Turning a banner year into something good, Disney profits gain
Disney has announced another banner year on the fiscal front. According to today’s Orlando Sentinel report, the parks had a nice hand in the company’s growth, and Florida’s Walt Disney World was the flagship…
Although they did not detail Disney World’s attendance, Staggs said it set a record this fiscal year and more than offset a slight decline at Disneyland Resort in Southern California, giving the company an overall 5 percent increase in domestic admissions. Disney World’s average hotel-occupancy rate rose 7 percentage points to 90 percent, while spending by the average guest grew 2 percent, in part because of an increase in ticket prices and room rates.
So congratulations to those who work at the Walt Disney Company, as I am sure a few champagne bottles are popping today. And if I were a major stock holder, I would be thrilled at this news. But as a regular park guest, Disney Vacation Club member, and annual passholder I am a bit cautious in my optimism.
Will this mean an investment into new and exciting experiences at Disney World, or maybe into something less flashy but just as important? Or will it mean nothing but continuing what they see as a successful formula? As of now, it seems most of the major investment is going to other places. The article continues…
Disney World, however, was not among the direct beneficiaries of the big-ticket capital investments outlined by Iger for Parks and Resorts. The company’s three key decisions of 2007, as he called them, were: continued investment in Disney Vacation Club, with the announcement of a new Hawaiian resort; continued investment in Disney Cruise Line, with the purchase of two new ships; and a $1 billion makeover of Disneyland Resort’s California Adventure theme park.
“Let’s face it: We had a problem with California Adventure. It was not as successful, and the returns on that investment were not as strong as we would like,” Iger said. “As we looked at the entire Disneyland Resort, . . . we concluded that the only way to grow that business would be to fix and expand California Adventure.”
So perhaps this is a case of robbing Peter to pay Paul, but I understand the larger needs. I also hope it doesn’t mean that Florida can’t be the recipient of smaller, but still significant changes. I love the parks of Walt Disney World and am happy with turning money that may be used for new e-ticket attractions into funds for other less expensive things. How about turning these great attendance figures into increased operating hours or more buses? These are the things that can make an already great experience even better.