Response to my Email

[DisneyKidds]

How does a company control this given the contraints without jeopardizing its product?

A good question, and not an easy one to answer. However, Disney did it for nearly 30 years in Florida, longer in California. I don't believe that something all of a sudden changed in 2000 that all of a sudden made it impossible for Disney to maintain the product while balancing those costs. Of course all the acquisitions of non-theme park 'things' didn't help.

*********Time for a Baron Statement**********

What may very well have changed was the focus. A shift from focusing on the guest experience, to focusing on those costs and the bottom line.

*********End of Baron Statement*********

Many people believe that focus changed much longer ago than the late 90's. I don't know, maybe Disney would have had to cut at some point, but I think they have hidden behind the events of the past 3 years as a convenient excuse for those cuts. In any event, I think a lower margin with more robust attendance would be better for Disney than a higher margin on the guests they are currently attracting. I do believe that Disney would be more successful in bringing up the attendance levels if they offered what they used to.

 

[crusader]

I don't believe that something all of a sudden changed in 2000 that all of a sudden made it impossible for Disney to maintain the product while balancing those costs.

The change was subtle at first but became obvious once equitable alternatives failed to present themselves in exchange. Baron is correct. The focus did shift. You are seeing the end result of more than a decade of indulgence. It wasn't the year 2000 - it was the 80's/90's when economic prosperity flourished - all driven by an illusioned market.

Now that we've "crashed" (a term you'll rarely hear publicized) the money flow has come to a halt, but the prices have remained inflated. Where does that leave the consumer? Transferred to the customer service department to register their complaints.

 

[ThAnswr]

>>>AK already has to be a park that you either do 2 days or miss out on a lot of things OR attempt to go all day without a break, closing at 5pm- although I understand the reasoning behind that)<<<<


One of the explanations I've heard/read about the early closing times at AK was because the animals need their "rest".

The truth is most animals are more active at night. This is one of the problems with the AK. The animals hide and sleep during the day, so the safari ride very often is nothing more than schtick and a bumpy car ride.

If Disney wanted to give the animals a "rest", AK would open at 9PM and close at dawn.

I believe the reason for the short hours at AK is that it's half a park and the amount of people who stay there would be so low, it wouldn't even cover expenses.

 

[Walt's Frozen Head]

I can't understand anyone who doesn't feel 9/11 has anything to do with it.

It's not that the realities of the last two years have not affected Disney, it's that the budget cuts, hours cuts, and attendance drop that are now being spun as being "only due to 9/11/War/SARS tourism issues" began before any of that stuff started and continues even now, when many indicators suggest tourism is starting to return pretty much everywhere but Disney parks.

Even considering 9/11, War, and SARS, Disney continues to underacheive... continues to remain "profitable" only by cutting expenses faster than sales fall... just like they were doing in 1999 and 2000.

I believe that it was the cuts of 2000 and 2001 that led to poor sales in 2002 and 2003. I have no reason to believe that 2004 and 2005 will be improvements, based on the cuts of 2002 and 2003. It takes a year or two for changes in vacation patterns to become apparent.

It's just not logical to assume Disney has hit bottom yet.

 

[ThAnswr]

>>>>Also, Universal is not any cheaper than Disney. A one day pass to either park is within a dollar or two. <<<

Correct, for a 1-day pass, but it really gets interesting when you take a look at the multi-day passes.

A WDW 4-day PH costs $221.52 (adults) and $177.86 (ages 3-9)

Right now, you can purchase a 5 consecutive PH ticket to US/IOA for $89.95 (adults) and $76.95 (ages 3-9). That is for 5 consecutive days, but the price differential is staggering.

A 3-day PH (no expiration date) to US/IOA is $119.42 (adult) and $103.26 (ages 3-9).

Those are the numbers and everyone can judge for themselves.

And for anyone who's interested, the reason why I tout US/IOA over Disney is not because US/IOA is better. It's just different, very entertaining, but different.

No, the real reason why is that Disney has p*ssed me off and US/IOA hasn't. When US/IOA starts doing the same crap Disney has, then I'll look at US with a more jaundiced eye. But, the fact is, with the same excuses as 9/11, SARS, etc., Universal has not cut their hours, continues to post operating hours well in advance (through 12/03), etc.

Of course, YMMV.

 

[EUROPA]

If that is the case then.... heck the solution is simple...keep building new attractions and you won't drop 20 in attendace over 2-3 years.

PS anyone wonder what will happen with 6000 value resort rooms hit the market at Disney.

 

[Walt's Frozen Head]

there are alot more reasons to visit WDW in the near future than in the recent past.

I've heard that same song for the new Imagination ride, the even newer Imagination ride, Dino-Rama (you just wouldn't _believe_ what some folks around here were predicting for Dino-Rama), the Snow Globe parade...

I'm simply not as convinced as you that the masses are inclined to see the PhilharMagic as anything more than "another 3-D movie that squirts water at you" or Mission:Space as anything more than an Atari game inside a twirl-and-hurl.

 

[kathylovesdisneyworl]

I was under the impression from everything I have read and heard that in 2000 Disney was having very large crowds. If this was the case, the current conditions of the economy will have some bases for the decrease in hours. I only visit Disney once a year"sigh". The changes that I saw the last few years were not all that surprising, I see changes everywhere. Many of which no one likes, but I guess I just like my vacation to Disney World more than I dislike the changes.

 

[crusader]

I'm simply not as convinced as you that the masses are inclined to see the PhilharMagic as anything more than "another 3-D movie that squirts water at you" or Mission:Space as anything more than an Atari game inside a twirl-and-hurl.

I'm hoping M:S will have enough strength to prompt a few mini-excursions from the nontraditional visitor, signifying that the introduction of one major attraction could have a direct impact on ticket sales.

 

[EUROPA]

Originally posted by kathylovesdisneyworl
The changes that I saw the last few years were not all that surprising, I see changes everywhere. Many of which no one likes

Really equate it to something we can all understand.....like McDonalds.

Because of the bad economy has McDonalds raised prices? Do they close 4-5 hours early? Do you now get 2 less nuggets in a kids meal? Did they stop giving out packets of ketchup? Can you now only get the Big Mac on Tues,Thur, and Saturday?

Movie theater prices are still the same in my area. As is the popcorn. They don't close the movie theater early.


Help me out here with changes that other companies have made that would be similar to what Disney had done.

 

[kathylovesdisneyworl]

Can't equate it the McDonalds. My local Mcdonalds is still as full as every. Haven't seen any decrease in the last couple of years. If anything, it is fuller.

 

[crusader]

Help me out here with changes that other companies have made that would be similar to what Disney had done.

1) replacing the chicken in a chicken nugget
2) pumping more air into a shake
3) reducing the size of an apple pie (assuming they even still sell these)
4) changing the temperature of the coffee after getting sued over it being too hot.
5) utilizing mystery meat

and so on............and so on.......................and so on

 

[kathylovesdisneyworl]

I'm not sure you can compare longer passes at Universal and Disney since we are comparing 2 parks to 4. How about Disneyland since they both have 2 parks.

 

[EUROPA]

Originally posted by crusader
1) replacing the chicken in a chicken nugget
2) pumping more air into a shake
3) reducing the size of an apple pie (assuming they even still sell these)
4) changing the temperature of the coffee after getting sued over it being too hot.
5) utilizing mystery meat

and so on............and so on.......................and so on

Are you saying the MCdonalds in the past two years has done these things?

 

[splashmountain31]

VOTE WITH YOUR WALLET.

If you don't like something or someplace don't do that thing or go to that place. Simple enough.

 

[raidermatt]

I was under the impression from everything I have read and heard that in 2000 Disney was having very large crowds. If this was the case, the current conditions of the economy will have some bases for the decrease in hours.

Some basis, yes. However, hours in 2000 were cut vs. 1999, despite greater attendance in 2000. Same thing when comparing 1999 to 1998. When attendance started to fall, the cuts simply accelerated.

Regarding, M:S and Phil, yes, of course they are better selling points than Dinorama... however, they are still only two attractions among 4 parks. Disney has sat on their hands for so long with respect to major attractions that 1 1/2 E-tickets just aren't going to make a big difference. Further, the hopeful expectations for these attractions are at least partially offset by other closures and cuts, as well as disappointment with recent efforts.

WDW is not a standalone park where one kick butt attraction can drive attendance upward. WDW is a resort vacation destination, where new kick butt attractions are necessary, but are only a part of the draw. Without the whole package of hours and services, improvement beyond what is brought by improvement in the outside economic environment is unlikely.

Now, if M:S and Phil are the beginning of a renaissance in Disney attraction development, then that's most certainly a positve. But its going to take awhile to make up for lost time, and, as the Head points out, there is a delay in the impact of any change to WDW, be it positive or negative. Vacation plans and patterns take time to change.

Its goint to take more than one new E-ticket every 2 years to sustain a 4 park complex, and it must be coupled with other things the guests' value, including hours, services, and entertainment.

I admit that with at least some positive vibes on M:S, Phil, and the new fireworks show, I'm more hopeful than I was a year ago. However, there still seems to be a lack of understanding about how cuts impact the guest experience. I have to restrain myself from pummeling my phone during Disney's earnings calls everytime I hear a Disney exec brag about cost cutting in the parks that has "no impact on the guest experience, of course".

 

[raidermatt]

If you don't like something or someplace don't do that thing or go to that place. Simple enough.

Very true, and we are discussing the reasons why some maybe be doing just that, and whether Disney is doing or should be doing anything about it, and if so, what...

Regarding McDonald's.... they very well maybe doing the same things Disney is doing, however, their recent results don't exactly advance the merits of that strategy. Interesting that customer perception of their quality is one of the problems they are facing.

Nobody is saying that Disney is the only company out there who has made bad decisions.

 

[Planogirl]

Originally posted by crusader
1) replacing the chicken in a chicken nugget
2) pumping more air into a shake
3) reducing the size of an apple pie (assuming they even still sell these)
4) changing the temperature of the coffee after getting sued over it being too hot.
5) utilizing mystery meat

and so on............and so on.......................and so on

Have you been to McDonald's lately? They've replaced the weird ground up chicken stuff with all white meat (haven't tried it yet). They've added some nice salads and a good yoghurt snack. I understand that they're experimenting with offering fresh fruit instead of fries at some locations. So, they are trying to improve their image or at least it appears that way to me.

Of course, you might say that Disney is trying to do the same via their current offers and the new attractions that are soon to make their debuts. It seems kind of paltry considering their recent past but I suppose that it's at least something.

 

[DisneyKidds]

They've replaced the weird ground up chicken stuff with all white meat (haven't tried it yet).

This may be a bit OT, but I have tried the new nuggets. Now it seems they only gring up white weird chicken stuff . At least they can label it 'all white meat' .

 

[BibbidyBobbidyBoo]

Well, atleast 4 nuggets are still only $1.00.
haha Okay just trying to be funny....

One of the explanations I've heard/read about the early closing times at AK was because the animals need their "rest".

The truth is most animals are more active at night. This is one of the problems with the AK. The animals hide and sleep during the day, so the safari ride very often is nothing more than schtick and a bumpy car ride.

If Disney wanted to give the animals a "rest", AK would open at 9PM and close at dawn.

I believe the reason for the short hours at AK is that it's half a park and the amount of people who stay there would be so low, it wouldn't even cover expenses.

Yes, I said I understood their reasons- didn't mean I agreed wit them. I agree with you that they would do better (in my not so humble opinion) to have this park open in the evening cooler hours. The only time I see animals out -for instance on the safari- is in the very early morning hours. Did that our first time- thought it was great..... did it other times later in the day and hardly saw any animals at all- park closed before it got cool again ofcourse)

I don't know why people think AK is half a park though. We all loved that park and to be honest- the short hours make it darn near impossible to see all the shows/etc. You have to REALLY REALLY plan and even then still miss out on some stuff. Even on my solo trip, planned to the hilt, and RUNNING from show to show- I missed some. If anyone can see and do everything there in a day -you know...... this "half a park"- then I bow to them. LOL
Alternatively- on my solo trip I was able to do EVERYTHING in MK in a day. Go figure.