How will Disney's losses in China effect park operations at Disneyland.

[tarheelalum]

With close to 75k confirmed official infections today, and nothing slowing the spread with real infection rates probably much higher, its likely Disney parks in HK and China will be closed for a long time. Also people there will not be going to any movie theaters for a long time as well. So how do you think Disney will react to this new reality? Will they greatly increase prices and reduce service here in every way in hopes of lessening the loss. Or will they just accept the loss and not compound problems by increasing prices here?

[GreatAndoski]

NONE OF THE ABOVE.

a) They just increased prices LAST WEEK, so the notion that they might increase prices amid this crisis is already moot.

b) Given that prices just increased last week, they will cut operating expenses to the bone to maximize profits at now-current pricing. There are already rumors of Anaheim's Runaway Railway being paused, and any projects in Orlando that aren't critical and/or well underway might get halted too (Epcot redesign elements, new Grand Flo pedestrain bridge).

[Starcade]

I think the gate increase was just the first step and park wide increases will start rolling out soon get ready for expensive Churros and service fees. All this while they cut hours and layoff as many CM's as they can. We are heading into the last years of Eisner all over again.

[tarheelalum]

I agree with Poster #2. Also, I really don't understand why the speculation? NO BODY here knows what DISN will do...speculation will just start rumors.

We discuss the reality of the parks here. This is not a Disney corporate cheerleader forum.

[Yamamoto364]

I think the gate increase was just the first step and park wide increases will start rolling out soon get ready for expensive Churros and service fees. All this while they cut hours and layoff as many CM's as they can. We are heading into the last years of Eisner all over again.

Last time I checked the last years of the Eisner era didn’t involve two theme parks being closed to an epidemic.

[Mr Wiggins]

I think the gate increase was just the first step and park wide increases will start rolling out soon get ready for expensive Churros and service fees. All this while they cut hours and layoff as many CM's as they can. We are heading into the last years of Eisner all over again.

Exactly right. Complete with a Pressler 2.0 running the Parks.

[Eagleman]

I think the gate increase was just the first step and park wide increases will start rolling out soon get ready for expensive Churros and service fees. All this while they cut hours and layoff as many CM's as they can. We are heading into the last years of Eisner all over again.

Pay More = get less

Disney will increase prices to offset losses and reduce service !

[Starcade]

Last time I checked the last years of the Eisner era didn’t involve two theme parks being closed to an epidemic.

The China/Hong Kong parks did not exist back then and there was not epidemic but but he did claim in the media several times they were considering shuttering EuroDisney as a failure at the time and they did lose Frank Wells to a helicopter crash.

[Yamamoto364]

The China/Hong Kong parks did not exist back then and there was not epidemic but but he did claim in the media several times they were considering shuttering EuroDisney as a failure at the time and they did lose Frank Wells to a helicopter crash.

You’re correct those two things did happen, but have nothing to do with the state of the current Asia parks so I wouldn’t compare the two. Making cuts due to parks not operating is wholly different than what happened at the end of Eisner.

[Mr Wiggins]

The China/Hong Kong parks did not exist back then and there was not epidemic but but he did claim in the media several times they were considering shuttering EuroDisney as a failure at the time and they did lose Frank Wells to a helicopter crash.

Yep. Not to mention, the Eisner regime blamed the pathetically low attendance of DCA 1.0 on external factors, including terrorism fears and El Nino. His "ain't our fault" defense stood for ten years, until Iger admitted that DCA 1.0 was the Company's fault -- and coughed up more than a billion dollars for DCA 2.0.

[Mr Wiggins]

Making cuts due to parks not operating is wholly different than what happened at the end of Eisner.

Then what's the excuse for Cheaptastic Chapek's deep cuts to Star Wars Land before it even opened, and his slash-and-burn policy of cutting CM and Live Entertainment jobs before Coronavirus had even emerged?

[Yamamoto364]

Then what's the excuse for Cheaptastic Chapek's deep cuts to Star Wars Land before it even opened, and his slash-and-burn policy of cutting CM and Live Entertainment jobs before Coronavirus had even emerged?

Lol what? At what point did those cuts have to do with the Asian parks? Never. Last time I checked you chalked that up to the slow start for Star Wars last summer and the slow domestic bookings ahead of Star Wars. Now it’s suddenly changing due to the Asia parks from years ago? Stick with one narrative lol.

At the very least any cuts currently that are actually due to the Asian parks being closed are justifiable. It’s unprecedented.

[whoever]

I'm sure we'll find out in a few weeks after the shareholder meeting. As one, I'm very curious to know myself.

[Starcade]

You’re correct those two things did happen, but have nothing to do with the state of the current Asia parks so I wouldn’t compare the two. Making cuts due to parks not operating is wholly different than what happened at the end of Eisner.

Regardless of the cause what I am referring to the reaction by top brass. Whether it's from being pick pocketed or losing your wallet in the end you're still losing something.

[WaltDisney'sAlec]

Westsider's prediction in the other thread is coming true: we're seeing costs cut in myriad forms despite high demand. I don't have specific examples on hand about Disneyland, but here is some evidence from the best WDW site out there:

Parks are packed to the brim, but are still closing earlier than they have in the past (Link to Tweet)

Character meet and greet hours are being cut as well (Link to Tweet)

It seems like we're about to enter a couple quarters where the parks division is in "hunker down and weather the storm" mode until they can get the China parks open again. The U.S. parks (along with Disney's other astronomical income from its various businesses) have funded the creation of all the international ones. Now that the China parks have to pause recouping their costs, I understand not wanting to spend like crazy in the U.S. as has been the norm up until Galaxy's Edge/Marvel additions. Once those lands are open, I don't expect to get more announcements on brand new projects for the rest of the year.

Normally, I'm all for investment in the parks. If attendance is down even when admission is affordable, it's because people want more and that should be a sign to invest in the parks. In a case like this, where world events like a deadly outbreak and economic downturn in China may cause some larger issues throughout the company, I actually think I would choose the same path. There's no easy answer to questions like these, frankly, and I'm not envious of any businessperson in the position of having to decide what to do. That's why they get paid what they do, and I am just a student, though.

Iger is mostly oriented towards long-term outlooks, even if some of his underlings (Chapek) are not. Given that perspective, I'll be following this story closely and pay close attention to the shareholder meeting.

[Blurr]

Not sure how accurate this will be to say, but it looks like we may have an idea of when at least Hong Kong will be re-opening (-and maybe, by extension, Shanghai?).

https://disneyparks.disney.go.com/bl...ng-disneyland/

The article above is directly from Disney and seems unrelated, but they discuss how the new Onward characters are coming to the Disneyland resort for Pixar Nite (a seperate, ticketed event) but will be heading to Hong Kong for the return of the Pixar Water Play Street Party, which I've read is a summer parade/event over there?

So.. best guess right now is that they are planning to be re-opened before/during Summer time. Could come before that, obviously. Just guessing.

[Golden Zephyr]

I think reopening will all depend on how well the COVID-19 virus is handled and the overall threat and infection level. A lot of virus outbreaks tend to wane as the weather warms, so we'll see how things pan out in the next few weeks.

Hopefully things get under control and life resumes to normal.

[Eagleman]

I think reopening will all depend on how well the COVID-19 virus is handled and the overall threat and infection level. A lot of virus outbreaks tend to wane as the weather warms, so we'll see how things pan out in the next few weeks.

Hopefully things get under control and life resumes to normal.

I HOPE your right .......
My Prayers.......is for those have to deal , with the overall threat and infection !
It been a scary time !

[GreatAndoski]

Not sure how accurate this will be to say, but it looks like we may have an idea of when at least Hong Kong will be re-opening (-and maybe, by extension, Shanghai?).

The Hong Kong and Shanghai parks will reopen when the Chinese government allows them to, and not a moment sooner or later.

[Mr Wiggins]

...It seems like we're about to enter a couple quarters where the parks division is in "hunker down and weather the storm" mode until they can get the China parks open again....

Chapek started serious budget slashing in response to the lack of summer crowds at DLR -- but when the crowds returned, he didn't restore the CM staffing, live entertainment, in-service ride vehicle numbers, parking structure staffing and other customer service items to their pre-cutback levels. By the same token, it's doubtful that his latest round of budget-slashing will be fully reversed after the Asian parks reopen.