Disney's quarterly results posted this morning show a 5.6% revenue gain, the lowest quarter gain since 2010.In attendance, WDW showed a small attendance gain while Disney Resort & Hong Kong reported attendance losses. Disneyland Paris & Hong Kong results showed increased expenses versus revenue. While WDW seems to be doing well, the international resorts (excluding Japan which is independently owned)seems to be siphoning money off that could have been used for WDW expansions. More money was also piped into mainland China, which is starting to look like it's seriously over budget. Do you think expansion into foreign markets is a good or bad idea?
Wow! It sounds like Disney is in BIG trouble. Especially because of all those WDW expansion projects that have been cancelled as a result of the international resorts siphoning off all that money.
(Snark!)
Hmmmm....could have been used for WDW expansions. Such as?
There's a lot going on a WDW, including what I call "site prep" at DHS. I'm not sure what else they could fit into their schedule at the moment. I won't list the projects because we all know them. But things seem to be going well in the U.S. At least that's my feeling.
Last WDW E ticket, Everest a decade ago. Avatar completion, a couple of years later than projected. A couple of C and D tickets over more than a decade. Sure, there's lot's of expansion at WDW.
(Smile)
And the reason Disney has not built (what you would consider) an E-ticket attraction since 'Expedition Everest' is because Disney's international resorts are siphoning off money?
TH: In part, though the other issue may be that Disney management was looking at Orlando as a mature market that had reached it's ceiling. That's a view that has probably proven incorrect since Disney & Universal have both had nice attendance increases in the past few years. I'm a big fan of WDW, but I am a bit dubious of the international parks since their history (not counting Japan which isn't owned by Disney)hasn't proven financial success. And China is a dangerous market that has upside possibilities, but also the potential for a lot of downside. I really brought up the subject to see what the feeling was about that issue. I would believe that there would have been more investment in Orlando if the foreign parks did not exist, but as I said above, much of that lack of new attractions was management's market view. I don't really have a solid yea or nay position for or against international parks owned partially by Disney, but I do think it has contributed somewhat to the slow pace of DHS & Epcot expansion/renovation. Disney, of course, has plenty of money available for P&R, but what they are willing to spend is another matter. Parents of 4, over at WDW Magic, does a lot of statistical analysis of WDW and has emphasized that WDW has been spending historical low percentages on P&R capital improvements. So again, my question is concerning whether WDW would be getting more expansions if the foreign parks did not exist. Just looking for opinions, not an argument. LOL
When you use the words "slow pace" is your assessment more armchair or do you regard yourself as a fully informed expert on Disney's short and long term strategy?
Only those in the corporate higher echelons know the actual company strategy, and I'm sure that changes over time. So all of us on the forums are speculators at most.
Uh-huh ... Then by all means, enjoy yourself.
I believe foreign markets are definitely diverting attention from WDW to some degree, but also the botched California Adventure expansion. It can be argued that WDW's strategy of more DVC and MagicBands diverted the creation of new attractions. Some say Universal's Wizarding World forced Disney to confront its strategy of not investing in new attraction. Then again, Disney flips on a dime and the plentiful investments in Avatar and Frozen attractions are not quite what they want. I do see a new Disney decade and success leads the way to more success. Avatar and Frozen will be the smashing successes that will come in the next year and two. Then the anticipated Star Wars Land puts its over the top.
It is better to not look at Shanghai and Hong Kong Disneyland as a financial burden. Disney isn't putting that much of its own money into it, but it is certainly lending its expertise that will filter down to Disney World eventually in a measured pace too slow for some.
"Avatar and Frozen are not what they want." ... Followed by "Avatar and Frozen will be smashing successes ..."
Um ... Okay.
It's not what Disney hardcore people want, which should not be in dispute.
I'm surprised that I have to phrase it so carefully for TH. You're so sensitive. Did I hurt your feelings?
Then again, you did say "When you use the words "slow pace" is your assessment more armchair or do you regard yourself as a fully informed expert on Disney's short and long term strategy?"
Really? What's up with that? You're certainly not in position to know either.
Never claimed to be ... And let's leave it all at that.
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I do think it is a good idea but they have to put a cap on spending. If they keep overspending we will have to endure another Frozen movie to make up some monies.. hahahaha