The 'New Normal' for Disney
Columnist J. Dana talks to Lee Cockeral, Disney World's Vice President of Operations about his experience at Disneyland Paris and what will be the "new normal" at Walt Disney World, following the current econpmic slowdown.
From J. Dana
Posted July 1, 2002 at 9:32 AM
What is it that made a Disney executive claim that the current business hardships at Walt Disney World Resort are "child's play?" EuroDisney, that's what.
Lee Cockeral, Vice President of Operations for WDW, said, "What we went through since September 11 from a business perspective was like child's play compared to what we had to do in France." Cockeral, an amazingly frank individual, has gained much praise from Disney cast members for being direct, tough, yet sympathetic. His first stint with the Disney company was as head of food and beverage of EuroDisney, now Disneyland Paris. The tales of Disney's French foray are well-known, but drawing comparisons between then and the present malaise of the "Florida Project" is well worth a visit.
The 1992 opening-night gala for Disneyland Paris was grand, to say the least. Food and champagne for the 10,000 guests maxed out at $1 million--too bad the revelry was short-lived. The European recession and negative press accounts turned the party into a near wake for the theme park.
No one came. Disney had a beautiful new theme park, six 1,000-room resorts, piles of empty champagne bottles, but no guests. It was losing $1 million a day. Described by Cockeral as the "summer from Hades," he said it was like being on the Titanic, except instead of water rushing in, French francs were rushing out. And cryptically, he added, "You knew everyone was not going to get out alive (professionally speaking)." He went on to say that the problems really never got smaller or went away, but "what happens is that humans can get used to any circumstances." He said they just adjusted to "the new normal."
Well, such is the case when whole business units are gutted. Let's compare that to what's happened in Florida since last fall. To be fair, a faltering economy was already shaking the ground around Cinderella Castle-and September 11 opened the fissure and swallowed it down. Here's the short list of casualties:
Disney Institute Resort and the former Dixie Landings side of Port Orleans Resort both closed, the former never to open again. Pop Century, Disney's mini-city of economy hotel rooms set amid nostalgia kitsch stopped construction, leaving all 5,000-plus rooms vacant. Because the interiors of one of the phases of Pop Century are not intact, it's been called Orlando's fanciest warehouse. At Downtown Disney, the boats (water taxis) were anchored, ceasing all service. The bus stops at the far end of Downtown Disney Westside (by House of Blues) were all closed (and remain so).Early park entrances, a popular benefit for guests staying on Walt Disney World property, were scrapped in favor of early-morning character greetings in the hotels. (I thought that's what character breakfasts were for.) This enabled the parks to save money by opening one hour (sometimes more) later. Also, the frequency of live productions, such as Beauty and the Beast, Hunchback, Tarzan Rocks, and Festival of the Lion King were cut. At MGM, the productions actually had dark days (no performances at all). About half of all performers were let go or offered jobs elsewhere in the company (so that's where those singing hot dog vendors came from).Internally, cast celebrations--a mainstay for maintaining that eerie yet expected employee cheerfulness--were "put on hold." Most Christmas parties were canceled. The Service Awards Banquet--where employees are recognized for 10, 15, 20, etc. years of service to the company--weren't held. Same for the Partners in Excellence banquet. Disney University, the resort's employee training division, was dispersed, with only the most essential classes kept. "Traditions," the new-employee orientation, was cut in half. Employee hours were slashed, and nearly 2,000 positions were eliminated (the casting center--hiring--was even closed). All this during the 100 Years of Magic celebration. Very bleak.According to Cockeral, though, "Not getting a merit increase or some reduced hours would have been like a promotion compared to what we were dealing with [in Paris]."
Disneyland Paris recovered, becoming the most-visited attraction in all of Europe. Walt Disney World is limping back. According to WDW President Al Weiss, "Our park attendance, along with our resort occupancy and future bookings, are coming back slowly. We still have a way to go before we're back to previous levels, and there's no way to predict exactly when that may happen. So we continue to manage our business carefully." In other words: The New Normal.
That means that although many things will eventually get back to pre-9/11 status (some already have), some things are forever changed: Disney Institute gone (perhaps for the better--its programming remains, however); reduced bus routes; reduced cast members. During the crisis, Epcot's The Living Seas stopped the ride portion, thus eliminating two, maybe three, positions. The ride portion is now gone for good.
A manager in the World Showcase at Epcot hung with it for as long as possible but has now left because of the staffing problems. International employees left in droves following the attacks, afraid for their safety. Since they were recruited from different countries for a specific time frame, replacing them is quite difficult.
The internationals live in company-sponsored housing and are only authorized to remain in the U.S. on a work visa, and they must vacate their apartments and leave the U.S. within 24 hours of termination of employment. Most of their positions have yet to be filled, even though attendance has picked up considerably.
Instead, Disney is just getting by with a fraction of the employees working double shifts. They say that deep discounts have brought in increased numbers, just not comparable revenue.
Time will tell us what returns to normal, and what is a product of the new normal. The new normal, however, is becoming Disney's new reputation.
ALSO:
Fourth of July Happenings in the Orlando theme parks:
Epcot: A swearing-in ceremony for 500 immigrants at 9 a.m. Native American dancers, bluegrass, and "This is America Show." Special fireworks at 10 p.m.
Magic Kingdom: A pumped-up Fantasy in the Sky presentation, with fireworks being launched all around the park starting at 9 p.m.
Disney-MGM Studios: Sorcery in the Sky fireworks at 9 p.m.
Animal Kingdom: they're open.
Pleasure Island has its fireworks planned for midnight.
SeaWorld: Two fireworks spectaculars and live music.
Universal Orlando is staging three fireworks shows simultaneously at 10 p.m., from each of its two theme parks, and from CityWalk.
Busch Gardens has special music, entertainment, extended hours, and fireworks.
From Anonymous
Posted July 2, 2002 at 12:52 PM
I would have to say that WDW is most definitely bouncing back. My husband & I took our 2 children in April, stayed at the Animal Kingdom Lodge (Awesome!!). Realizing that school would still be in and with all that we've heard about "low attendance" since 9/11, we thought April would be a great time it was more crowded than we've ever seen (Sept-Oct is perfect). 60 min. wait for Dumbo & Peter Pan and 2 hour wait for Splash Mountain. Animal Kingdom Lodge appeared to be full - on the inside Savannah side anyway. Hopefully everyone's getting back into that Magical spirit.
From Anonymous
Posted July 2, 2002 at 12:52 PM
I would have to say that WDW is most definitely bouncing back. My husband & I took our 2 children in April, stayed at the Animal Kingdom Lodge (Awesome!!). Realizing that school would still be in and with all that we've heard about "low attendance" since 9/11, we thought April would be a great time, it was more crowded than we've ever seen (Sept-Oct is perfect). 60 min. wait for Dumbo & Peter Pan and 2 hour wait for Splash Mountain. Animal Kingdom Lodge appeared to be full - on the inside Savannah side anyway. Hopefully everyone's getting back into that Magical spirit.
From Anonymous
Posted July 2, 2002 at 3:04 PM
Where's your American spirit? Certainly Disney is part of America -- and there you are beating them while they are down! Why not encourage people to go there instead of pulling them apart. I was at Disney World in March and it didn't seem empty to me -- plus there were more than enough services and employees. Everyone is suffering since 9/11---so find some American spirit and treat yourself to a trip to Disney!!!
From Anonymous
Posted July 3, 2002 at 7:58 PM
My husband, two sons and granddaughter and myself are planning a trip to WDW in October this year. We have visited WDW every year for the last three-we'll see if we can notice a difference in the accomodations and services. We hope not.
American spirit? What does that have to do with Disney? No other theme park company is an American company??? Or Disney is somehow MORE American? Using that logic we should all go to Islands of Adventure since they have Captain America!!!!Just because it is the 4th doesn't mean that Disney's business practices have all of a sudden improved. Look at an earlier post that said crowds were back to normal at WDW. Are operating hours back to normal??? Has Early Entry been revived??? NO! Disney is STILL using 9/11 as an excuse to cheat their paying customers and now someone else wants to use 7/4 as a different excuse. Well I ain't fallin' for it!
From Anonymous
Posted July 6, 2002 at 10:39 AM
Well, my family went to WDW in december after 9/11...and it was still a crowded disney(with the exception of a lack of specific shows/performers we wanted to see and particular things such as the parisian mimes and the Japanese candyshaper at Epcot)
We all hurt in many ways after 9/11. As a Florida resident that goes to the parks once or twice a month, yes things were different after that. What's a business to do? There were days I could park right at the entrance to the parks and walk right in. If you have few customers you do not need many employees. Sorry about that but sometimes businesses need to change the way they have done things in the past. On a positive side, it does seem that people are coming back to the parks.
People were coming back to the parks in November. I was there and had never seen it so busy in the off-season. Disney's biggest problem is that it isn't filling its hotel rooms. When you have that many, it is definitely going to affect you if they aren't full in your busy season. I also think Disney isn't rebounding as well as Universal and SeaWorld, but that has nothing to do with 9/11 and everything to do with current business practices.
This discussion has been archived, and is not accepting additional responses.
