A closer look at how Walt Disney World fared in 2009
Featured, Jason Garcia, News — By Jason Garcia on December 3, 2009 at 11:40 am
Spending on tickets, food and merchandise at Walt Disney World fell in 2009, the first annual drop at the Orlando resort in nearly a decade and yet another example of how it has been squeezed by the global recession.
Guests at Disney World spent an average of 4 percent less in the resort’s theme parks during its 2009 fiscal year, according to a new regulatory filing from the Walt Disney Co. Park spending last dropped at Disney World in 2001, during the country’s last recession.
Disney’s year-end filing provides the most detailed glimpse of how the company’s biggest theme-park resort has fared through what Disney Co. Chief Executive Officer Bob Iger called probably “the weakest economy in our lifetime.”
In addition to the in-park drop, guest spending at Disney World’s hotels and time shares dropped 8 percent, from a per-room average of $223 to $205. That was the lowest level since 2005 and the first year-over-year decrease since 2003.
Both drops reflected Disney’s use of heavy discounts — including promotions featuring either seven hotel nights for the price of four or free dining — to keep travelers coming amid the brutal environment. Average ticket prices and average daily hotel-room rates both fell on the discounting.
Attendance for the year was essentially flat with 2008. Hotel occupancy slid 3 percentage points, to 87 percent.
Spending at Disneyland also dropped, with in-park spending fell 9 percent and hotel spending dropped 7 percent. But attendance at the Anaheim, Calif., resort, which draws far more local traffic than Disney World, jumped 7 percent.
Disney’s fiscal year ended Oct. 3. The company’s fiscal 2009 had an extra week in it because of a timing quirk; every six years or so, Disney has a 53-week fiscal year in order to keep the ending date of the year close to Sept. 30.
The shrinking guest spending was one of the primary factors that led overall revenue at Disney’s U.S. resorts to sink by $531 million. Disney’s domestic operations were also hurt by the inability of Disney Vacation Club to securitize time-share mortgages in a locked-up credit market.
Revenue at Disney’s international resorts dropped by $306 million for the year, primarily because of declines at Disneyland Paris, which suffered from both lower guest spending and strengthening of the U.S. dollar against the Euro.
Total revenues at Walt Disney Parks and Resorts fell $837 million for the year to $10.7 billion, a 7 percent drop. The division partially offset that by slashing expenses by $358 million, or 4 percent, to just under $9 billion. The cost-cutting included the elimination of 1,400 jobs in Florida.
Operating profit at Disney’s parks-and-resorts division sank $479 million for the year to $1.4 billion, down 25 percent.
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42 Comments
Merchandise spending at the resort would go up if they offered merchandise for the entire family. I’m a casual Disney fan and on a recent trip spent nothing on merchandise (Did buy just a few items for the kids but not as much in the past). It’s not because of the economy, it’s their horrible merchandise mix – there’s nothing for men, little for women and the stuff for kids is generic in EVERY store. What happened to “cool” Disney merchandise? Years ago, you could find neat stuff in various stores, now you find the same thing EVERYWHERE – shopping at WDW has become boring!
I totally agree. You can go to Walmart or Target and get the same t-shirts they sell is Disney World. I have been to WDW 23 times since 1997 and have seen the quality of the merchandise deteriorate more and more. My last trip was this past Sept. and I was very disappointed with many aspects of my trip from customer services, to food offerings to the cheap plastic merchandise being sold at EPCOT. There is nothing special about receiving a gift from WDW anymore because you can buy their crap everywhere.
As an Orlando resident, and a former annual passholder I have witnessed the decline in services and value at WDW. The public at large needs to know the truth … Mickey has become just another corporate rodent. The “world” is overpriced. Greedy. Less creative. Plastic. No dreams here. For example, consider their latest promotion geared toward the central florida consumer … a pass which provides for a “discount” for those willing to visit only during weekdays and accept restrictions based on high traffic periods. Except management fails to mention that the purchase of this pass does not include parking, which now stands at $11.00. Do the math. Are you willing to drop hundreds of dollars just to let your vehicle sit out in the sun? No wonder people are getting turned off. The mouse and his henchmen are all about nickle and diming, and marketing increasingly “beige”, boring entertainment.
I do like Disney PAST, but over time, I feel like it’s when I go to my bank. They’re not there to ‘give a service’ or ‘provide an experience’ anymore, they’re there to 100% completely SELL you something. The magic is gone. We now primarily vacation otherwhere. The food,quality,etc used to be top notch. Now, it’s all crappy stores and character meetings, and food that while I don’t mind quantity less, but the quality has slipped. Sorry Walt. I know you’d be rolling over in your grave if you saw the machine now.
It seems like so many companies are claiming their poor financial results on the economy. In reality, they cut so many corners trying to increase profits that the quality suffers. Consumers are savvy and they’re starting to catch on to this – it’s no surprise that they’re spending less. Lets just stick to the facts and stop blaming everything on the economy.
It may help if Disney would stop raising ticket prices especially with the economy down. I told them this after they raised prices four dollars this summer. They told me it’s because they provide such entertainment for a day. Typical corporate spin. I am fan of the place by the way.
Disney has unfortunately gotten too big and stodgy to adapt well to a changing economic scenario.
They should watch how nimble Walmart is and follow the example of them listening to their customers instead of the top down management style that large companies tend to operate under.
I live withing 40 mile of Disney World havent been in over 10 years. High priced tickets are the reason. Universal offers a year long membership to it and Island of Adventure for about $100 bucks. I go there all the time. Disney need to reduce prices and get competitive. One day Disney ticket of about $80 or a year at Universal for $100? Disney needs to reach out more to Florida residents and get off its high horse for a change.
My wife and I used to get annual passes to Universal all the time. When they started charging for the Express Pass service is when we had finally had enough. Everyone is complaining about the quality of WDW’s service and merchandise, but on their worst day they’re still 100 times better than Universal.
I completely agree with everyone here. I think Disney has finally out priced themselves? $12.00 for parking, $79.00 for admission, $25.00 for a t-shirt, and $7.00 for a hot dog and soda? Wow, I just spent $124.00 for one adult, for one day, or, $496.00 for 2 adults, and 2 children over 9.
No wonder people are spending money there.
Oops, I meant to say, “No wonder people aren’t spending money there
I agree with what everyone else has been saying in regards to quality. When I go to Disney, I go with the expectation that I will be spending money. I used to really like the shops and restaurants, but yes it really has gone downhill from how I remember it being as a kid. All the stores sell the same thing, and it’s mostly cheap plastic crap marketed towards little kids. Epcot is an exception I think. Some of those shops are cool (but overpriced). The last time I went to the magic kingdom, however, even if I had all the money in the world, there was literally nothing I wanted in my house.
OHHHHH too bad thay only made 10.7 BILLION that is just from parks and resorts. not counting movies and everything else they have there hands in. I feel bad. why dont they lower there prices. and stop raises there parking and ticket prices.
Yea also I live an hour away from Disney I got married there too it was great, but if they would offer a year pass like universal to pay like 12 dollars a month more people could afford it. sea world does that payment plan too jump on board Disney or stop complaining that sales are down it is too much money to take a family of 4 there just for the day it is like 320 just to get in 50 for lunch another 50 for snacks and drinks and ice cream and 100 for dinner add that up you got yourself a 520 dollar day.
I agree, our first visit to Disney was 1991, not one feature today compares with back then. The attitude of workers, quality of food & products or service. I was looking forward to taking my grandchildren some day, but now that I have grandchildren I cant afford to take them & dont know if I would want to anyways. Everyone is right quit blaming the economy, WDW is a thing of the past they have priced themselves out of the ballfield. Decrease in quality and increase in price.
IF THEY WOULD NOT CHARGE SO MUCH FOR PARKING .PEOPLE WOULD SPEND MONEY ON THINGS .ITS JUST TO HARD RIGHT NOW!
Too expensive all the way around. They make smoking for their guests a nightmare. If grandpa wants a smoke, it’s an ordeal for the entire family to find a place for him to relax. So..grandpa refuses to pay for the grandkids to visit Disney. International clientele just aren’t wanted at WDW. Mistake after mistake, Disney has forgotten who pays the bill for the grandkids in this economy.
ALL THE PARKS CHARGE TOO MUCH I THINK FLA RESIDENTS SHOULD ONLY PAY HALF TO GET IN IF WALT DISNEY WERE ALIVE I BET IT WOULD NOT BE SO HIGH PLEASE SAY A PRAYER FOR OUR TROOPS AND MERRY CHRISTMAS AND AND HAPPY AND SAFE EW YEAR PLEASE DO NOT DRINK AND DRIVE GOD BLESS THE U.S.A.
FREE PARKING!
How lomg has Disney owned that land for Chr&^%s sake!
So Disney profits are off! I personally wouldn’t mind if they went belly up. I live in Central Florida and all too often see exactly what Disney does to the community, and it isn’t good. Low wages, no benefits until you have been there for too long a time. They give back nothing while taking every dollar they can lay their grubby hands on. And at $80 a ticket plus $12 for parking there is just no value in visiting the parks.
That’s a very intelligent statement. I bet you spent weeks on coming up with that before posting. Just think for a moment the ramifications of that you dumb chit.
People who respond like this make reading the comments on these stories worthwile… So I can get a laugh at how horribly uninformed 98% of our country is… Disney is a HUGE company, of course they are going to have low wages for cast members that havent been there that long… Its just like ANY other company in the area, if you havent been there long, you dont get much… And secondly, to say that Disney “gives nothing back” why dont you look into the number of charities that Disney supports? Disney alone keeps Central Florida tourism afloat, isnt that “giving back” enough for you?
I just spent several days at Disney. Boy have things gone downhill since I was a kid. I remember when everything was spotless, the food was good and the overall experiance was magical.
Now you can find the restrooms by following the smell and the monorails smell like dirty diapers.
The food at the “quickie” stands in each park is horrible. $10.00 for a small plate of greasy noodles guaranteed to send you back to the smelly restroom.
There are lines for everything. You want to ride Space Mountain, line. You want to get a soda, line. You desperately need to purge the greasy noodles, guess what? Big line and you have to hold your breath.
The lines are understandable given the number of people, but you get the added bonus of feeling like cattle in the squeeze pen headed for slaughter.
It is magical how they fleece you for every penny. The biometric entry gates are probably used for a credit check upon entry.
Personally I beleieve the Universal vs. WDW conversation to be pointless. Universal is not in the same league – the quality of the rides, the quality of the illusion is just not there. Walking through Universal is just a walk along concrete to get from ride to ride – nothing else. Disney imagineers just blow them away.
Re free parking – do the maths – On average 50,000 per day (in all the parks) for example, $15 per vehicle equates to $0.75m per day. Over the year (including off days) it becomes $150m plus – that is a heck of amount of merchandising or food. Parking charges will not go away – get real.
Re merchandise – no issue with comments, some nice stuff and some not so nice – most is overpriced.
Re food – the number of outlets is growing, the smell is becoming more intrusive. The good sites are excellent (Rose and Crown etc) the smaller outlets are not so good.
Disney do a good job but I think that they need to recognise that historic margins are too high and that killing or squeeying the golden goose is not a good idea.
One thing the article doesn’t say it that park attendance is down. Just revenues. It was flat. That means that people are still going to the parks. Lots of people. Disney is doing something right.
Even with all of the cuts, Disney still made a profit.
Awww, disney profits are down?? As a recent laid off Disney cast member, This news makes me smile a bit. Bitter? Well, YES! After 18 years of dedicated and loyal service, to be treated like we were, YES, I am bitter.
If Disney would drop their prices, there would be a increased influx of people attending the park and they would be able to spend more money. Instead they raise all prices! There is a team that was put together, the F&B PRICING TEAM, a department dedicated to solely setting and raising prices on all items. We go through a price increase every year: from $0.10 and up on everything, Mandatory price increase. As prices go up, they continually cut the portion size of food served. For Example: Kids fries used to be 3 oz, now it is 2 oz., with a higher price.; used to have 24 oz cups, now down to 22 oz (only holds 16-18 oz of liquid because of ice) and price went up.
I have always thought that “DISNEY” is a great “product”, but a LOUSY “Company”.
I live in Central Florida and have annual pass so I go often, I can tell with their promotions now the parks are full, I just been at Hollywood Studios 2 weeks ago and it was packed of people.
Softdrinks are too expensives, merchandise is true, all stores had the same, they could do better on that, and should reduce some the prices on tickets or parking, I can even imagine 2 parents plus 2 kids it is big money
My wife and I are huge fans of the Disney parks and we visit at least twice a year. However, we were there over the Thanksgiving holiday and we definitely noticed a huge difference in the customer service. It seems as if they are understaffed and over worked. The cast members in the parks were rude and seemed like they didn’t care about their jobs. I have been attending the parks for a long time, and I have never seen so many rude cast members. I guess if you get rid of all your experienced (higher paid)cast members, you’re left with crap. I hope they realize that they are digging themselves into a hole. With Universal opening of the Wizarding World of Harry Potter in the Spring, you will see a lot more people going to Universal.
I have been to WD three times this year thanks to by daughter
who belongs to the time share .In may we had terrible people
sept was no better Nov. was much better. But I was disappointed
in the manor in which the staff. was so indifferent.I enjoy the countrys but the merchandise is all the same. Italyhas only a few things they have beautful gloves and scarves yet you don’t see anything
like that.germany has dishes only thing are hummels and christmss balls which i collect
but that is not all germany has so I think who every is doing the purchasing needs to go to Europeand find new products that are from that country.and i think they would sell a lot better. I feel that Disney needs a new Manager and CEO.
Nothing new here. They get rid of their experienced people who knew Walt’s philosophy and how to treat people, bring in newbies who don’t have any social skills, raise prices beyond the capability of any normal family to go on a weeks vacation, close prime entertainment attractions such as the Adventurer’s and Comedy Club, (throwing dozens of unbelievable actors to the wolves), sell cheap souveniers and bad food unless you want to pay $100 per person to eat, and they expect spending to increase? Way to go with the thinking process, Disney.
I have been going to Disney World since Grad Nite 1980. I even drove right up to Spaceship Earth when it was just a framework. Every year since about 1990 have seen it steadily going downhill. Food getting worse, merchandise getting cheaper more plastic, costing less to make but costing us more, employees getting paid less and getting bad attitudes (who can blame them), ticket prices going up, etc. etc. But let’s face it this is a business with investors and Ceo’s making decisions, wanting more and more which happens in just about every company I have seen in my 47 years.
Things won’t change until profits drop to such a low level the greedy investors will finally decide hey! we have to do something about this because we aren’t making any money. And guess what by then it’s too late. I will hate to see the parks in 15+ years because it will be totally different to what Walt’s vision was.
For me that’s the worst thing they can do.
I will be going again at Christmas time and will probably adapt to whatever deteriorating surroundings I see and have a good time. I like the fact I can walk in and forget my troubles and be immersed in Walt’s dream. i just wish I could have met him.
I commend the Imagineers for their dedication to their craft as I have enjoyed it over the years and to the low waged employees for enduring the problems they must have to deal with on a daily basis for little money.
After all these complaints I have been reading here I would like to hear a proper response from those in charge and find out if any changes will be made to address these problems. You can’t just throw in a new ride and expect people to forgive these things. Those in charge need to address the problems before we spend our money elsewhere.
DISNEY..ARE YOU LISTENING?!?! (echo…echo…echo).
I live about 20 minutes from WDW and have for 5 years, the decline of the place is amazing. To those who visit over and over on memories on past….ummm…that’s about all you have. The creativitiy, cleanliness is deplorable, and the greed and cost increase is insulting considering the cut backs. It’s a company living on it’s past, and I see a day when they either improve the product, or go belly up. I tell those visiting me who want to go cuz have been in past, I’ll pay NOT to have to go, that they’re better remebering it the way it was. Picture 5 overcrowded walmarts, with caracter greetings and that’s about what you got. Walt came up with somewhere he could take his family for fun (genesis for the parks). Corporate Disney has killed this dream. Sign my vacation dollars up to go to the beach, other countries, even Busch Gardens or Universal, anywhere but the declining Mouse.
I follow disney for it’s cartoon past and am into animation. Walt disney THEME PARKS these days?? You GOTTA be kidding. That place started making a turn toward screwing it’s customer pre-Eisner, and it’s rapidly getting worse. What a scam. It’s NOTHING like it once was. It’s made to SELL products, that’s all the parks are for now. And anyone going deserves what they get. Very little quality. Very high crowds and prices with cast members who could care less….and you cant bleame them!
It’s not just the ticket price, they increased the price of everything! I am even okay with inflationary increases, but many items jumped by 20% – that is way out of line with both inflation and wage increases.
We just came back and because they jacked the prices of various items (hot dogs, water, ice cream … and candy floss is about $4 ?!) we found that we bought less or none of some of these items.
Frankly they are shooting themselves in the foot and by the time they realize it, it will be too late. People will have “Disney is overpriced” etched in their brain, and it won’t matter what PR they do to change it.
Wow, I was planning on going to Disney World next summer. Now I’m going to rethink my vacation. I remember Disney World with friendly cast members and the whole thing was a magical experience. It might be best to just keep the memories and go somewhere else.
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Today, I read a December 7th, 2009 complaint from a family who was abused by cast members and park employees. A mother, I think, whose parents were celebrating their 45th wedding anniversary, was trying to look for her 10-year-old son via cell-phone, the park workers only yelled at her and didn’t offer any assistance to find her son, and guess what! She got yelled at for ten whole minutes! But despite of that, her son manage to find his way safely. Those Disney people are going to be very, very sorry, and I can tell that they’re not listening to people’s complaints very much.
My wife and I spent our honeymoon at WDW WAY back in 1984. It was relatively new, sparkling, clean, fresh, and flat out wonderful. We went back for a 25th anniversary trip. Oh-My-God… What a let down! 25 years ago if a bird left droppings on a fence it would be cleaned, sanded, and painted within a half hour! Food was hot, well prepared, and delicious. Every worker, from those in costume to the cleanup crews, had a happy attitude, as though they really cared about you. Now the place looks its age plus some. I guess that 25 years of millions of people crawling all over the place like fire ants takes its toll. Food is really poor quality. Vacationers are rude and pushy with each other. The rides are looking tired. Never again, baby!!!
Today is June 8th 2010 and I just returned from a weekend a t Disney World where my husband and I walked around saying to ourselves most of what you all have been posting on this page. I know no one has commented on it in 7 months but I just had to comment! I couldn’t have said it better myself. Main street is nothing but a boring store. The merchandise is the same thing over and over again. I seen the same women’s attire and accessories in The Polynesian resort, which there I thought it fit the theme as it was a tropical dress and bead necklace, then at Grand Floridian ( where it stuck out from the theme horribly) , then again in 3 stores in the magic Kingdom. The merchandise through out the world is low quality, over priced and boring. At Epcot I tried to buy things I couldn’t get out in the real world easily and I spent $9 on a DIY henna set. The majority of wine in France could be found at my local Publix or wine store and similar could be said of the perfume. I have lived in Florida my whole life ( 27 years) and have been going to Disney sense before I can remember and in the last 4 years I have visited almost every month. So, It pains me to say theses things. I have been ignoring my disappointments with service quality and merchandising quality but I can no longer. I have spent over $7,000 at Disney world in 2010 so far and I keep upgrading my hotels and dining at signature restaurants only in search of the magic and I can’t find it. I thought because I was such a frequent visitor and getting older maybe it was just me! Because I could go on and on (especially in the resorts I have problems) I’ll just stop here with my disappointments. But I leave you with this – Why does the Monorail have to smell like a Zoo?
I just came back with my family of four from a Disney World vacation. Everything that people are complaining about on this website is true. What ever happened to Disney’s Magic??? If you have no dough don’t go. It is a greedy place and you can really feel it. Most companies are greedy but at least they try to show a non-greedy side too. For example, we went to Coca Cola World in Atlanta and we all got free Coca Cola bottle souvenirs. At Disney it’s all about money. Why does the company charge $14 for parking while itself owns and operate the parking??? Not only you pay so much for parking but you have to wait for hours to get on the shuttles and the trains to the resort because they are cutting costs by laying workers off.
Forget about the rides, you have to wait for an hour in the burning sun to get in. The Disney characters are nowhere to be seen. Mickey and Mini are not in their houses. Where is Snow white, Cinderella, Goofy, Pluto, Mickey.
On the positive side, the fireworks were great, the “it’s a small world” world ride is still magical and is still my favorite to this date along with the parades.
Disney has to change and show that it not only cares about money but it cares about people and the children as well. If not it will take a big hit and will become just another adventure park.