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[dagobert]

Do you think the problems could be solved, if TWDC would be allowed to invest directly into ED SCA. Although they have the control over the company, they can't invest directly. The only possibilty is giving credit lines that allows ED SCA to build something.

[dagobert]

You think Disney don't know about advertising, and in a recession that's put in doubt the future of the Euro, why wouldn't that effect a company like EuroDisney? The worst piece of advertising I saw for DLP in April was strike action taken by some of their CMs, which resulted in cancelled parades. I wouldn't book a holiday there with that going on. It's wage inflation and refurbishments thats weighed down on these results.

I think you may have misunderstood me here. Of course the company is effected by the economic crisis and that's why I ment they should expand their efforts to bring guests from other countries than from Spain and Italy. Over the last years attendance was always around 15 mio per year. There was no significant raise, but from the financial numbers Disney released, it seems they need nearly 20 mio to get out of the red. All I want to say that I don't think they can generate 5 mio more guests just from their key markets.

[Malin]

Do you think the problems could be solved, if TWDC would be allowed to invest directly into ED SCA. Although they have the control over the company, they can't invest directly. The only possibilty is giving credit lines that allows ED SCA to build something.

I really don't think investing money into the company is the right decision. It won't address the bigger issue. The company is paying more in debt and loans than it can afford right now. And its causing massive loses. The only way forward is for a deal to be made of some kind where the debt is paid off more slowly allowing the Resort to start making a profit. Which in return could lead to more investments in the parks and hotels.

[ed-uk]

I still say the worst piece of advertising DLP got this year was when some CMs went on strike in April, which resulted in parades being cancelled. But i know that wouldn't have effected these results. It seems that it's labor rate inflation and the cost of the refurbishments for the 20th that have weighed down on the results. There's a recession in Europe, and I don't think the answers are simple.  As has already been said, EuroDisney has to pay back more debts than it can handle, and that has  been the case for 20 years. The company can't fix it on their own, they have to get others to help ( TWDC,  banks, hedge funds, those groups that own EuroDisney's debt, to agree to help them out) should the worst come to the worst. To avoid that, the company will have to make some cuts in it's plans should the trend continue.

[Josh]

For those wanting Philippe Gas to go, I would like thank him for loosening the purse strings for the refurbishment and getting us DREAMS!. The results aren't great but not to bad for Euro Disney.

I agree. I actually like Philippe Gas. He seems more willing to do things differently, because we've seen a lot of improvements in communication with fans, while he's been around. I don't think we can expect to get a new CEO who will just magically put us on the right track.

Issues with Phantom Manor won't stop people from visiting I agree. But it will lower the Guests enjoyment. Which will result in lower spending. And possibly no return visit.  

Actually, it shouldn't have any affect at all. They're not noticeable enough for most guests to care.

Do you think the problems could be solved, if TWDC would be allowed to invest directly into ED SCA. Although they have the control over the company, they can't invest directly.

Really? Why would they have that restriction? :?

[dlpfan1992]

I still say the worst piece of advertising DLP got this year was when some CMs went on strike in April, which resulted in parades being cancelled. But i know that wouldn't have effected these results. It seems that it's labor rate inflation and the cost of the refurbishments for the 20th that have weighed down on the results. There's a recession in Europe, and I don't think the answers are simple.  As has already been said, EuroDisney has to pay back more debts than it can handle, and that has  been the case for 20 years. The company can't fix it on their own, they have to get others to help ( TWDC,  banks, hedge funds, those groups that own EuroDisney's debt, to agree to help them out) should the worst come to the worst. To avoid that, the company will have to make some cuts in it's plans should the trend continue.

But they can't afford to make cuts!  :?

[ford prefect]

I don't believe M. Gas should go, the business needs continuity. It has already lost its CFO and cannot afford to lose more execs.

What the business really needs is a clarity of position from TWDC. A period of consolidation and consistent pricing.

What does that mean?

1) lower the prices to make the resort affordable and hence bookable.  If they can afford consistent 40% discounts they can afford to lower the real price by 20%

2) improve and maintain the guest experience.  Disney quality not quantity.

3) maintainence

4) quality merchandise.  People will pay premium prices for quality merchandise but will resent it if it barely lasts the journey home.


The funding of EURODISNEY SCA is so complicated.  

In order to protect TWDC it is better for someone else to have the risk.  That is the job of EDSCA.

it is the fall guy.

[Malin]

I agree. I actually like Philippe Gas. He seems more willing to do things differently, because we've seen a lot of improvements in communication with fans, while he's been around. I don't think we can expect to get a new CEO who will just magically put us on the right track.

The round table discussions he's had with webmasters from fan sites is to simply get them on to his side. So they can go back home and write favourable things about Disneyland Paris. While the standard across the parks and hotels continue to see decline. He's held the position of CEO for the last four years and in that time we have seen a further decline in ride maintenance. Shows like Lion King cut from the budget and opening hours cut even further back. Not to mention several embarrasing incidents for the company like the strikes, press handling of suicides and accidents with Big Thunder Mountain. Things were never this bad under any of his predecessors. The sad thing is before he was given the job, Andre Lacroix and Karl Holz had mananged to turn the business round.

Actually, it shouldn't have any affect at all. They're not noticeable enough for most guests to care.

I think a lot of this stuff is noticeable for people to pick up on. And I do think people care. Its the attitude of not thinking Guests care that allows Management to slash budgets further and allow key animatronic figures and show scenes to stay broken weeks at a time.

[jj554]

1) lower the prices to make the resort affordable and hence bookable.  If they can afford consistent 40% discounts they can afford to lower the real price by 20%

2) improve and maintain the guest experience.  Disney quality not quantity.

3) maintainence

4) quality merchandise.  People will pay premium prices for quality merchandise but will resent it if it barely lasts the journey home.

I agree with these points in a big way. The perception (and reality, perhaps) is that DLRP does not offer great value - 3 nights in a hotel there for circa £800 (my 3 night trip in Sept inc. Eurostar is costing £1000), when it's possible to get two weeks in WDW (inc. flights) for around £2000. I know that the two are totally different destinations and not everyone wants to fly for hours and has two weeks going spare, however, I still resent paying disproportionate prices for a much smaller trip (obviously I don't resent it that much because I still go to DLRP but you know what I mean...) I know WDW must have a lot more rooms to fill than DLRP but there are still rooms at DLRP sitting empty because they are simply out of the price range of some people. Then again I don't have enough of a business brain to fathom if the higher attendance and subsequent guest spending would offset the loss of income from reduced room rates. But as ford prefect says above -Disney quality, not quantity.

Most people are happy to pay for quality - unfortunately as mentioned, some of the merchandise leaves a lot to be desired, as does some of the food. I know when visiting you're a captive audience and sort of have to make do with what's on offer but it's ridiculous sometimes. In terms of merchandise, I hope WoDS brings a retail revolution. Everyone loves picking up souvenirs but I am sick to death of seeing essentially the same stuff in every single shop!

My final point (and then I'll be quiet, promise) and I've mentioned it before, is the ABYSMAL official website. It makes me so disappointed and angry that a huge company like EDSCA, with all their Disney Magic up their sleeve, can't come up with a remotely appealing website. I know it's not the be-all and end-all, nor is it likely to vastly reverse the ailing bank balance of the resort, nevertheless it is simply mind-boggling that in this day and age, a company that needs to positively promote itself and encourage customer interest and bookings continues to have one of the most awful websites I've ever seen. They have GOT to hire someone for a complete revamp. It looks ten years out of date, at least.

Possibly veering a little off topic but it still links in with the overall success of the resort, so I'm gonna go with it.

[Anthony]

My final point (and then I'll be quiet, promise) and I've mentioned it before, is the ABYSMAL official website. It makes me so disappointed and angry that a huge company like EDSCA, with all their Disney Magic up their sleeve, can't come up with a remotely appealing website. I know it's not the be-all and end-all, nor is it likely to vastly reverse the ailing bank balance of the resort, nevertheless it is simply mind-boggling that in this day an age, a company that needs to positively promote itself and encourage customer interest and bookings continues to have one of the most awful websites I've ever seen. They have GOT to hire someone for a complete revamp. It looks ten years out of date, at least.

Indeed, it's awful and I suspect genuinely does lose them business. Funnily enough I went to http://corporate.disneylandparis.com on my iPhone when I woke up this morning to check the results, to be greeted by a blank white page! Lucky we're not in 1994 or I might have presumed they'd been closed down.

About the results, I should save my typing for the blog, but I will say I think some people are doom-mongering just a little too much. What did you expect from the second quarter? Attendance shooting up as everyone rushed to the parks, eager to get there three months before the 20th, during one of the coldest winters?

Yes they flatlined, but let's see what the next two quarters bring. On 1st April the whole resort effectively relaunched and re-opened. A day in the "main park" has become completely different. I can't see the rest of this year flatlining, oh no... (although they still desperately need to actually advertise Dreams, and not just by saying "hey, we've got a new show", which could mean anything, but actually get across to the public how awesome it is)

[ford prefect]

My final point (and then I'll be quiet, promise) and I've mentioned it before, is the ABYSMAL official website. It makes me so disappointed and angry that a huge company like EDSCA, with all their Disney Magic up their sleeve, can't come up with a remotely appealing website. I know it's not the be-all and end-all, nor is it likely to vastly reverse the ailing bank balance of the resort, nevertheless it is simply mind-boggling that in this day an age, a company that needs to positively promote itself and encourage customer interest and bookings continues to have one of the most awful websites I've ever seen. They have GOT to hire someone for a complete revamp. It looks ten years out of date, at least.

Indeed, it's awful and I suspect genuinely does lose them business. Funnily enough I went to http://corporate.disneylandparis.com on my iPhone when I woke up this morning to check the results, to be greeted by a blank white page! Lucky we're not in 1994 or I might have presumed they'd been closed down.

About the results, I should save my typing for the blog, but I will say I think some people are doom-mongering just a little too much. What did you expect from the second quarter? Attendance shooting up as everyone rushed to the parks, eager to get there three months before the 20th, during one of the coldest winters?


Yes they flatlined, but let's see what the next two quarters bring. On 1st April the whole resort effectively relaunched and re-opened. A day in the "main park" has become completely different. I can't see the rest of this year flatlining, oh no... (although they still desperately need to actually advertise Dreams, and not just by saying "hey, we've got a new show", which could mean anything, but actually get across to the public how awesome it is)

If this was final quarter results I could see your point.  However this was a six month results.  It therefore includes Halloween and Christmas which, regardless of the weather, should still be very busy.

I am usually able to put a positive outlook on most DLP news, however I do think that this result is disappointing.

That said, I am very positive about the future and look forward to seeing the next six monthly results.

[Malin]

About the results, I should save my typing for the blog, but I will say I think some people are doom-mongering just a little too much. What did you expect from the second quarter?

Maybe for losses not to have jumped up 22% compared with last year's results.

[Anthony]

About the results, I should save my typing for the blog, but I will say I think some people are doom-mongering just a little too much. What did you expect from the second quarter?

Maybe for losses not to have jumped up 22% compared with last year's results.

Really, even given the big reinvestments and expected visitor lull ahead of the 20th?

If this was final quarter results I could see your point.  However this was a six month results.  It therefore includes Halloween and Christmas which, regardless of the weather, should still be very busy.

I am usually able to put a positive outlook on most DLP news, however I do think that this result is disappointing.

But looking at the first quarter results which have already covered that period (and weren't great either), it was definitely the second quarter which dragged things below the line here. 1% overall revenue growth in first quarter, 0.9% overall revenues decline for the whole first half.

They still don't seem to know what to do with the January-March period, after Christmas and before whatever new season begins, selling it as this "Three Irresistible Months" bargain period. Should they just try bringing the season launches ahead so that they begin earlier than April? If Disney Dreams had launched in early March, that'd be an extra month for people to see how good it is and book their trip for the summer, for example...

It is worrying, even with higher spending per room, to see hotel occupancy slipping down to 79.8%. They really need to expedite the whole hotel renovation programme. They can't be taking two years per hotel. And they need to seriously look either at prices or at how they can add value to a stay at the hotels.

[smurfy74]

When you look at the debt they actually reduced their debt by nearly €53,000,000 ( 53 million ) , They are busy trying to pay off the debt. Posting a loss actually makes sense in terms of tax etc. They should be able to reduce the debt by about 5% this year if they continue that way which is what I thought they had to do.

[Josh]

I hope they do drop the prices some day, but they've probably considered it at some point. But it's a big risk. Maybe they don't want to chance it.

They have GOT to hire someone for a complete revamp. It looks ten years out of date, at least.

They already have great Web developers. If you look at the DLP Generations website, it's clear that they've got great cast members that know how to make a good website that uses modern technologies. I'm just hoping they're working on a new one and that it's just not ready yet.