venny
TS Member
They really have backed themselves into a corner. I can actually see parallels with Merlin here.
They’ve been shifting strategy for a long time, but it feels like they’re now at a point whereby the City demands better results quarter on quarter, Disney have responded to that with a combination of reducing investment at Parks and also eaking out additional revenue on any way possible. At some point, something has to break. You cannot perpetually reduce quality and increase prices.
I think, just like Merlin were before the buy-out, they’ve driven themselves into a corner from where there is a difficult decision to make. Without growth coming from park additions and expansion, the only way to increase profit is to keep raising prices. If that leads to a reduction in demand that can’t be made up by those increased prices, they’re stuck. They then need to invest significantly, which will hit margins.
Either that or bring out a new popcorn bucket.
They’ve been shifting strategy for a long time, but it feels like they’re now at a point whereby the City demands better results quarter on quarter, Disney have responded to that with a combination of reducing investment at Parks and also eaking out additional revenue on any way possible. At some point, something has to break. You cannot perpetually reduce quality and increase prices.
I think, just like Merlin were before the buy-out, they’ve driven themselves into a corner from where there is a difficult decision to make. Without growth coming from park additions and expansion, the only way to increase profit is to keep raising prices. If that leads to a reduction in demand that can’t be made up by those increased prices, they’re stuck. They then need to invest significantly, which will hit margins.
Either that or bring out a new popcorn bucket.