Latest Earnings Report - Attendance up at Disneyland and down at Disney World

[dnickels]

Disney doesn't release actual attendance figures, but they did say that attendance at the World was down last quarter. Seems to lend some support to those last minute PIN codes and offers people have been getting lately.

http://www.mynews13.com/content/news...d_attenda.html

LAKE BUENA VISTA --

Walt Disney World saw fewer people visit the resort from January through March compared to last year, according to the latest earnings report from Disney.

Disney reports Walt Disney World attendance was down between January and March
Park revenue is up due to higher ticket prices, higher food and beverage spending and higher room rates
Film division revenue up 22 percent for the quarter

Disney said parks revenue is up four percent for the quarter compared to last year, but that is due to guest spending growth, all caused by higher ticket prices, higher food and merchandise spending and higher room rates.

Attendance at Walt Disney World had a “modest decrease” according to the Walt Disney Company. Attendance at Disneyland in California was up. So domestic theme park attendance was essentially flat.

Disney also listed higher labor costs and higher depreciation because of new attractions.

Disney also suffered from lower operating income at the international parks, partly due to pre-opening expenses for Shanghai Disney Resort in China.

Disney also saw a slight uptick in revenue from ESPN, but less revenue from other networks.

The mega-company’s film division continues to boom, with revenue for the quarter up 22 percent to $2.1 billion. The big contributors were “Star Wars: The Force Awakens” and “Zootopia.”

The lackluster report slightly missed analyst expectations. Shares for the company dropped about 6 percent in after-hours trading.

[brownie]

Sending this to the News, Rumours, & Imagineering forum.

[MrPeetrie]

I'm not really surprised attendance at Walt Disney World is down in Q1. Just read some trip reports and you see a trend of people feeling the "Magic" is being replace with ordinary and "cheap." I think the upper management needs to re-read Keys to the Kingdom: Seven Secrets to Disney's Success a few times to refresh their memories. They are losing what separated them from other places.

The thing is: I'm not griping about the cost of going. I'm upset that I no longer feel like I'm receiving my money's worth. At one time, I felt so special there. When people would ask why we return each year, I'd say, "You have to go to understand. There's no place like it. I feel like we're returning 'home.'" Now, we only go every two or three years. Our last trip left a bad taste in my wife's mouth. If upper management doesn't get back to the core principles that made WDW great, I would expect this trend in declining attendance to continue.

[1DisneyNut]

Well there you go, I would say I told them so but oh well. lol

Sort of funny that I got yet another mailer from them today about a special offer for June. I just got a last minute offer for May and June a few weeks ago and just got a pin code for end of August through end of December last week and also a free Dining offer for that same time period. It has been sort of obvious they finally ticked enough of us off it is showing up in attendance figures and as I had stated before, you can't run a business on first time new customers for very long.

I really don't think these last minute pin codes and offers are going to help much either because we all know the advanced planning required these days. The real problem is the aggravation involved, the limitations on spontaneity and then the lack of value. Knocking a few bucks off doesn't solve the issues and draw me in at all.

So anyway, how long until heads start rolling? lol

[Ian]

It will be very interesting to see if this leads to some much needed changes in WDW leadership. I wrote a long, very detailed letter to Iger the day we got back about how bad it's gotten. Still no response, though.

[RunDMV]

I am glad I could contribute to the drop.

[bleen3162]

I'm not surprised by these stats. I used to go to WDW two or three times a year but haven't been back since 2014 and only went once that year. I was so disappointed with the construction going on in every park. Pick a park and finish then go on to the next. Don't get me started on the FP+ and ADRS. There is no spontaneity any more. This fall I am taking someone who has never been before. I am considering "winging it" so we can enjoy the little things. We are going during the Epcot F&WF and will be spending much of our time there. This is my 50th trip!!!! so I don't need to see everything and hurried,from ride to ride.

[Tekneek]

The thing is: I'm not griping about the cost of going. I'm upset that I no longer feel like I'm receiving my money's worth. At one time, I felt so special there.

Inside every complaint about the cost is a feeling that it isn't worth it. There was a time when going to Disney World felt close to priceless, while the actual cost was way less than it is today. The experience has been on the decline for years while the cost has skyrocketed.

The fact that a decrease was material enough to disclose means it probably uses a different definition of 'modest' than the average person would employ.

[Tekneek]

A couple more thoughts...

Staggs may have dodged a bullet by not having to inherit this.

I am really disappointed in the way they abandoned yet another game. A bunch of golden parachute suits managed their way into this situation and a bunch of people without any parachutes are going to bear the consequences. Shame upon them.

[Fangorn]

But wait. Revenue is up at WDW, even though attendance is down. From a corporate bean-counter perspective, that's great news. Fewer people means fewer problems - those nasty customers are soooo demanding. It just means that we can expect more price increases, while certain types part themselves on the back for reducing overhead costs AND increasing revenue.

Sounds like the company where I work. Oh, that's right, the CEO of there is on the Board of Disney. I wonder if there could be a correlation? Nah!

Steve

[Hammer]

But wait. Revenue is up at WDW, even though attendance is down. From a corporate bean-counter perspective, that's great news. Fewer people means fewer problems - those nasty customers are soooo demanding. It just means that we can expect more price increases, while certain types part themselves on the back for reducing overhead costs AND increasing revenue.

Sounds like the company where I work. Oh, that's right, the CEO of there is on the Board of Disney. I wonder if there could be a correlation? Nah!

Steve

There is the rub. Revenue is up and Disney, like almost all companies, care what Wall Street thinks first and foremost. That includes the company that owns the theme park down the road too. What I think upsets most Disney fans is Disney used to be able to avoid being like that, do things their way, and still please Wall Street. Not anymore.

I agree about the value not being there, but I notice it much more with hotels. I have complained for years how Disney Deluxe hotels aren't truly deluxe hotels. The Four Seasons has helped to force Disney to improve some things, but the pricing structure is still way off for all Disney hotels. No way is Caribbean Beach is worth $200 a night or Pop Century worth $130 a night, and that's the AP rate! The value is not there for it. The location is not worth that sort of markup! I can stay at a 4-5 star resort right on the Gulf of Mexico for less than a Disney deluxe hotel and have the amenities I expect from a deluxe resort. It is why I bought into DVC; my costs are fixed to the price of my mainenance fees. I would love if Disney would hire a person with serious hotel experience from a corporation like Fairmount, Kimpton, or Hilton (I like Hilton more than Marriott) to head the hotel division.

[ChipNDale79]

Can't believe it took this long for this to show up on Intercot.

Who is really surprised by this at all? I can't tell you how many people I've heard say they aren't going as often or not at all for awhile.

If WDW hotel rooms were running at 100% occupancy it wouldn't matter if people stopped going, it would be mean someone would be filling their spot.

Unless they are running at 100% occupancy, when someone decides not to go, there isn't someone stepping in to take their place. It's lost revenue.

You can't continue the price increase like they have, at some point the bubble will pop. Vacations are not a necessity, therefore a vacation destination like WDW is not bulletproof, no matter how much "magic" you pack it with.

[1DisneyNut]

Sure the revenue is up although attendance is down. Both are directly related to price increases and also cuts. Watch for a drop in revenue in the coming quarters along with further decreases in attendance.

Like i said a couple of months ago, it is time to start thinking about shorting Disney stock.

There is the rub. Revenue is up and Disney, like almost all companies, care what Wall Street thinks first and foremost. That includes the company that owns the theme park down the road too. What I think upsets most Disney fans is Disney used to be able to avoid being like that, do things their way, and still please Wall Street. Not anymore.

I agree about the value not being there, but I notice it much more with hotels. I have complained for years how Disney Deluxe hotels aren't truly deluxe hotels. The Four Seasons has helped to force Disney to improve some things, but the pricing structure is still way off for all Disney hotels. No way is Caribbean Beach is worth $200 a night or Pop Century worth $130 a night, and that's the AP rate! The value is not there for it. The location is not worth that sort of markup! I can stay at a 4-5 star resort right on the Gulf of Mexico for less than a Disney deluxe hotel and have the amenities I expect from a deluxe resort. It is why I bought into DVC; my costs are fixed to the price of my mainenance fees. I would love if Disney would hire a person with serious hotel experience from a corporation like Fairmount, Kimpton, or Hilton (I like Hilton more than Marriott) to head the hotel division.

I completely agree with you on the hotels. We have mostly been staying offsite at Hilton brand hotels the past several years. We have had superior experiences at half the price or less. I won't even step foot in a value resort......I wouldn't pay $59 a night for one of them. We recently stayed in Coronado Springs for an event and it reminded me why I rarely stay in the Moderates anymore.

[ChipNDale79]

Sure the revenue is up although attendance is down. Both are directly related to price increases and also cuts. Watch for a drop in revenue in the coming quarters along with further decreases in attendance.

Like i said a couple of months ago, it is time to start thinking about shorting Disney stock.




I completely agree with you on the hotels. We have mostly been staying offsite at Hilton brand hotels the past several years. We have had superior experiences at half the price or less. I won't even step foot in a value resort......I wouldn't pay $59 a night for one of them. We recently stayed in Coronado Springs for an event and it reminded me why I rarely stay in the Moderates anymore.

Just walked in the door from lunch, I got yet another pin code via email for this summer. Apparently its my "last chance".

This one is the normal up to 30% off, but it also includes free park hopper.

[deedee73]

I would think many people chose to do DL this year since the 60th Anniversary stuff is still up & available. If I could do both with ease I would probably have gone there bc of the celebration. Maybe this Anniversary contributed to the increase in attendance. That and all the construction at WDW!

[PopPhan]

I would think many people chose to do DL this year since the 60th Anniversary stuff is still up & available. If I could do both with ease I would probably have gone there bc of the celebration. Maybe this Anniversary contributed to the increase in attendance. That and all the construction at WDW!

That was exactly what I did. I took my sister to WDW last April/May and then went to DL (solo) in December for the 60th.

I am considering a WDW trip this year, but with 1/3 of DHS closed/under destruction/construction and a good portion of AK (Avatarland) still incomplete, as well as the little closures/rehabs/etc. at the other two parks, it is difficult to "pull the trigger" and schedule another trip. For the costs involved, even going solo, seeing so much of the parks with construction walls/scrims/etc. just doesn't play well.

[ChipNDale79]

That was exactly what I did. I took my sister to WDW last April/May and then went to DL (solo) in December for the 60th.

I am considering a WDW trip this year, but with 1/3 of DHS closed/under destruction/construction and a good portion of AK (Avatarland) still incomplete, as well as the little closures/rehabs/etc. at the other two parks, it is difficult to "pull the trigger" and schedule another trip. For the costs involved, even going solo, seeing so much of the parks with construction walls/scrims/etc. just doesn't play well.

If that's the case, then what you have is Disney competing with itself.

A lot of people love the idea of DLR and WDW being different than each other. Me personally, I was upset at the time that DLR was getting Carsland while WDW wasn't.

The argument people made was this would make people want to go to DLR instead of going to WDW. So now when you have 2 parks in the same country, yes even though they are a long ways away, you're now competing with each other.

When you let one get stale, why not jump on a plane and head west for the new stuff?

There are so many things pointing to why WDW's attendance has declined its not even funny.

Its been neglected for so long, yet because the consumer has allowed them, they've used it as a cash cow to prop up the construction of other parks.

[RunDMV]

What I would REALLY like to know is the rate of return guests versus the rate of first time visitors. I am going to guess return guest numbers are down.

[TheVBs]

Well, if you have repeat guests not coming back and you price out a lot of your would-be first timers, then I guess it makes sense that attendance is down. Especially when you factor in how much of DHS and AK is under construction.

[Altair]

Especially when you factor in how much of DHS and AK is under construction.

That is why crowds appear larger, the guests are just crammed into smaller and smaller areas.