Resorts Parks revenues dropped last year

[Tom Morrow]

Parks revenues dropped last year

Revenues drop at Disney parks last year Orange County Register Walt Disney Parks and Resorts’ revenues dropped by 7 percent, or $10.7 billion, in the fiscal year that just ended compared to the prior year, according to financial statements released today. Guests spent less on merchandise, got deals on ticket prices and paid discounted room rates, resulting in a decrease in revenue, according to a press release. The overall figures are for Parks and Resorts worldwide, which includes Disneyland Resort in Anaheim. Check back later today for more details, including information about Anaheim parks and hotels. Or, listen to a conference call HERE. by Sarah Tully

Submitted by Ezra

[#1DisneyFreak]

theory... could it be all the people getting in for free who also weren't spending money in the parks?? Not shopping, eating their own food or outside the park..... Hopefully this doesn't translate into price hikes. They will most likely make it up if they just go back to normal, promo free Disneyland.

[PeoplemoverMatt]

It's a product of several different factors, but I don't think it'll have an effect on price hikes. Thus far price hikes haven't deviated from their usual pattern of a few percentage points a year.

Something like this is only a real problem if it doesn't improve in 8-12 months. Right now, the main concern is still in maintaining the hotel occupancy rates and theme park attendance numbers.

[#1DisneyFreak]

^Have you seen the cost increase on some foods in the park? My husband used to buy a rocky road cup for $4.95. This last year, all of the sudden, it went to $7.95! Can't help but wonder if they did that cause not as many people were buying them....

[Ezra]

There's another new update... although revenue dropped, attendance increased.

[Tom Morrow]

Disneyland Resort park attendance increases

UPDATE: Disney park attendance increases Orange County Register Attendance at Disney’s local theme parks spiked 15 percent in recent months as the company offered deals to lure more guests. Walt Disney Co.’s latest financial report (.pdf file) showed that the two Disneyland Resort parks increased visitation even with the economic downturn. On Thursday afternoon, the company released its figures for the end of the fiscal year, which concluded Oct. 3. From July through September, Disneyland and Disney’s California Adventure brought in 15 percent more visitors than they did during the same period last year, said Thomas Staggs, Disney’s chief financial officer, during a conference call. At the same time, visitation in Disney’s Florida parks dropped 3 percent. Overall, however, Disney tourists bought fewer Mickey ears and princess dresses: Visitors spent about 10 percent less on merchandise at the domestic parks, Staggs said. Both locations saw hotel bookings dip during that three-month period. Over the past year, Disney has offered several promotions, including free park passes on birthdays and free nights as part of hotel packages. At Disney World, guests also could get free meals. Those deals have helped drive attendance up, even though revenues dropped, said Bob Iger, Disney president. “Parks spent a fair amount of time watching the marketplace and waiting before extending a discount,” Iger said. “When the marketplace warrants discounting … it’s a good thing to do even though we receive less revenue.” by Sarah Tully complete article

Submitted by Ezra

[mickeypancakehead]

Yeah, you can't deny the price hikes within the park. On this last trip I kept thinking how I didn't remember spending that much on food. Of course, I completely stuff myself, but still prices were definitely higher. I agree with #1DF on a promo free Disneyland, especially since attendance is up, but revenue is down. I think this year's birthday promo just overcrowded the park and irritated guests.

[#1DisneyFreak]

Originally Posted by mickeypancakehead

i think this year's birthday promo just overcrowded the park and irritated guests.

amen!

[Sesshomaru-sama]

I'm kind of hoping that free birthday passes will discontinue because of that same reason mentioned in previous posts. If the park gets too full, it will cause many problems for the guests. Especially for those of who only go there a day and don't live very near. Lowering attendance will make people happier and dropping prices will make everyone very happy. Maybe revenues will increase dramatically and the amount of guests will be a great amount without extremely annoying anyone.

Sincerely, a brother of a half-demon,
Sesshomaru-sama

[TimmyII]

How can revenue be down when I spent ALL my money there? And I'll be spending more of it there again in about 11 days!!

[austen]

This all seemed predictable to me. Yes, the free birthday pass brings people in the park. Yes, most likely people will buy something in the park. But they won't buy as much. And some people won't buy anything at all.

[HereWeGo]

i cant imagine the cheap annual passes and the payment plan are helping.

[PeoplemoverMatt]

Originally Posted by Ezra

There's another new update... although revenue dropped, attendance increased.

Also not a real surprise considering one AP is counted as two people per visit if said AP visits both parks in one day, which most do.

[Jacob Morris]

Well here is my two cents on the matter. None of this surprised me at all. Unfortunately here is what I think will happen. Say good bye to payment plans or at least as they are seen today - Right now lets say Disneyland sells 100 premium passes. Prior to payment plans they would bring in 30,000. Enough to pay for that nights fireworks show. Now they are bringing in around 7,000 for the same amount of passes sold. In order to make the exact same amount they need to sell 4! times as many passes. Not an easy thing to do in a tough market. Next (you are already seeing this) the plant life is going to diminish. Welcome to the world of trees, artificial plants and water efficient plants, which makes sense when water prices have risen 180% in so cal! You are going to see less and less side entertainment on the slower days. Those guys who play in DCA by the five cent showers - sorry but they are going to be banished to the weekends only. Also on weekdays, fewer cars are going to be running. New shows coming in to the parks are going to less expensive and the big ones already here are going to be "modified" AKA Fantasmic. For those of you who do some looking into things you might already know that they finale which contained around 144 - 180 firework launches has shrunk to 30-40 firework launches. And those lost where replaced with lights that yes look cool but I think loose some of the bigness of the original Fantasmic finale. Or in Magical how about two min of the show was tink, dumbo, and lights? And entire scenes are cut out of RDCT. These changes while they look good yes, will become more predominate. Disney will not do this badly, they will make it amazing still, just cheaper. You are going to see a big push for online sales. Why? Because I will explain later. You are going to see no change in the food prices but you will see a decrease in park tickets. About 5.00 by the end of 2010. They will probably do this for this reason. They need to one keep their loyal AP holders and they will need to get lower income families into the park to keep traditions alive. There is big competition in the theme park world and when a family is faced with spending a hundred dollars a person at Disneyland or 50 a Knotts, which one would you chose. Next you are going to see more and more international attendance. These are the people with the money to spend and they are going to spend it and Disney knows it and Disney will exploit it. Beware of hotel rates because of that. Weekends should remain the same as they are today, and you should see the same amount of attention to detail. The next thing you are going to see is a huge increase in DCA ticket sales and park hopper sales. This is because of the new water show - Walt Disney Wonderful World Of Color -will be opening and some other small scale projects will also be finished. Aladdin is on its way out and Tarzan is on its way in so there will be for that. And then you will have freaks like me who are planning on one day working for Disney - Me I want to work for Walt Disney Creative Entertainment as a Spectaculars Designer - and who drool over all the techie stuff going on and of course the people who want to see it. By the end of 2012 you will see DCA being just as full as Disneyland because of all the changes that will be done by then. Even VF fans will like DCA - HOLLY CRAP!!!! :) Lastly you are going to see a huge push for Disney credit cards. This will be the new payment plan. Now why would they do this? Because Disney doesn't have to take the risk, Visa does. Why would Visa be cool with this push. Could the multi millions of dollars be an incentive. And how will Disney push their cards? Right at the ticket window and online. "Would you like to enroll for a Disney Credit Card Sir? You earn points on every Disney Purchase that result in bla bla bla." You say, "Well I'm not sure.." the lovely attendant says "If you qualify we can place your entire ticket order on this credit card and you will earn 200 reward points." The man thinking, I get to go to Disneyland free and earn reward points can life get any better signs up. Now they guy has a bunch of money in his account because he didn't spend it and he can use his new credit card to buy all that expensive food instead. Disney gets their money, they guy is happy, and Visa gets another person to leach off of. What can be better than that. That is why you are going to see a push for online sales. Buy your tickets online, sign up for the Disney Visa card, get cash rewards now with your purchase, your purchase can be transfered over to the Disney card bla bla bla, whatever deal Disney can work with Visa is going to happen. Well those are my very long two cents, just so you know I am in business so these are educated guesses just so you know. But based on how things are going in the financial world I really think most of the things I wrote will happen. If they do you will see Disney Parks revenue increase by at least 6 percent.

[PeoplemoverMatt]

Originally Posted by Jacob Morris

By the end of 2012 you will see DCA being just as full as Disneyland because of all the changes that will be done by then. Even VF fans will like DCA - HOLLY CRAP!!!! :)

I highly doubt this. By then, DCA will have improved a bit, sure, but it will still be far from Disneyland, and still very far from the level where legitimately GOOD parks are.