Archive for May, 2009

Disney profits fall 46 percent in first quarter

For the last few weeks I have been hearing a similar refrain about Walt Disney World.  It usually says something like “You would never know there was a recession from the amount of people at the parks.”  But there is a recession and a significant one.  And even though Disney has been aggressive in combating the problem by deeply discounting resort stays, they are still feeling it.

Yesterday, the Disney Company announced that its first quarter profits for 2009 were down a whopping 46 percent from last year’s pace.  Now that is the company at large, including television, films and the like.  But despite steady attendance numbers thanks to the “buy four nights and get three free” deal, the Parks and Resorts division is still hurting in comparison to last year’s numbers.  Check out the story in the Orlando Sentinel.

…Disney’s theme-park division was hard hit during the quarter. Operating profit at Walt Disney Parks and Resorts fell 50 percent, dropping from $339 million to $171 million. Sales sank 12 percent to $2.4 billion.

Both sales and profit fell even though attendance slipped just 1 percent at Walt Disney World and rose 2 percent at Disneyland in Anaheim, Calif. The reason: Disney’s decision to use deep discounts to stimulate travel.

The effect was particularly pronounced at Disney’s hotels.

Hotel occupancy at Disney World, where Disney has been selling seven hotel nights for the price of four, actually climbed one percentage point during the period to 89 percent. But per-room spending plummeted 17 percent.

So despite Disney’s aggressive deals, and cost-cutting measures including layoffs, the parks are still suffering as a result of the economic downturn.  It is what everyone expected to hear, but numbers like that are still sobering.

The Disney movie studio is also hurting, in fact they may be hurting even more so than the parks…

Disney’s move studio struggled even more than its theme parks. Operating profit plunged 97 percent to $13 million, in large part because movies such as Highly School Musical 3: Senior Year, Beverly Hills Chihuahua and Bolt failed to sell nearly as many DVDs as Enchanted, Game Plan and No Country for Old Men did a year ago. Disney said its theatrical releases during the quarter also struggled when compared with a year ago.

Disney has managed to stem the tide of the recession at their theme parks, but not so much at the movie theater.  The difference here is that they just can’t discount films.  They need something already in the pipeline to be a hit.  But the future does look good for Walt Disney Pictures.   On the DVD front, I would imagine Hannah Montana; the Movie will blow the doors off the year for them.  And it does seem that Up has the potential to be a major hit.  (Check out the extended trailer on the Walt Disney Pictures website.  The dog with the talking collar looks hilarious!)

So I guess my point here in relaying this news is that Disney has done a fairly good job at keeping their heads above the proverbial waters.  But we as fans have to expect to take the good with the bad.  Costs will continue to be cut at the parks, and we will continue to benefit from deep discounts.  I guess we will have to take the good with the bad.  (But cutting Fantasmic! is still nonsense!!)

Rethinking what is Walt Disney World’s best resort

For the last few years I have singled out Disney’s Boardwalk as the best, or at least my favorite, Walt Disney World Resort.  But I think this most recent trip may have changed my mind.  From now on, when asked what the best place to stay on property is, I have to answer the Beach Club.

Now I had stayed at the Beach Club before this last trip and the Yacht Club as well.  I always like them both, and would normally rank them, along with the Polynesian, right behind the Boardwalk.  But this time around I think I finally got the full menu of all that the Beach Club has to offer.  Perhaps I took the time to enjoy the resort more than I have in the past.  Whatever the reason, I REALLY want to go back!

First, I love to spend almost every night of my trip around the World Showcase.  A pint at the Rose and Crown, dinner at Le Cellier or Tutto Italia, or just a leisurely stroll before Illuminations is my favorite way to end a night on vacation.  Being only yards from the entrance to World Showcase is a benefit I can not understate.  It really makes a huge difference and allows you to relax and enjoy the evenings to their fullest.

Also, and this is no great surprise, it has an amazing pool.  Stormalong Bay is an attraction all to itself.  I’m not one for sunbathing, and I don’t have kids to pull me to the pool, but this place is just very enjoyable.  Unlike most large, crowded and noisy resort pools, Stormalong Bay has wonderful and quiet nooks and corners.  Plus it is only steps from Beaches and Cream, a great place for ice cream or lunch while enjoying a day at the resort.  With a great pool bar, and Beaches and Cream only steps away, anyone would enjoy a day away from the parks and on Stormalong Bay’s shores instead.

Along with the Yacht Club, the resorts offer nearly anything you can ask for when it’s time to eat or drink.  There is a top shelf steakhouse, Yachtsman’s, and the Crew’s Cup, a perfect little drinking hole.  For those without children, there is a nice quiet sit-down, and non-character breakfast over at the Captain’s Grille.  And for those with little ones there is also character breakfast at the Cape May Café, which also offers a Clam Bake Dinner Buffet.  And don’t forget when you’re done with all these culinary delights to make your way back to Beaches and Cream for a little frozen goodness.  My wife always insists.

But most of all, the Beach Club is cozy.  It has a warm and inviting atmosphere.  There never seems to be much noise which really keeps the stress level down.  If you are looking for a gorgeous place where you can do everything in a relaxing atmosphere, plus enjoy the best walk to Epcot you could ever ask for, then I would suggest the Beach Club over all other Disney Resorts.  Perhaps the families looking to be at the Magic Kingdom as early and as late as possible would find a monorail resort a better choice.  But if you are like me, and you do want your Disney vacation to be one that does not require a week off to rest your feet and ankles, then try the Beach Club.

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