Disney World Reports Flat Attendance

[Ian]

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 fairly certain (based on things I've read, stuff I've heard from folks I talk to, and general intuition) that Disney views WDW as the corporate cash cow. The goose that lays the golden eggs.

The difference is, they don't appear to believe that the goose can be killed. They have as much come right out and said that they feel like going to Disney World is an experience that everyone has to have once in a lifetime, so they essentially take their guests for granted. In their mind, there are only two types of WDW guests ... the "once in a lifetimers" and the "Disney nerds/repeat visitors."

I think they believe that the former is only coming once and the latter will always keep coming back. So they take their money ... as much of it as they can possibly get ... and then they go spend it in other places to try and make more money.

And look the bottom line is they have the right to run the business the way they want to. I just don't happen to believe the model they're operating under right now is sustainable long term and I think some of the ad hoc revenue streams they've been exploring lately demonstrate that they're aware of that, as well. The way Corporations work, I fully expect that WDW's leadership is just trying to sustain their revenue stream, by any means necessary, because that will ensure their continued employment and continued fat bonus checks.

The long term health and well-being of the resort, the theme parks, and the brand overall is not something they're worried about.

[DizneyRox]

Most of the corporate suits are on the five year plan anyway. Gone are the days where a CEO/CFO/CIO/ETC stays for much longer than that, so really, what do they care about long term results? That will be someone elses problem...

[princessgirls]

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??

Ian...you are so right!
I'm thinking that the so called "bean counters" never bet on a large amount of educated consumers...or on the Powers of Harry Potter. Got to give it to Universal, they got themselves a good thing going on.
Julie

[Ian]

Most of the corporate suits are on the five year plan anyway. Gone are the days where a CEO/CFO/CIO/ETC stays for much longer than that, so really, what do they care about long term results? That will be someone elses problem...

Yeah, that's another problem wrought by stock options.

When you stand to make $100 million by exercising your options, what motivation do you have to care about the company beyond the next two to three years?

[Joannelet]

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??

Ian you hit the nail on the head with this!!!
I am shocked that they aren't releasing numbers any longer. Wow.....

[MOJoe]

Most of the corporate suits are on the five year plan anyway. Gone are the days where a CEO/CFO/CIO/ETC stays for much longer than that, so really, what do they care about long term results? That will be someone elses problem...

Lots of truth in this. Disney, really isn't being run any differently than any other mega-corporation these days. Outsource as much as possible. Lower costs by reducing staff, trimming maitenance, and buying the cheapest materials for resale. Market your image as the highest quality, and charge accordingly. These things can be said of many, many big businesses.

Problems inevitably arise from this business model, as many here have noted. It's hard to cost cut your way to excellence. But it's also very hard to turn back, once you start down that road. It will take alot more than a few quarters of unfavorable comps to Universal's attendence figures to change the mindset at WDW. True vision and leadership is the real answer. A rare thing these days.

[Tekneek]

True vision and leadership is the real answer. A rare thing these days.

They teach all those other things at "MBA School." Being somebody without one, I wonder if that becoming the standard for executive leaders has done more harm than good.

[FamilyBand1]

I must be missing something, but there never seems to be a down time like before. We live in the Tampa Bay area and go a few times a month. The first couple weeks of December are no longer dead times when it comes to crowds. We even went in the middle of the week!
Maybe this article only reflects the summer months, which we avoid like the plague because of the crowds.
Seems like the dollar taking a dump and the new Florida resident payment plan has helped bump up the crowds. I'll blame Samantha Brown for ruining the 'two weeks after Thanksgiving' secret.

[Ian]

Problems inevitably arise from this business model, as many here have noted.

It's actually a deeper problem than this. The evolution of this business model is what happens when a corporation gets arrogant and forgets what got them where they are. They start thinking inside-out instead of outside-in. "We're the best. WE know what the people want and we'll TELL them what they want and they'll do it OUR way, because OUR way is the best!"

The American auto industry is the prime example of this and look where it got them.

[DizneyRox]

The American auto industry is the prime example of this and look where it got them.

Bailouts?

[Ian]

Bailouts?

True, but only GM got a bailout. And look at the brands ... Chrysler, Dodge, Pontiac, Hummer, Oldsmobile .. many of them gone completely.

Although in fairness, if Disney could blame a bankruptcy on the economic downturn it wouldn't shock me to see them get a bailout, as well. They're as quintessentially American as GM or Chase.

[MOJoe]

It's actually a deeper problem than this. The evolution of this business model is what happens when a corporation gets arrogant and forgets what got them where they are. They start thinking inside-out instead of outside-in. "We're the best. WE know what the people want and we'll TELL them what they want and they'll do it OUR way, because OUR way is the best!"

The American auto industry is the prime example of this and look where it got them.

I absolutely agree. Corporate arrogance brings with it a host of issues. And the moral hazard that taxpayer bailouts creates doesn't help. Though as far as Disney goes, they are nowhere near that point.
Nonetheless, a good dose of humility never hurt anyone.

[DizneyRox]

Chrysler didn't take the bailout? I thought the only one who didn't was Ford, but I really wasn't paying that much attention. I don't buy American cars, so I really didn't care too much (and I was too concerned about other things to think deeply about the global ramifications).

[Jared]

The vitriol in this thread is overwhelming. Do some of you own significant shares of the Disney corporation?

Don't like the direction of the parks, stop going. It's simple. No reason to take Disney World's recent struggles as a personal affront. There are plenty of fabulous vacation destinations on this planet. I

I am amazed by how many people here sound deeply offended. Too many things to be angry about to spend more than 10 seconds lamenting Disney's follies.

This is business. If Disney fails, another company will rise and steal its place in the market. Maybe we are seeing that with Universal right now. Maybe not.

Frankly, I have been to the Harry Potter land. The main ride is fantastic -- the best in all of Central Florida. The rest is pretty unmemorable. I'm not a Disney apologist by any stretch. I generally agree with most of the points made here. I just don't care enough to write with such passion and intensity about it.

Life's too short.

[Altair]

It's interesting that Disney and shareholders want very crowded parks, but most quests want to go when there are very small crowds. Right now I think there are two active threads worrying about crowd size.

[BellesRose]

I must be missing something, but there never seems to be a down time like before. We live in the Tampa Bay area and go a few times a month. The first couple weeks of December are no longer dead times when it comes to crowds. We even went in the middle of the week!
Maybe this article only reflects the summer months, which we avoid like the plague because of the crowds.
Seems like the dollar taking a dump and the new Florida resident payment plan has helped bump up the crowds. I'll blame Samantha Brown for ruining the 'two weeks after Thanksgiving' secret.

Hey, I live in your area
I couldn't agree more. I went to Epcot in November expecting low crowds. It wasn't packed solid, but it was pretty crowded. I won't renew my annual pass next year, because I expect it to just keep getting worse. I know people will argue until they are blue in the face, but I do believe Disney needs more space/land to build more stuff. If a family is going to expand, the first thing they do is look for a bigger home.

[Mousemates]

The vitriol in this thread is overwhelming. Do some of you own significant shares of the Disney corporation?...........I am amazed by how many people here sound deeply offended. Too many things to be angry about to spend more than 10 seconds lamenting Disney's follies.

Not sure why you are amazed...remember this is a site dedicated exclusively to WDW, where most of the folks have an emotional attachment (based on intangible things like personal childhood dreams, nostalgia and family memories).

Most companies/investments (i.e. Exxon, Citigroup, Pfizer) simply do not elicit those kinds of feelings... and thus to suggest the "vitriol" flows from something as crass as poor investment performance suggests a failure to understand what made Disney a different kind of company and what WDW has meant to a lot of people.

This is a Disney fan (fanatic) board...passion is to be somewhat expected.

[Jared]

This is a Disney fan (fanatic) board...passion is to be somewhat expected.

Until the fanatics start speaking with their wallets, it's hypocritical and ludicrous to expect anything to change. Why would Disney pander to the people who post on this board? For the last 20 years they have proven that they will keep spending thousands of dollars at Disney World regardless of the resort's direction.

Is there a limit to that? I think so, but I haven't seen it yet, have you? How many of the people complaining here have actually sold their DVC? Or canceled their annual passes? Some, perhaps.

But not many.

[ChipNDale79]

Until the fanatics start speaking with their wallets, it's hypocritical and ludicrous to expect anything to change. Why would Disney pander to the people who post on this board? For the last 20 years they have proven that they will keep spending thousands of dollars at Disney World regardless of the resort's direction.

Is there a limit to that? I think so, but I haven't seen it yet, have you? How many of the people complaining here have actually sold their DVC? Or canceled their annual passes? Some, perhaps.

But not many.

I actually didnt renew my AP....

[fielin]

I actually didnt renew my AP....

... and I actually chose not to go to disneyworld in 2011, and to visit Universal, Seaworld and Busch Garden.