Originally Posted By Spirit of 74 The following story appeared after a Disney press release came out Christmas week suggesting that Disney's theme parks were doing gangbuster business. Apparently, with newspapers dying it wasn't surprising that someone picked it up and ran a story utilizing parts of a story the AP ran on TDL mixed with the release. I kinda think it's a very entertaining read because the story is pushing an agenda while well ... you see if there's something missing in the story. Here it is: <<Mickey Mouse thriving despite financial crisis Birmingham Star Friday 26th December, 2008 While other major corporations are struggling to stay afloat, The Walt Disney Company is booming. Whether its because more people have more leisure time due to lay-offs or its simply a matter of more people looking for an escape from their everyday troubles, demand for Disney products, particularly attendances at its theme parks around the world is rocketing. In Japan, Tokyo Disneyland, the country's busiest theme park, attendances over the Christmas New Year period are reaching record levels. 'Here, recession seems a world away,' visitor Namie Katsunuma told The Japan Times as she munched on a bowl of caramel popcorn. 'This is the only place where I can totally forget the economic worries and hardship of my life.' The single mother's salary at an auto dismantling factory was cut in November but, with her 45,000 yen yearly pass in hand, she makes the 95 kilometre trek from her home to Tokyo Disneyland every couple of months. The park's operator, Oriental Land Co., estimates a record 26.5 million people will visit Tokyo Disneyland and its nearby sister park, DisneySea, during the fiscal year ending in March 2009. The company expects record sales of 375 billion yen, up almost 10%. 'In a way, the slumping economy works well for Tokyo Disneyland,' said Hiroshi Watanabe, an economist at Tokyo-based Daiwa Research Institute. 'Because of the recession, people have stopped buying cars and houses or going to Hawaii, and Tokyo Disneyland offers an affordable and pleasant alternative.' Around the world, Disney's theme parks have been a bright spot for the brand this year as people seem to look for an escape from bad times. Consumer confidence is the lowest the company had seen in more than three decades, The Walt Disney Co.'s chief executive told analysts last month. Even so, revenue from parks and resorts worldwide was up 8% for the year, to $11.5 billion, according to the company's fourth-quarter earnings report. Disney's park in Paris is doing a brisk business as well. 'The Christmas season at Disneyland Paris is very popular,' said Stephanie Cocquet, a spokeswoman for Disneyland Paris. But she added, 'We don't consider that we are immune from the (economic) crisis.' Because her company is publicly traded in Paris, park projections will not be made public before its next earnings release on Jan. 29, she said. Tokyo Disneyland was the first Disneyland outside the United States when it opened on the outskirts of Tokyo in 1983. It is the world's third most successful theme park, after the Magic Kingdom in Florida and Disneyland in California, according to an annual ranking by the U.S.-based Themed Entertainment Association and Economics Research Associates. Tomonori Tanaka, a 32-year-old computer engineer, and his girlfriend chose Tokyo Disneyland over a weekend at a hot spring resort. 'It's much cheaper to come here,' he told The Japan Times. 'Even though Tokyo Disneyland is only 15 minutes from Tokyo, we feel like we are making a big trip because the place seems so detached from reality.' His girlfriend, Hatsue Ishizuka, did say she will buy fewer Disney souvenirs. 'I love Mickey. But I need to save money right now,' the 30-year-old office worker said as she looked at a giant glittering Christmas tree and Disney characters dressed as Santa Claus. The Walt Disney Company earlier this month declared an annual cash dividend of $0.35 per share, payable on January 20, 2009. The January dividend payment represents the 53rd consecutive year of dividend payments to shareholders. 'Despite a steadily weakening economy, we delivered a very solid performance for our 2008 fiscal year,' Robert A. Iger, president and CEO said in a statement. 'Record earnings per share coupled with prudent financial management have put Disney in the good position of being able to return capital to our shareholders even as we invest for future growth.'>>
Originally Posted By FerretAfros Well, given that Disney parks in general are cheaper than a fancy weekend escape, or even some nights on the town, I'm not surprised to see this at all. Sure, the parks probably aren't doing their absolute best ever, but I honestly don't think they're hurting nearly as much as many other forms of entertainment.
Originally Posted By Mr X ***Well, given that Disney parks in general are cheaper than a fancy weekend escape, or even some nights on the town*** Can't say as I'd agree with this these days, at least regarding WDW. It cost us over a hundred bucks for a one day hopper for a THREE year old last December. Figure that price for a family of four (assuming everyone isn't three years old), and I can certainly come up with some weekend jaunts to great places that wouldn't amount to $500+.
Originally Posted By davewasbaloo I can confirm that Paris is doing amazingly. Virtually every saturday this month they had to close the gates (even to on site guests) and they sent AP holders suggestions to avoid the weekend or arrive after 6pm. But I do wonder if Tokyo is indeed the 3rd highest attended (I wonder if Disney are fiddling numbers to make MK look better).
Originally Posted By davewasbaloo and agreed, if a Disney park is nearby, it can be cheaper than many other luxury jaunts. Ironically the Alton Towers resort here in the UK (think a pretty version of 6 Flags) actually costs us more than a trip to a Disney resort (excluding transport costs).
Originally Posted By Mr X ***But I do wonder if Tokyo is indeed the 3rd highest attended (I wonder if Disney are fiddling numbers to make MK look better).*** TDL was the most visited theme park in the world at least one year if not more...I believe their attendance record was 18 million patrons.
Originally Posted By Mr X ***and agreed, if a Disney park is nearby, it can be cheaper than many other luxury jaunts. Ironically the Alton Towers resort here in the UK (think a pretty version of 6 Flags) actually costs us more than a trip to a Disney resort (excluding transport costs).*** But it's not luxury Dave. Not by a long shot. That's the thing. Some folks say "hey, $500 for tickets for the day is a lot cheaper than Aspen" or something along those lines, but I think that line of thinking tends to neglect the fact that we're talking about a day in an amusement park here. Looking back historically, it is certainly more expensive than ever for that particular TYPE of entertainment. (I expect to pay top dollar for a ski weekend in Aspen, that goes without saying) Granted, Disney is not exclusive in that regard, and your comment about Alton Towers is well taken. Here in Japan too, tickets for amusement type places are getting out of hand. In general, getting into Amusement Parks for the family is far more pricey than in years past, and the funny thing now is that we are actually COMPARING them to luxury excursions at all (particularly ironic considering the genesis of such places...alternatives for the unwashed masses that they have always been lol).
Originally Posted By davewasbaloo Yes and no. For Christmas, Sarah gave me a day at a spa for the both of us to include a full body message and one other treatment. It is a luxury place and will include lunch as well. She reassured me, it was cheaper than 2 adult tickets into DLP. Also, I stay in some places for work and vacation sometimes. Ironically, a night in the Waldorf, Ritz or other high class hotel is often cheaper than a night in the Grand Californian or Floridian or the Disneyland Hotel in Paris. Heck, we are staying in a 5* Marriott Villa in Spain in February for 7 nights for the cost of a couple of nights in a WDW moderate. Disney parks are luxuries to a degree, in the same way as big ticket concerts or playoffs in sports.
Originally Posted By Mr X But, aren't Disney parks about the same price as SeaWorld or Universal? I don't see the luxury angle you seem to, I guess. Yes, I can understand on the hotel side (though as we discussed they are overly pricey for what you get as far as I'm concerned...great theming notwithstanding), but for a park admission? I'd be interested to see if someone could apply the "Big Mac Index" to amusement parks these days and see where they stack up pricewise in comparison to sports events or big concerts or other stuff in years past (granted, things aren't as cheap as they used to be...but the relative price structure definitely interests me).
Originally Posted By Mr X All I know for sure is, 10 years ago an adult ticket was around 40 bucks. And as of late last year a ticket for a baby cost 150% more than that. I don't know if that's normal in terms of inflation or not..but it was certainly sticker shock for us. AND, compared even to other Disney parks we've been to, it seemed excessive. It all comes down to some of the complaints you've made, Dave...whether or not WDW is really delivering the goods they are charging for. As for now, it seems as if they are taking their "flagship" status a tad too seriously.
Originally Posted By SuperDry <<< All I know for sure is, 10 years ago an adult ticket was around 40 bucks. And as of late last year a ticket for a baby cost 150% more than that. >>> I think that WDW is unique in the Disney pricing sphere in that it has by far the fewest number of people buying a single-day ticket. I just don't think they expect very many people to buy one (although like you, I've been in a position in the past where I've done so). Rather, the pricing scheme is designed to encourage longer visits, such as by pointing out the *tremendous value* of a multi-day stay . Even though I don't go all that often, the way I worked around it was by buying a 10-day parkhopper with no expiration date. That made my daily rate $42, and I still have a day or two left. I think if you were doing some sort of comparison, you'd have to compare WDW ticket prices for an average stay, not just a day visit.
Originally Posted By SuperDry One problem with the original story is that Disney financials are available only through the end of September, the last complete quarter. Major changes in the stock market, financial sector, and economy as a whole have happened since then, and are not yet reflected in the numbers. When the article said that the "fourth quarter" had done very well, they were referring to Disney's 4th fiscal quarter, which ended in September, and not the fourth quarter of the calendar year, although this was far from obvious. I think when the 1st and 2nd quarter results are available, we'll have some real news to talk about.
Originally Posted By Spirit of 74 >>you see if there's something missing in the story.<< <<America?>> DING-DING-DING-DING!!! We have a winner. This is a story put out on the PR wire by BURBANK. It gets picked up and run with by a newspaper in ALABAMA (which is WDW territory all the way ... let's not even suggest TDL and DLP are on radar there ... hell, for the most part, DL isn't either). Yet, this story in the heartland of where WDW pulls its business from appears ... and to the average person it makes it seem as though ALL Disney parks (and again, to most folks in Alabama that means WDW and WDW only) are doing gangbuster business and the recession/depression isn't hurting them at all. Very slimey. Now, of course, ultimately you must point to the newspaper that printed the story and added the header/top ... but still there was no legit reason for Disney PR to put the release out to begin with. TWDC doesn't own even one percent of the TDR and the fact they are breaking records, while wonderful and likely a testament to the quality there, means nothing to what's happening in the USA. DLP might matter a smidge. But there's nothing at all about the domestic parks ... so again, the release sounds disingenuous and placed out there to make people believe things are rosey on the P&R front ... they aren't.
Originally Posted By MPierce They forgot to mention the declining value of Disney stock. They forgot to mention the cuts taking place in customer service. They forgot to mention the massive cut back on CM's hours, and future layoffs. They forgot to mention Disney's own projection of shrinking attendance in 2009. They forgot to mention the merchandise price cuts by as much as 50%. They forgot to mention the buy 4 get 3 plus a $200 gift certificate promotion for the first half of the coming year. They forgot to mention the park hours cut back. They forgot to mention the plan on the table to close certain resorts from time to time. They forgot to mention so many future plans being put on hold. I just can't seem to see the SPIN you claim to see Spirit. Maybe this was an internationaly syndicated paper in Alabama?
Originally Posted By SuperDry <<< TWDC doesn't own even one percent of the TDR and the fact they are breaking records, while wonderful and likely a testament to the quality there, means nothing to what's happening in the USA. >>> And, TDR is the only resort that TWDC doesn't manage. TWDC owns 100% of the domestic resorts and manages them. Although TWDC owns a minority interest in the Paris and Hong Kong resorts, they have the management contract for those resorts, so they handle 100% of the management responsibilities (even though many locals are hired in management roles).
Originally Posted By Mr X ***Even though I don't go all that often, the way I worked around it was by buying a 10-day parkhopper with no expiration date. That made my daily rate $42, and I still have a day or two left. I think if you were doing some sort of comparison, you'd have to compare WDW ticket prices for an average stay, not just a day visit.*** Well, that certainly does change things somewhat and I admit I forgot how deeply they discount the tickets the longer you stay... That was smart of you to shell out the $400, we probably should've done the same for the little one (we'll use em eventually I suppose). And yes, I've never before purchased a one day so it was a shocker (that's quite the norm in Tokyo). Before it has always been friends letting us in, an AP from time to time, or as WDW usual a parkhopper for length of stay. The reason for the ONE ticket for the baby was because my cousins were letting us in on their maingate pass but due to so many in our party we were one free ticket short...so we really can't complain about the TOTAL admission price that day anyway lol.
Originally Posted By Spirit of 74 <<All I know for sure is, 10 years ago an adult ticket was around 40 bucks. And as of late last year a ticket for a baby cost 150% more than that.>> Was it really that low? I admit I don't pay all that much attention to the cost of a one day because ... well, I never buy 'em. But I thought WDW had already crossed the $50 barrier before Y2K (could be wrong though ...and am sure there is some historical chart online somewhere that I don't feel like looking up now while typing and watching NFL!) <<I don't know if that's normal in terms of inflation or not..but it was certainly sticker shock for us. AND, compared even to other Disney parks we've been to, it seemed excessive.>> Excessive is a word that I think aptly describes many things Disney-related. <<It all comes down to some of the complaints you've made, Dave...whether or not WDW is really delivering the goods they are charging for. As for now, it seems as if they are taking their "flagship" status a tad too seriously.>> Ya think? ;-) Look even today I can make a very healthy argument as to why Disney is worth every penny of what it charges, but that's largely because I am a damn fine debater (slaps self on spiritual ass now!) not so much because I actually believe it. A premium brand should command premium prices. A premium brand, however, doesn't massively WalMart its product while touting that not only is it great, but that it is more magical than ever. I just hate lies ...
Originally Posted By Spirit of 74 <<They forgot to mention the declining value of Disney stock.>> What decline? So what if it was $36 in fall 2007 and it's what? $21 now? But I heard a top analyst on CNBC downgrade the stock earlier this week, in part because of concerns about WDW. I wonder if this was some half-assed response. <<They forgot to mention the cuts taking place in customer service.>> What cuts? Disney never cuts anything. They always are striving to exceed guest expectations ... well, unless guests expect things like rooms that are clean, parks that are maintained and fresh, quality food at only a resonable markup, CMs who give a damn and are paid enough to do so ... <<They forgot to mention the massive cut back on CM's hours, and future layoffs.>> I have no idea what you are talking about. It's a Sunday in Texas and you obviously are slap happy from the mixture of egg nog, Busch and moonshine. <<They forgot to mention Disney's own projection of shrinking attendance in 2009.>> You know you can never rely on projections. They aren't scientific like when a consultant says 'don't clean the carpet and you'll save $6.3 million a year ... oh and please spell my name right when you write out that check for $1.2 million. Thanks.' <<They forgot to mention the merchandise price cuts by as much as 50%.>> That's because Disney ALWAYS cuts merchandise by half off in EVERY store before Christmas. Where have you been? Sea World? <<They forgot to mention the buy 4 get 3 plus a $200 gift certificate promotion for the first half of the coming year.>> That's because guests have been so good to Disney that Rasulo and Staggs just want to give something back to the people. What's wrong? Don't you have any holiday spirit? <<They forgot to mention the park hours cut back.>> Seasonal adjustments on parks hours are made on a regular basis based on projected attendance and a wide range of factors, including holidays, school breaks and travel patterns. There is no such thing as 'hour cuts.' << They forgot to mention the plan on the table to close certain resorts from time to time.>> There is no proof such a plan exists. You can't believe anything you read on an 'unofficial' fan web site until a representative of TWDC officially makes a comment. <<They forgot to mention so many future plans being put on hold.>> Again, what plans? When TWDC has plans to announce we do so through official means, usually involving media announcements/events/junkets where free food and booze (and toys) are handed off to whoever we can get to visit (these days mostly oddball webmasters) for these staged/choreographed activities. Just because someone claims to know about 'plans' doesn't mean they exist and even if they do our official comment on them would and will always be 'We have nothing to announce at this time.' <<I just can't seem to see the SPIN you claim to see Spirit.>> Neither can I. This Spirit dude is seriously whacked. I can't see how anyone in TWDC could ever take him seriously at all! ;-) <<Maybe this was an internationaly syndicated paper in Alabama?>> Yeah. I am sure that is the case! Boy, I am having fun right now ... Fins 24, Jets 17.
Originally Posted By Spirit of 74 <<< TWDC doesn't own even one percent of the TDR and the fact they are breaking records, while wonderful and likely a testament to the quality there, means nothing to what's happening in the USA. >>> <<And, TDR is the only resort that TWDC doesn't manage.>> Yeah. Yet most of the press release and the story focuses on TDR. Strange ain't it? Why would anyone in the USA (outside of a very few Disney geeks and maybe some consultants) care how TDR is doing? Oh yeah, they wouldn't. <<TWDC owns 100% of the domestic resorts and manages them.>> Yeah, they sure do. And neither WDW nor DL are setting any records in 2008 (cancellations and discounts nonwithstanding). But that wouldn't make a very good press release, would it? <<Although TWDC owns a minority interest in the Paris and Hong Kong resorts, they have the management contract for those resorts, so they handle 100% of the management responsibilities (even though many locals are hired in management roles).>> True. And strange how Paris, which has done well recently, was mentioned but not HKDL too. It just seems like there was some agenda behind releasing this, even if it was buried Christmas week.
