Lower earnings = lower rates?

[Rneighh]

Just heard that Disney first quarter earnings were lower than last year -- not as low as expect due to cutbacks and deep discounts but lower. I wonder (and hope) if we will continue to see these deep discounts in room rates. I hope I can get AKL for next Feb. at a great rate. Only wish I could use the postcard I just got next Feb.

Renee

 

[amw5g]

Unlikely. The lower earnings were the main result of restructuring and impairement charges. Parks and Resort revenues were up by nearly $200M with operating income slighlty lower in 2001. Why would they discount rooms more?

"...a decrease of $187 million [in revenues] at the Walt Disney World Resort. At Walt Disney World, decreased revenues were driven by decreased attendance and lower occupied room nights reflecting the prior year success of the Millennium Celebration... Both the Disneyland Resort and Walt Disney World Resort were impacted by park closures on September 11/th/ and from lower attendance and hotel occupancy due to cancellations and reduced travel during the last three weeks of September. "

2000 was a stellar year for the resort which also adds to the *perceived* poor revenue performance.

Unless management feels that guests won't return to WDW without discounting rooms further, I doubt you'll see futher breaks on rooms. Based upon what I've read, more discounts aren't as likely as holding rates fairly steady. People are returning to the parks and hotels, which justifies fewer discounts.

Just my unprofessional opinion.
-Andrew

 

[mousehut101]

I agree with Andrew. They wont lower the rates in the only profitable sector.