Record attendance at the parks

[lugnut33]

At least that's what they said during this quarters earnings report.

Anybody got more information that? Did they say what occupancy rates have been?

 

[mvk]

At least that's what they said during this quarters earnings report.

Anybody got more information that? Did they say what occupancy rates have been?

83%, much higher than the experts here have been saying.

 

[OKW Lover]

Here is a link to the press release that has a bit more info. No mention of occupancy rates.

 

[mvk]

Here is a link to the press release that has a bit more info. No mention of occupancy rates.

I believe it was on the call. Dave Shute of your first visit tweeted it out.

Thats up 5 points from last year and up 3 points from 2 years ago when Art of Animation wasnt open yet.

More rooms, higher occupancy rate. Things are going quite well, and no, they are not panicking as someone alluded to a week or so ago.

 

[lugnut33]

Up 5 is a strong move.

 

[mvk]

This is an from the call transcript, it was Rasulo speaking...


At Parks and Resorts, the investments we have made over the last couple of years, specifically in our domestic business continued to payoff. During the fourth quarter, operating income was up 20% on revenue growth of 7%. We continue to see strength in our domestic operations due to increased spending and attendance at our domestic parks and higher spending in passenger cruise days at the Disney Cruise line. Results at our international parks were lower compared to last year driven by lower results at Disneyland Paris. Disneyland Paris recently announced the recapitalization plan aimed at helping to improve its capital structure and liquidity, while enabling it to continue investing in the guest experience, which we fully support.

Total segment margins were up 190 basis points in the fourth quarter and benefited by about 30 basis points due to new initiatives. As we have said in the past, we expect investments in new initiatives to be accretive to operating income and margins over time. And while two significant components of the investment plan, My Magic Plus and Shanghai Disney Resort are still in ramp up mode. The other investments are clearly making meaningful contributions to the segment’s results.

The early returns we are seeing from MyMagic+ are encouraging. During the fourth quarter MyMagic+ had a positive contribution to year-over-year increase in the segment’s operating income. We continued to see positive trends in the business with the fourth quarter per capita spending in our domestic parks up 6% on higher ticket prices, food and beverage and merchandise spending. Attendance at our domestic parks was up 4% with Walt Disney World setting a new fourth quarter record.

Per room spending at our domestic hotels was up 5% and occupancy was up 5 percentage points to 83%. So far this quarter, domestic resort reservations are pacing up 11% compared to prior year levels, while book rates are up 3%. The 11% includes the benefit of the timing of promotional offers. But nevertheless, we feel very good about the volume and pricing trends we are seeing in the business. Our consumer products business continues to benefit from strong merchandise sales. In the fourth quarter growth in operating income was driven by the sales of Frozen and Spiderman merchandise. On a comparable basis, earned licensing revenue was up 10%.

Not much on the parks side in the Q&A portion, other than a couple of questions on Shanghai.

 

[rteetz]

Disney of course is doing great again but these record profits also have to account for the fact that prices keep going up and up. Yes more people are going to the parks but probably not as many as some of you think because of the increased prices at the parks and resorts.

 

[mvk]

Disney of course is doing great again but these record profits also have to account for the fact that prices keep going up and up. Yes more people are going to the parks but probably not as many as some of you think because of the increased prices at the parks and resorts.

Walt Disney World just set a new fourth quarter attendance record. It was right there in the call, I quoted from the transcript.

The armchair analysts here have been way off on attendance and occupancy rates. Not a surprise though, all things considered.

It should be noted that this record attendance was set the quarter after Diagon Alley opened up at the competition up the street. So apparently it didn't affect them too much, and it didn't give the other guys the boost they were hoping for.

 

[twebber55]

Walt Disney World just set a new fourth quarter attendance record. It was right there in the call, I quoted from the transcript. The armchair analysts here have been way off on attendance and occupancy rates. Not a surprise though, all things considered. It should be noted that this record attendance was set the quarter after Diagon Alley opened up at the competition up the street. So apparently it didn't affect them too much, and it didn't give the other guys the boost they were hoping for.

I agree
But uni set record attendance and profit as well
So it looks like both company's are doing well

 

[mcd2745]

I agree
But uni set record attendance and profit as well
So it looks like both company's are doing well

As they say, "A rising tide lifts all boats"


But the question is...can they sustain it?

 

[rteetz]

Walt Disney World just set a new fourth quarter attendance record. It was right there in the call, I quoted from the transcript. The armchair analysts here have been way off on attendance and occupancy rates. Not a surprise though, all things considered. It should be noted that this record attendance was set the quarter after Diagon Alley opened up at the competition up the street. So apparently it didn't affect them too much, and it didn't give the other guys the boost they were hoping for.

It never affects disney too much people still go to disney that's certain. The difference is instead of seven days at disney it's 5-6 and a day or two at universal as well. It's great that Disney did well I'm happy for that they set a record in the stocks at $92 a share too. But it's also certain that part of the rise in profits is the ever rising prices at the resorts and in the parks.

 

[rteetz]

As they say, "A rising tide lifts all boats" But the question is...can they sustain it?

Well universal is building a mystery attraction right now (kong)... Universal also has another hotel coming and two more after that. Disney and universal are very good at keeping their market share. SeaWorld on the other hand isn't doing so well.

 

[circus4u]

It never affects disney too much people still go to disney that's certain. The difference is instead of seven days at disney it's 5-6 and a day or two at universal as well. It's great that Disney did well I'm happy for that they set a record in the stocks at $92 a share too. But it's also certain that part of the rise in profits is the ever rising prices at the resorts and in the parks.

Guess I am in the minority here as I have never had the desire to go to Universal, even when we lived in Tampa. Made several trips to WDW this past year, all of them 10-14 days, stayed on property and donated to Disney's income. Come to think of it, have never been to Sea World, went to Busch Gardens only one time about 40 years ago. Think it is just because we are not into thrill rides. We love the family atmosphere at Disney.

 

[rteetz]

Guess I am in the minority here as I have never had the desire to go to Universal, even when we lived in Tampa. Made several trips to WDW this past year, all of them 10-14 days, stayed on property and donated to Disney's income. Come to think of it, have never been to Sea World, went to Busch Gardens only one time about 40 years ago. Think it is just because we are not into thrill rides. We love the family atmosphere at Disney.

I haven't either I've never been I just know more and more tend to take a day or two and go to universal. I love disney too but I can recognize competition and differences from year to year. The DIS did a poll and it showed over half of a couple thousand people will be spending time at universal wether it was completely universal or just a day or two.

 

[dizfan]

I agree
But uni set record attendance and profit as well
So it looks like both company's are doing well

As they say, "A rising tide lifts all boats"


But the question is...can they sustain it?

The rising tide is far wider than just Orlando and theme park industry.

US hotels have been reporting occupancy rates at the highest level since the 90's.

It may be sustainable for a short period (months or maybe even a few years), but it is not over the long term. All economic cycles run their course.

 

[mvk]

It never affects disney too much people still go to disney that's certain. The difference is instead of seven days at disney it's 5-6 and a day or two at universal as well. It's great that Disney did well I'm happy for that they set a record in the stocks at $92 a share too. But it's also certain that part of the rise in profits is the ever rising prices at the resorts and in the parks.

Well sure, but that is every business. Prices rise, thats a fact of life. Thats how successful companies operate. But you are glossing over just how well they are doing - 5% rise in occupancy and record attendance. Even outside of higher prices, that is going to generate higher profits.

 

[beer dave]

It never affects disney too much people still go to disney that's certain. The difference is instead of seven days at disney it's 5-6 and a day or two at universal as well. It's great that Disney did well I'm happy for that they set a record in the stocks at $92 a share too. But it's also certain that part of the rise in profits is the ever rising prices at the resorts and in the parks.

I don't know... . Where does this information come from about people who usually just go to Disney now spend some of the time at Uni? The hand full of posters on this site who say they are changing their habits because they are tired of Disney's complacency doesn't account for the masses.... I think the people who go to Disney go to Disney, the people who go to uni go to uni, and the people who go to both, they go to both.

 

[rteetz]

I don't know... . Where does this information come from about people who usually just go to Disney now spend some of the time at Uni? The hand full of posters on this site who say they are changing their habits because they are tired of Disney's complacency doesn't account for the masses.... I think the people who go to Disney go to Disney, the people who go to uni go to uni, and the people who go to both, they go to both.

Like I said in another post the DIS did a poll of a few thousand people. A vast majority said they would be at least spending a day at universal or more. I didn't say it accounts for masses I just said it seems to be coming more likely that people are taking a day or two to spend at universal that they maybe would've spent at Disney.

 

[clsteve]

I don't know... . Where does this information come from about people who usually just go to Disney now spend some of the time at Uni? The hand full of posters on this site who say they are changing their habits because they are tired of Disney's complacency doesn't account for the masses.... I think the people who go to Disney go to Disney, the people who go to uni go to uni, and the people who go to both, they go to both.

Take Disboards out of it - marketshare and attendance. Disney's marketshare has dropped by close to 4% while Uni is up over 4%. That's before DA opened.

On attendance, Disney's announced they're up by 5%, while Uni has announced they're up 18% in the same time period.

And, this is where attendance figures need to be taken into context. If Orlando visitor-ship is up 7.4% while Disney is only up 5-6%....

So, how much of the Disney attendance increase is really Disney driven, or just organic to rising economic factors?

At the very least, they should be surpassing the baseline Orlando numbers to be declaring a huge victory for FY14.

 

[beer dave]

Take Disboards out of it - marketshare and attendance. Disney's marketshare has dropped by close to 4% while Uni is up over 4%. That's before DA opened.

On attendance, Disney's announced they're up by 5%, while Uni has announced they're up 18% in the same time period.

And, this is where attendance figures need to be taken into context. If Orlando visitor-ship is up 7.4% while Disney is only up 5-6%....

So, how much of the Disney attendance increase is really Disney driven, or just organic to rising economic factors?

At the very least, they should be surpassing the baseline Orlando numbers to be declaring a huge victory for FY14.

I don't know the actual numbers and don't really want to look them up-- but if Disney's total attendance is 5 times the attendance of uni, then in total head count, disney still increased more than universal. I can't see how this represents people taking days they used to spend at Disney and going to universal. Of course it is possible, but not necessarily represented.

This comment is not concerning what has driven the increases, but who is included in the increases ( D only, D and U, or U only, but mostly, D to U converts)

Market share doesn't tell you what motivates people to visit and their changing habits.

And why do you question the driving force of Disneys increase ( rising economic factors) but not Uni? Probably just an oversight.