Originally Posted By hopemax <a href="http://www.orlandosentinel.com/the-daily-disney/os-disney-priceline-20101027,0,6830788.story" target="_blank">http://www.orlandosentinel.com...88.story</a> "Disney hotel rooms will become a part of Priceline's inventory in mid-November, though the rooms will be available only through the site's conventional booking engine — not its "Name Your Own Price" service." "Disney shunned Priceline at least in part because of internal concerns that making its hotel rooms available through the site would undercut the premium-brand image that allows it to command higher rates than competing hotel operators. But now the giant resort is grappling with falling occupancy across its roughly 25,000 hotel rooms and time-share suites; average occupancy in Disney hotels fell 8.8 percent from a year ago to 83 percent during the company's fiscal third quarter, which ended July 3."
Originally Posted By EPCOT Explorer >>>erage occupancy in Disney hotels fell 8.8 percent from a year ago to 83 percent during the company's fiscal third quarter, which ended July 3.<<<< But let's build more while we are at it. And maybe this is the new way for the Weatherman to discount? Oh wait, thought those were over!
Originally Posted By vbdad55 Is there another hotel chain anywhere even close to approaching 83% ? highly doubtful. I think it may be time to close some aging facilities rather than rehab
Originally Posted By EPCOT Explorer I'm not interested in other companies...LOL. And I would agree with closing some...
Originally Posted By SuperDry Closing some facilities might increase the occupancy of those that remain open, but that may not grow earnings at the desired target, which is what the real issue is. Also, closing facilities may not save as much money as you might think. I would estimate that a lot of the money spent on operating the resorts is already directly variable to the number of guests and is easily adjustable on a daily basis: housekeeping, guest room energy use, front desk staff, etc. What I mean is that if a hotel is at 80% occupancy on a particular night, that doesn't mean that 20% of the housekeepers are sitting there doing nothing, or that each housekeeper has 20% fewer rooms to clean. Rather, they almost certainly bring in 20% fewer housekeepers that day.
Originally Posted By vbdad55 ^^^ true- however there is everyday maintenance and repairs to the facilities, and as they age those rise exponentially. Also scheduled refurbs are pure capital costs. Even if you dial down the thermostat it still costs you to cool the room to any degree. Hallways have to be cleaned- even emptry rooms cannot be allowed to sit and gather dust and whatever else. Treatments for insects -etc.. they would be more than negligible savings
