Cost cutting moves?

[GrumpyFan]

I think they need to take advantage of this lull, if you will, and start doing some serious refurbs and/or enhancements. AK is one of the parks that could really use something else to help draw more people in. A "D" ticket type of attraction would be a good option. Go ahead and start the rumored Space Mountain rehab and do it like it's been rumored with a soundtrack in the cars and maybe even a new track layout. Tear out Catastrophe Canyon at DHS and build the rumored Cars attraction using the Test Track 2.0 technology. It will take a while to do any of these, but once the economy bounces back, people will need a reason other than a free entrance on their Birthday to come back to Disney, so give them something.

[DizneyRox]

I really think at this point they need to work on attendence. I don't think cost cutting is going to help much more, most of the savings have already been squeezed out. That is, unless you really want to impact the guest experience. By starting to impact guest expereince, you're going to lose people and it's going to cost a lot more to win them back that it would have to keep them from leaving.

Again, it's long term vs short term.

Sure, they can cut all sorts of stuff if they want, but once the poeple that already have their vacation planned get a taste of it, they are going to be less likely to come back. There really are a number of other options that people have for vacations, give people the opportunity to figure that out and you're going to have a hard time convincing them to come back.

[Tekneek]

Does anyone really think any of these cutbacks are going to be temporary? Like so many other big corporations these days, they live to get their customers accustomed to paying more for less. Just look around the grocery store at packaging that has shrunk while unit prices increased. It's a way of life for big corporations in America.

[CaptainJessicaSparrow]

If I was in charge, they'd be temporary.....all the while planning for a serious update so that when the time is right, a good bunch of good reasons to come back and visit. Good, new meals, new shows and experiences, new characters, new rides, hopefully, better CMs, drop the union because Florida is a right to work state and we don't need the union so that it's more fair for everyone.

[DizneyRox]

Does anyone really think any of these cutbacks are going to be temporary?

I certainly hope not, although I imagine there are a few that think they are. I am certain that they are permanent...

All the entertainment that was lost recently is gone for good. These menu changes are [DONE]. The list goes on...

This is all SOP right now with regards to the way Disney does business. Which is their right...

[TheRustyScupper]

. . . drop the union because Florida is a right to work state and we don't need the union so that it's more fair for everyone.

OT:
1) Won't happen.
2) Can't happen.
3) Disney would not let it happen.
4) Disney needs the union to fend off labor charges.
5) Without the union, WDW could be brought up on many NLRA charges.
6) Because of the union, many employee rights have been bargained away.

NOTE: As for "fair to everyone" the right-to-work means that you have the right to join or not join. Thus, it is fair to everyone. If employees want change, then more CM's need to join. By the way, I am a management guy, and I do everything I can to fight unions and decertify them. However, at WDW, the employees would be far worse off without the union.

[PittFan]

drop the union because Florida is a right to work state and we don't need the union so that it's more fair for everyone.

In a "right to work state", the employer has a "right" to dismiss you for any reason they see fit unless you are part of a union protected by a contract. You also have a "right" to quit for any reason. You may or may not be entitled to Unemployment Compensation depending upon the circumstances of dismissal. I am a proud member of the IBEW and cannot understand why anybody wouldn't want the protections and benefits afforded by a union. Just stating my opinion, not looking to get flamed.

[CaptainJessicaSparrow]

In my opinion, Universal treats their Cast a lot better than Disney, having spoken with enough leaders and managers there, as well as employees. Universal does not have the union.

It's my belief that in modern times, unions are not a necessity as they were in the past. I believe that if more companies simply practices an employees-first approach, taking care of the needs of their employees then the unions wouldn't be needed because it would be fair.

Should someone get paid the same as someone who does less work than they do? Or doesn't go above and beyond? I'm sorry, notheyI shouldn't, nor anyone else who goes to a higher level than they do. Because of unions, labor wages are regulated so that A players are making the same as your D players and that's not fair.

Should someone be penalized because they're new to the company but they have the skills and knowledge to be a successful leader right away while others who have been there longer but lack those skills and knowledge gets promoted? Time in a company shouldn't overrule the abilities needed for the job. Only if they two candidates are on a completely level playing field should the time be a factor.

Should someone who can technically work over 40 or 50 hours a week be listed only as part-time because they don't have full availability due to school or classes? No, if they can work the hours needed to be full-time, then they should be listed as full-time despite their availability, again, only as long as they can work the minimum of 32 hours (which is what the union requires as the minimum for FT employees - Universal who is union-free does this as well).

Will I go work for Universal?

Sadly, that thought has been crossing my mind a whole lot more these days, at least while Disney needs to sort themselves out.

[GrumpyFan]

Duck and cover, somebody opened the "union" discussion.

This... could... get... ugly!

[PittFan]

I would tend to lean on the "generate new revenue" side as opposed to cutting costs. Disney has a data base of guest registries from a decade ago or longer. These are guests that had an interest in WDW in the past and for whatever reason have not returned. They have a "target" audience just waiting to be inticed. Mass mailings are definitely cost effective when you look at the return possibilites with the right "personalized" promotion. Believe it or not , many people are not online or paying attention to commercials. They have to get people that are not thinking of taking a WDW vacation to start thinking about it. Just a thought.

[BMan62]

One big savings at the parks would be to get rid of at least half of the Survey Takers!! I swear, every time you come off a ride, or out of a shop, or even enter a park, there are at least two people taking surveys!!!! Last month, DW and I were sitting finishing our drinks before getting on TTA and four different survey takers approached us - one going to COP, one going to TTA, one headed to Space Mountain and one just wandering around.

NOTE: This is only partly in jest!

[DizneyRox]

One big savings at the parks would be to get rid of at least half of the Survey Takers!! I swear, every time you come off a ride, or out of a shop, or even enter a park, there are at least two people taking surveys!!!!

But then how would they know we didn't want characters at LTT and actually enjoy getting less for more?

You can't just make this stuff up!

[CaptainJessicaSparrow]

Pfft, yes they can.

Otherwise, there'd still be characters at LTT and better characters.

Also, it's heavily biased. They won't approach those looking upset or annoyed. I know because they often pass me in the parks when I know they are supposed to interview every 10 or so people but a lot of times, I am extremely frustrated with how some of the operations go for the attractions (rants for another thread) and it shows because I try to find a CM to explain how they're butchering their capacity and they go the opposite direction.

Plus, a lot of the pools concerning merchandise is saturated. There are a lot of options for girls so when it comes to questions concerning what types of merchandise they like, of course the girls stuff gets the most answers because it's all that there so as a result, Disney markets more stuff for girls, leaving the boys with less. It's a double edged sword because they don't introduce new lines of merchandise for boys, there is no target market and that results in a biased opinion because of the lack of data.

You know, my school really does make me look at all these weird angles for things. I hate it sometimes. Yay for the top hospitality school in the United States.

[Ian]

Good points, Jessica. Sounds like you're doing well in school!

[CaptainJessicaSparrow]

LOL, you would think so.

But it's made me one of the most difficult customers to have now because I get how guests are supposed to be treated and it really irks me when they aren't given the top treatment. Give me poor service, and I'll still tip, but it's low - 10%. Good service is 20%, great and exceptional service - upwards to 30%. Yep, I'm a high tipper alright.

I think one of the biggest problems Disney has is that a good portion of our executives didn't start in front-line positions so they lack that experience as a CM as well as the Guests.The upside is that if I take over the company, I think it will give me a better idea of what changes need to take place for the long term growth.

One day, Disney will have the name and prestige it used to once again and truly be the top in guest service, putting even Ritz Carlton to shame.

[Stickey]

There are several strategies that Disney can implement to reduce costs and increase revenue. Without studying their books, along with the non-public data, it is difficult to determine a precise plan.

I have a few general suggestions:

1) Recognize that the best strategies address long-term growth and profitability, not simply the next quarterly report.

2) Return to the traditional Disney CM training standards. This will help improve guest service levels.

3) Increase operational efficiency. This does not mean blindly cutting certain costs. Cost reductions should be largely transparent to guests.

4) Maintain and improve the value of a WDW vacation. Raising prices while eliminating/reducing service and entertainment options decreases guest value and may discourage return trips to WDW.

5) Reward and promote dedicated CM's. This will improve guest satisfaction and help stabilize staffing levels at WDW. Churning unmotivated personnel through the system hinders quality and productivity.

6) Implement a fuel surcharge for DME.
A small fee per family would be reasonable. The DME began when gas prices were significantly lower.

7) Continue to offer resort discounts to previous guests. Repeat visitors are the best marketing leads.

8) Evaluate and enhance merchandise stock.
There are many characters and rides that do not have any merchandise options. Limited edition specialty items should be available. Disney is currently neglecting a substantial sales base.

9) Establish an on-site shipping service. Perhaps the UPS Store, or Fed-Ex, would pay to sponsor a shipping center. The current arrangement is poor and it discourages larger purchases.

10) Continue to refurbish the parks and resorts and introduce strong new attractions. TSM looks like an excellent addition, while AI lacks imagineering and does not fit.

11) Eliminate free dining. Unfortunately, the DDP has resulted in reduced menu options. The unique features of TS dining has suffered. Package discount options are a better choice.

[Figaro]

I think one of the biggest problems Disney has is that a good portion of our executives didn't start in front-line positions so they lack that experience as a CM as well as the Guests.The upside is that if I take over the company, I think it will give me a better idea of what changes need to take place for the long term growth.

One day, Disney will have the name and prestige it used to once again and truly be the top in guest service, putting even Ritz Carlton to shame.

I'm with you in that POV. I'm hoping to make it into management and I truly want to see a change in the company to bring it back to what Walt wanted it to always be. To me, making that magic for someone or going above and beyond makes my day. I always ended up doing more magical moments occasions... mostly fireworks cruises... which cost about 250$.... and I'd find a random family and give them a cruise. Making magic is more rewarding than making money.

[GrumpyFan]

With the economy now officially being in recession, I had a thought last night that made me want to dig this back up.
Disney should offer the Disney Dollars or credits available for purchase at a discount rate. For example, they could offer a sale on Disney Dollars where you could buy them at .75 on the dollar or some other discount amount. Or, they could offer credit add on to your Key to the World, at a discounted rate which could be used at any restaurant or gift shop at WDW for up to one year before expiring.

[DigitalDaredevil]

Unions are very beneficial to the employee, and they can be very bad for the employee. Kind of a necessary evil. They have done wonders for the workers, but also make a job miserable by protecting those who should not be there or do not pull their weight.
Also, when you budget cut something, and it seems to be working, the company probably won't bring it back. Disney is a business and responds to their stockholders. They need to provide dividends for them.
As a fan, we want them to spend money on making us happy, which is not management's primary concern.

[princessgirls]

I agree totally with Jeff. To me cost cutting is the bean-counter way to deal with an economic down turn. It requires no real thought, looks good to the Wall Street types, and carries little risk.

But, IMO, it doesn't work for a destination entertainment company like Disney. In an economic situation with tightened budgets, limited vacation dollars, and higher transportation costs, you need to be showing people why your destination is still the right place for them to part with their hard-earned dollars.

Entertainment cutbacks, reduced hours, poor service, and no new attractions is only giving people a reason not to spend their money in Disney World.

It's better to have 100,000 guests in your parks at a profit of $1,000 per guest (made up numbers) than it is to have 50,000 at a profit of $1,500 a guest.

Preach on! Can't agree more!