In Defense of Bob Chapek

[wabbott]

I’ve always been amazed at the strong emotions that Disney brings out in people. That somehow the feeling of nostalgia must also bring out a feeling of ownership or protectiveness? I don’t know what it is, but it’s fascinating.

Because that was Walt's goal from the start with Disneyland, and he used every thing he could think of to make it happen. And he succeeded.

 

[Ms Bibbidi]

.

 

[0FF TO NEVERLAND]

Good. This is exactly what Chapek wants you to think and make it perfectly acceptable.

 

[Ms Bibbidi]

.

 

[Jrb1979]

I see many, many positives that happened with Bob Chapek as CEO. All of the parks closed completely at the beginning of the pandemic. Not just parks, but the Disney cruise lines, the movies and theater productions and much more. Just shutting them down with no light at the end of the tunnel was a massive and heartbreaking job. Having to arrange for some maintenance for months on end while there was no revenue coming in from the park gates was a daunting proposition. Letting the employees and talent go that had taken decades to build was a wrench. This was not just in Florida and California, but all over the world. Then opening up again with extreme protocols in place was near to building the business from the ground up all over again. There are still gaps and thin spots, but massive crowds of Disney fans have somewhere to go. Yes, Chapek is a numbers guy and focused on high profit guests. I may complain, but he has to be. All it would take is for Covid to mutate to be the highly transmissible virus it has become and take a turn towards being more lethal and the closures could come back. Razor thin edge now for survival of the business and putting a cushion under it for the future. If we did not have somebody as experienced as Chapek in parks at the helm right now there might not have been a chance for it to rise from the ashes. So, I can be patient while the Magic comes back. At least it did not flicker out.

It's great that Disney is still here. That's the only thing Dr. Evil has done. Prices have gone up everywhere and most accept that. It's all the changes and cuts to the parks that people are upset about.

 

[JeanfromBNA]

Option 1 Don’t go
Option 2. Don’t go
Option 3. Refer to option 1

More people seem to be coming to that conclusion. Check out recent TripAdvisor reviews - they are scathing. Remember that Disney is a very expensive trip for most families which brings high expectations and inevitable comparisons given opportunity cost.

 

[boogienights]

I think bottom line is whether guest experience has improved or worsened...but that is entirely subjective. For some recent changes are a disaster, for others they make no difference and for some they are an improvement. The cost of a D vacation is ridiculous and yet those who complain most about cost and changes are still booking deluxe hotels, character dining and the outrageously expensive parties. I do wish D would stop announcing attractions until they are actually under way and that it would throw more money towards building attractions than hotel rooms.

 

[bsmcneil]

Haha - you are jumping down the wrong throat - not that I really get fussed about it
Did either of my posts suggest anyone was wrong? Nope - they didn't. I questioned, from the person I was responding to, whether it was a REQUIREMENT to get up at 7A - as they stated because I had a different experience (goodness forbid right???)

I know its not fashionable to be pro-Disney on here these days - but you know - it is what it is...

I don't think I'm "Jumping down your throat" but I am challenging you. You said:

If the person touring is not interested in going to the park early - then later times are available throughout the day on both LL/IAS (and IAS is also only one ride at each park anyway). Oh thats right, you haven't used Genie+ - I forgot!

I pointed out it wasn't in my experiences. I am pro-Disney as are many people - but to ignore people's criticism is weird. It's great if you didn't have the problem but it doesn't mean no one else did have a problem.

 

[Sweettears]

I don't see any positives from his tenure so far. Even if you factor out COVID and supply chain issues, the rest has been a train wreck by any reasonable measure. Especially for someone paid $32.5 MILLION.

How about the fact that the parks are open and just about back to normal. I can’t comprehend how some people diminish the role of a CEO of huge corp like its simi to being a manager at the local McDonalds

 

[Jennasis]

I don't think Mr. Chapek needs anyone to "defend him".

 

[Jrb1979]

How about the fact that the parks are open and just about back to normal. I can’t comprehend how some people diminish the role of a CEO of huge corp like its simi to being a manager at the local McDonalds

Wonderful. If he is so amazing there wouldn't be this much negativity from not only the majority of park fans but also the DVC crowd. There is a reason so many contracts are on the re-sale market.

IMO those that seem to be ok with Chapek seem to just be happy the parks are still open.

 

[Sweettears]

Wonderful. If he is so amazing there wouldn't be this much negativity from not only the majority of park fans but also the DVC crowd. There is a reason so many contracts are on the re-sale market.

IMO those that seem to be ok with Chapek seem to just be happy the parks are still open.

Can you share the poll numbers?

Never said he was amazing. Explain exactly what your expectations are and how Disney has fallen short.

 

[Jrb1979]

Can you share the poll numbers?

Never said he was amazing. Explain exactly what your expectations are and how Disney has fallen short.

It's great that almost everything is back to normal. I expect more out the supposed leader in the industry. Genie+ shouldn't be the disaster it is right now. The way they treat their most loyal guests (AP holders) is awful and the reservation system is not needed at this point. Yes I know they use it to help guest control for staffing purposes. I know they are struggling with staffing but all businesses and parks are too.

 

[Jonfw2]

I don't think Mr. Chapek needs anyone to "defend him".

Okay.

 

[Sweettears]

It's great that almost everything is back to normal. I expect more out the supposed leader in the industry. Genie+ shouldn't be the disaster it is right now. The way they treat their most loyal guests (AP holders) is awful and the reservation system is not needed at this point. Yes I know they use it to help guest control for staffing purposes. I know they are struggling with staffing but all businesses and parks are too.

I’ll ask again. Explain your expectations. Genie + was going to happen regardless of leadership or current economic issues.

 

[Jrb1979]

I’ll ask again. Explain your expectations. Genie + was going to happen regardless of leadership or current economic issues.

I know Genie+ was going to happen but I EXPECTED it to be implemented much better then it is. I EXPECTED reservations to be gone by know like every other park does. I EXPECTED them to continue running the parks like they did before Covid. Instead they have decided to change the type of guest they are going after.

I'm sure shareholders love the new direction.

 

[Sweettears]

I know Genie+ was going to happen but I EXPECTED it to be implemented much better then it is. I EXPECTED reservations to be gone by know like every other park does. I EXPECTED them to continue running the parks like they did before Covid. Instead they have decided to change the type of guest they are going after.

I'm sure shareholders love the new direction.

I suspect that Genie + is a work in progress. I will certainly agree that it has some faults. They more or less stated precovid about the the type of guest they were targeting. Park reservations we’re in their plains long before the pandemic hit. I won’t argue that. They are pricing out the normal family. That is an intended strat in that they are looking to better the exper for those that have more disposable income. It sucks but that is how businesses operate.

 

[jade1]

There is a reason so many contracts are on the re-sale market.

I just checked and your right, there is way more than the past years.

Do agree a lot of negative for DVC owners-esp no AP/ME etc avail.

But looking around the country, I can assume a lot of folks want to cash in for many different reasons. They still get quite a bit of value it appears, although I suspect it has to start/continue to decline for a while-maybe years.

 

[john7994]

I don't think I'm "Jumping down your throat" but I am challenging you. You said:


I pointed out it wasn't in my experiences. I am pro-Disney as are many people - but to ignore people's criticism is weird. It's great if you didn't have the problem but it doesn't mean no one else did have a problem.

Thanks for clarifying - and to your challenge - the poster you quoted me responding to actually has not used Genie+ or been to the parks post COVID (by their own admission) - nor are they the original poster I was sharing my experience with. So don't know what more there is to say.

 

[Liquidice]

My opinion here on Chapek...

There has been a war going on at Disney with "diehard" Disney park goers who come to the parks time and time again and Disney itself. Maybe this would have happened under Iger as well - but it started under Chapek's leadership.

Disney has been trying to alienate their AP holders on both coasts. Chapek said so himself that day guests are "marginally more valuable".

From a business standpoint, this will work fine so long as demand continues to outstrip supply but with a recession looming, will the travel boom continue? Annual Passholders were always looked upon as a positive to help fill the parks - maybe they spend a little less money, but some value is better than no value right?

Perhaps Disney isn't turning away so many of its diehards that it will matter in the long run, but that is what leaves a sour taste in my mouth. Just because you can, doesn't mean you should treat your AP guests as 2nd class citizens. And DVC owners, who have invested potentially the most amount of money (outside of maybe Club 33 members) in my opinion have gotten caught in the middle of this - they likely spend just as much if not more than the average guest, yet can't buy an AP unless they already have one and have had benefit after benefit stripped away from them (most of these were resort benefits like MDE, buying a discounted AP, etc). To be honest, I'm kind of surprised DVC hasn't tried to do more to maintain perks for its members, although the rumor of a paid "Diamond" tier may be their attempt at doing so.

I think this also was one of the many blunders from a PR standpoint, Chapek has been a PR nightmare and its shocking to see a CEO of such a large corporation make so many blunders. Recently when he received his honorary doctorate at Indiana University he called Disney World the "happiest place on earth" (which it isn't thats Disneyland). He made a few other blunders during his pre-written speech. For someone who ran Disney's parks division, you would think he might know more about his own parks. His CFO has had quite a few too, she recently called the Star Wars Galactic Starcruiser "Starship", "Star Galactica" and finally "Galactic Starship". Again, I guess she doesn't care about the names of products so long as the guests are willing to spend $6000 for 2 nights to stay there.

It is little things like this that imho give the impression that Chapek and his executive team don't care at all about anything but quarterly profits. He isn't concerned about the long term, he is just thinking about what will drive the largest profits for next quarter.

You can say that business leaders should only care about profits - but I don't think many would say that the only concern should be about short term profits at the potential expense of long term value. Plus, you would hope the CEO would also care about customers.

The OP said that price hikes have kept Disney in line with current profits. But you know what other executives are doing? Knowing long term they need to invest, they are taking less profits now and investing to ensure a better long term future for their company and a better customer experience (case in point: https://www.inc.com/minda-zetlin/amazon-third-quarter-profits-down-andy-jassey-customers.html ). They aren't increasing prices above inflation and decreasing value to their customers to maximize their short term profits. And Disney executives aren't re-investing those profits from the parks back into the parks, they are funneling it into Disney+ and content. You can look at the earnings reports and see spending going into the parks and see how much less they are spending in the parks division today than they were in previous years.

A great quote from that article: "Whenever I hear someone say that a CEO's first job is to maximize returns for shareholders, I always want to ask--which shareholders do you mean? Those who plan to hold the stock for a month or those who plan to hold it for a decade?"

At the end of the day, if you're a shareholder (which is what many claim is all Disney should care about) - do you think Disney is currently creating long term value for its shareholders?

If you're a customer of Disney - do you think Disney is creating long term value for you as a customer?

And if the answer is "no" to one of those questions - the next question is, who's fault is that? Do you blame the leadership of the company? Or do you blame the pandemic, outside factors, "newness" to the job, etc.

Everyone can form their own opinions, but for me - the fault lies with the executives at Disney. Maybe as we exit the pandemic they will turn things around, I hope so.