Results 1 to 6 of 6

Thread: If you thought higher prices were deterring people...

  1. #1
    he's right
    Join Date
    Apr 2011
    Location
    The People's Republic of Ann Arbor
    Posts
    6,492

    If you thought higher prices were deterring people...

    ...you're wrong.


    Despite a spring break that largely fell out of the quarter, revenue at Disney theme parks jumped 5%, topping nearly $6.2 billion and helping the company beat Wall Street estimates.

    Attendance at Disney’s U.S. theme parks went up 1%, and occupancy swelled at Walt Disney World hotels, Disney reported Wednesday in its latest quarterly earnings.

    For the theme parks division, segment operating income rose 15% to $1.5 billion.

    https://www.orlandosentinel.com/busi...vt4-story.html

  2. #2
    the jeweled acrobats only perform amazing stunts for him DopeyRunr's Avatar
    Join Date
    May 2011
    Location
    Upstate NY
    Posts
    5,572
    I was told it was so crowded that nobody went anymore.

    Those are obviously stellar numbers (5% revenue increase on just 1% attendance growth) but given the reported panic about a dip in crowds and resort bookings in the months before Galaxy's Edge opens, I wonder what the tipping point is between numbers being really good and really bad.
    Follow me on Twitter at: @DopeyRunr
    Blogging about running for fun at Disney and elsewhere with Team Shenanigans.

  3. #3
    he's right
    Join Date
    Apr 2011
    Location
    The People's Republic of Ann Arbor
    Posts
    6,492
    I'd bet the vast majority of WDW visitors have no idea when GE is expected to open. They just know where they are going on summer vacation.

  4. #4
    Senior Member Anne's Avatar
    Join Date
    Sep 2012
    Posts
    4,277
    Quote Originally Posted by bnoble View Post
    I'd bet the vast majority of WDW visitors have no idea when GE is expected to open. They just know where they are going on summer vacation.
    It seems like bookings must be low for summer, for whatever reason (GE or otherwise). I have gotten showered with PIN codes (3 emails and 1 snail mailing) just for summer. I NEVER get PIN codes. The discount is nothing special, similar to an AP discount and about 5% over the standard discount rates. But includes the FP that can be booked in multiple parks on the same day promo. Perhaps they are trying to target the frequent Disney visitors who would be enticed by something as nuanced as multi-park FP in order to boost summer attendance?

    I find it interesting there are different takes on the Q2 numbers. I do not have enough understanding of business or economics to offer any meaningful opinion myself. But another author made the observation that prices for food, lodging, and tickets have increased more than 5% year over year and that a 5% increase in parks revenue with a 1% attendance increase is not exceptional. The earnings report did not seem to bump the share price, even though revenue surpassed most analyst expectations.

    But to your original point, a 1% increase in attendance is still a 1% increase in attendance. Not the mass boycott predicted by those unhappy with the price increases of the last several years.

  5. #5
    the jeweled acrobats only perform amazing stunts for him DopeyRunr's Avatar
    Join Date
    May 2011
    Location
    Upstate NY
    Posts
    5,572
    Quote Originally Posted by Anne View Post
    another author made the observation that prices for food, lodging, and tickets have increased more than 5% year over year and that a 5% increase in parks revenue with a 1% attendance increase is not exceptional.
    I'd take the opposite viewpoint. If you're able to push through an increase in prices, and enough consumers are (apparently) willing to pay, so that overall revenue increased 5%, I'd mark that as a win. *Especially* since attendance was only up 1%. If attendance doubled, but revenue was only up 5%, that would mean revenue per guest decreased, which would be bad. But in this case, I would interpret an increase in revenue per guest of this magnitude to be a great result.
    Follow me on Twitter at: @DopeyRunr
    Blogging about running for fun at Disney and elsewhere with Team Shenanigans.

  6. #6
    Senior Member Nia's Avatar
    Join Date
    Sep 2013
    Location
    Dublin, Ireland
    Posts
    2,077
    "I was told it was so crowded that nobody went anymore."

    What face did you make when you heard that line! I think DopeyRunr your analysis seem about right. They can't push for attendance increase too much, it's... busy. Good for Disney. Not good for the consumer who can now do less/get less and have to pay more for it.


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •