Even Disney Can’t Find Magic Mix in Troubled Economy
Last month, I sat through a training session with Walt Disney where the rep assured travel agents that the Mouse’s empire is NOT a discounter, doesn’t want to gain a reputation as a discounter, and therefore and the special price cuts we’ve seen this year would not continue in the future.

Disney magic
Approximately a week later, I received notice of slashed hotel prices at Walt Disney World this October.
They followed this with news the cruise line would offer an Alaska itinerary in 2010, which is in line with the upscale image.
Now today, Disney has announced it will scale back the Adventures by Disney guided tour program next year, saying good-bye to Spain, Austria and the Czech Republic altogether. Apparently, selling $6,500 per person safaris eluded even the magical world of Disney these days. Here in 2009, the division offered 429trips to 17 countries. Next year, that will be reduced to 272 trips, or a 40 percent drop.
The scary part? According to the Orlando Sentinel, Disney says ventures such as Adventures By Disney is a great feeder business for the all-mighty parks dollars because it introduces the brands to consumers in new markets. Adventures’ tours require little capital investment — Disney contracts out for services during its tours, rather than building its own infrastructure — so it generates relatively high returns.
If that the case, then just what is the financial sense behind buying 2 4,000-passenger ships and hotel resorts in Washington D.C. and Hawaii? Not to mention investments in upgrading Castaway Cay and its Port Canaveral terminal.
Adventures says it will add more trips if the demand materializes. If the theme parks are any barometer, they might need to rethink that price cut philosophy across the board to fill the capacity they have.
Photographer: Julie Sturgeon
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