Corporate Disney has lost the vision

[sethschroeder]

Disney is a publicly traded company, so ultimately it comes down to maximizing shareholder value.

Thing is the actions they are taking are ones of someone working for a shareholder who will sell the company within 5 years.

I don’t expect any other resort I spend time at to transport me and my luggage at no cost or even at all.

The nice all inclusive ones have it built in to the cost no different than Disney did. If I wanted to line up everything myself I could easily visit other places. Part of the draw was the bubble.

By that same logic, it doesn't cost Disney anything to have employees.

Correct Disney doesn't subsidize your visit you are paying a premium so Disney hires premium people and employs premium systems. Not sure why anyone acts like Disney was being a good pal and throwing you a bone with magical express or luggage transfer.

I also think more people would be okay with just luggage transfer.

 

[disney_runner]

I had not heard of this until now. WDW News Today's Youtube is reporting the DJ was pulled. I sure hope so.

The afternoon pool parties are bad enough (i.e. sipping a beverage and trying to relax by the pool after being in the parks when a poor CM pulls out a loud speaker and begins playing loud party music while simultaneously yelling into a microphone to encourage participation in the games).

The DJ (that yes, I believe was stopped already) reminds me of the runDisney races. It makes sense for that as races start at 5am and runners need some excitement to get going. There also was a DJ that runners loved to see around the Contemporary too. But it totally didn't fit in at MK. Very strange decision. It makes sense to excite and motivate runners before and during a road race. But not at the end of the night at MK.

Also - the pool parties! My 17 year old daughter left the big pool and came back to the quiet pool (where I was) because it was just too dang loud and she wanted to chillax.

 

[Bearval]

Disney is a publicly traded company, so ultimately it comes down to maximizing shareholder value.

The best way to immediately increase shareholder value would be to split up the company. Imagine the bonus Chapek would get for that move.

 

[jhglassman]

The best way to immediately increase shareholder value would be to split up the company. Imagine the bonus Chapek would get for that move.

What makes you say that? Seems like there are efficiency gains with the films and parks promoting each other and selling merch.

 

[M:SpilotISTC12]

I never thought I'd say this but: I wish comcast bought Disney back in like 2005. Ultimately we are seeing their vision now with Universal. Knowing what we know now I'd much rather WDW have the trajectory that Universal has now. It's going to get worse before it gets better for WDW.

 

[Bearval]

What makes you say that? Seems like there are efficiency gains with the films and parks promoting each other and selling merch.

The sum of the parts are worth more individually. That was a favorite wall street tactic of the 80's and 90's. Buying up large corporations with multiple divisions and selling them off at a huge profit. They can sell off the movie franchise, television division, streaming division, parks division, cruise line division etc.

 

[dvc lover 1970]

Disney is a publicly traded company, so ultimately it comes down to maximizing shareholder value.

Yes, but it is a company built on customer service. It has been the leader in that industry. Their desire to put greed before service will ultimately be their downfall. Every giant will fall, and disney is no different. It wont be today or tomorrow, but every little chip eventually breaks the glass. I wish one from the disney family would come back! Chapek really needs to go as CEO

 

[jhglassman]

The sum of the parts are worth more individually. That was a favorite wall street tactic of the 80's and 90's. Buying up large corporations with multiple divisions and selling them off at a huge profit. They can sell off the movie franchise, television division, streaming division, parks division, cruise line division etc.

That's only true when its true. There are costs associated with managing such different business, but in the case of disney the synergies more than make up for it.

 

[Bearval]

I think the problem (and this is why the DJ bothered me so much) is that there seem to be people fairly high up in managerial positions at Disney World at least that don't actually understand the brand. The brand is and always must be the eternal appeal of Main Street USA and to a lesser extent Hollywood Boulevard and World Showcase. Comforting and familiar, but perfected. Guest surveys may put streetmosphere or epcot performers far down the list of priorities, but that is only because of how seamlessly it contributes to the feel of the place. The brand is Happiest.Most place on Earth, not most thrilling, most exotic, most inclusive or even most *fun* place on earth. Thrill rides and fashionable political messaging will come and go, but the familiarity

That's only true when its true. There are costs associated with managing such different business, but in the case of disney the synergies more than make up for it.

What happens is that an existing business will buy the portion of the company that enhances what they already have. A few examples would be Netflix would buy Disney +, Carnival Cruise Lines would buy Disney Cruise Line, Comcast the owner of Universal parks would buy Disney Parks. Etc.

 

[jhglassman]

Yes, but it is a company built on customer service. It has been the leader in that industry. Their desire to put greed before service will ultimately be their downfall. Every giant will fall, and disney is no different. It wont be today or tomorrow, but every little chip eventually breaks the glass. I wish one from the disney family would come back! Chapek really needs to go as CEO

I agree about the nickel and diming, but I don't think its just the greed that the problem. I think the problem (and this is why the DJ bothered me so much) is that there seem to be people fairly high up in managerial positions at Disney World at least that don't actually understand the brand. The brand is comfort and idealist optimism and always must be the eternal appeal of Main Street USA and to a lesser extent Hollywood Boulevard and World Showcase; comforting and familiar, but presented as they ought to be rather than as they are.

Guest surveys may put streetmosphere or sightlines or epcot performers far down the list of priorities, but that is only because of how seamlessly it contributes to the feel of the place. The brand is Happiest/Most Magical place on Earth, not most thrilling, most exotic, most inclusive or even most *fun* place on earth. The execs need to think of themselves as the stewards of this brand, otherwise they are going end up turning the whole place into different IP worlds and throwing money at ride tech every few years wondering why nobody is showing up.

 

[Bearval]

I agree about the nickel and diming, but I don't think its just the greed that the problem. I think the problem (and this is why the DJ bothered me so much) is that there seem to be people fairly high up in managerial positions at Disney World at least that don't actually understand the brand. The brand is comfort and idealist optimism and always must be the eternal appeal of Main Street USA and to a lesser extent Hollywood Boulevard and World Showcase; comforting and familiar, but presented as they ought to be rather than as they are.

Guest surveys may put streetmosphere or sightlines or epcot performers far down the list of priorities, but that is only because of how seamlessly it contributes to the feel of the place. The brand is Happiest/Most Magical place on Earth, not most thrilling, most exotic, most inclusive or even most *fun* place on earth. The execs need to think of themselves as the stewards of this brand, otherwise they are going end up turning the whole place into different IP worlds and throwing money at ride tech every few years wondering why nobody is showing up.

You are right about the surveys and when they look at where yhe Street performers fall the suits at Disney say hey we can save money cutting these people because they are low on the satisfaction list and they are not making us any money.

 

[CraigInPA]

Is is it possible the folks in-charge have never spent a day in Disney parks or resorts? I am thinking "no" or else they would stop listening to the good idea fairy.

I'd love to see them arrive "undercover boss" style to the various parks with 2 young children and a spouse and experience what guests see. It would be a game changer for sure!

 

[Heather07438]

The loss of MB's and luggage tags/transport and DME is disappointing. Don't really need MBs anymore and we don't use DME. We liked dropping airport luggage for check out but not a big deal either way. So far we're still able to find value in a visit. As prices increase we adjust on what options to spend.

DME was marketed as magical but it wasn't created purely out of the goodness of their heart. Disney provided because it was to their overall advantage, getting most if not all of that money back on resort market purchases and dining. It was win/win for them but WDW trends changed over the last decade. People use more delivery/uber for supplies/food now instead of being captive spenders. There's a higher amount of shorter trips more frequently (look at people's signatures to see that trend), which increases the DME cost/night ratio for WDW. I can see it not being cost effective like it was 10 yrs ago.

Magic has increased with the additions of Pandora, TSL, SWGE, The Springs, upcoming changes for MK's Enchanted 50th and Epcot's turn for a makeover. Genie's likely to be a net positive to us but until we see it action it's debatable. Look at recent investment in security, they're continuously trying to improve crowd flow. Many changes to the fronts of MK EP and HS the last 5 yrs. The whole monorail loop has been reinvigorated for the 50th. The parks are expensive but it's not like they take our money and let the place stagnate.

I'm looking forward to the competition Epic Universe gives. I hope it forces WDW to adjust pricing in guests favor, but possibly the addition to Florida will attract more people into the area who are willing to spend.

Nobody goes to WDW anymore, it's too crowded. ~Yogi Berra

 

[The Jackal]

Corporate Disney has lost the vision of what a Disney park is supposed to be. It was a place where you went for vacation and made to feel like you were a welcomed guest the moment you got off the plane at MCO or at the gate as you drove in on property. If you flew in you had the option of letting Disney magical express handle your luggage and take you to your destination or renting a car. Now corporate disney wants you to believe that with rideshare services the disney express is no longer needed and you didn't want it anyway. They also now want to squeeze every dollar they can out of you to maximize profits to increase shareholder value while at the same time increasing their bonuses but choosing not to fix Expedition Everest or Primeval whirl among other things along and with playing fast and lose with movie distribution contacts with the actors. They may get a short term revenue boost but as people begin to weigh in on what a disney vacation costs and find better alternatives some wont be back. Who wants to spend thousands of dollars to wait in line for hours for some rides that are not even working t like they should? the Disney Park I went to 5 years ago and before that is vastly different then the one today. Disney was always expensive but you get so much less now.

I agree it costs more and you get less. But DME was not part of WDW in the beginning. It was an added perk that was available for less than 20 years. Perks never last, they get removed or replaced. To fix Everest they would have to shut the ride down for probably almost a year if not more. Primeval whirl does not belong in a Disney park. That is a Carnival ride. It was a cheap fill the void ride for the park. They need to replace it. Lots of people got sick on that ride. Every time we went on it they were always running a car or two through where someone got sick in. WDW is being cheap and taking their time replacing it. I foresee Dinoland gone in a few years, Dinosaur remodeled another ride using the same vehicles, more IP based. That is direction they are moving. If they want more people to go to AK they need more rides and attractions. AK and Epcot at this moment in time are short on rides, but have lots of stuff to look at. It is obvious that the park with the most rides and attractions gets the most business, by a lot.

 

[TiggerBouncy]

It didn't cost Disney anything to provide this service. They just passed the expense on to people staying in the hotels. Now that they stopped this service do you think they will lower the cost of the rooms?

DME is so much more complicated an animal then people realize. Many years ago, I was one the leads for one (ONE!) of the vendors involved. DME was a roster of many companies all working together. COVID - NOT COST - was the death of DME. One of the companies went out of business and was then purchased. Another one abandoned the systems that were required to make it run. Another sold their share of it off. The TSA changed the luggage handling rules. The airport changed rules and regulations. The employees were not even Disney people. DME without the luggage and airline tickets is a hollow shell of useless - it's basically just Mears and was no longer worth it without those extra services.

Don't get me wrong... I miss DME as much as everyone else. I loved the concept of dropping my bag off at my home airport, not picking it up and having it appear in my room. I touted and strongly believed in the "Disney bubble" and I used to feel like I was truly on vacation after I parked my car. DME is part of what stopped me from going to other parks in the area. But I GET IT. When you consider that the alliance was shattered, and could not be rebuilt. When you add in that people's habits have changed. They want to drop by a grocery now. They don't want the long waits at DME. The busses took (on average) 2-3x longer than other options. I can see why Disney made the choice and it's not all about the dollar.

Yeti has not worked for a very long time. That's not a recent thing, and anyone who has studied the poor sick robot knows that there is not any good (or reasonable) option to fix him.

While I would love a 5th gate and I think it's time - I do agree that one is a long way off. There are many options for expanding the parks. I do not think Disney is short right now on cap-ex. We have a number of new or refurbished experiences on the way. Areas that have frustrated me for years because of being under-utilized (like like life pavilion which is being turned into play!). I am glad to see a huge amount of effort going into cleaning up EPCOT's Future World. The Star Wars hotel is going to be terrific and I am very much looking forward to it. We have recent rides at HS and new ones at MK and Epcot. New dining everywhere.

I think you are cutting the parks short. You are irritated that some things that Disney provided for free even though no one else in the industry did are now being charged for, or going away. I get that. So maybe you need to take a break from Disney. But I don't count them out yet. The parks are very busy with people willing to pay, and as long as that is true, I do not expect them to change. I think you overestimate the number of people who are like-minded with you. There is a percentage on these boards, that's true. But empirical evidence is that Disney is struggling right now with crowd volumes, and that's with there still being a pandemic and many people not wanting to travel and putting off their travel plans. I do not think Disney is going to be hurting for people willing to pay their prices, which means by simple economics, they are doing the right thing. As a customer and a shareholder, I support their current moves as they make good business sense.

 

[Bearval]

DME is so much more complicated an animal then people realize. Many years ago, I was one the leads for one (ONE!) of the vendors involved. DME was a roster of many companies all working together. COVID - NOT COST - was the death of DME. One of the companies went out of business and was then purchased. The TSA changed the luggage handling rules. The airport changed rules and regulations. The employees were not even Disney people. DME without the luggage and airline tickets is a hollow shell of useless - it's basically just Mears and was no longer worth it without those extra services.

Don't get me wrong... I miss DME as much as everyone else. I loved the concept of dropping my bag off at my home airport, not picking it up and having it appear in my room. I touted and strongly believed in the "Disney bubble" and I used to feel like I was truly on vacation after I parked my car. DME is part of what stopped me from going to other parks in the area. But I GET IT. When you consider that the alliance was shattered, and could not be rebuilt. When you add in that people's habits have changed. They want to drop by a grocery now. They don't want the long waits at DME. The busses took (on average) 2-3x longer than other options. I can see why Disney made the choice and it's not all about the dollar.

Yeti has not worked for a very long time. That's not a recent thing, and anyone who has studied the poor sick robot knows that there is not any good (or reasonable) option to fix him.

While I would love a 5th gate and I think it's time - I do agree that one is a long way off. There are many options for expanding the parks. I do not think Disney is short right now on cap-ex. We have a number of new or refurbished experiences on the way. Areas that have frustrated me for years because of being under-utilized (like like life pavilion which is being turned into play!). I am glad to see a huge amount of effort going into cleaning up EPCOT's Future World. The Star Wars hotel is going to be terrific and I am very much looking forward to it. We have recent rides at HS and new ones at MK and Epcot. New dining everywhere.

I think you are cutting the parks short. You are irritated that some things that Disney provided for free even though no one else in the industry did are now being charged for, or going away. I get that. So maybe you need to take a break from Disney. But I don't count them out yet. The parks are very busy with people willing to pay, and as long as that is true, I do not expect them to change. I think you overestimate the number of people who are like-minded with you. There is a percentage on these boards, that's true. But empirical evidence is that Disney is struggling right now with crowd volumes, and that's with there still being a pandemic and many people not wanting to travel and putting off their travel plans. I do not think Disney is going to be hurting for people willing to pay their prices, which means by simple economics, they are doing the right thing. As a customer and a shareholder, I support their current moves as they make good business sense.

I didn't expect Chapek to respond to my post.

 

[a1tinkfans]

Long time Disney family/ies here and we LEFT too. Eventually disney will Note this trend/change. Right now dare I say, post or late pandemic …people craved the getaway, ignoring the costs somewhat because they Needed the Magical family time at( imho what used to be ) the Happiest Place on earth. BUT for many more of us long timers… the PERVASIVE GREED feeling of taking more money but offering us less while making it Seem like we didn’t need or want the INcluded things just didn’t matter.
hey Disney, we re Smarter than that and frankly, UR MARKETING made people EXPECT the immersion, escape and special things.
So… when the people that visit once or maybe twice fall off… and they will…those that were the REPRAT visitors won’t be there to win back.. we ve moved on spending our $$$ elsewhere.

It’s actually sad to me, kind of insulting as well. But hey.. times change and there are plenty of other places n parks to become a repeat visitor. Be safe all!

 

[igrsod]

I am not happy with the direction Disney is taking as of late. I hope they have the vision to see that they may see short term gains, but long term losses with what they are doing.
Disney is not Universal, or 6 Flags. Disney doesn't have the thrill rides... it has mostly 1970's rides with a few newer ones thrown in. If they make their vacations about rides... they will suffer. Most people do not go to Disney for the "rides' as the primary focus.
It is about the whole experience.. the feeling of being magical.. the feeling of being special. Most of these recent changes do not add to that. Disney is also about the shows and in park experiences... citizens of Hollywood for example. We could spend all day watching their skits and be happy with our park admission price. Take that away and we miserably wait in line all day to ride a few rides we have been on a million times. That experience loses it's appeal real quick.
There used to be a reason to stay onsite... those perks are basically none. If I didn't own DVC... I wouldn't buy, and I would rent an airbnb, rent a car and have a completely different vacation.
The way things used to be, all my money went to Disney when we came to Orlando. Now with the changes, my money is being distributed to other companies too. Disney is losing revenue already. I know I'm not the only one.
I am worried as a DVC owner about the value of the vacation I have prepurchased for the next couple decades.

 

[TiggerBouncy]

I didn't expect Chapek to respond to my post.

LOL. I wish. But then I guarantee you I would not be hanging around here, and my sig would have a LOT more DVC properties.

Sadly I am just a struggling middle classer who understands the business choices they are making. You do not have to be Chapek to understand basic economics.

 

[RivShore]

DME is so much more complicated an animal then people realize. Many years ago, I was one the leads for one (ONE!) of the vendors involved. DME was a roster of many companies all working together. COVID - NOT COST - was the death of DME. One of the companies went out of business and was then purchased. Another one abandoned the systems that were required to make it run. Another sold their share of it off. The TSA changed the luggage handling rules. The airport changed rules and regulations. The employees were not even Disney people. DME without the luggage and airline tickets is a hollow shell of useless - it's basically just Mears and was no longer worth it without those extra services.

That is some great inside info but, if true, why oh why did Disney not communicate it that way? If they had no choice due to vendor changes/bankruptcies and TSA changes, they should have just said that. Their communication, pre and post pandemic has been horrid...