Disney Vacation HomesGreat deals on vacation homes with private pools near Walt Disney World Lake Buena Vista HotelsIf you want to stay near Disney World then you need to check out the hotels in Lake Buena Vista Orlando Fun Tickets Disney Tickets From the Largest Store in Orlando JHM's Exclusive Ticket Provider Las Vegas Tickets JHM's Exclusive Ticket Provider MouseketripsA Disney Travel AgencySubstance over pixie dust
Bob Iger didn't mince words during yesterday's earnings call. Though Disney's CEO said he was pleased with the Company's overall performance in fiscal 2008, 2009 looks to be a very different story.
What with advance bookings at the Walt Disney World Resort down almost 10% from what they were a year ago today, Iger felt that it was now time to put some incentives on the table. "Our research tells us that people still want to take vacations in 2009," he explained. "But they are going to be much more value-focused."
So with this in mind, late yesterday afternoon the Mouse rolled out its new "Buy 4 Get 3 FREE!" promotion for the WDW Resort. This promotion -- which will be available most nights between January 4 and June 27, 2009 -- will allow Guests to buy a 4-day / 4-night package for a Disney Value resort and then get 3 additional nights at this same resort for free. And -- yes -- Theme Parks tickets are included as part of this package.
Copyright 2008 Disney. All Rights Reserved
As a further incentive to get Guests to book trips to Disney World from January through March of 2009 (A time when advance bookings for the Resort are said to be at an all-time low), the Mouse will be throwing in a $200 Disney Gift Card. Which will be presented to the Guests at check-in and can then be used to purchase food & merchandise at participating locations at the Resort.
Now this isn't the only time in recent months that Mickey has used financial incentives in an effort to boost attendance levels at the WDW Resort. Take -- for example -- that special holiday shopping promotion that Disney World made available to annual passholders earlier this week (and -- more importantly -- will be offering again November 16 - 20). If these APers booked a room at one of WDW's Value Resorts (Which -- as part of this annual passholder holiday shopping promotion -- Disney was making available for as little as $49 a night), Disney World would then give these APers a 35% discount on select merchandise that they purchased on property.
And it isn't just WDW's annual passholders that the Mouse has been reaching out lately. Earlier this Fall, in an effort to get Guests who were already staying on property to commit to another trip to Orlando in 2009, the Resort was offering them Free Disney Dining Plan upon their return. But only if these Guests were willing to put down a $200 deposit on their next Disney World vacation before they actually checked out of that Resort.
Now it's important to note here that Disney World is only offering these sorts of incentives to Guests who are willing to buy vacation packages for the Resort's shoulder periods. You know? Those quiet weeks inbetween those times of year when the Resort historically experiences high attendance. Like the upcoming two-week-long holiday period. Which -- according to what Bob said yesterday -- is only off 1% from the sorts of advance bookings that WDW saw for this same time period last year.
But as for that period beyond Christmas & New Years ... Well, as Iger explained yesterday:
"Bookings during the last month have fallen off considerably. Part of this change is likely a reflection of consumers taking a wait-and-see approach to the economy, or waiting to see if the market produces discounts."
Copyright 2002 Disney. All Rights Reserved
Well, if would-be WDW Guests are now looking for discounts, then that's what Mickey intends to give them. Anything to help fill up those 32,000 room on property.
Mind you, to help make these obviously-expensive-to-implement Guest incentive programs seem that much more palatable to Mouse House management, Disney World will be economizing wherever it can in the coming fiscal year. Again quoting from Mr. Iger's comments during yesterday's earnings call:
During the last several weeks, (WDW) management team has stepped up to the task of identifying and implementing steps to reduce expenses and to create more efficient operations. Copyright 2007 Disney. All Rights Reserved At Parks and Resorts, our experience during previous downturns, especially the challenging period after 9-11, has taught us to be very good at managing variable expenses based on variable demand. We will do this while preserving the quality of the Guest Experience, something we consider sacred.
During the last several weeks, (WDW) management team has stepped up to the task of identifying and implementing steps to reduce expenses and to create more efficient operations.
Copyright 2007 Disney. All Rights Reserved
At Parks and Resorts, our experience during previous downturns, especially the challenging period after 9-11, has taught us to be very good at managing variable expenses based on variable demand. We will do this while preserving the quality of the Guest Experience, something we consider sacred.
Of course, in order to reduce expenses while still preserving that sacred Guest Experience, something will still have be to cut. In some cases, it was something that the Guests would never see or know about -- like cancelling the Cast Members' Christmas Party for 2008. In other cases, Disney will just try and limit the impact that these cost containment measures will have on the paying customers. Like not eliminating all live entertainment in the Parks. But -- rather -- just cutting back on the number of performances that are presented each week. Which will then help Entertainment bring its budget in line.
And Disney is being very, very selective about where it makes these cuts these days. Knowing that -- as Iger explained yesterday ...
Copyright 2008 Disney. All Rights Reserved The consumer today clearly is being very, very careful about what they spend, how much they spend, rather, and what they spend it on. And I think that price-to-value relationship has probably never been more critical. And I think that plays very well for a company like ours because brand becomes really important and the price-to-value that a brand like Disney can offer, whether you are offering a travel package, selling a DVD, selling a movie, or selling consumer products, I think sets us up very well in what clearly is a very, very challenging time.
The consumer today clearly is being very, very careful about what they spend, how much they spend, rather, and what they spend it on. And I think that price-to-value relationship has probably never been more critical. And I think that plays very well for a company like ours because brand becomes really important and the price-to-value that a brand like Disney can offer, whether you are offering a travel package, selling a DVD, selling a movie, or selling consumer products, I think sets us up very well in what clearly is a very, very challenging time.
So what do you folks think? Is this new "Buy 4 Get 3 FREE!" promotion just the sort of thing that will actually convince you to go buy a WDW vacation package before December 20th? Or are you still willing to wait 'til 2009 to see what other sorts of incentives Disney will then put on the table?
Your thoughts?
If you'd like to show your appreciation for all the great stories that you regularly read here on this website, then why not start out your next Amazon shopping spree by clicking on the banner above? That way, JHM gets a teeny tiny chunk of whatever you spend. Happy Holidays!
If you'd like to show your appreciation for all the great stories that you regularly read here on this website, then why not start out your next Amazon shopping spree by clicking on the banner above? That way, JHM gets a teeny tiny chunk of whatever you spend.
Happy Holidays!
I was going to wait until next November and take a 4-day trip, but I have to admit this is pretty dang tempting . . . with airfare prices being what they are (especially out of Middle of Nowhere, SD) being able to extend a trip to a length that is a lot more worthwhile is almost enough to get me to change my plans. I do know I'll definitely be keeping a much closer eye on my checkbook to see if I can possibly book this fast.
It is tempting, but I was hoping to stay somewhere other than the value resorts on my next trip. =) I'm sure they're perfectly fine hotels but nothing really compares to the higher-tier resorts.
Boy, if this doesn't jump star business then the WDW is in big trouble. I think that this reveals that they are in bigger trouble than they are willing to truly admit.
The 3 nights free hotel offer is hard to beat. Staying at a deluxe hotel could result in a $1000.00 savings. Of course the 3 days of tickets is a gimme since that is only about a $9.00 value per person. The $200 gift card though is a great added bonus that Disney has never offered before. While the dining plan isn't free the gift card offsets a big portion of that since a family of 2 adults and 2 kids under ten would pay $100.00 a night for the dining plan.
I had already booked my January trip to WDW, and the kind woman at Disney adjusted my package for me. For my party of 7 at Pop Century, we saved $1,300 plus the $600 in gift cards we're going to get. A great deal!!
will disney do anything for DVC members? or will they say - oh well we already have ya!!!
lets keep our fingers crossed
Actually this makes me want to postpone a return trip to see the mouse. They're going to pack the parks while further cutting entertainment? The cuts were already visibly noticeable on my annual trip to the Food and Wine Festival -- no night time entertainment with the PI clubs closed, significant cut-backs at the Food and Wine Festival, cut backs at the Halloween Party. Now we're hearing about cutbacks to Phantasmic and even more cutbacks to entertainment? Perhaps its time to look elsewhere for a trip knowing that I'll be disappointed with what Disney has to offer in 2009.
Life is too short to spend any of it at a Value Resort, all due respect, especially during Cheerleader Hell in the spring. If WDW extends the offer to the intermediates or deluxe resorts, I'll be the first to whip out the Visa.
I'm thinking about it after seeing the $200 gift card thrown in...
I had already booked a vacation over those dates and Disney refunded me nearly $800.... so I'm pretty excited about it!
For those of you saying you would only stay and the mid and top tier resorts you obviously do not understand what is going on with the economy and at WDW. The parks are extremely light in attendance and the resorts are very empty.
This is a strategic move by them to fill their rooms. I wouldn't be surprised to see this plan be expanded to other resorts, but this is a start. They have to do something, since they have been cutting back hours for cast members, hiring freezes and some layoffs all in the name of controlling costs.
Breaking even for Disney would be a good point, and right now the numbers don't look good for the next year.
I understand that perfectly well, cartoonspin. How does that change whether or not *I* want to stay at a value resort?
Actually, the WDW site says.
"Offer valid for most Disney resorts and other length of stays. Book through December 20, 2008!
Plus, when you travel between
1/4 - 3/29/09, you'll also get a
$200 Disney Gift Card."
So I'm not sure where the debate came from about this only being good for Value resorts.
I couldn't find a definitive list of which resorts were included, but I know our travel agent told us, re: the resorts we were looking at for our upcoming trip in May, that Pop Century, Port Orleans-French Quarter, Wilderness Lodge, and the Grand Floridian were all included in our possible itinerary.
Hope this helps to clarify things.
When I got my official Disney e-mail about the promotion, the Moderate resorts were listed as well; I am not sure about the Deluxe resorts.
For my family - my fiancee, my 2-year-old daughter, and I - the price would be just over $900 for a week, and DAMN is that enough to get us there. While I prefer the nicer resorts, I will certainly enjoy my vacation without the fancier architecture, and I can always visit other resorts' restaurants. The problem just comes in with that $900 being a month-and-a-half's salary that would otherwise go to paying off debts.
So! While this promo is enough to get me down there, it's not enough to pay the bills while I'm gone, cover the food money I'll need to spend [which is made more difficult by my fiancee's Celic Disease], and cover my airfare. Damn.