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Disney offers buyouts to 619 executives amid tourism slump
Here is the link to an article that appeared on the hotel online website. It looks like the economy is affecting the happiest place on earth too.....
http://www.hotel-online.com/News/200...232647121.html
Chris
Last Trip: SSR 02/2009 (Just wife & I)
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I'd expect this thread to get locked after the last thread on this topic (see here) was closed...
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It is about Disney....and it is worthy of discussion....
the last thread was locked because it veered off from strict disney to the economy as a whole......which of course is the reality for any large US company.....but that is why it was closed.....
This VSP initiative has a historical context at WDW.....it has happened before.....almost exactly this way in 2002...
Look for sections of resorts or entire resorts to be taken offline for low occupancy within the next couple of months.....
my guess is port orleans is shutdown and perhaps POP....
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Originally Posted by lockedoutlogic
Look for sections of resorts or entire resorts to be taken offline for low occupancy within the next couple of months.....
my guess is port orleans is shutdown and perhaps POP....
Not that I disagree with your position that portions or maybe all of some resorts may be mothballed until it picks up again, but I really don't think they'd shutter Pop. Maybe one of the Allstars, but I really don't think they'd shut down their newest, and what seems to be most popular, Value resort.
Of course, that's my opinion, and like everyone else, we've all got 'em.
Scott
2 visits as a child
6/97, 6/01, 6/04: All-Star Sports
12/05, 6/08: Pop Century
May-June/10: Animal Kingdom Lodge
5/11: All-Star Sports 1 night Epcot Flower & Garden
May 2013 POFQ (25th anniversary!)
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Originally Posted by Nascfan
Not that I disagree with your position that portions or maybe all of some resorts may be mothballed until it picks up again, but I really don't think they'd shutter Pop. Maybe one of the Allstars, but I really don't think they'd shut down their newest, and what seems to be most popular, Value resort.
Of course, that's my opinion, and like everyone else, we've all got 'em.
POP would be a tough place to close....I agree....not only because it is popular....but it is used for convention groups....
all stars...however....is used way more for convention groups.....and has a total of 6000 rooms in one basic location to POP's 3200....
In reality....neither would be closed unless things get really bad.....value rooms are typically much easier to sell....
Moderates...specifically port/dixie.....on the other hand.....are harder to sell and would be the first to go in a shutdown......port was closed for almost two years earlier in the decade....part for rehab.....but mostly because they didn't need the rooms.....caribbean was shuttered for a few months as well during an inconvenient rehab.....
Again....this is only a guess.....partial or complete shutdowns of resorts for low occupancy is a very distinct (almost definite) possibility if the attendance predictions are accurate and are likely to dip further.....
But nothing has been shuttered and everything's open....again....I'm theorizing....not reporting the news
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Hmm, I forgot about the convention groups, good point. I wonder if it might become cost effective for them to use one of the Allstars for just that purpose. A little theorizing of my own there.
I guess, in time, we will all see.
Scott
2 visits as a child
6/97, 6/01, 6/04: All-Star Sports
12/05, 6/08: Pop Century
May-June/10: Animal Kingdom Lodge
5/11: All-Star Sports 1 night Epcot Flower & Garden
May 2013 POFQ (25th anniversary!)
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Originally Posted by Nascfan
Hmm, I forgot about the convention groups, good point. I wonder if it might become cost effective for them to use one of the Allstars for just that purpose. A little theorizing of my own there.
I guess, in time, we will all see.
I know this one too.....
the short answer is no.....
There are significant gaps during the calender year for conventions......the obvious being june-sept and nov-jan 1.....
that would mean a somewhat ghosttown scenario at music (the obvious choice...as no one ever liked that place)....which would not work from an operational standpoint....
Also....Allstar has a specific kind of convention traffic......mostly kid groups....cheerleaders....pop warner.....
you don't get alot of fortune 5s blocking the values....as you do in the mods and deluxes....
the conventions department offers the 3 tier level of choice to conventioners as well....just as they do to the normal ma and pa vacationers....
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I'm surprised it happened already... With employee hours being reduced and entertainment dwindling, you would think that consolidation of the resorts would be a bigger area for cost cutting. Which may indicate things aren't that bad just yet, but you can't shut down a resort overnight. Well, I guess you could, but that's not going to make people happy. We're not talking about a couple of calls here, I asusme it would take weeks/months to go through the rosters and rearrange everyone to make room for the closure. If that were started, I'm sure we would already know about it.
Really, in the grand scheme of things, what's been done so far really can't amount to much of a savings.
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Originally Posted by DizneyRox
I'm surprised it happened already... With employee hours being reduced and entertainment dwindling, you would think that consolidation of the resorts would be a bigger area for cost cutting. Which may indicate things aren't that bad just yet, but you can't shut down a resort overnight. Well, I guess you could, but that's not going to make people happy. We're not talking about a couple of calls here, I asusme it would take weeks/months to go through the rosters and rearrange everyone to make room for the closure. If that were started, I'm sure we would already know about it.
Really, in the grand scheme of things, what's been done so far really can't amount to much of a savings.
it's possible that a partial or total shutdown of certain resorts is already in the system for next summer or fall....we may not know it immediately....
and if as in the past....they won't announce anything....
why would they? nobody needs to know....and it just makes them look bad
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At this point, all indications are that the specials they've offered have had the desired effect (at least for the immediate future) and I don't expect any additional, significant cutbacks between now and Spring.
From what I've read/heard, bookings are actually reasonably good for the first quarter ... only a percentage point or two off from last year ...
Now where things could change is once they get through the busy Spring Break/Easter season. If bookings soften from then on and over the summer, I think you'll see more cutbacks.
But we'll see, though ... I remember Eisner once saying that studies have shown people would put off buying a new refridgerator in favor of taking a trip to Disney World, so who knows how bad it will really get.
Ian ºOº
INTERCOT Senior Imagineer
Veteran of over 60 trips to Disney theme parks and proud to have stayed in every Disney resort in the continental United States! º0º
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As far as Pop closing, is it possible they will close the resort to finish the other side of Hourglass Lake and re-theme the hotel to what Jim Hill (I know, Mr. Not Always Right) said was going to be some sort of animation themed resort? And the new buildings were going to be affordable family suites?
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I can see Pop closing temporarily, simply because the rooms are in need of refurbishment. Also, the savings from the bus routes to that location would be tremendous. Has Disney actually shut down a resort before because of the economy?
Genna
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Originally Posted by magicofdisney
I can see Pop closing temporarily, simply because the rooms are in need of refurbishment. Also, the savings from the bus routes to that location would be tremendous. Has Disney actually shut down a resort before because of the economy?
They shut port orleans for about 18 months total from 2001-2003....
they also shut Caribbean for 3 months in 2002...
They were all...of course...for "rehab"
But the truth was also that they didn't need the rooms...
In fact....Caribbean had about 400-500 rooms offline for several months earlier in 2002....(some idiot had to come in everyday and "protect" them from being used by his co-workers)
so the answer to the question is a guarded "yes".....they do shut things down due to demand at least in part....though the PR shields are always putting a protective net over all things....real and perceived
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Originally Posted by DizneyFreak2002
As far as Pop closing, is it possible they will close the resort to finish the other side of Hourglass Lake and re-theme the hotel to what Jim Hill (I know, Mr. Not Always Right) said was going to be some sort of animation themed resort? And the new buildings were going to be affordable family suites?
Closing Pop would not be necessary to finish the other side of the lake. They are two different areas and wouldn't impact each other.
What Jim said sounds plausible.
And I don't think I heard them referred to as affordable family suites. Just family suites...
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I think the family suites thing is probably pretty accurate. I know the All-Star ones have been very popular, so I don't find it at all surprising that they'd want more.
Lower cost suites are actually pretty smart, considering there's probably a huge segment of their guest population that wants more space in their room yet can't afford 2 grand a night for one of the big suites.
Ian ºOº
INTERCOT Senior Imagineer
Veteran of over 60 trips to Disney theme parks and proud to have stayed in every Disney resort in the continental United States! º0º
Next trip:
April 2018 - Saratoga Springs Treehouse
Help support INTERCOT's sponsors!!!
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