Originally Posted By Indigo Okay. So I've read most of the topics on Disney World's expected slash and burn policy in the new year (some of which is already in effect). If you don't like it, fine. What is your prescription for getting Disney through this 'rough patch' without losing the magic and turning off future business. You can state your own assumptions or work off these: you must cut 25% from current budget levels and any new expenditures over the next 18 months have to be justified with additional current cuts. So what would you tell Disney management to do?
Originally Posted By davewasbaloo I see what you are trying to do here Indigo, and indeed it is far better to be constructive. So I am happy to chime in here. However, with the lack of other data sources, I have to make a number of these ideas based on assumptions. However, I think Disney is best off not making cuts, but making the resort better quality to encourage people to come (showing it would be worth while to do so, there is value in coming on board). 1. I would look at the room rate utilisation and consolidate the capacity by closing some resorts for maintenance (and really maintaining but during the day shift only - negotiating long term contracts at a lower day rate to encourage procurement costs to reduce). e.g. If one resort has substantially lower bookings e.g. maybe Caribbean Beach, shut it and offer guests a room at other moderates or even bump them up to deluxe for the inconvenience. 2. I would perhaps consider getting rid of PM EMH and open the parks longer for all. By increasing demographic access, there are a greater number of covers that could be served in the table service restaurants. Also I would take 15% of the tables at all TS restaurants for walk up or at least same day reservations to bump up the potential additional revenue to the DDP users. In some of the deluxes, I would hike up the rates a little higher but also offer 5* quality service. I would offer a new luxurious magic service - Limo pickup with either the character of your choice, or gormet chocolates and champagne as an additional upcharge feature. I would start charging for Magical Express but at a lesser cost than any competitors and offer reduced rates for families. I would suspend fastpass altogether (reduce paper, ink, and maintenance costs). Although plan B if it takes too much flack is the existing service for Deluxe hotels, and one pass per day for moderates. If it were very tight, I would look to have a dark day per park, but only rolled out with enough time to tie on with Dining reservations to save on disappointment. I would introduce charging for parking at DTD unless validated with expenditures of $100 or more. But add more free entertainment to give something in return, as well as adding buses (for a charge) to the parks. I am sure I have more ideas, but my day rate is $3200 a day. Happy to cut Team Disney a deal.
Originally Posted By davewasbaloo A few other things though, I would be planning a masterplan of how capital investments could be used to maximise on the cheap labour and supplies in the building industry. Then share the masterplans with the public in a Bluesky studio to get them excited about the future again. I would also be very tempted to offer free AP's again for DVC purchases with a min number of points (I would need to look at the business case in detail), with Disney's own financing potential. I would partner with small cottage industries to sell their products sale or return suitable for their locations - Liberty Square and Frontierland for things like quilts, lace and leather products. I would approach the richer nations for special sponsorship deals in World Showcase.
Originally Posted By Indigo Davewasbaloo, great comments! Alas, I know Disney World management is facing greater pressure to cut costs than that. The forecast for attendance just isn't that great. I really like your last comment about partnering again with small cottage and 'boutique' American manufacturers to sell their wares inside the parks, where appropriately themed. This would add to the theming of those areas while relieving Disney of the costs of design and production of said items. I tend to agree with you that downturns in the economy are opportunities to engage in capital improvements with cheap labor. But Disney needs credit to do this and right now credit is hard to find, even for Disney. That may be the reason the behind the indefinite hold on project as much as anything. Someone in another thread mentioned closing one park a day during the week. Would you implement that and how?
Originally Posted By davewasbaloo Indeed if the situation was truly that dire, I think I would prefer a dark day at the park, provided the other parks maintain quality of live entertainment, maintenance and decent hours. I would look at the bookings moving forward, during peak periods keep all parks open, but during quiet periods, close each park on the quieter days. Even then, you could have a VIP experience on the closed parks where small groups are given personal tours of the parks (for a fee) where a small team of cast members take the group around the attractions (including backstage views) and a three course meal in the top restaurant of that park.
Originally Posted By nats 31 Treat the guest as if he was important part of the organization again. Keep the place clean. Give decent food at a decent price. In other words treat the guest like they used to be treated.
Originally Posted By Spirit of 74 All good (some great) ideas. First off, I don't for a second believe Disney needs to cut 25% from WDW budgets at all. But, regardless, I'd cut out a good third to 40% of WDW's marketing staff. There's incredible bloat there that is generally well paid and let's be blunt ... WDW markets itself largely ... this unit exists to justify its existence with marketing shame celebrations that take the place of substanitive reasons to visit. And all they do is recycle the past anyway. They can't even put out a new annual DVD without recycling footage that goes back almost 20 years. I guess either Disney has no access to folks who can shoot and edit new footage or it just shows you how important these marketing folks are. I'd then review and cut contracts with most if not all outside consulting firms. Do you know how many millions go out to everyone from outside accounting firms to former execs (a la Lee Cockerell) for telling Disney how to run (or misrun) it's business? Do you know how much could be save without negatively impacting guests and cast by saying 'Thanks, but we've been running theme parks successfully since 1955, we really don't need the advice ... you can always try WalMart?' I think right there we'd have met your 25% cuts without harming the magic ONE BIT. But still need more? OK ... travel budgets for execs? Slash them. There's no reason why Phil Holmes needs to go to Anaheim to see how much better DL is run when he isn't going to follow their lead. Those business class januts and hotel stays and meals on the Chase Visa add up. If Jay Rasulo wants globalization than let him learn about teleconferencing ... I believe those have been done for almost two decades now. Do you think we've hit 25% yet. I sure do. And no park cuts. Not CM layoffs. No removing prime rib from buffets while increasing prices. No cutting anything. Still need more cuts? Here's one ... take all DVC salespeople and make their positions strictly commission. If it's such a great product that sells itself, Disney shouldn't need to pay salaries to those folks ... oh and it goes without saying that DVC marketing budgets get slashed. I am sensing tens of millions in savings here if not more ... We could also show how much we value our CMs by eliminating annual exec bonuses until the economy turns around ... after all if full-time CMs can work 30 hours a week, why give millions in bonuses? See ... this is very easy!
Originally Posted By RoadTrip Spirit, you had me (somewhat) until you said <<Here's one ... take all DVC salespeople and make their positions strictly commission. If it's such a great product that sells itself, Disney shouldn't need to pay salaries to those folks>> Great. Then you get the high-pressure garbage like you get at other timeshare presentations. One of the reasons we bought is that we were so impressed at the lack of pressure to close while we were there. I told the DVC rep that I was not going to spoil my vacation by trying to make such a major decision on the spot. I was so impressed when he said no problem, and in fact added that if I decided to buy within the first 30 days after returning home I would still get the incentive that people buying on vacation get. But heck... I do appreciate that you kept the inevitable slam at DVC very subtle. I would advise cutting back on the number of salespeople, not taking away the non-commission compensation of all. They are probably overstaffed and could take a cut. I just wouldn’t want to take away one of the primary things that made DVC so different from the other timeshares.
Originally Posted By RoadTrip Dave... you certainly are an enigma. A guy who works in human services who sounds like an elitist. ;-) I'm not sure your ideas would work. You seen to be trying to add a very high-end experience and I just don't believe the market exists. At least in the U.S. when you move into upper income groups people generally kind of roll their eyes and look down their noses when you mention that you enjoy the Disney Parks. We've been asked by some of the hoity toities "Oh... you're STILL doing that Disney stuff?" Even Vegas is seen as a far more acceptable high-end vacation than WDW.
Originally Posted By bobbelee9 Dave, before you start your new job, can you go to WDW and give them a crash course? Please! I like your ideas. I totally agree with Spirit too. You guys are thinkers. Now we need some action people to follow through.
Originally Posted By MPierce >> I would partner with small cottage industries to sell their products sale or return suitable for their locations - Liberty Square and Frontierland for things like quilts, lace and leather products. I would approach the richer nations for special sponsorship deals in World Showcase. << That's a brillant idea Dave. Why didn't someome at WDW figure that out.
Originally Posted By MPierce I love all of your cost cutting ideas Spirit, but some how I don't think they will be implemented. This just happens to be my favorite one. >> We could also show how much we value our CMs by eliminating annual exec bonuses until the economy turns around ... after all if full-time CMs can work 30 hours a week, why give millions in bonuses? << Why punish your loyal CM's while the executives still live a very comfortable life.
Originally Posted By -em I think the major thing is what Spirit hinted at is re-examine where the money goes- and cut it from the fat and not whats already skinny- Expense budgets for almost ALL mgmt and depts needs to disappear or be reevaluated down to the basics- I dont think fun and things should be forgot but there is a HUGE difference between a 30 dollar deli tray for 10 people vs a 100 bucks a person lunch for 10 people... I would take a big bet that you would generate a LOT more than you'd think.. One major mentality I see is the "its from a different budget" so I can "justify" $$$ (or in some cases $$$$$$) whereas I look at it- it may be in a different category in the end there is only ONE balance sheet... As for long term I would stear the company into trying to retain their people instead of having the revolving door they currently do. While you may not see the $$ up front- it would show itself soon as you would spend less on training and trainers. Along with having less loss (whether it be time, money, products etc) due to new people errors and less loss due to poor morale...
Originally Posted By -em >>Why punish your loyal CM's while the executives still live a very comfortable life.<< Cause sometimes you need to turn off the escalators to afford that 32 inch plasma for a room that will prob never get used... Dang I think Im hitting to close to home right now...
Originally Posted By davewasbaloo Em - you are spot on. But cutting the attrition rates of cast saves far more. I would look at bonusing cast members that get compliments and coming up with new realistic ways to plus the experience. And Trippy, the deluxes already exist, I am looking at better ways to fill the room rosta. At DLP, there are a huge number of people who pay the rediculous rate of $1200 for a castle club room because they have a free unlimited use fastpass (many working class). Make them worth while and fill them up. As for the limo, it is another service at a very low cost - and aims at honeymoons, weddings etc. The beauty about WDW is they can offer a taste of luxury to the family groups. Also the groups that go for these experiences will spend more. They offer incentives to major Disney fans with no new attractions to offer, the lack of capital projects can be bolstered in this way.
Originally Posted By SuperDry Regarding being elitist and offering high-end experiences, there's at least a certain set of people that would be willing to pay more to get more, and often in the context of something that's a high-end experience. And, in the context of this thread, the reason people are suggesting these high-end experiences is not to cater to the high-end guest because they deserve it, but as ways to increase revenue to the resort for everyone's benefit. If Disney could come up with some high-end experiences that most guests could not afford but would bring in the money, and as a result for example not have to cut back attraction maintenance such that effects remain broken for months at a time, I'm all for it.
Originally Posted By CarolinaDisneyDad >>> If Disney could come up with some high-end experiences that most guests could not afford but would bring in the money, and as a result for example not have to cut back attraction maintenance such that effects remain broken for months at a time, I'm all for it.<<<...................................................................................................................................Me too. I could never afford it but if big money people want these services at the deluxes then why not. Dave isn't asking for anything he wouldn't want to use himself. The more they get out that clientelle the less they will ahve to squeeze out of me. (hopefully)..........................................................................................................................As for my personal preferences, I fall more in line with the Spirit. Cutting labor initially looks good, but the price for it is paid in the long term. I have always thought it was funny that when Home Depot and Lowe's open new stores they flood them with associates to build the business and then afterwards cut it to the bone even though they knew initially they needed more people for good customer service. Trim the fat not the muscle!
Originally Posted By barboy OK davewasbaloo you're first: ///closing some resorts/// yes, that is a must. ///closing some resorts for maintenance/// no, that is unnecessary. If the rooms are out of commission don't waste precious money on them. Channel the money to the parks instead since that is WDW's 'bread and butter'. ///getting rid of PM EMH and open the parks longer for all./// What is PM? And longer hrs. don't significantly get more guests to come. Most don't care or at the very least don't let shorter hrs. affect their decision to show up or not. Remember guests(**genereally**) unlike at the other 4 destinations are on vacation and they view time differently than the single day visitor. Hrs. should be shaved off to save on operating costs. Give it a US Marine cut I say when times turn noticeably worse. ///I would take 15% of the tables at all TS restaurants/// what are TS restaurants? Well how about 25% off of all eats(25% off the sitdowns only if WDW is seeing too many empty tables.) ///In some of the deluxes, I would hike up the rates a little higher but also offer 5* quality service./// In recession that will scare even more away. ///a new luxurious magic service - Limo pickup with either the character of your choice, or gormet chocolates and champagne as an additional upcharge feature./// in recession you would suggest luxury? Do I really have to say this.....the days of Porshe, cosmetic surgery and caviar are over for the foreseeable future. dave, there is no market. It looks like you are telling Disney(and us) your personal or pet wishes to enhance your idea of a better vacation rather than what is overall financially more prudent for them. Wal Mart, Bankruptcy lawyers, auto maintenance, local liquor stores, tenured public sector personnel and gun makers/dealers thrive most everyone else does not in these days. ///I would start charging for Magical Express but at a lesser cost than any competitors and offer reduced rates for families./// Looks like a trade off--- maybe... it might help.....this one I'm not too sure about--- an interesting angle. ///I would suspend fastpass altogether (reduce paper, ink, and maintenance costs). Although plan B if it takes too much flack is the existing service for Deluxe hotels, and one pass per day for moderates./// Every little bit helps I guess. ///If it were very tight, I would look to have a dark day per park, but only rolled out with enough time to tie on with Dining reservations to save on disappointment./// Good point because night entertainment is a must. ///I would introduce charging for parking at DTD unless validated with expenditures of $100 or more./// That would discourage shoppers and diners. ///free entertainment to give something in return/// Unless it is a reputable act I doubt anybody would show up and big names cost too much. Nobody is going to Downtown Disney to see a juggler, a one man band or a street magician--- that type of entertainment works best as a diversion in the would be spender's outing. If Maroon 5 or Weezer plays that will get guests to crash DTD but I'm sure they aren't cheap.
Originally Posted By FerretAfros "What is PM?" I think it's PM for evening/night time extra magic hours. And I would agree that the situation that creates is just generally a little messy all around. It's easy to do in the morning, but just a little silly at night, when they have to kick out the commoners. "what are TS restaurants?" I was wondering the same thing, but I think it just came to me: table seating? As opposed to counter-service? I don't really know, but I think it refers to sit-down places, not a park or hotel, like I was originally thinking...
