Disney's 2nd quarter earnings - weaning from discounts
Disney's 2nd quarters earnings report was released this week. Wall Street was disappointed in the report and Disney stock is down in trading today.
Yes, Dad's reporting on the stock market now. (There is a point to this, keep reading.)
Costs a lot of money to keep this all light up
|Photo by Don Sullivan|
The interesting thing in all of this is what a couple of Disney executives said in response to questions about the report. Bob Iger and Jay Rasulo (heap big Disney honchos) were discussing the report in a press conference when Rasulo said that Disney was still in the process of "weaning" guests off of expecting discounts. That the process was continuing but not fully accomplished.
So Dad was right. Disney did intend for Free Dining to Die.
They just haven't addicted enough of us to the Dining Plan yet. (Just had to throw that in.
He did say that hotel bookings for the upcoming quarter were running 2.5% below
expectations. Here's some more of what Rasulo said from an article about Disney's 2nd quarter earnings at disunplugged
The consumer, Rasulo said, is willing to pay higher prices for good product but are still booking late expecting discounts. Disney still wants to send a message to consumers that discounting is a thing of the past. Unfortunately, it appears to be working. While saying the current information is mild and not easy to read, Rasulo also said the decrease in discounting and recent room rate price increases “are definitely sticking” because room bookings (so far this quarter) are up by double digits as compared to last year.
Dad's Bottom Line
I still say that Free Dining is Dead in the long run, but for the next few months, if you see a discount at Disney World you better jump on it. Higher prices are around the corner. (Remember, ticket prices will go up in August.)
Join in and write your own page! It's easy to do. How? Simply click here to return to Disney World News.