WDW 26% loss

[paults]

Walt Disney Co. has a 26 percent profit loss

So now they raise tickets prices so even more people can't afford it.
I know it's not a lot but hey, Disney wake up. Why not do something nobody expects lower the price a little even $.50 will do
Pretty soon it will cost $200 a day for 1 park and $100 more to add no expire and another $100 for PHing.

 

[BWV Dreamin]

Walt Disney Co. has a 26 percent profit loss

So now they raise tickets prices so even more people can't afford it.
I know it's not a lot but hey, Disney wake up. Why not do something nobody expects lower the price a little even $.50 will do
Pretty soon it will cost $200 a day for 1 park and $100 more to add no expire and another $100 for PHing.

Right now the analysts have Disney stock as a "sell" right now. They need to hear from Iger what changes they will make to get the stock back up to $30/share. I can't find where Iger spoke last week after the earnings report. I would bet more discounts are on the horizon.....gotta please the shareholders!

 

[DebbieB]

Not a 26% loss but 26% loss in profits. That's for the entire Disney company, not WDW. Theme parks are down 19%. They are still making a lot of money, they earned $954 million in the 3rd quarter vs $1.29 billion last year.

http://www.bloggingstocks.com/2009/07/31/disney-profit-drops-by-26/

http://www.marketwatch.com/story/disney-profit-slides-26-from-year-ago-gains-2009-07-30

 

[Chuck S]

And don't forget that a good chunk of "lost profit" is the fact that they no longer have ready buyer for packaged DVC Mortgages, which when sold were "instant" profit. That profit is now spread over several years.

 

[Maistre Gracey]

I don't understand raising ticket prices...
They basically give room & food away, yet squeeze a few more bucks for admission?? Seems odd to me.

MG

 

[Chuck S]

I don't understand raising ticket prices...
They basically give room & food away, yet squeeze a few more bucks for admission?? Seems odd to me.

MG

In a way it makes sense, but I agree it seems odd in this economy.

If people are still visiting the parks, but are not spending $$ to stay onsite or buy souvenirs, then they raise prices where they'll likely continue to make profit, admission.

But making sense from a business standpoint doesn't always mean it was the smart (or right) thing to do. We'll have to see if park attendance overall drops, too.

 

[CarolMN]

Moved from DVC-Mousecellaneous

 

[Goopy]

As much as Id love lower ticket prices I dont think it can be done without a serious headache. Remember when apple dropped the price of its Iphone and everyone who purchased it at a higher price went nuts.

Maybe im looking at it wrong maybe I should look at it like hotel prices that go up and down. Actually I had better not say it too loud or before we know it they will be offering discounts to people who goto the parks at non peak times. Actually it would probably be if you go at a non peak time youll get in for the current price and if you decide to go at a peak time you will pay extra for your ticket.

 

[mitros]

In a way it makes sense, but I agree it seems odd in this economy.

If people are still visiting the parks, but are not spending $$ to stay onsite or buy souvenirs, then they raise prices where they'll likely continue to make profit, admission.

But making sense from a business standpoint doesn't always mean it was the smart (or right) thing to do. We'll have to see if park attendance overall drops, too.

I see you bought into OKW/DVC back when we did, and we continue to go to WDW because of it's proximity to our home, and the fact that we have $$ already invested in the place. We have noticed that WDW is busier than ever. The parks, the resorts, the restaurants, all full to capacity, for the most part. That's why Disney raises the prices. People keep coming, and NOTHING stops that migration to the Florida property. We recall the "old" days back in the late 80's to mid-90's, when you could actually enjoy WDW without the belly-to-back situation that is there now. Oh yea, we also recall right after 9/11, how the property over-all was desolate. That lasted about a year, maybe 18 months, before things started climbing, and have never stopped................and never will. We all have to look towards working a lot harder at doing a WDW vacation, as opposed to kicking back and relaxing. A shame, really.

 

[Chuck S]

I see you bought into OKW/DVC back when we did, and we continue to go to WDW because of it's proximity to our home, and the fact that we have $$ already invested in the place. We have noticed that WDW is busier than ever. The parks, the resorts, the restaurants, all full to capacity, for the most part. That's why Disney raises the prices. People keep coming, and NOTHING stops that migration to the Florida property. We recall the "old" days back in the late 80's to mid-90's, when you could actually enjoy WDW without the belly-to-back situation that is there now. Oh yea, we also recall right after 9/11, how the property over-all was desolate. That lasted about a year, maybe 18 months, before things started climbing, and have never stopped................and never will. We all have to look towards working a lot harder at doing a WDW vacation, as opposed to kicking back and relaxing. A shame, really.

Yeah, but Disneyland was pretty much packed in the summers when I was a kid 40+ years ago...hour long waits for rides weren't uncommon. The good thing, though, was that with the old ticket books, if you didn't get on all the attractions you wanted to ride, you still had the tickets and only had to pay $3 general admission.

I found an old used Disneyland "Passport" from when the all day/all ride tickets were fairly new. 1983...$11...Adult Magic Kingdom Club discount

 

[mitros]

Walt Disney Co. has a 26 percent profit loss

So now they raise tickets prices so even more people can't afford it.
I know it's not a lot but hey, Disney wake up. Why not do something nobody expects lower the price a little even $.50 will do
Pretty soon it will cost $200 a day for 1 park and $100 more to add no expire and another $100 for PHing.

No, paults, people will continue to go to WDW in droves. The place is ALWAYS mobbed. Nothing seems to slow the masses from going. And ticket prices will NOT slow things down a bit.........Believe me, we see it all the time. The crowds, the mobs.................I speak from experience.

 

[lugnut33]

If people are still coming to the parks, but spending way less while inside the parks, then what is the best way to get more money from them? Ding Ding Ding, charge more to get in!!

 

[Mouseaholic!!!]

Parks were the bigger drag on profits this time around. Attendance was flat and no one was opening their wallets in the gift shops once they arrived.

I wonder if Bob Iger will be standng there on 12/31 waiting for his $38 million year-end bonus this year. Ok, ok.....silly question. Of COURSE he will!

 

[mitros]

Parks were the bigger drag on profits this time around. Attendance was flat and no one was opening their wallets in the gift shops once they arrived.

I wonder if Bob Iger will be standng there on 12/31 waiting for his $38 million year-end bonus this year. Ok, ok.....silly question. Of COURSE he will!

Ya' know, I often wonder, that even though guests are not spending money in the shops, I wonder if that is the only reason? Anyone that has been going to WDW for a long time will notice that the merchandise selection over the last few years, uh, let's see, how can I put this?.....Sucks!
Every store you go into has the exact same merchandise. Time was that the merchandise varied greatly from store-to-store, resort-to-resort, and theme park-to-theme park. Now, folks no longer have to go around shopping to each and every shop on property. Pretty much one stop at one location does it all. Same with the Disney stores. No thought goes into the merchandising at Disney any more.
And Bob Iger, well, never thought I would say this, but....Bring back Ei$ner! He at least ADDED stuff to the WDW property. Now, with Iger at the helm, Goose-egg! And you are right, he will STILL pull a huge bonu$ from the company till, even as the parks suffer, in many, many ways.

 

[eeyorepixie]

Ya' know, I often wonder, that even though guests are not spending money in the shops, I wonder if that is the only reason? Anyone that has been going to WDW for a long time will notice that the merchandise selection over the last few years, uh, let's see, how can I put this?.....Sucks!
Every store you go into has the exact same merchandise. Time was that the merchandise varied greatly from store-to-store, resort-to-resort, and theme park-to-theme park. Now, folks no longer have to go around shopping to each and every shop on property. Pretty much one stop at one location does it all. Same with the Disney stores. No thought goes into the merchandising at Disney any more.
And Bob Iger, well, never thought I would say this, but....Bring back Ei$ner! He at least ADDED stuff to the WDW property. Now, with Iger at the helm, Goose-egg! And you are right, he will STILL pull a huge bonu$ from the company till, even as the parks suffer, in many, many ways.

I totally agree with this, I only go in the shops once, because I know I will just about everything at once, no need to treasure hunt for that unique piece of disney anymore.

 

[disneymath]

Ya' know, I often wonder, that even though guests are not spending money in the shops, I wonder if that is the only reason? Anyone that has been going to WDW for a long time will notice that the merchandise selection over the last few years, uh, let's see, how can I put this?.....Sucks!

I have to agree ... my personal pet peeve is the t-shirts that are meant to look "vintage" by purposely having scraps missing from the screens. Give me a break!

ETA ... I just noticed this is post 407 for me ... gotta love that WDW area code!

 

[Mouseaholic!!!]

Ya' know, I often wonder, that even though guests are not spending money in the shops, I wonder if that is the only reason? Anyone that has been going to WDW for a long time will notice that the merchandise selection over the last few years, uh, let's see, how can I put this?.....Sucks!
Every store you go into has the exact same merchandise. Time was that the merchandise varied greatly from store-to-store, resort-to-resort, and theme park-to-theme park. Now, folks no longer have to go around shopping to each and every shop on property. Pretty much one stop at one location does it all. Same with the Disney stores. No thought goes into the merchandising at Disney any more.
And Bob Iger, well, never thought I would say this, but....Bring back Ei$ner! He at least ADDED stuff to the WDW property. Now, with Iger at the helm, Goose-egg! And you are right, he will STILL pull a huge bonu$ from the company till, even as the parks suffer, in many, many ways.

I agree 1,000% DH and I talk about this all the time.

Remember a few years ago when you WANTED to slip into shops because everything was different. I can remember visiting Gift Shops in the Resorts because of this....and BUYING! Remember the Golden Rule.....if you see something you like - buy it then....you might not make it back to that park and store later in the trip. Now it doesn't matter because what you see in Mousegear is the same in DTD and many times in the resorts.

Reality - if you buy 100,000 T-Shirts you will pay $X.....if you buy 750,000 T-Shirts you will probably pay $X less 45%....ah ha! Now drop the quality (guests will buy it anyway) and poof - big profits.

I remember about 6 years ago it was FREEZING during a WDW stay the first week in December. I was at the Boardwalk and bought a fuzzy Boardwalk sweatshirt for $35....toasty warm - still have it. The next year I almost fell down when I looked at the EXACT same fuzzy Boardwalk sweatshirt and the cost was now $65.

It's all about making the most and giving the least....corporate mentality. Bob Iger got his $38 million year end bonus in 2008 based on these principles and one week later fired 10% of Disney employees worldwide to cut costs. (.....and don't forget the second round of layoffs in March!)

 

[Chuck S]

I agree that the current merchandise selection isn't something to rave about (at least for my tastes.) It is like a pendulum, some visits I find more appealing things than I can possibly use, and other visits I come home with only one T-shirt. Styles change, and currently, tacky seems to be in style. And it isn't just WDW.