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Resort revenues up 4%, attendance up 5%, not a rat to be found in First Quarter 2012 results

Tuesday, 7th February 2012 at 14:02 by
Anthony
11 Comments

Disneyland Paris saw overall revenue growth of just 1% in the first quarter of its 2012 financial year, from 1st October to 31st December 2011. The results, published this morning by operating group Euro Disney S.C.A., make for unremarkable if somewhat reassuring reading given the economic climate. Resort revenues, for Theme Parks, Disney Village and Hotels, actually rose a good 4% in the quarter, brought down for the total figure only by lower real estate revenue compared to 2011. Park attendance itself grew a surprising 5%, due to higher numbers visiting from France itself, perhaps taking advantage of the mild late Autumn for last minute trips, with total Theme Park revenues up 7%.

Philippe Gas, CEO, comments that “improved attendance and guest spending are encouraging, especially in light of the challenging economic environment.”

However, average spending per guest in the parks was up by only 1% and average spending per room at Disney Hotels up only 2%. Total Disney Village and Hotel revenues grew by just 1% and room occupancy at Disney Hotels actually fell by 1.1 percentage points. It seems that, despite continued success in getting guests through the park gates, the resort still struggles at turning these numbers into anything more than negligible increases in revenue, probably driven more by price increases than additional purchases. It has to be said that, for a visitor, the resort’s casual dining fare remains largely out of date and uninspiring, while the merchandise range simply fails to engage for many demographics. At a time when a guest will consider and reconsider every additional purchase on top of their ticket, the resort certainly isn’t doing badly, but it is failing to make many consequential gains.

Nor is the dip in hotel room occupancy disastrous, especially after a sharp (and perhaps, unsustainable) jump of 5.6 percentage points in FY2011. Yet perhaps it reflects a growing feeling amongst visitors that the Disney Hotels do not offer the best value for their money. High standard room rates have combined with aggressive discounting over several years to suggest that “the price on the label” may not necessarily be the price they’re worth. A quick visit to any online trip planning forum will immediately bring up potential visitors merely biding their time for the next “big offer” or “flash sale” — hey, like this one! — which, while useful for propping up numbers, must surely be harming the brand value associated with Disneyland Paris. Will anyone ever want to pay full price again?

Signing off, Philippe Gas mentions only the 20th Anniversary: “In April we look forward to launching our twentieth anniversary celebrations with brand new experiences for our guests, including the Disney Dreams®! night-time show, an innovative light and color spectacular. It will also be
an opportunity to celebrate a two-decade journey with our cast members, our guests as well as our key public and private partners who have helped Disneyland Paris become Europe’s number one tourist destination.” Meanwhile the footnotes include only the same passing mention to the launch of a “multi-year expansion of the Walt Disney Studios® Park, which includes a new attraction.” So, despite construction having begun, no Ratatouille dark ride announcement yet; and all eyes on the 20th…

VIA Euro Disney S.C.A. Fiscal year 2012 - First Quarter Announcement (PDF)

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Comments (11)

  • “It has to be said that, for a visitor, the resort’s casual dining fare remains largely out of date and uninspiring, while the merchandise range simply fails to engage for many demographics. At a time when a guest will consider and reconsider every additional purchase on top of their ticket, the resort certainly isn’t doing badly, but it is failing to make many consequential gains.

    Nor is the dip in hotel room occupancy disastrous, especially after a sharp (and perhaps, unsustainable) jump of 5.6 percentage points in FY2011. Yet perhaps it reflects a growing feeling amongst visitors that the Disney Hotels do not offer the best value for their money.”

    I think these are the main reasons why ED SCA struggles to make money. As long as they do not improve the food or offer a wider merchandise selection, people will not spend more. It’s just not worth the money. Thanks to my girlfriend’s job, we have the opportunity to stay at many different hotels. Unfortunately I have to say that these hotels offer a better quality than the Disney hotels for less money.

  • Adam O'Malley  7th February 2012, 17:32

    I feel I would have to agree about the hotel prices. I find they are too expensive and have found the Kyraid Hotel nextdoor to the resort offers better value. I think that the prices (especialy the disneyland hotel above the entrance) have always been overpriced. Even when the sales are on. Hotel Santa Fe for example only provides very basic facilities. But because it has the disney label, it has the disney price tag to go with it!

  • Martin coombs  7th February 2012, 20:39

    The prices can be a little much, but it’s the Disney experience your also paying for.
    We’re of there for our 8th time in10 years this year for the 20th anniversary celebrations as a family of 6.
    It’s Disney and its worth every penny.

  • But a lot of people don’t have the money – even if it is worth it…

  • Have to agree regarding the food at DLP. When you compare the quality, variety (and price) with WDW, despite being in the gastronomic capital of the world, DLP has a very poor offering. Just booking our reservations for WDW in August and having to take the day off work to ensure I get the reservations I require! If there were better restaurants, both table service and counter service the mcDonalds in the village would not be heaving constantly, and maybe DLP could then introduce a desirable Dining Plan to replace the dire half board plan they have.

  • i have to agree with the hotel prices they have 2 come down i have been to disey paris 3 times the first in 2001 at santa fe 2 adults 2 child 4nights cost me £695 then stayed in disneyland hotel 2005 2 adults 3 children in 2 rooms for 4 nights again this cost £4021 but was payed for by wish upon a star coz my little girl got cancer then went back in 2005 with my little girl and her mate and stayed at davy crocket ranch for 4 nights and that cost £795 for the prices i have payed back then minus disneyland hotel was good value for money but now they want over £1000 to go 2 santa fe all it as is a games room and little park it just needs 2 come down in price and as for the disneyland hotel very nice but not worth it in a million years i just wish disney would give a bit back to the people who have been 2 disney more than once some thing like half price hotel or free travel offers

  • I’m getting on my soapbox, here. :)

    I’m a big Disney fan, annual passholder, and have stayed at all the Disney hotels on the resort apart from the Disney Hotel, but I have to agree that they are not worth the price, even with the discounts.

    Sincerely, apart from the location, I do NOT feel they offer the ‘Disney experience’. With the possible exception of the Hotel New York, which is my favorite, the hotel rooms are bland, and often outdated. The service is nothing to write home about, and the restaurants are, for the most part, disappointing.

    I’ve stayed more than 10 times in their hotels, and I have never been recognized as a loyal customer.

    My last stay was in the Newport Bay Club, was a three days vacation, in a superior room, and I felt cheated, honestly. The windows were dirty, the wallpaper was torn in places, and, well, you get the idea. For the first time in my whole life, I felt compelled to complain at the guest service.

    They sent someone to the room, and I was told that indeed the windows were dirty, but that they were supposed to be cleaned the week after. As the windows cannot be opened, there was nothing that they could do. I thanked them, and that was it. Nothing

    Is this the service I can expect for twice the price I would pay in a 4 star hotels anywhere else ?

    In addition to that, I feel the immersion I can find in Florida or California isn’t offered in France. Of course, this probably has a lot to do with the relative smallness of the resort, but I feel they could at least try.

    Yes, I love the Disneyland Paris Resort, and I do pay the price for the hotels because I am a Disney junkie and I’m lucky enough to be able to afford staying there. These hotels are more convenient as I don’t own a car and come by train.

    The resort is beautiful and I love it there, but it lacks a soul. I feel they don’t deliver the magic they should for the price they ask, and this makes me really, really sad.

  • But that is not make sense, that any kind of refurn’s will not appear…
    The thing, i always dreamed – a kind of refurns for Phantom Manor…
    May be the new Bride or more realistic Phantom… Maybe the playful cementary in pavilion, like the Haunted Mansion WDW do.

  • I have found that the hotels are only for small families eg 2 children, I have a large family 4 children, we are big fans of disneyland paris, the prices have certainly gone up over the years, we stayed in the lodge last year and foound it very dissapointing, the lift had broken, the tv did not work correctly and event eh roof was leaking in the reception without warning signs, when we complained about these things, one of their reasons was all the warning signs was being used for other leaks.

    with these difficult times the powers at be, must keep the discounts up, I am hoping for this year that a discount might appear.

    They also must cater for all size families, I don’t mind paying for this, but I do not want to be punished for having a large family.

    darren I hope your little girl is getting better.

  • We’ve got 4 kids as well and we have got the choice ” davey Crockett, new port bay(family room) or the princess hotel”. If we went for the sante fe and booked two rooms it would of been the same cost as the new port bay.

  • I know I am late coming to this party, but we are currently planning a short trip to DLP. 2 days ago while on a trip around Europe, me and my fiancée decided to add an extra day and stay in DLP while in France ? After being on hold for 20 min we were offered a price of £495 for Newport bay for the following night.

    We paid £10 more for a night it bellagio, lake como a week prior to that for 3 nights. We both love Disney, but DLP is over priced. Disney is a family destination, But adults do like to visit disny too, in 2007 / 2010 6 adults no children enjoyed 2 weeks in wdw. But all offered are kids go free!

    When we enqured about availability he said both Newport bay and new York had plenty of availability. We couldn’t justify the price tag for one night and so the room went empty. Surly it’s better to fill the hotels and the park with lower rates, I am not suggesting Disney cheapen the brand with budget rooms, but I do think they need to review pricing.

    These flash sales are rubbish, we have priced them up on many occasions and they have come to well over £800 with transport for 2 nights. We can go to wdw for not much more if we wanted.

    We really enjoy Disney and this isn’t a rant at the p,, but at the DLP pricing.

    I also agree with the comment on the quality of food, the best place is Walts, but apart from that we can get better food here in highstreet chains in most cases.

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