at it, take stuff away." I'm usually a pretty happy guy but this has really pooped on my day.

 

[catycatcat4]

Here we go again!

 

[redrosesix]

I have to agree with the OP -- I'm waiting. Last year, we got a room at ASMu on the 4/3 deal, and got a $200 gift card to sweeten the deal. This year they're offering a 5/2 deal at the values (still 4/3 everywhere else) with no gift card. How they could think that will improve the numbers from last year I have no idea. People are still hurting, and some of us are more scared than we were last year, because the economy hasn't turned around yet for everybody.

 

[DisneyKevin]

I have to agree with the OP -- I'm waiting. Last year, we got a room at ASMu on the 4/3 deal, and got a $200 gift card to sweeten the deal. This year they're offering a 5/2 deal at the values (still 4/3 everywhere else) with no gift card. How they could think that will improve the numbers from last year I have no idea. People are still hurting, and some of us are more scared than we were last year, because the economy hasn't turned around yet for everybody.

This is exactly what the we have been saying all along.

This is short sighted.

Offrering people two extra nights while taking away the things people love is not the way engender the kind of loyalty Disney has experienced in the past.

 

[WaltD4Me]

This is exactly what the we have been saying all along.

This is short sighted.

Offrering people two extra nights while taking away the things people love is not the way engender the kind of loyalty Disney has experienced in the past.

Exactly.

How do they not see this?

 

[SamSam]

This is exactly what the we have been saying all along.

This is short sighted.

Offrering people two extra nights while taking away the things people love is not the way engender the kind of loyalty Disney has experienced in the past.

As someone that has been a die-hard loyal Disney fan for many years, I so agree with you. It's the wonderful little special touches, like the Epcot lights, that made us loyal fans. Now, it's like WDW execs have lost sight of what makes loyal, returning customers.

 

[belle41379]

Anyone have the email for Guest Services handy? I can't find the paper I wrote it down on. I'd like to send them my thoughts. Giving a "deal" while also taking things away does NOT constitute a bargin, Disney!

 

[SamIAm21]

If you would like to post your thoughts and opinions on Facebook, feel free! Plenty of people are letting them have it!! I'm sure they are fully aware of this page by now!

http://www.facebook.com/home.php#/group.php?gid=178991681021&ref=ts

 

[DisneyKevin]

Anyone have the email for Guest Services handy? I can't find the paper I wrote it down on. I'd like to send them my thoughts. Giving a "deal" while also taking things away does NOT constitute a bargin, Disney!

wdw.guest.communications@disneyworld.com

 

[TXYankee]

YAY!!!

More people are coming and we're making less money!!!!

YAY!!!

Let's not put up the Christmas lights this year and raise prices.

YAY!!!

Kevin, you stated that perfectly!

The only reason I am doing to WDW this December is DAP.

 

[SamIAm21]

This article pretty well spells out what Parks & Resort contributed to the quarterly results... in other words... not much!

http://thedailydisney.com/blog/2009/11/disney-profits-up-18-in-4th-quarter/

 

[dalt01]

maybe we "regulars" should step back and look at these things from the point of view of the average WDW visitor................they are the "i went there with my kids and now i am taking the grand kids" and...................i have always want to go now i am.......................and of course the ever popular "this is a once in a lifetime thing"...............these folks are not going to miss a "rose arbor" of lights...............fantasmic cutbacks.............etc,etc..................maybe...........just maybe.........pulling the trigger on the small stuff is keeping them from making some very big decisions that could impact the situation for years to come.................just a thought...............

 

[lugnut33]

Interesting article Sam.

I like that Iger actually addresses the discount situation saying they'll be able to ween guests off the promotions. I'm not totally convinced that's true. Take my situation, I'm a DVC member and yeah I get kinda irked when they offer these great discounts. Maybe I should have just used the discount programs instead of buying DVC?

Also really interesting to see Disneyland attendance rise by 15%!! I don't know if that has more to do with the guest profile (locals) or the ticket deals they were offering? I would bet that most of those people are locals with yearly passes.

 

[lugnut33]

Tony67 brought this up in another thread and it's exactly what's happening:

Remove a scallop from the plate at Cookes of Dublin.
Remove the cornbread from the rib plate at flame tree.
Replace hamburger and hotdog rolls with a really cheap "healthy" roll.
Reduce the quality of meat at several locations..

And on and on and on.....

Could this also be backfiring and reducing what people are spending in the parks?

When we were at WDW in August we only ate 3 meals in the parks because I knew eating all our meals at WDW would break us (were there for free dining, however since we are DVC we are not eligible). So all our other meals were off-site and most were really good. Saved us hundred and hundreds of dollars that way and now I'm not bothered at all if I have to leave the bubble to go eat. Disney lost my money by raising the prices, making it impossible to get ressies, and lowering the quality and quantity of the food.

 

[princessbride6205]

maybe we "regulars" should step back and look at these things from the point of view of the average WDW visitor................they are the "i went there with my kids and now i am taking the grand kids" and...................i have always want to go now i am.......................and of course the ever popular "this is a once in a lifetime thing"...............these folks are not going to miss a "rose arbor" of lights...............fantasmic cutbacks.............etc,etc..................maybe...........just maybe.........pulling the trigger on the small stuff is keeping them from making some very big decisions that could impact the situation for years to come.................just a thought...............

I see what you're saying, but I'm still disappointed. While less frequent guests may not notice the missing lights or the missing parts of Fantasmic, they may notice a little less magic. "Hey that Fantasmic show wasn't worth the hour wait to get seats."
I'd be curious to know the percentage of guests/revenue that comes from regulars versus one-time or occasional visitors. Do the loyal customers make up so small a percentage of their revenue and profits that Disney isn't concerned?

 

[belle41379]

I see what you're saying, but I'm still disappointed. While less frequent guests may not notice the missing lights or the missing parts of Fantasmic, they may notice a little less magic. "Hey that Fantasmic show wasn't worth the hour wait to get seats."
I'd be curious to know the percentage of guests/revenue that comes from regulars versus one-time or occasional visitors. Do the loyal customers make up so small a percentage of their revenue and profits that Disney isn't concerned?

I would be interested to know this as well. I think the PP is right that "regulars" most likely won't notice the differences. I would be interesting to know what percentage of each group there are.