Economy and the Parks

[Airblue1]

Does anyone get the feeling that the current economy could be hurting the attendance of the parks/resorts. I get a feeling with all the different types of discounts going around that the parks are not necessarily hurting, hurting, but they are not where they would like to be. Does anyone else get this vibe or is it something I am reading way too much into.

[Imagineer1981]

no you are right...with the hiring freeze that just lifted, the amount of cuts and changes to shows, and cutting back on extras, they are cost cutting as much as possible, as any company would.

[CaptainJessicaSparrow]

Oh we're hurting, we're just hiding it better than you think.

They close some attractions earlier now.

They are cutting shows and characters.

They are cutting elements of shows and fireworks.

They are cutting hours. I got one day next week. >_<

They aren't hiring really FT, just PT and people can't go to FT if they are already at Disney.

Mostly, it's internal and backstage stuff that the regulars and CMs notice, not first time visitors.

[Ian]

If the crowds 2 weeks ago are any indication, then yeah ... they're hurting. It was dead.

And yes, I could see evidence of the cutbacks. I think they're either already hurting or preparing in advance to hurt.

You know what I don't get, though? Why don't companies act like people. Don't they prepare for inevitable downturns in the economy? Don't they lay cash to the side so they can continue operating normally when revenue drops off?

If not, why? Why are corporations no longer required to practice good, sound fiscal responsibility? Nowadays when things go bad they just jack up their prices, lay off a bunch of people, and cut products and services.

Does that seem right to you??

[diz_girl]

If the crowds 2 weeks ago are any indication, then yeah ... they're hurting. It was dead.

You know what I don't get, though? Why don't companies act like people. Don't they prepare for inevitable downturns in the economy? Don't they lay cash to the side so they can continue operating normally when revenue drops off?

If not, why? Why are corporations no longer required to practice good, sound fiscal responsibility? Nowadays when things go bad they just jack up their prices, lay off a bunch of people, and cut products and services.

Does that seem right to you??

So it was more dead than usual for September? I remember when we were there in 2005 (Labor Day week) and I was shocked that I could just walk right on the ride at SM. It was the same for almost every other ride except Peter Pan.

As for corporations not practicing fiscal responsibility anymore, IMHO this is largely due to the fact that corporate leaders seem to be willing to give-up long-term growth for short-term profit, both for the stockholders and themselves. So many times I see a company announce layoffs and their stock rises. Corporate leaders are responsible to their stockholders, but which ones? The day-traders or the long-term stockholders? Your guess is as good as mine.

[Polynesian Dweller]

You know what I don't get, though? Why don't companies act like people. Don't they prepare for inevitable downturns in the economy? Don't they lay cash to the side so they can continue operating normally when revenue drops off?

Actually they do, and so have the ones I've been involved in. The problem is, no matter how much you put away, cash lasts only so long. There is only so much.

If you could predict with absolute certainty that the bad economy would last exactly 1 year then you would know how much cash you could spend per week and not run out. But, in the real world, will this downturn last two months, a year, two years. I don't know anyone who can predict the exact length or even the approximte length right now.

So, all you can do with cash is use it wisely to bridge a bit. Try to invest in adervtising to bring in revenue or other revenue creators. But, at some point you have to get your operating expenses to match your revenue or you go bankrupt. So, the cuts happen until you can project the end. At this point, nobody is projecting an end.

[mdhiggin]

I wondered that myself when the free dining program was extended through Dec. and when I was there last week, we walked right on a lot of rides, like POTC. We used our fast pass once in awhile, but standby didn't get more than about 55 min. on anything that I saw. We didn't wait in those lines, just went back later when they were shorter. Of course, TSM had a line about 100 people long out the front of the building. We avoided that until about 10 min. 'til midnight when EMH ended, and we trucked it across the park from RNRC to make it before closing. Still we had about a 15 min. wait, but it was much better than earlier in the day. We rode ToT, RNRC and TSM all within about 45 min. with one fast pass and two regular lines. The most challenging part was trotting across the park with a 3 year old on my shoulders. Her legs were too short to keep up with the pace from RNRC to TSM in 5 min. Another couple travelling with us had a faulty car on TSM, so they got to go again, and everything was closed, so they were the only ones on the ride. When we headed to the gate, I was straggling with my 3 year old. One of the CMs shouted, "I think she's the last one." We closed down the park! Too cool! It's doubtful we'll ever open it, so that's the best we could hope for.

[Ian]

So it was more dead than usual for September?

Definitely. I've been darn near every September for the last 11 years and it was definitely more quiet than normal. Even on the weekends.

[Jeff G]

I was there last week and it was dead even by September standards. We've been going in September 7 years and a row and this year had similar crowds to 2001 just two weeks after 9/11. The MK didn't have FP going for Buzz or Splash Mountain yet we could walk right on both Wed & Friday. I'm not kidding you when I say the longest we waited for any ride the entire week was 10 minutes and that was the Tomorrowland Speedway. We got in line once for TOT and the line was 10 minutes so we left. When we came back from riding RNR with no wait we walked onto TOT. At one point the standby line for Soarin at 4:00 in the afternoon was 15 minutes so we rode it and we were able to walk straight in past where the FP & stand by lines meet. The only ride with lines all week was TSM.

The cuts in the parks were not overly evident but were there. I think for the average/first timer to WDW they won't notice a thing. As a person who goes every year or more you could notice slight changes. That said, with the down turn in the economy and the rising fuel and food costs both the company I work for and my family have made cutbacks to make it through. The changes haven't been drastic but they were necessary. WDW is no different. The cutbacks being made today at WDW don't seem nearly as dramatic as the ones made after 9/11. Just like that time as the economy recovers and business picks up WDW will return more to normal operations.

[CaptainJessicaSparrow]

As we've learned in class, there are two things people will never give up no matter how hard the economy gets - alcohol and their vacations.

Alcohol is a way to relax and get your mind off of things, and similarly, so is a vacation. They might alter their plans and only spend 1 night instead of 2, or bring their own food and drinks, but they'll still go on vacation because it's an escape from the pressures of the world, even if it's just a short while.

Which is why the hospitality industry will suffer, but not nearly as much as others. Yay for semi-job security.

[MickeyMousse]

Friends of ours were there last week and said it was alot emptier than it had been at the same time last year. (they always go the last week of September) Very little to no wait for rides, both CS and TS restaurants were easy to get into but they did notice that some attractions seemed to close a bit earlier than others.
I am beginning to wonder what it's going to be like when we go in 2/09.

[TakeMe2EPCOT]

Can you say "tailspin"? Unfortunately that's the state the entire economy has entered and it looks bad. People worry about their finances so they stop buying and going to parks (and other places)...stores and parks make less money, so the lay people off...laid off people have no income, so they stop buying...the stores the laid off people frequented make less money, so they lay off people...more unemployed people...less money...the cycle continues and continues!

I remember a radio commercial during the recession of the early 90s. It went something like this, "Folks if you want to break out of this recession, BUY SOMETHING! Even if it's just a Tootsie Roll, BUY SOMETHING!"

[Tinkerfreak]

As worried as I am about the ecomony I have to admit that hearing that the crowds are down makes me happy. I know that sounds terrible but the last couple of years the crowds have grown more and more and DH hates crowds so did not enjoy himself as much as in the past. This will be our last trip for quite a long time so I would love to have low crowds so we can have a relaxing trip and do alot.

[Insanity Clause]

As bad and as scary as the economy is right now I will still do my best to be able to go on vacations with my kids. They are only young once and if it means a smaller Christmas and birthdays to be able to be together where the magic lives then so be it. Hopefully all of this is temporary and the economy will get back on its feet in a few years. It is all very scary but nevertheless as long as I can do it without inflicting on our daily needs then I will. I would HATE to have to give up vacations...

[Wickster1970]

Couldn't have said it any better.

[irish1967]

As we've learned in class, there are two things people will never give up no matter how hard the economy gets - alcohol and their vacations.

and if it came down to alcohol and WDW, I would have to choose WDW!

[FlaTinkRAMESAM]

and if it came down to alcohol and WDW, I would have to choose WDW!

lol! I was just thinkin the same thing... although the 2 together might be fun... drink around the world anyone???

[elmjimmlm]

Since the week between Christmas and New Years is considered the busiest of the year, I wonder if it will be as busy as years past?