Rumor about potential major reduction in operating hours for WDW if Disney Asia parks remain closed due to coronavirus

[rteetz]

I’m with above pp- admittedly I’m not in business, but I fail to see why a park in Asia partially owned by the Disney company should have any effect on any of the other parks in the world. WDW and DLR are their own things, as well as DLP. WDW profits aren’t dropping because parks in China are closed, so why should there be any type of cuts? Even if there are fewer visitors from China at WDW right now, the parks are clearly not suffering from low attendance- they’ve been very busy since RotR opened. Just doesn’t make sense to me. Granted, the Epcot stuff, how many people are really watching those videos the last hour of the day anyways? People are waiting around the lagoon. Disney doesn’t really need an excuse for that, they’ve done that sort of thing many times. But reducing hours, cutting expansions, etc doesn’t make sense to me.

Parks, Experiences, and Products is one division of The Walt Disney Company. There is an expectation that this division makes money for the company. If they are not earning money from two of their 12 parks thats not a great thing so you take away from other areas. It gets trickier because 2 of those 12 Disney doesn't own at all so they have nothing more than a licensing fee for those (Tokyo). The other 10 Disney has full or at least some ownership stake.

WDW profits aren't dropping like you said but that doesn't matter. They want those profits to be even higher because of the closures in Asia to make up for the loss of those two parks. Entertainment, operations and construction cuts are the easiest to make for that. Why keep the park open from 8AM-12AM when you can have it open 9AM-10PM? Its cheaper from an ops standpoint to have a park or attraction open for a shorter period of time. Disney still gets your money either way. They don't make a huge amount more in order to justify that extended time period.

Also like you said how many people are going to these shows and films that late? So why pay CMs to operate it? Cut the costs.

If people are coming in droves to the parks too why do we need to keep pushing through large projects? If they can get by with smaller improvements (castle makeover) then thats good enough.

 

[rteetz]

I though Hong Kong Disneyland was losing money. Seems like they would save money by keeping the park closed...

It wasn't doing well before it closed. Having it closed and still having to pay cast during the closure as well as having Shanghai closed alongside that isn't a good thing costs wise when the revenue isn't coming in to back that up.

 

[rteetz]

It's not like they are cutting hours on rides during that last operating hour.

Not yet...

That's just it. They are going to start with things that aren't as noticed. If things get worse then you'll start to see more cuts.

 

[Kestryl]

If they cut morning hours (like the hypothetical 10 am MK opening), what happens to all those morning breakfast ADRs?

 

[rteetz]

If they cut morning hours (like the hypothetical 10 am MK opening), what happens to all those morning breakfast ADRs?

Now that's likely something they wouldn't do. They aren't going to cut back on already announced hours. Now thats not to say attractions inside the park might close early or something.

 

[OSUZorba]

A little extreme. Boeing would find cheaper materials, cut R&D, and cut labor hours which will cheapen its product and lengthen lead time though.

Except. They haven't actually done any of that. And on an airplane you can't just decide titanium is too expensive and throw in steel instead.

The point is, most industries can't just jack up their prices and cut their product to cover costs elsewhere. Most businesses that attempt to do this start their death spiral, like Sears.

Of course, most companies would pull back capital spending during this type of event, and I think that is smart. But devaluing your main profitable product while charging more doesn't work for most companies.

 

[OSUZorba]

It wasn't doing well before it closed. Having it closed and still having to pay cast during the closure as well as having Shanghai closed alongside that isn't a good thing costs wise when the revenue isn't coming in to back that up.

Do we know that they are actually paying the CMs?

 

[rteetz]

Do we know that they are actually paying the CMs?

CMs are still employed and many still have to show up to work despite the parks being closed so I would imagine so.

 

[OSUZorba]

CMs are still employed and many still have to show up to work despite the parks being closed so I would imagine so.

Yeah, if they are showing up, I would assume they are getting paid. In the US at least, a lot of companies would furlough in this type of situation. If Disney is still paying them full wages, good on them.

 

[SL6827]

Those films, in all my visits, haven't watched a one. I don't fault Disney on those cuts. But like rteetz said, what could be next? The Minnie van prices went up, wonder how many resorts are quietly having their rates bumped up overnight? Wonder if DCL could take a hit, or jack up pricing? The possibilities are endless if this gets really bad.

 

[OSUZorba]

There is a huge difference in closing films at 8 instead of 9 and not opening parks until 10. I did the Canadian film last year at 8:00 and there were maybe 5 other people in there with me.

 

[toonaspie]

I wasn't holding my breath on the SWGE expansions happening anytime. I'm more worried a about the projects that are underway right now and how their timing and budgets will be affected.

 

[NickC]

We are not in the parks the entire time they are open, but it would be a shame to lose an hour in the morning or an hour in the evening. That is when we are able to hit a lot of the rides before and after the afternoon rush. I'm 100% sure that there is a 0% chance that they would cut an hour in the middle of the day, so this would really affect us. To lose an hour from RD would make for a completely different vacation.

 

[rteetz]

I wasn't holding my breath on the SWGE expansions happening anytime. I'm more worried a about the projects that are underway right now and how their timing and budgets will be affected.

Projects already under construction won’t change much if at all. It’s the projects that are not yet started that I would worry about.

 

[TwoMisfits]

Parks, Experiences, and Products is one division of The Walt Disney Company. There is an expectation that this division makes money for the company. If they are not earning money from two of their 12 parks thats not a great thing so you take away from other areas. It gets trickier because 2 of those 12 Disney doesn't own at all so they have nothing more than a licensing fee for those (Tokyo). The other 10 Disney has full or at least some ownership stake.

WDW profits aren't dropping like you said but that doesn't matter. They want those profits to be even higher because of the closures in Asia to make up for the loss of those two parks. Entertainment, operations and construction cuts are the easiest to make for that. Why keep the park open from 8AM-12AM when you can have it open 9AM-10PM? Its cheaper from an ops standpoint to have a park or attraction open for a shorter period of time. Disney still gets your money either way. They don't make a huge amount more in order to justify that extended time period.

Also like you said how many people are going to these shows and films that late? So why pay CMs to operate it? Cut the costs.

If people are coming in droves to the parks too why do we need to keep pushing through large projects? If they can get by with smaller improvements (castle makeover) then thats good enough.

And that's reflecting the Disney executive attitude that will take away the magic from folks and have Disney become "just another place to go" that will be pushed aside when other places reopen for business. Short-sighted...which is how many corporations look at business, looking to maximize short-term stock price vs long term health...So, in many ways, they are just like everyone else...

It's sad when you see the sausage get made...

 

[vinotinto]

If they cut morning hours (like the hypothetical 10 am MK opening), what happens to all those morning breakfast ADRs?

Actually, the rumor is that it would be non-MK parks that would be getting the operating hours sliced.

The way this normally works is that WDW publishes conservative operating hours, but then extends them if needed. I have never seen operating hours cut back. Has anyone here seen that at all? My hours for July are already out and comparing them to same weekend in July 2019, the hours are the same, except for AK, which last year closed at 10pm (and I think they were extended about a month before) and it's currently scheduled to close at 8:30.

I would speculate that if the Asia Parks continue to be closed, and they have to cut down on operation budgets, what we may be more than likely to see is: 1) hours don't get extended and 2) more attractions than 'the shows that no one cares about' may have delayed openings and earlier closings. Currently, it's the Epcot movies and some attractions, such as Country Bear Jamboree and Monsters that have shorter operating hours. I think we may start to see more attractions added to the delayed openings and early closings. DHS with RotR is opening at 8 am, but the show-type attractions are not starting until 9:30 or later, so there is already a gap in there.

 

[SaintsManiac]

So glad I’m skipping this year. Yikes.

 

[rteetz]

So glad I’m skipping this year. Yikes.

It’s always something though. One year it was budget overruns from building Shanghai, another year it was the losses at ESPN. It never ends.

 

[SaintsManiac]

It’s always something though. One year it was budget overruns from building Shanghai, another year it was the losses at ESPN. It never ends.

Maybe so, but i'm not having FOMO over this. I went a bunch when HS was under construction and it was a pain at times. Epcot is one big construction site and the BG situation at HS is something I want no part of.

Looking forward to next year.

 

[SL6827]

If they cut an hour in the morning at any park, that is a major game changer for us rope droppers.