What is going on with Disney parks?

[Mikey15]

I stand by my comments that the direction they've taken over the last 5 years is going to hurt them greatly the next time the economy take a downturn. They're going to have offer very steep discounts when it does happen.

Isn’t that the case regardless of their policy decisions & direction?

They’re going to hurt the next time the economy takes a downturn. They’re going to have to make steep discounts. Just like 11 years ago. That’s because nonessential spending is the first to go.

 

[mvk]

the point was, they had retention, and theyve ran some of those people off. I still believe there is a disconnect between some long time customers and the company.

there is a bubble to everything.

I stand by my comments that the direction they've taken over the last 5 years is going to hurt them greatly the next time the economy take a downturn. They're going to have offer very steep discounts when it does happen.

So, just like every other downturn then?

 

[ChipnDale79]

So, just like every other downturn then?

I don't honestly know, my thoughts are they've cut so many things, added so many parties, and increased the price on everything, that the next time it happens, it'll be really bad for them.

2008 was bad, we got a $500 gift card and a buy 4 get 3 nights free. I would suspect the discounts will be something similar or even more considering the rate of price increases.

 

[SoarinSC]

Seems like this whole thread is much ado about nothing considering the recent earnings call. People are (still) coming in droves, staying at the resorts (moreso than usual), and spending tons (upon tons) of money.

This was my experience last month. It's technically "off-season", but the parks seemed plenty crowded to me. I think all the hubbub about people finally having had it with Disney were overblown in hindsight. It seems it simply was a matter of waiting for Rise to open where Galaxy's Edge is concerned. I saw healthy crowds at all the parks we visited during our trip, as well as, Disney Springs.

 

[luvthatmouseinohio]

A Topic for another day but I'd give anything to go back to getting FP's in the park the SAME day I'm there. I was always the runner, it worked great. And giving away a few FP's once in awhile was always a moment

Those were definitely the good ole days!

 

[tink2424]

You can go to a park and just wing it. You're just not getting the dinner seating you want or you're just waiting on line longer.

It doesn't take an ultra planner to book some ADR 180 days in advance and then tweak them as your plan changes. I shuffle around ADRs not just on the same day but to different days all the way up to the day before the reservation.

Yes, technically you can go and not plan but as you mentioned you aren't doing anything or very little. So this argument really doesn't make any sense. There really should be a better way and there is evidence that Disney agrees since DW is the ONLY park that you have to plan everything so far in advance.

 

[Brianstl]

Seems like this whole thread is much ado about nothing considering the recent earnings call. People are (still) coming in droves, staying at the resorts (moreso than usual), and spending tons (upon tons) of money.

Room occupancy was down compared to a year ago.

 

[Brianstl]

Park attendance was up 6% this past quarter. It’s not directly related but there’s a pretty close relationship between the two.

Actually it wasn't. Paid attendance was flat. Admissions revenue was up the same percentage as the percentage increase in average ticket prices.

 

[tink2424]

This was my experience last month. It's technically "off-season", but the parks seemed plenty crowded to me. I think all the hubbub about people finally having had it with Disney were overblown in hindsight. It seems it simply was a matter of waiting for Rise to open where Galaxy's Edge is concerned. I saw healthy crowds at all the parks we visited during our trip, as well as, Disney Springs.

This is all true that the parks are crowded but where is the "Disney experience?" I don't think the parks are as able to capture the magic with how many people are going and how over planned everything is these days. I realize this is subjective and depends on the person but I would rather get my Disney fix from some of the other parks in the meantime. I think overall Disney is alienating certain fans and to bring them back after a downturn is going to be harder.

 

[mvk]

Actually it wasn't. Paid attendance was flat. Admissions revenue was up the same percentage as the percentage increase in average ticket prices.

I don’t think Disney is in the business of lying to investors on the earnings calls, but good for you if you think they are.

 

[Brianstl]

I don’t think Disney is in the business of lying to investors on the earnings calls, but good for you if you think they are.

My information comes directly from the Form 10-Q Disney filed with the SEC when they released their earnings report. Park admissions, not attendance, was up 6.9%. Admissions is the money generated by ticket sales. It is not attendance. Attendance was up 2%. A footnote in the report states that the increase in admissions was directly tied to a 7% increase in average ticket prices. That means paid attendance was flat.

Good for you believing everything you think you hear.

Link to the report.

https://otp.tools.investis.com/clie...gId=13885927&Cik=0001744489&Type=PDF&hasPdf=1

 

[Searc]

AP prices were increased AGAIN overnight.

 

[Searc]

Let me amend that to say, most ticket prices and hoppers were increased overnight. I expect food increases across the board shortly.

 

[nmcclellan]

A Topic for another day but I'd give anything to go back to getting FP's in the park the SAME day I'm there. I was always the runner, it worked great. And giving away a few FP's once in awhile was always a moment

I totally agree with you! It was so much easier!

 

[Moliphino]

Those were definitely the good ole days!

Nooo, that was the worst! It's wonderful not having to get to the parks at rope drop for a decent fastpass.

 

[Brianstl]

Let me amend that to say, most ticket prices and hoppers were increased overnight. I expect food increases across the board shortly.

It really looks like Disney has decided attendance no longer really matters for them when it comes to increasing revenues and profits. The strategy is to raise prices until they find a sweet spot where stagnating or declining attendance is made up for and surpassed by increased margins on tickets, food & beverage, merchandise, etc.. Then when they experience significant push pack, slow down on the price increases. Park attendance has been basically flat over the last five quarters, but dramatic increases in per guest spending have been able to propel profits forward at a really healthy pace. Disney hasn't really thinned the herd to this point, but they have stopped it from growing.

The strategy has been successful so far, enough of their target market has been willing to accept the price increases. That said, I have to believe they were expecting a bigger bump in revenue from SWGE in the first quarter of 2020. I think Disney is being rather risky with this round of aggressive price increases this late into the economic cycle. An economic downturn is really going to whack them with these prices.

 

[ChipnDale79]

It really looks like Disney has decided attendance no longer really matters for them when it comes to increasing revenues and profits. The strategy is to raise prices until they find a sweet spot where stagnating or declining attendance is made up for and surpassed by increased margins on tickets, food & beverage, merchandise, etc.. Then when they experience significant push pack, slow down on the price increases. Park attendance has been basically flat over the last five quarters, but dramatic increases in per guest spending have been able to propel profits forward at a really healthy pace. Disney hasn't really thinned the herd to this point, but they have stopped it from growing.

The strategy has been successful so far, enough of their target market has been willing to accept the price increases. That said, I have to believe they were expecting a bigger bump in revenue from SWGE in the first quarter of 2020. I think Disney is being rather risky with this round of aggressive price increases this late into the economic cycle. An economic downturn is really going to whack them with these prices.

I'm glad we didnt purchase DVC years ago, too many increases across the board for us to be locked in long term to Disney.

We did 5 trips to disney in a 12 month period in 18-19, 4 of those trips were in a disney hotel. The AP price increase is a $1400 increase for my family of 4, so they'll just lose out on us.

 

[SaintsManiac]

They do another price hike while a park is basically a construction site. It’s insanity.

 

[ChipnDale79]

They do another price hike while a park is basically a construction site. It’s insanity.

the only way to stop it is by people not going, going less frequent.

too many people toss money at disney like its candy, its like a drug to some people.

 

[SoarinSC]

This is all true that the parks are crowded but where is the "Disney experience?" I don't think the parks are as able to capture the magic with how many people are going and how over planned everything is these days. I realize this is subjective and depends on the person but I would rather get my Disney fix from some of the other parks in the meantime. I think overall Disney is alienating certain fans and to bring them back after a downturn is going to be harder.

I've had my internal battles with the same concerns over the last couple of years, but this last trip I was somehow able to let a lot of that go and just have fun. I'm not saying you or anyone is wrong for having those concerns tho.