Pete, we apparently did not spend enough at DLRP.

[WebmasterMike]

I think the next couple of years are going to be pretty tough on Disneyland Paris.

Euro Disney net loss widens, may need cost cuts
07 MAY 2012 - 13H08

AFP - The Euro Disney theme park near Paris reported a 22-percent increase in its net loss for the first half of its financial year on Monday and warned it might have to take cost-cutting action.

Euro Disney, the biggest amusement park in Europe and celebrating its 20th anniversary, reported a net loss of 100.8 million euros ($130.6 million), an increase of 21 million euros from the loss for the first half 12 months ago.

The company reported an increase in an operating loss of 38.0 percent to 84.7 million euros, and an 8.0-percent fall in sales to 552.4 million euros.

Euro Disney has debt of nearly 1.8 billion euros and has to meet pre-set objectives each year.

The firm warned that if it was on a course to miss these targets it would have to reduce operating costs and some investment, and sell assets or seek help from parent company The Walt Disney Company or other parties.

However, the management held that currently it had enough resources for the foreseeable future, including lines of credit from TWDC.

Another factor was a possibility to delay conditionally the payment of part of management and licence fees due and interest, the company said in a statement.

Euro Disney intends to repay loans of 72.1 million euros in the second half, in line with targets laid down.

The number of people visiting its attractions and its hotels fell, in a "difficult" context for the economy, but despite the hard time the average amount spent by each visitor rose.

The accounts were also burdened by big charges for renovation and for the launch of new attractions to mark the 20th anniversary of the creation of Euro Disney on a green field site east of Paris.

In its 20-year life, Euro Disney which involves important real estate interests, has encountered various severe financial difficulties.

Deputy chief executive Mark Stead, commenting on the latest figures, told AFP: "We have withstood the (economic) crisis very well."

He expected investment marking ther 20th anniversary to boost activity in the second half of the firm's financial year from April to September.

This period is usually the stronger part of the firm's year because it coincides with the summer holiday period in the northern hemisphere.

"We are already seeing encouraging signs for the second half with an increase of hotel reservations," he said.

The average amount spent by visitors rose by 2.0 percent to 44.11 euros per day in the parks and by 4.0 percent to 207.29 euros per room in the hotels, owing mainly to an increase in prices.

The number of visitors to the parks fell by 1.5 percent to 6.9 million and the rate of occupation in the hotels by 3.6 points to 79.8 percent.

 

[LionKingRules84]

It's most likely due to the high cost to stay there along with the some of the failing European economies.

I hope the 20th anniversary celebrations bump it back up for this year but not sure how they will make up all of that loss.

 

[Fantasia Sam]

It's most likely due to the high cost to stay there along with the some of the failing European economies.

I hope the 20th anniversary celebrations bump it back up for this year but not sure how they will make up all of that loss.

The 20th anniversary celebrations look awesome but I'm concerned at the amount of deals that they are advertising here in the UK... lots of free night stays... but there again these sorts of deals have been winners for WDW so hopefully they'll bring the cash in for DLP

 

[tstidm1]

WDW doesn't do Free nights (to US attendees) unless they did them at the height of the recession. We've seen some awesome discounts over the last few years (such as the Military Discounts and Free Dining), but they're making money at DL and WDW. Free Nights seems to be pretty drastic to me and not a good sign long term.

 

[Fantasia Sam]

WDW doesn't do Free nights (to US attendees) unless they did them at the height of the recession. We've seen some awesome discounts over the last few years (such as the Military Discounts and Free Dining), but they're making money at DL and WDW. Free Nights seems to be pretty drastic to me and not a good sign long term.

Oh WDW have done this in the past for sure, I'm kinda in the know on those sorts of deals and in 2009 and in 2010 WDW offered a package deal for general public whereby guests could by packages for 7 nights for price of 4 or 7 nights for price of 5, but now they tend to stick to the gift cards and free dining deals but yup US guests were certainly entitled to these WDW deals

I'm of the opinion that if you are getting folks to stay an extra night in DLP this means you have the captive audience and the guests are then staying in Disney, buying tickets, eating the food and buying the souvenirs and these items can also bring in some great revenue.

 

[CastawayJP]

The problem with the DLP resorts is that they are overpriced for what they are. With the exception of the Disneyland Hotel none of them are even close to what WDW visitors expect in a Disney Resort.

Walking through Santa Fe last month was just disgusting. We stayed at Sequoia Lodge (because of our love for Wilderness Lodge) in February, and it was a disgrace. They need to step it up at the resorts if they are going to continue to charge what they are charging.

And while I'm at it... Why am I punished as a Annual Passport holder at DLP? If I want to stay on property at DLP I have to pay rack rate for the rooms. Every time I check it is cheaper to get the package with tickets included! Their business model is so screwed up!

The sad thing is there are a lot of things that I love about DLP over WDW, but as a person who has spent a lot of time at WDW, the little frustrations at DLP just get to me! It is a nice substitute for WDW while I'm living in Europe, but I can't wait to get back to Florida!

 

[tstidm1]

Fantasia Sam, I didn't realize that they needed to do that deep discounting during the worst of the Recession. When you basically pay half price on a package, that would motivate people to come.

CastawayJP, That doesn't sound too smart because I wouldn't be surprised if the Annual Pass holders could add an additional 10% in sold room nights. The Annual Pass holders are the most passionate ones and are more likely to do multiple trips a year to DLP. That could really narrow that gap in deficit quick.

 

[bkoehl]

WDW doesn't do Free nights (to US attendees) unless they did them at the height of the recession. We've seen some awesome discounts over the last few years (such as the Military Discounts and Free Dining), but they're making money at DL and WDW. Free Nights seems to be pretty drastic to me and not a good sign long term.

They did a few years ago, we did the buy 4 get 3 free deal in Feb 2009. It included room and tickets.

 

[Aulika]

I alors find the amont of discount frightening : I sent yersterday we were 4 with 2 Ap one that I goût with à 90% discount thé other with a 50% and to Park houppier that i got at a 50% discount
And i dis not look to hard for discount

 

[belle41379]

If they had more adult merchandise and some "nicer" things, I'm sure our one trip would have increased their numbers!

I did bring home a beautiful handblown vase based on Goofy. I spoke with the artist, at WDW, telling him about the one I purchased at DLP...turns out he made it! He does "trials" of the different characters, trying to find the right mix of colors and placements. Turns out the Goofy one I have was a prototype that wasn't exactly what they wanted.