Plenty Of Room At The Inn

[jerseydizdreamer]

Is it just me, or does it seem as if perhaps Disney has reached a point where... and I don't want to sound like a heretic here... but maybe they've reached a point where they could (perhaps even should) stop building new resorts for a while? If more attention isn't paid to other matters (such as introducing new attractions on a more regular basis and keeping guests happy, whether at the resorts or at the parks), it seems unwise to continue building more rooms for guests who may not be coming. Am I crazy? I know that when Disney does an attraction, such as Mission Space, they do it right (although I've yet to experience it), and that takes time. But wouldn't it make sense to have more new attractions on the drawing board at one time, so they could be implemented at a slightly accellerated pace?

Don't get me wrong... I'm a huge supporter of Disney, and a lover of the resorts. I always stay on property, with no exceptions. Usually, the Wilderness Lodge, but this year, I'm trying POR. My only point is that there has to come some point where you say, "OK, we've got enough rooms." Especially when tourism is majorly down, and you're having to jump through hoops and offer substantial discounts (which are great for consumers, but not so great for Disney from an economic standpoint and, in fact, might not be great for consumers who wind up getting less bang for the buck because of reduced services because the hotel is making less money... see the vicious cycle?).

Thoughts?

Richard

 

[DebbieB]

Other than the DVC resort Saratoga Springs which is to open next spring and Pop Century due to open in December, are there any other resorts under construction? I don't think so. Pop Century was delayed for so long because Disney had reached that point of too many rooms to fill. They closed down CBR for some time last year to renovate the food court and POFQ is now totally shut down for a renovation. I think both were really shut down for economic reasons, those renovations shouldn't have taken so long. I don't think you are going to see any new ones for awhile.

 

[safetymom]

Disney created a monster with the room rates. When they were having trouble filling the resort they came out with codes for great rates. Now that more people are going Disney is not releasing as many codes and people are moaning.

You can't have it both ways. I would rather Disney be stingy with reduced rates so they have money for other things. But judging by the threads on the DIS boards many feel they are entitled to cheaper rooms on property.

So I guess we will have to wait and see what happens. Disney doesn't owe me anything and if I feel I am not getting my value I am free to frequent other attractions in Orlando.

I know that isn't a popular opinion on these boards but I have faith that Disney will still be on top several years from now because of their business expertise.

 

[AirForceRocks]

I agree safetymom.

Although I will say, my DH has been saying for years "Enough resorts already!"

 

[DrTomorrow]

Well, jerseydizdreamer, you'd think so, but they've been saying that about Las Vegas for about 15 years - they now have well over 100,000 rooms - but they keep building more.

One other thought - building a resort is a process that takes years from start to finish, so maybe they feel the need to start planning now to meet an anticipated demand in 2010!

 

[pooh6890]

If they build them, we will come!

 

[Mickiethepooh]

Personally I would like to see them build themed hotels after the most popular over time rides, i.e., Pirates of the Caribbean, or Haunted mansion. I think such hotels would be incredibly popular.

 

[Tigger Woods]

Originally posted by safetymom
I have faith that Disney will still be on top several years from now because of their business expertise.

Disney has just been dumped from Smith and Barney's 'Recommended' stock list. So much for business expertise.

 

[Geoff_M]

My guess is that with the completion of Pop Cemetary, we'll see a break in the traditional resort building binge. It's true that Vegas is still growing, but there the hotels aren't owned by one company. When things went soft after 9/11, the financial impact to the Disney books of all those hotel rooms that went empty can't be underestimated. The more they build, the bigger the exposure to economic downturns. I'm gonna guess, particularly if Saratoga Springs is well received (and early reports are that it is), that Disney will shift their construction efforts to more DVC resorts. Timeshares will help shield Disney from the problems of lower occupancy rates due to the economy, gas prices, war, and the threat of terrorism.

 

[safetymom]

Tigger Woods I am sure that won't last for long. WDW doesn't look like it is going out of business anytime soon.

If you aren't happy with the stock's performance have you relayed your concerns to anyone?

 

[Tigger Woods]

Originally posted by safetymom
Tigger Woods I am sure that won't last for long. WDW doesn't look like it is going out of business anytime soon.

No one claimed WDW would be going out of business. You lauded Disney's 'business expertise', and I thought you should be made aware of their poor stock performance. If you have any information that the financial experts don't have, I'd love to hear it.

 

[safetymom]

I just have faith that Disney will be able to rebound and not have problems. If it continues a downward slide then I would be concerned.

You didn't answer my question, what are you doing about it if you are concerned?

 

[Lyncruiser1]

Safetymom -- You're being a little hard on Tigger. All Tigger said was that Disney's stock performance is not expected to be, shall we say, robust. There was an article to the same effect in the NY Times a few days ago.

And less than a week ago Roy Disney sold 43% of his stake in Disney -- not exactly a vote of confidence as to the stock's future performance. Unless Tigger holds more than perhaps 5% of the outstanding capital stock (unlikely, but perhaps Tigger is rich), there is little to be done except sell any stock holdings or hedge the position by selling short. Tigger's relaying concerns about the stock price to someone is not a practical suggestion. Moreover, Roy has already done that in the clearest way possible!

The NY Times article said that some funds are selling short. Disney is a huge company and certainly will survive just fine, IMO. Nevertheless, more than one market pundit seems to be saying the days of incredible growth, reflected in an ever escalating stock price, are over for Disney. More than pixie dust may be needed to change that outlook.

 

[safetymom]

Lyncruiser, I am not being hard on anyone. I am just asking questions. Maybe this thread should be on the debate board.

The point I was trying to make is that everyone wants Disney to provide them with discounts but at the same time mentions that Disney is not doing well. Unless I am missing something you can't have it both ways.

I would prefer as I stated before that Disney be a little stingy with discounts so that they have the money to do the other things that keep everyone coming back.

At this stage does anyone know why Roy Disney sold his stock? I think the answer to that would be helpful. Guessing won't help. I am one of those that feels that the Disney company could survive without Roy Disney. Maybe I shouldn't be saying that but the company is so much larger than just the Disney family these days.

I guess time will tell what happens. If they make smart moves and decisions they will weather the storm. If they don't then they will have to answer to the stockholders.

But you won't see me posting a note that I deserve a discount at WDW.

 

[lyncruiser2]

My goodness! Do you really think your decision not to utilize a discount is going to make any difference to the bottom line for Disney? I would wager that the sum total of all discounts utilized in one year at the Disney resorts does not even begin to approach the compensation paid to one man -- CEO Eisner -- in the same year! Granted his compensation is tied to stock performance, but in 1998 he exercised options giving him performanced-based compensation of $575 million!!

All I can say is that for your valiant determination not to take $1,000 or so off Disney's billions of annual revenue using a discount, Eisner should share some of his compensation with you. As for me, I'll be on the phone tomorrow morning looking for an AP discount.