More bad news for Disney

[redrosesix]

There is one element we have not considered...and far more frightening.

Yes, it's painful to live through the cutbacks and layoffs - DH knows this personally......but.....what if what's coming is WORSE.

What if.....what if......all of these measures are being done NOW because the bean counters at Disney - looking forward at advance reservations -- realize that if they do not CUT NOW, the next quarter or two will reflect a LOSS in profits?

Disney bean counters are always looking ahead. They have been slowing cuttng back since mid 2008. What if what they are seeing on the horizion is so bad, they are preparing now.

Most of these threads began after the results of last quarter. Doesn't the next quarter end March 31 ? Last time we found out guests were spending 53% of what they did the same dates in 2007. What if that number drops again?

The bottom line.....is the bottom for line for ANY business.

I agree with your spin on this in some ways. With the never-ending media blitz on the economy, consumer confidence has been shaken (even for those who haven't yet suffered) And some of the people who traveled to WDW in late 2008 may have since lost their jobs -- they won't be back in 2009.

But...if they cut back in too many areas and give people less reasons to visit there (as opposed to somewhere else) or just make it not worth the scrimping and saving that people have to do to afford a vacation there, their predictions then become a self-fulfilling prophecy.

I am actually more fearful of them losing money in other areas eg. advertising revenue will likely go down as more businesses fall on tough times. WDC is diversified and that is usually a good thing, but many of the areas that they do business in are very vulnerable right now.

 

[Mouseaholic!!!]

I agree with your spin on this in some ways. With the never-ending media blitz on the economy, consumer confidence has been shaken (even for those who haven't yet suffered) And some of the people who traveled to WDW in late 2008 may have since lost their jobs -- they won't be back in 2009.

But...if they cut back in too many areas and give people less reasons to visit there (as opposed to somewhere else) or just make it not worth the scrimping and saving that people have to do to afford a vacation there, their predictions then become a self-fulfilling prophecy.

I am actually more fearful of them losing money in other areas eg. advertising revenue will likely go down as more businesses fall on tough times. WDC is diversified and that is usually a good thing, but many of the areas that they do business in are very vulnerable right now.

You are very astute!

Did you watch basketball last weekend on ABC.......with all the Disneyworld Ads? They are making no advertising income when they do that! In the past these ad spaces were filled with automobile ads......or whatever. That was when you had to search for a discount to WDW.

Rumor has it ESPN has taken a BIG hit with advertising income.

Now, think about what they are spending TO advertise WDW. It's everywhere.....so many television ads, on just about every travel website, newspapers. It's over saturation. These ad campaigns are not cheep......and if they still need to fill hotel rooms.....they have to pay advertising dollars to do it.


As far as cutbacks....lets wait for the next quartly report. Disney is cutting back....have been for a while. If the bleeding has not stopped in the next report they will continue to cut back and the experience will be even more in your face We will hear about it here on the DIS.

 

[redrosesix]

there does have to be a limit to the cutbacks though, or service will really take a hit. For example, they can't let some of the housekeeping staff go when they are trying to keep the resorts full with the discounts, even though they are making less money from those guests.

There's even a thread on one of the other boards about warm showers and reduced water pressure. No amount of advertising can get rid of a bad reputation, really.

Suffice it to say, this is one of those times I would not want to be in the board room when they are making those decisions.

 

[Mouseaholic!!!]

there does have to be a limit to the cutbacks though, or service will really take a hit. For example, they can't let some of the housekeeping staff go when they are trying to keep the resorts full with the discounts, even though they are making less money from those guests.

There's even a thread on one of the other boards about warm showers and reduced water pressure. No amount of advertising can get rid of a bad reputation, really.

Suffice it to say, this is one of those times I would not want to be in the board room when they are making those decisions.

Funny you say that......we had a variety of reasons to end our love affair wth the Beach Club.....3 years ago

* Broken chair on our balcony never replaced in 10 days --- 2 calls -- DH fell to the floor when he sait in it
* Filthy stairway - we were on the 2nd floor, used it every day - called 3 times
* Barly warm shower water at night - We now call it "Nelson water"....more later
* Mousekeepers working up to 5 or 6 pm still cleaning rooms
* EVERY sidewalk light from BCV sidewalk had their covers on askew and not secured - we at least straightened them one afternoon
* Lobby bathroom odor that took your breath away about 10 paces OUTSIDE the bathroom
* Doorways - entrance, bathroom, stairway - badly needed painting -- in the places where hands touch the paint...looked very shabby

No, we didn't go looking....these problems were obvious and when we finally had enough, we wandered to Guest Services and spoke with Nelson. He's probably a VP by now....a true "numbers first" guy. He wouldn't know pixie dust if he fell into a TUB of it.....but he did have plenty of excuses....and I'm sure the Disney execs LOVED his cost-saving measures!!!

* Do you know how hard it is to find workers in Orlando (of course we do.....Universal takes all of yours because they pay better!_ -- OK, didn't say that to Nelson....just back in the room.

At one point Nelson, standing in center lobby, said soething which was completely out of line. A passing guest commented and my NYcity husband had to .... straighten out his understanding. Nelson was FAR better behaved after the quick comments from my husband.

It was just awful.

In supsequent trips when we have visited the Beach Club for one reason or another.....at least the bathroom has less of an odor!!!


Disney's budgets for the Parks and Resorts have already had a heafty slashing. What else are they going to do? They can cut backstage only so much before it shows to the front of the house.

It's not about GREED in a great business cycle now....it's about keeping things running with 47% less $$$ per guest.


Ok, sorry you got the long version here.