Possible fallout from Brexit for Disney

[rteetz]

Right...
Close this one down then. This is a 100% political topic.

To try and separate it out is pointless.

Close it up.

If we stick to the topic of how this might affect travelers coming to WDW then it's fine. If we talk about the politics of the U.K. And if this is good or bad then we will have to close it.

As a moderator I'll decide whether or not it's time to close a thread or not. I always give a warning first.

Thanks.

 

[kandb]

As someone who lives in the UK and voted to regain our political independence, we are all more than aware of what we have done and why. Britain is sick and tired of having our government's laws overruled by people abroad. It has been happening increasingly over the past ten years. The EU is a failing project and the quicker it falls apart the better for all of us. Now we have voted to go others will have the courage to follow. It is a question of when not if.

Brexit is unlikely to make a significant difference to guests from the UK travelling to the US for several reasons.

1. The British Economy is doing very well indeed. Unemployment here is at a record low, things are fine. The economy is not going to crash.

2. The main losers from Brexit will be the large multinational corporations not the man on the street.

3. We are all booked up to come to Disney in 2017 and our prices are paid in GBP Sterling through the Walt Disney Travel Company which is a UK based branch of Disney. We do not book or pay in dollars. Disney is a multinational company that operates in many markets and currency variations is a normal aspect of doing business.

4. The GBP against the dollar has fallen significantly since pre 2008 when we could get roughly 2 dollars to a pound. It varies by a great deal from one week to the next, but the overall trend has been a weakening GBP against the USD in the past 8 years, yet more people are going to Disney from the UK than ever before.

5. The comparative cost of a Disney vacation has not increased dramatically over the same timeframe at least in Britain.

6. To be honest, I am more concerned about the number of bus stops at CBR than I am about Brexit. That is how much on the "worry scale" it is for the average citizen. Of course the media love the scare stories but frankly they print what sells papers.

France cannot even run Disneyland Paris successfully. Would you let them have a say in running your country?

Make no mistake, the people of Britain are waking up to Christmas morning on a daily basis so far. The sense of optimism we have seen in the past 48 hours has been unlike anything I have experienced in my lifetime.

I tip my hat to you and the brave Britains who voted for this. I don't blame you from wanting your independence. God Bless!

 

[gEar up]

If anyone here knows: How large of an operation is the Walt Disney Travel Company in the U.K.? Also, is this company operated by Disney, or licensed by Disney, wth a % interest of ownership, like Disneyland Paris? Does the Continent have their own Walt Disney Travel Company that operates in Euros, or was the UK company the European arm and exchanged any Purchases from the continent into GBP at daily rates, or like airlines, have a set rate in Pounds, with a daily adjusted float in the Euro (US airlines set fares in Dollars, then adjust the rate on an almost hourly basis for the exchange rate in the foreign currencies)?
You might see where this train of thought depending on the answer might be leading me.

 

[Planogirl]

If what's been spun in the US is correct (not that I'm saying it is)...brexit was fed by a kind of new Xenophobia that is most likely linked to the US created crisis in the Middle East.

Economically is it a good idea? Time will tell.

But from the surface...there's a real ugly "Britain for Britain" and "nobody's gonna tell us what to do" type feel that mirrors some of what is coming out of the ugly US politics now too.

That's just how it seems from across the pond.

Europe and the U.K. just seems to be farther along the evolutionary chart (as usual) than Los estados unidos: trying to "take control back" in a post industrial world that is designed not to allow it.

Call it "globalization"..."free trade"...whatever...
...it's the desire of people to maintain power without building the things you use. It's an international problem. Just how I see it.

People are afraid and that has nothing to do with politics but just human nature. The world is a spooky place.

Anyway, so far we have budget problems in South America and this situation in Europe making the markets and currencies unsteady. I will be watching the pricing at the Orlando parks. You never know what might happen.

 

[Gari14]

If anyone here knows: How large of an operation is the Walt Disney Travel Company in the U.K.? Also, is this company operated by Disney, or licensed by Disney, wth a % interest of ownership, like Disneyland Paris? Does the Continent have their own Walt Disney Travel Company that operates in Euros, or was the UK company the European arm and exchanged any Purchases from the continent into GBP at daily rates, or like airlines, have a set rate in Pounds, with a daily adjusted float in the Euro (US airlines set fares in Dollars, then adjust the rate on an almost hourly basis for the exchange rate in the foreign currencies)?
You might see where this train of thought depending on the answer might be leading me.

As far as I know, its the European division of The Disney Company that works on marketing etc for the UK and its not a license like the way Disneyland Paris operates. Disney spend a ridiculous amount of their marketing on the UK market as wherever you go in London, there are advertisements everywhere and also on TV there are a ton of commercials about booking a 2017 holiday through them as well. Ive seen said commercial about 10-15 times already on the tv this month alone. Also, www.disneyholidays.co.uk is owned 100% by the company and is a european division for the company.

 

[ParkHoppers]

One positive of Brexit will probably be less Brits at Disney making fun of the way I say schedule. Not all will get this.

 

[Gari14]

One positive of Brexit will probably be less Brits at Disney making fun of the way I say schedule. Not all will get this.

Im British and Im now intrigued how the hell you say it!?

 

[LeeAndRobin]

Im British and Im now intrigued how the hell you say it!?

We say "Sked-ule". You say "Shed-ule"

 

[Gari14]

We say "Sked-ule". You say "Shed-ule"

Thats so odd as I say it "Sked-ule" as well lol

 

[LeeAndRobin]

Thats so odd as I say it "Sked-ule" as well lol

I've traveled a lot in the UK... always heard "shed-ule" LOL. Also "por-pus" vs. "por-poise", "tor-tus" vs. "tor-toise", "alum-i-num" vs. "al-lu-min-ium", and "pre-us" vs. "pry-us". And many others.

 

[gEar up]

As far as I know, its the European division of The Disney Company that works on marketing etc for the UK and its not a license like the way Disneyland Paris operates. Disney spend a ridiculous amount of their marketing on the UK market as wherever you go in London, there are advertisements everywhere and also on TV there are a ton of commercials about booking a 2017 holiday through them as well. Ive seen said commercial about 10-15 times already on the tv this month alone. Also, www.disneyholidays.co.uk is owned 100% by the company and is a european division for the company.

So, if I am understanding this correctly, the UK division only deals in the UK, whilst the continent for WDW vacations, either operates through an arm located in one of the many countries under the Euro, or just deals directly through the US based company. I would assume this would mean the UK market would become cheaper to run for them (advertising, salaries etc) while revenues declined as well.
The only way this then has a negative effect on returns for Disney corporate would be if there was a massive reduction in discretionary funds in your average UK household, due to the cost of everyday items becoming more expensive, such as petrol, electricity, milk, eggs, clothing etc, while simultaneously encountering a negative employment market, and investment returns. In no way does Disney ever abandon a market as well established as they have in the UK, but the advertising budget will run in line with revenues generated. Today, you can't walk 100 meters in central London without seeing something Disney, either movies, parks, or stores, but maybe that goes to 200 meters, or 300 meters, so to speak, if yields decline. I won't have much to look at on the underground if Disney didn't advertise in every station. I could be wrong, but I don't see Disney selling vacations below or near cost, or using revenues from the states to supplement UK vacation prices... I think they only do that for the Chinese market (Thanks Shanghai). The wealthy will have no problems, they never do, so bookings at the Grand Floridian should be fine.

 

[Gari14]

I've traveled a lot in the UK... always heard "shed-ule" LOL. Also "por-pus" vs. "por-poise", "tor-tus" vs. "tor-toise", "alum-i-num" vs. "al-lu-min-ium", and "pre-us" vs. "pry-us". And many others.

Its weird how some pronounce things differently to the next person in the UK. I think I may have a bit of "American English" in the way I say some things lol.

So, if I am understanding this correctly, the UK division only deals in the UK, whilst the continent for WDW vacations, either operates through an arm located in one of the many countries under the Euro, or just deals directly through the US based company. I would assume this would mean the UK market would become cheaper to run for them (advertising, salaries etc) while revenues declined as well.
The only way this then has a negative effect on returns for Disney corporate would be if there was a massive reduction in discretionary funds in your average UK household, due to the cost of everyday items becoming more expensive, such as petrol, electricity, milk, eggs, clothing etc, while simultaneously encountering a negative employment market, and investment returns. In no way does Disney ever abandon a market as well established as they have in the UK, but the advertising budget will run in line with revenues generated. Today, you can't walk 100 meters in central London without seeing something Disney, either movies, parks, or stores, but maybe that goes to 200 meters, or 300 meters, so to speak, if yields decline. I won't have much to look at on the underground if Disney didn't advertise in every station. I could be wrong, but I don't see Disney selling vacations below or near cost, or using revenues from the states to supplement UK vacation prices... I think they only do that for the Chinese market (Thanks Shanghai). The wealthy will have no problems, they never do, so bookings at the Grand Floridian should be fine.

Oh, I agree totally and I don't expect Disney to ever sell anything to the UK market for close to face value as such, but the UK market is extremely important to Disney and without it, it would be a huge loss to them. To be honest though, I can't see a big drop in bookings for them anyway (not in the long term) from UK holidaymakers. All prices are quoted in sterling (due to it being booked from a UK Disney website) and not a US one. If it was a US one, then the exchange rate (unless the pound settles itself) would be a problem, but thankfully this isn't the case. The only thing UK holidaymakers will miss out on is less currency, but that will only really have a big effect if you're buying your dollars in the thousands which most people wouldn't be.

 

[gEar up]

I'm not sure about posting links to outside articles, so I'll summarize: There's a market watch article pontificating that the Pound could hit parity with the green back by year's end, or early 2017. The consensus is this wouldn't be an extreme possibility, but more likely it will settle around 1.20.
Maybe the Adventures By Disney London vacations will come down in price... ahhh who am I kidding. Either way, might be time to book a trip for Spring of 2017!
Since article 50 will take at minimum a year to enact, possibly 2, I would assume the current trade agreements will be status quo, whilst the pound plummets, that could be great news for UK manufacturers and hometown tourism. I remember when in the 80s the pound was somewhere around 1.30 or so, and I thought that was cheap! Still, I'm sure it won't be affordable to live in London regardless.

 

[I M Fearless]

To anyone who is in any doubt... we had little choice in the matter.

The EU had become a bureaucratic nightmare for ordinary folk in the UK, regulating everything from the wattage of our hairdryers, the shape of our bananas, the cost of our cell phone calls, and the taxes we pay.

A few months back David Cameron tried to implement a policy of zero tax on solar panels. He was told he was not allowed to do so by the EU and he turned around and reversed the decision.

People had simply had enough. The British are not people who will be pushed around, and frankly the more people who tried to tell us what to do the more defiant the nation became.

My grandparents did not fight in the Second World War for my freedom, so that I could vote it away as if it meant nothing. Not likely.

Do not worry, there will not be an impact in terms of guests visiting from the UK. People love Disney and those who would have afforded it before will certainly afford it after. It is expected that wages are likely to rise post Brexit as the labour pool decreases.

 

[TrampDog]

As someone who lives in the UK and voted to regain our political independence, we are all more than aware of what we have done and why. Britain is sick and tired of having our government's laws overruled by people abroad. It has been happening increasingly over the past ten years. The EU is a failing project and the quicker it falls apart the better for all of us. Now we have voted to go others will have the courage to follow. It is a question of when not

Make no mistake, the people of Britain are waking up to Christmas morning on a daily basis so far. The sense of optimism we have seen in the past 48 hours has been unlike anything I have experienced in my lifetime.

Congrats to Great Britain! I am so happy for you guys. Maybe the sheeple libs here can wake up and claim their independence back as well (no offense to you guys ). ODumbo has destroyed our Country with his "One World" leftest ways. I wish you guys well, now get your right to bear arms back and maybe I'll move there .

 

[Gari14]

To anyone who is in any doubt... we had little choice in the matter.

The EU had become a bureaucratic nightmare for ordinary folk in the UK, regulating everything from the wattage of our hairdryers, the shape of our bananas, the cost of our cell phone calls, and the taxes we pay.

A few months back David Cameron tried to implement a policy of zero tax on solar panels. He was told he was not allowed to do so by the EU and he turned around and reversed the decision.

People had simply had enough. The British are not people who will be pushed around, and frankly the more people who tried to tell us what to do the more defiant the nation became.

My grandparents did not fight in the Second World War for my freedom, so that I could vote it away as if it meant nothing. Not likely.

Do not worry, there will not be an impact in terms of guests visiting from the UK. People love Disney and those who would have afforded it before will certainly afford it after. It is expected that wages are likely to rise post Brexit as the labour pool decreases.

The regulating side of things is something that really annoyed me. The EU even ruled that we couldn't have DSLR or compact cameras that can shoot video over 29 minutes due to tax reasons. WTH!?

regarding the Disney side of things, I think that we as a nation (UK) are obsessed with Disney holidays to Orlando and have been for decades. I remember when I went for the first time with my family in 1989 and my dad said it cost about £4000 in total. £4000 then is probably like the equivalent of around £6000 in todays money and it didn't stop people going then, so I don't expect it to happen anytime soon either.

 

[gEar up]

I imagine in 1989, 2,500 of that was the airfare at least. Air travel has come down in price substantially since that time. It would be interesting if you could find the receipt on that to compare the costs from 89 to what it costs at this moment. If nothing else for nostalgic purposes.

 

[Dean Marino]

Congrats to Great Britain! I am so happy for you guys. Maybe the sheeple libs here can wake up and claim their independence back as well (no offense to you guys ). ODumbo has destroyed our Country with his "One World" leftest ways. I wish you guys well, now get your right to bear arms back and maybe I'll move there .

How I personally look at this....

You were asked a question. Your people gave an answer. The NATURE Of that answer is absolutely none of my business, as I am a US Citizen . I DO congratulate GB for ASKING the population what they wanted.... and for the CITIZENS answering.

Again, all personal opinion.... in the US? A question of that nature will simply NOT be offered. Good for GB - HOWEVER you chose. The fact that you COULD choose is what matters .

 

[rteetz]

Thread has been closed. Politics are not allowed on the disboards and I have a warning.