Cost cutting moves?

[GrumpyFan]

Listening to a podcast and reading about some of the things that Disney is supposedly doing to cut costs, started me to thinking, what would I do to cut costs or generate revenue at WDW in this tight economy? So, put on your CEO or CFO hats, and give it your best shot.

If it were me, I think I would look into a few of the following:

1) Reducing the number of night-time hard ticket events. Thinks like the MNSSHP, and the Pirate & Princess parties.
2) Putting some rides that draw less traffic in a reduced or even closed (temporary) status. Things like, Carousel of Progress, Sounds Dangerous, Conservation Station.
3) Closing a building or two at a resort, depending on occupancy rates.

Also, what would you do/consider, in order to generate more revenue?

1) Special promotions - work with The Disney Store and other vendors outside the parks to encourage/promote park attendance. Put the free planning DVD in The Disney Stores.
2) Special pricing/discounts for Deluxe and Moderate resorts.
3) Free Dining -
4) Partner with airlines and other travel providers to create package deals.
5) Buy one Get one free or half price tickets, especially around valentine's day. This would be a great tie-in with the Celebration Vacation promotion for 2009.
6) Special Hard Ticket event for Valentine's Night, including Dinner.
7) Send out special offers to anyone who has visited any of the Disney Parks in the last 5 years. Offer a discount to return. This would be especially good for those who like to go frequently, but don't see a good enough reason to go right now. Motivate them with a special offer.


Some of these will be more favorable than others, and some people may disagree, but these are just my thoughts. Please share your own.

[Ian]

1) Reducing the number of night-time hard ticket events. Thinks like the MNSSHP, and the Pirate & Princess parties.

This wouldn't be a very smart move, since hard-ticket events are huge revenue generators for Disney World.

[big blue and hairy]

This wouldn't be a very smart move, since hard-ticket events are huge revenue generators for Disney World.

That's exactly what I was thinking. Other than MVMCP and MNSSHP, I have no interest in the hard ticket events, but apparently, I'm in the minority.

[GrumpyFan]

Okay, maybe MNSSHP, is a bad idea to cut, but I've heard a few stories of very low attendance for some of the Pirate and Princess parties. Are they still doing those?

Come on, somebody else make a suggestion. What would you cut, or how would you generate more revenue?

[BigRedDad]

The #1 cost to any business in the US is personnel. If cost-cutting is necessary in anything remotely more than being budget conscious, then reducing staff or wages is critical.

1. Manage expenses. Insure each department is investing in the absolute most critical needs
2. No over-time
3. Completely shut-down a resort or two. This will consolidate work force and get resorts closer to max capacity.
4. Work with airlines to reduce ticket fares to get people to WDW.
5. Offer a modified free dining, but increase the cost of consumables. Just give one free TS meal.
6. Reduce park hours.
7. Better logistics for the buses. If a bus is not at capacity, stop at another resort on the way.
8. Alter the pay-scale for employees so they are salaried. This way they can work more than 40-hours with no additional compensation (Thank WalMart)
9. Go back to charging for EMH (remember E-Ride nights)

[CaptainJessicaSparrow]

2. No over-time

HAHAHAHAHAHAHAHA. Yeah, there'd be no one to work the park with no OT.

6. Reduce park hours.

Already being done.

8. Alter the pay-scale for employees so they are salaried. This way they can work more than 40-hours with no additional compensation (Thank WalMart)

If I'm salaried, I want to be a manager and be able to write up CM's who fall short, I want all the managerial benefits including professional dress and not those ugly costumes, and I want to be able to talk on my Blackberry all day and ignore Guests and Cast.

Good effort though, but those are some of the worst ideas I've heard.

For me, I'd eliminate things like EMH altogether and instead focus on having things at the resorts since they have staff 24-hours anyways. Beach Club and the Campgrounds have the right idea - the movies are a minimal cost to the company since it requires little man power. But for EMH, you need people working food, entertainment, and the attractions (even the less popular ones).

"Refurbish" rides that are less popular, or operate them seasonally. This includes the COP, HOP, Country Bears, Treehouse, Tom Sawyer Island, Universe of Energy, Narnia.

Reduce the number of shows - fewer BNTD, DAWM, Voyage, Festival, Nemo.

Operate resorts with only 75% of the rooms. Also, most of the rooms are already equipped with the SmartRooms technology - the lights, A/C all run at minimum unless someone is scheduled to check into the rooms. I would reduce the number of days for housekeeping - they would only visit once every 4 days unless you requested more (during your stay - if you stay less, obviously they would clean after each guest checks out). This includes them coming in to clean rooms, make bed, take out trash, etc.

I wouldn't offer by one, get one free or any kind of ticket like that. Instead, I would revert back to the older pay scales - children tickets were more expensive than adult tickets and the age range was up to 12 years old. Think about it - you'll typically have more children in a party than adults.

I agree with the increasing bus capacity by making multiple stops but only during the day. At night, to increase efficiency (as well as getting the staff off earlier) you need to maximize the buses.

I think there should be more upsells, similar to Universal's deals. Perhaps changing the Fastpass to include both the free ones with the tickets and ones you can purchase. The ones you can purchase would be similar to the Dream Fastpasses and feature all the major attractions and shows, while the free ones will be fewer and bound to the time constraints for picking them up. Also, Universal offers the meal deal - pay a set rate and eat as much as you like throughout the day. They have the option to add the drinks on there for an additional fee. They are also offering free admission to any teacher who brings in their most recent paycheck and their state ID. Disney could offer similar to teachers, military, and other groups.

Alternative tickets as well - pay for a day, come back all year at the Water Parks and DisneyQuest. Or even offering one day free to resort Guests (obviously when they are not offering discounts and free dining).

We've been discussing a lot of this stuff in class as well. In several classes, actually. Contemporary Issues in Theme Parks and Operational Issues in Theme Parks both have a big focus on what parks can be doing to increase attendance.

[GrumpyFan]

How about free parking for Florida residents? It would encourage more of them to come more regularly. Sure it reduces some revenue, but it might create some extra revenue elsewhere.

[GrumpyFan]

Alternative tickets as well - pay for a day, come back all year at the Water Parks and DisneyQuest.

I assume you mean they could come back again anytime within a year. I like this idea, although I would make it so they could come back and visit any park, not just the water parks and/or Disney Quest. This would seem to be a good option, especially for the one or two day tickets, which are really expensive.

[Polynesian Dweller]

Perhaps changing the Fastpass to include both the free ones with the tickets and ones you can purchase. The ones you can purchase would be similar to the Dream Fastpasses and feature all the major attractions and shows, while the free ones will be fewer and bound to the time constraints for picking them up.

Good idea, but perhaps an addition that would promote both the parks and the hotels. Allow resort guests to pre-order one (or perhaps more) FP per day of stay, for an additional cost. I know I would order and FP for Toy Story Mania, EE, Soarn', TOT at a minimum prior to travel.

[Camping Mom]

[QUOTE=CaptainJessicaSparrow;1761365]HAHAHAHAHAHAHAHA. Yeah, there'd be no one to work the park with no OT.


My son who is a CM could not survive without OT!! It helps pay the rent!!!

[Wayne]

8. Alter the pay-scale for employees so they are salaried. This way they can work more than 40-hours with no additional compensation (Thank WalMart)

Wouldn't work. Thanks to Wage & Hour laws and regulations an employer can't just declare someone as a "salaried" or "exempt" employee to avoid overtime pay.

[Polynesian Dweller]

3) Closing a building or two at a resort, depending on occupancy rates.

I'd actually be very surprised if they don't already do that. Its a fairly standard practice in the hotel business. At the one I was a co-owner of we could shut off wings or floors and did during our shoulder and low seasons. That way, you don't need all the cleaning staff etc. to maintain and its also how a hotel can have no available rooms even if not at full capacity.

From what I see, all of the Disney properties can easily do that and on every trip it looks like some areas are closed in several hotels, its just not made all that obvious but a uniform look to the draperies is a pretty good giveaway.

[Mackflava99]

2) Putting some rides that draw less traffic in a reduced or even closed (temporary) status. Things like, Carousel of Progress, Sounds Dangerous, Conservation Station.
.

I think first of COP is an icon so it cant be closed- Conservation station is a good way to divert some crowds- But it could be beefed up actually-
Sounds Dangerous is good to get out of the hot weather but not really worth going to- But they use that theartre for other things like Star wars etc.

[Ian]

I think the AI show is going to be flash in the pan, kind of like Millionaire was. And, considering that AI is the only attraction (known to be) in development right now, I think they might struggle for the next year if the economy continues to be sluggish. With Universal and SeaWorld both adding high thrill roller coasters next year, WDW might have trouble getting repeat guests after the newness of AI wears off, especially in the local market.

I agree totally.

[MaxPower]

As others have posted, to cut costs you:

1) Cut park hours
2) Close some attractions
3) Create sub-standard new attractions
4) Cut entertainment schedules & staff
5) Raise ticket prices

And as your final step, Take down the "Welcome to Walt Disney World " sign and replace it with "Welcome to Six Flags"

[Mr. Incredible]

Listening to a podcast and reading about some of the things that Disney is supposedly doing to cut costs, started me to thinking, what would I do to cut costs or generate revenue at WDW in this tight economy? So, put on your CEO or CFO hats, and give it your best shot.

If it were me, I think I would look into a few of the following:

1) Reducing the number of night-time hard ticket events. Thinks like the MNSSHP, and the Pirate & Princess parties.
2) Putting some rides that draw less traffic in a reduced or even closed (temporary) status. Things like, Carousel of Progress, Sounds Dangerous, Conservation Station.
3) Closing a building or two at a resort, depending on occupancy rates.

Also, what would you do/consider, in order to generate more revenue?

1) Special promotions - work with The Disney Store and other vendors outside the parks to encourage/promote park attendance. Put the free planning DVD in The Disney Stores.
2) Special pricing/discounts for Deluxe and Moderate resorts.
3) Free Dining -
4) Partner with airlines and other travel providers to create package deals.
5) Buy one Get one free or half price tickets, especially around valentine's day. This would be a great tie-in with the Celebration Vacation promotion for 2009.
6) Special Hard Ticket event for Valentine's Night, including Dinner.
7) Send out special offers to anyone who has visited any of the Disney Parks in the last 5 years. Offer a discount to return. This would be especially good for those who like to go frequently, but don't see a good enough reason to go right now. Motivate them with a special offer.


Some of these will be more favorable than others, and some people may disagree, but these are just my thoughts. Please share your own.

So as not to spoil my own answers I'd like to respond without reading the rest of the thread. Please excuse if some of this has been brought up before...

1) Close two resorts pending increased demand. AS Sports and POFQ would seem to be likely targets.

2) Invest 60-80 million dollars (spread out over 10 years) in a new E-ticket for AK or DHS. This would help drive new traffic into the parks, and with prudent financing the cost would be easily absorbed.

3) Invite Barack Obama to MK on July 4 for grand re-opening of HOP. Shoot his underlings a line about how crucial this would be to the travel industry and the economy. Maybe run an hour in primetime to showcase the day.

4) Sponsor a NASCAR Sprint Cup car. Paint that sucker up like Lightning McQueen if your want to! NASCAR's audience is Disney's core audience. PIxar recognized this with the development and release of "Cars".

5) Establish a reward points system for return guests. When things are darkest, doesn't it just make good sense to reward your loyal customers? Even if you let them in the gate for free they're still going to spend $100 on Mickey bars and souvies. Winner winner, chicken dinner!

6) Have park managers be picky sticklers about cleanliness and quality of the parks. Now is precisely the time to be sure things are spiffy and worthy of return visits. Walt was big on Quality; doncha think he knew a thing or two?

7) Harp on the sentimentality of the Disney brand. Re-establish Wonderful World of Disney on network TV on Sunday nights; have a mouseketeer reunion with Annette Funicello doing the Chicken Dance with Britney Spears; buy multiple ads during the Super Bowl. Just do anything necessary during the hard times of 2009 to remind people there is a place where everything can be all better, where worries are checked at the front gate.

[Aurora]

So as not to spoil my own answers I'd like to respond without reading the rest of the thread. Please excuse if some of this has been brought up before...

1) Close two resorts pending increased demand. AS Sports and POFQ would seem to be likely targets.

2) Invest 60-80 million dollars (spread out over 10 years) in a new E-ticket for AK or DHS. This would help drive new traffic into the parks, and with prudent financing the cost would be easily absorbed.

3) Invite Barack Obama to MK on July 4 for grand re-opening of HOP. Shoot his underlings a line about how crucial this would be to the travel industry and the economy. Maybe run an hour in primetime to showcase the day.

4) Sponsor a NASCAR Sprint Cup car. Paint that sucker up like Lightning McQueen if your want to! NASCAR's audience is Disney's core audience. PIxar recognized this with the development and release of "Cars".

5) Establish a reward points system for return guests. When things are darkest, doesn't it just make good sense to reward your loyal customers? Even if you let them in the gate for free they're still going to spend $100 on Mickey bars and souvies. Winner winner, chicken dinner!

6) Have park managers be picky sticklers about cleanliness and quality of the parks. Now is precisely the time to be sure things are spiffy and worthy of return visits. Walt was big on Quality; doncha think he knew a thing or two?

7) Harp on the sentimentality of the Disney brand. Re-establish Wonderful World of Disney on network TV on Sunday nights; have a mouseketeer reunion with Annette Funicello doing the Chicken Dance with Britney Spears; buy multiple ads during the Super Bowl. Just do anything necessary during the hard times of 2009 to remind people there is a place where everything can be all better, where worries are checked at the front gate.

Mr. Incredible, I really like your style!!