This week’s Jentasmic! column at Studios Central features a bit of unsolicited advice for the management of Disney Parks. A tidbit, just for starters:
Beware the deep discounts. Park attendance is high at Disney Parks, but at what cost? The deep discounts on hotels are cutting into the profit margins, and it’s not clear whether Guest spending on food and souvenirs in such uncertain economic times can justify the erosion of that profit margin, or the long-term impact on Guest expectations for future deals. (One exception: The bonus 3-month extension for Annual Pass renewals is a smart way to reward some of the company’s most loyal customers, and should be continued.) Some would argue that without these deep discounts, Disney’s at risk for losing market share to other theme parks (especially Universal), but I’m not convinced.