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  1. #1
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    Default Disney World Reports Flat Attendance

    Disney World Reports Flat Attendance
    By Jason Garcia, Orlando Sentinel
    3:51 PM EST, November 26, 2010


    Attendance at Walt Disney World remained largely unchanged this summer, Disney disclosed Friday, even as overall tourist traffic into Orlando began climbing with the opening of Universal Orlando's Wizarding World of Harry Potter.

    Disney said its Orlando theme-park attendance was "within a percentage point" of last year's total during the company's fiscal fourth quarter, after adjusting for the effect of an accounting quirk that left this year's fourth quarter with one less week than last year's.

    The grudging disclosure came only after inquiries from the Orlando Sentinel about why the Walt Disney Co. did not report Disney World's attendance during a Nov. 11 conference call to discuss the company's quarterly earnings or in its year-end financial report, filed late Wednesday with federal regulators. In both instances, Disney reported year-over-year changes in attendance only for its two U.S. theme-park resorts combined.

    It was the first quarter in at least five years that Disney had not disclosed separate attendance trends for Disney World in Central Florida and Disneyland in Southern California.

    The move prompted speculation among many industry followers that Disney executives were attempting to avoid having Disney World's performance contrasted with results at Universal Orlando, where attendance has skyrocketed 36 percent since the opening of the Wizarding World of Harry Potter in Universal's Islands of Adventure theme park. Wizarding World formally opened June 18, just before the beginning of Disney's fiscal fourth quarter, which ran from July 4 until Oct. 2.

    Disney said Friday that it was not attempting to shield Disney World's performance by bundling it with Disneyland. Rather, Disney said it recently made a corporate decision to halt its longstanding practice of revealing separate attendance results for Florida and California.

    Going forward, the company said, it will disclose only combined attendance for its domestic theme parks.

    "Our reporting of park financials has evolved over time, given our international expansion efforts, and we believe this disclosure is appropriate to our business as it is conducted today," Disney spokeswoman Kim Prunty said.

    Although the company would not say which way Disney World's attendance moved during its fiscal fourth quarter, the "within a percentage point" swing appears to have been a decline.

    The company had earlier said that overall U.S. attendance rose only 1 percent during the quarter — and that was with attendance at Disney California Adventure, one of the company's two Anaheim, Calif., parks, up 20 percent since the June opening of "World of Color," a nighttime water show. Also, Disney had already disclosed that fourth-quarter occupancy in its 25,000 Orlando hotel rooms and time-share suites slipped to 83 percent, down one percentage point from a year ago and 6 percentage points from its pre-recession level. And data compiled by the Sentinel show that ridership aboard Disney's Magical Express, the free shuttle Disney operates between Orlando International Airport and its hotels, sank 3.5 percent between July and September.

    Still, Disney says it has seen several promising trends. The company noted, for instance, that guest spending in its domestic parks rose 6 percent and per-room hotel spending rose 5 percent during the quarter, as Disney reduced the size of available discounts. Disney also said reservations at its U.S. hotels during the October-through-December quarter are running 5 percent ahead of last year's pace.

    The company's decision to stop reporting separate attendance results will make it more difficult to gauge the performance of Disney World, which is by far Central Florida's largest employer, with 62,200 workers. Experts generally consider attendance to be the most important operating indicator for a theme park, though other factors, such as guest spending, are also significant drivers.

    Disney World, which has four theme parks that drew an estimated 48 million visitors in 2009, dwarfs Disneyland, which has two theme parks that drew 22 million people last year. As a result, Disney's overall U.S. park results often closely mirror its Orlando performance.

    But not always: During Disney's fiscal fourth quarter last year, for instance, the company's total U.S. attendance grew 3 percent. But that was because attendance at Disneyland leapt 15 percent, more than offsetting a 3 percent slump at Disney World.
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  3. #2
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    Well since Disney has not added anything majorly "new" I would not think attendance would grow. I think if they brought back a "theme" like A Year of a Million Dreams" they may do better.
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  4. #3
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    Smile

    I, for one, am happy to see WDW getting its rear end kicked. They slacked and slacked and slacked and cut and cut and cut and did absolutely nothing to keep guests coming back for more because they got arrogant and believed they could with no repercussions.

    And then Universal caught them with their collective pants down with WWoHP. Hopefully, this will spur some positive changes at WDW to counter Universal's superior offering.

    And you know even this whole sudden shift to only releasing domestic park numbers just smacks of their arrogance. They had no trouble releasing their individual attendance numbers when they were dominating, but all of a sudden things don't go their way and they get all sneaky. And they can't even come out and admit it ... they have to cobble together some mumbo-jumbo about it being "appropriate to their business as it's conducted today."

    Really?? Please ... they've been international since the early 80's! How dumb do they think we are??
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  5. #4
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    Quote Originally Posted by Ian View Post
    I, for one, am happy to see WDW getting its rear end kicked. They slacked and slacked and slacked and cut and cut and cut and did absolutely nothing to keep guests coming back for more because they got arrogant and believed they could with no repercussions.

    And then Universal caught them with their collective pants down with WWoHP. Hopefully, this will spur some positive changes at WDW to counter Universal's superior offering.

    And you know even this whole sudden shift to only releasing domestic park numbers just smacks of their arrogance. They had no trouble releasing their individual attendance numbers when they were dominating, but all of a sudden things don't go their way and they get all sneaky. And they can't even come out and admit it ... they have to cobble together some mumbo-jumbo about it being "appropriate to their business as it's conducted today."

    Really?? Please ... they've been international since the early 80's! How dumb do they think we are??



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  6. #5
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    Is it selfish of me to be glad that attendance hasn't grown? So that there might be less of this for me to put up with:
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    Surprise, surprise! I've been saying this for a while and constantly getting corrected... Oh well, no bubbles, no troubles!

    Guess we answered another question about what Harry Potter Land was going to do to WDW as well.

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    Quote Originally Posted by DizneyRox View Post
    Surprise, surprise! I've been saying this for a while and constantly getting corrected... Oh well, no bubbles, no troubles!

    Guess we answered another question about what Harry Potter Land was going to do to WDW as well.
    I may never have put it into words, but I've been shaking my head in agreement with you.
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  9. #8
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    Quote Originally Posted by DizneyRox View Post
    Guess we answered another question about what Harry Potter Land was going to do to WDW as well.
    Yep. Good thing I'm not the kind of guy who says I told you so.
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    (I know my post will show me as brand new, but I've followed your boards for a while now and have been visiting wdw since 1981) As a person who has seen wdw go from 2 parks to 4 and multiple changes it is time for the big execs at wdw to get a clue and actually spend some money on the parks. Maybe if they'd actually listen to the suggestions of the park goers then they woudln't have the attendance problems they are having. Take one recent update for example...they shut Space Mountain for a year to what add speakers that make techno music and a few fancy screens?!?! Please if they wanted to have done that right wdw should have spent the money and revamped the track to match the one of DLP and put the onboard audio in the vehicles like they were supposed to. This would have at least given a little more draw to MK while Harry Potter is kicking it's butt. Personally I really love wdw and just took my child on her first trip, but even I can see the dated things are becoming stale and in a competing area like a theme park that isn't good. It is time for them to break the piggy banks and get to work on some new and exciting things!

  11. #10
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    Quote Originally Posted by Buttercup View Post
    Is it selfish of me to be glad that attendance hasn't grown? So that there might be less of this for me to put up with:
    Nope. I was thinking the same thing. What's great is that attendance will be the same AND I get free dining.

    I'm sure Harry Potter is taking some of that "tweener" crowd. I don't know if there's anything WDW has to compete with that age group. Maybe if they bought the marketing rights to Lord of the Rings, me and all my white&nerdy friends will show up a lot more often.
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    And right in the middle of this, they jacked up their prices. When they did it, the usual defenders called out that the demand is obviously there to justify continuing to raise the prices. Hmmm...

    If they did not behave so arrogantly about all of this, I would actually care more. Instead, I find myself liking this.

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    I am surprised the attendance is even that high. I consider this a depression that will not be going away soon.

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    Quote Originally Posted by Tekneek View Post
    And right in the middle of this, they jacked up their prices. When they did it, the usual defenders called out that the demand is obviously there to justify continuing to raise the prices.
    I think the way it really went down was revenue was dropping like a lead balloon and they raised the prices as a money grab from those already coming to attempt to head it off.

    I'm a big fan of the "I told you so" moment.

    I think there are bigger problems right now however. Disney has in the past few years went from Industry leader to follower. Their reputation is already tarnished. Getting people back is going to be a lot harder unless someone eats crow, and I don't think they are ready for that yet.

    Sadly, something tells me they are sitting back waiting for the economy to pick back up, thinking people will come back. I for one, don't think that's going to happen. There's a lot more going out there than Mickey Mouse, and they let people (probably too many) get a sample.

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    After reading this, words escape me. No! Wait! I do have the words, "Well, Duh!"

    The Disney Magic gets fewer and far in between. From less than enthusiastic CM's to evidence of sorely lacking maintenance (burned out bulbs -on the Conty no less- shabby rooms, attractions held together with duct tape, etc) they falter.

    The only thing you can count on is ever higher prices and lowering levels of service.

    We have been from a 2 to 3 trip a year family to once ever 2 or 3 years.

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    Quote Originally Posted by DizneyRox View Post
    Sadly, something tells me they are sitting back waiting for the economy to pick back up, thinking people will come back. I for one, don't think that's going to happen
    I definitely think you're right. To some degree, they did the same thing immediately after 9/11. In fact, that was really the beginning of the end for WDW if you ask me. The cuts that happened post-9/11 were hasty, overdone, and (IMO) not much more than a money grab. They used the post-9/11 tourism slump as an excuse to do something they'd been dying to do for years ... stop spending so much money keeping the place up and running.

    The truth is, I think they know they're damaging the brand and not doing what's needed to bring back repeat guests. I think they know that the cheap merchandise and bad food is leading to people spending less money. I think that's why you see them with all these other ways to generate revenue, like pushing DVC and building millionaire playgrounds on property.

    They're just looking for other ways to fill in the gaps and plug the holes in the cash flow.
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    You know, I still think that many guests who only have one opportunity in their lifetimes to visit WDW still have an incredible trip. I understand the limitations the economy has put on attractions, maintenance and services but this isn't happening just at Disney Parks. Yes WWoHP made an impact and I for one can't wait to visit Universal Orlando one day. I also understand where many of you are coming from that have been fortunate enough to visit WDW multiple times and I am sorry that you have had to witness the "decline" over the past 10 to 15 years and you should have a right to enjoy all of your trips in the way you'd like to. But I am getting a little tired of reading the same opinions that Disney should just get off their rear ends and do something about it, and 'hey, we told you so." I am sure the situation isn't making anyone at Disney very happy to have to make cuts and adjustments that they know aren't in the best interests of Cast Members and guests. Bottom line is they have a business to run, and I am not going to pretend to know everything about how a major international corporation is run, so I could also be just making things up.

    To those who know what WDW used to be like of course are going to notice this much more than the guest who visits once or twice in their lifetime. But it seems unfair to me to keep bringing up the "glory days" because I feel it implies that first or second time guests who visit today have some kind of "substandard" experience when they have nothing else to compare it to.
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    Quote Originally Posted by BriarRose0708 View Post
    ... it implies that first or second time guests who visit today have some kind of "substandard" experience when they have nothing else to compare it to.
    Unfortuantely, that's true... It is substandard compared to years past. I'm not faulting people for not experiencing what they could have a number of years ago, their vacation is still their vacation. Just imagine how much better it could have been... That's all we're really saying...

    To say it's still OK is what they are banking on (no pun intended).

    We get the whole DIsney is a business idea... But when it's so obvious that profit is now the only real goal of the company, it's time to take another look at how you do business.

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    If Disney handling the training and maintenance properly is going to force them to post losses, then I'm wondering why they are doing so well? Why are they putting more cruise ships out there? They must be finding the money somewhere. The problem is that this business, Disney, is spending a lot of money on other things. They could do WDW right, and keep it at the top of the charts, but they simply do not want to.

    I'm not sure I share the view that Disney is making choices with WDW that they do not want to. I'm convinced that they've cut and slashed various important things because they wanted to spend the money elsewhere and hoped they could get away with it forever.

    They are trying to do the one thing that spells the kiss of death for leadership and innovation. They are hoping and praying to stay just slightly "better than norm for the industry." That's why it is biting them in the rear when Universal actually pulls out something excellent. Their plan to tread water didn't account for the competition making a serious improvement. The indictment was obvious when a bunch of Imagineers went over there for tours.

  20. #19
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    Tours or training?

    I've always felt that IOA is one of the best themed park in Central Florida (second maybe to AK IMHO). I'm not sure why it should come as a surprise to them.

    And let's face it, this isn't a surprise... Discounting next year was a sure sign that they saw this way back and figured they needed to get a jump on next year. I wouldn't be surprised to see even more radical discounts if/when the current rounds don't bring people in lke the need.

    I'm out next year... I think there were plans for a family outing planned by my parents for the kids and grandkids, but that isn't going to happen either. We're all going on vacation next year though, just not to Disney.

  21. #20
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    Thumbs up Did you have a good time?

    Nikki, aka BriarRose0708, if you could visit Magic Kingdom as it existed back in 1972, say, you'd think that was a substandard experience compared to even, yes, today's experience.

    Your visit is just what it is: your visit. Without apologies. It can't be substandard to you if you enjoyed yourself. It's still better than most of the alternatives.

    Castmembers I have spoken to over the years notice the same unfortunate (pun intended) corporate shift that we are talking about here. Bottom line to me: help make a CM's day more magical, and we all have a good day.

    Jan

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