As a young leader in an increasingly competitive job market, I feel as though I gained many pieces of knowledge during this course. Going forward, I hope that I can be more aware of forces that are affecting decisions made by my Company and be able to discuss them amongst my peers. Even though I am young in my career, I have been exposed to many changes at the Walt Disney Company but have not been as in tune with the decisions as I would have liked.
I think understanding the strategy behind Company pricing in the last chapter was perhaps the most eye-opening to me since Disney has always been known for it's pricey cost of admission. As Disney continues to increase its cost on admission, room rates, food and beverage, parking, etc. each year, the pricing chapter forced me to think about the strategy involved as our country recovers from a recession and continues to see the price of gas increase. It may be expensive, but the attendance has yet to slow down which tells me that the price continues to be right.
I am a leader of a very diverse group of people who differ not only in race, but age and gender as well. That being said, I'm very much looking forward to next semester's class surrounding organizational behavior, because I think understanding how to motivate different groups of people is a huge aid to success as a leader in today's business.
Tuesday, May 31, 2011
SECA 11: Globalization
Every year, Walt Disney World attracts thousands for foreign visitors to its resort. Even though there are three Disney resorts in foreign countries (France, Japan, and Hong Kong) and a fourth currently under construction (China), international tourists flood the Orlando area every year. The greatest impact is seen in the British and South American tourists and Disney caters specifically to these two groups in various ways.
For example, this summer Disney will employ several Portuguese-speaking hosts and hostesses whose sole purpose will be to act as translators for our guests visiting from Brazil. These new Cast Members will be strategically placed throughout the parks and resorts in order to help make the language barrier for our Brazilian tourists (who typically travel together in large groups) as minimal as possible.
The effect of tourists from international markets on prices at Walt Disney World is hard to determine.
I say this because even though the Company attracts foreign visitors, at the same time their numbers do not outshine the volume of domestic travelers Walt Disney World will accommodate each year. Disney must therefore find a balance in the price of tickets that is weighted more towards the income of its domestic guests vs. their international guests. For those traveling from Europe, this is great news due to the current strength of the Euro and the steady demise of the US dollar.
For example, this summer Disney will employ several Portuguese-speaking hosts and hostesses whose sole purpose will be to act as translators for our guests visiting from Brazil. These new Cast Members will be strategically placed throughout the parks and resorts in order to help make the language barrier for our Brazilian tourists (who typically travel together in large groups) as minimal as possible.
The effect of tourists from international markets on prices at Walt Disney World is hard to determine.
I say this because even though the Company attracts foreign visitors, at the same time their numbers do not outshine the volume of domestic travelers Walt Disney World will accommodate each year. Disney must therefore find a balance in the price of tickets that is weighted more towards the income of its domestic guests vs. their international guests. For those traveling from Europe, this is great news due to the current strength of the Euro and the steady demise of the US dollar.
Sunday, May 29, 2011
SECA 10:Pricing Strategies
At Walt Disney World, a bundling pricing strategy is utilized. Basically, the longer you stay, the less you pay per day.Think of it as a Costco-style approach, buy in bulk to save!
For example, according to Disney.com, a 1-day ticket for Guests aged 10+ costs $73.80. However, if you purchase a 3-day ticket, the price decreases to $45/day. That's quite a drop off and the price per day continues to decline as you purchase additional days. There are of course, other ticket options that can be added including Disney's Park Hopper (allows you to visit multiple parks in one day), Disney's Water Park fun and more (includes admission to a water park and DisneyQuest Interactive Theme Park) option and the no expiration option (for a price you can make sure you unused tickets are good forever). There are also a wide range of discounts available for Florida residents, AAA members, and the military. However, they all focus around the same simple idea of decreasing ticket prices per day and the length of your stay increases. This helps entice people to stay at our resort for a longer period of time (thus, causing them to spend more money on hotels, merchandise, and food and beverage).
Disney is a price-setter in the Orlando theme park market, and usually will announce increases in ticket prices in August each year. Typically, Universal Orlando and Sea World Orlando wait for Disney to announce an increase in admission prices before announcing their own. This was evident last summer, when on August 4, Disney announced admission increases only to be followed by similar announcements from Universal Orlando and Sea World Orlando on August 6. This competitive atmosphere allows the three major theme park companies in Orlando to benefit from the success each other is experiencing. Since I have been in the industry (January 2008), none of the major Orlando resorts has decreased ticket prices after seeing the other resorts announce an increase.
For example, according to Disney.com, a 1-day ticket for Guests aged 10+ costs $73.80. However, if you purchase a 3-day ticket, the price decreases to $45/day. That's quite a drop off and the price per day continues to decline as you purchase additional days. There are of course, other ticket options that can be added including Disney's Park Hopper (allows you to visit multiple parks in one day), Disney's Water Park fun and more (includes admission to a water park and DisneyQuest Interactive Theme Park) option and the no expiration option (for a price you can make sure you unused tickets are good forever). There are also a wide range of discounts available for Florida residents, AAA members, and the military. However, they all focus around the same simple idea of decreasing ticket prices per day and the length of your stay increases. This helps entice people to stay at our resort for a longer period of time (thus, causing them to spend more money on hotels, merchandise, and food and beverage).
Disney is a price-setter in the Orlando theme park market, and usually will announce increases in ticket prices in August each year. Typically, Universal Orlando and Sea World Orlando wait for Disney to announce an increase in admission prices before announcing their own. This was evident last summer, when on August 4, Disney announced admission increases only to be followed by similar announcements from Universal Orlando and Sea World Orlando on August 6. This competitive atmosphere allows the three major theme park companies in Orlando to benefit from the success each other is experiencing. Since I have been in the industry (January 2008), none of the major Orlando resorts has decreased ticket prices after seeing the other resorts announce an increase.
Thursday, May 19, 2011
SECA 9: Rivalry
The Walt Disney Company is the number one entertainment company in the world. A subset of that, the Walt Disney World Resort is the top theme park destination in the world as well. The Walt Disney World Resort is able to maintain this title year after year by offering a great product and continually delivering new, unique, and exciting experiences people can't get anywhere else. To say that any company rivals the success of the Walt Disney World Resort would be a farse, but the Walt Disney World resort does have rivals who compete for our business in the Central Florida tourism market.
The biggest rivals the Walt Disney World Resort faces off against are the Universal Orlando Resort. Universal Orland has not been in the market as long as Walt Disney World, but have both established themselves as worthy destination that offer unique experiences (modeling the same practices utilized by Disney).
In order to be successful in any industry, you have to offer a product that is unique to your company and is not easily found somewhere else. In looking at Walt Disney World, we do this very well, feeding off of our Guests' bond to movies, television shows, and brand recognition to help ignite the success of our resort. We refer to this practice as "synergy". For example, last year, Disney's Wide World of Sports underwent a massive rehabilitation and re-branding. Every year thousands of amateur and professional athletes compete in various athletic events at the complex, allowing Disney to gain great exposure in the athletic market. However, as Disney owns and operates ESPN, a name that is synonymous and recognized in the world of sports, so it made sense to incorporate the ESPN name/logo into our on-site sports complex. After it's rehab, Disney's Wide World of Sports emerged as the new, ESPN Wide World of Sports Complex.
This idea of "synergy" is viewable in our theme parks as well, as we often utilize various attractions and characters to promote different parts of our business. Classic attractions such as The Haunted Mansion and Pirates of the Caribbean were turned into film franchises, while successful movies such as Cars, Finding Nemo, Beauty and the Beast, and the Lion King, have been the inspiration for various attractions, shows, restaurants, and character meet and greet areas. Practicing synergy has helped grow our business and left our competitors struggling to imitate our success.
This imitation was best attempted by the Universal Orlando resort in 1999. After undergoing a massive expansion, Universal Orlando was debuting three new hotels operated by the Loews Hotel group, a massive retail and dining area dubbed "Universal's Citywalk," and a new theme park called Islands of Adventure. They were attempting to transform themselves into a vacation destination like Walt Disney World as opposed to a place people could visit in one or two days. Unfortunately for them, they failed miserably.
Islands of Adventure was supposed to transform the theme park world. Universal promoted it as "The most technologically advanced theme park in the world," but it lacked in emotion. They attempted to establish a bond with their guests like Disney does by creating attractions based on comics , superheros, and a successful movie franchise, but guests did not and have not responded like they imagined they would. Universal's major expansion failed miserably and the Company has been sold twice since it's debut.
**Side note. In June 2010 Islands of Adventure underwent a major rehabilitation to incorporate the 'Wizarding World of Harry Potter' into their theme park. It has been a great success thus far, boosting Universal's attendance and profit margins. The affect on Walt Disney World? Our attendance increased as well!**
The biggest rivals the Walt Disney World Resort faces off against are the Universal Orlando Resort. Universal Orland has not been in the market as long as Walt Disney World, but have both established themselves as worthy destination that offer unique experiences (modeling the same practices utilized by Disney).
In order to be successful in any industry, you have to offer a product that is unique to your company and is not easily found somewhere else. In looking at Walt Disney World, we do this very well, feeding off of our Guests' bond to movies, television shows, and brand recognition to help ignite the success of our resort. We refer to this practice as "synergy". For example, last year, Disney's Wide World of Sports underwent a massive rehabilitation and re-branding. Every year thousands of amateur and professional athletes compete in various athletic events at the complex, allowing Disney to gain great exposure in the athletic market. However, as Disney owns and operates ESPN, a name that is synonymous and recognized in the world of sports, so it made sense to incorporate the ESPN name/logo into our on-site sports complex. After it's rehab, Disney's Wide World of Sports emerged as the new, ESPN Wide World of Sports Complex.
This idea of "synergy" is viewable in our theme parks as well, as we often utilize various attractions and characters to promote different parts of our business. Classic attractions such as The Haunted Mansion and Pirates of the Caribbean were turned into film franchises, while successful movies such as Cars, Finding Nemo, Beauty and the Beast, and the Lion King, have been the inspiration for various attractions, shows, restaurants, and character meet and greet areas. Practicing synergy has helped grow our business and left our competitors struggling to imitate our success.
This imitation was best attempted by the Universal Orlando resort in 1999. After undergoing a massive expansion, Universal Orlando was debuting three new hotels operated by the Loews Hotel group, a massive retail and dining area dubbed "Universal's Citywalk," and a new theme park called Islands of Adventure. They were attempting to transform themselves into a vacation destination like Walt Disney World as opposed to a place people could visit in one or two days. Unfortunately for them, they failed miserably.
Islands of Adventure was supposed to transform the theme park world. Universal promoted it as "The most technologically advanced theme park in the world," but it lacked in emotion. They attempted to establish a bond with their guests like Disney does by creating attractions based on comics , superheros, and a successful movie franchise, but guests did not and have not responded like they imagined they would. Universal's major expansion failed miserably and the Company has been sold twice since it's debut.
**Side note. In June 2010 Islands of Adventure underwent a major rehabilitation to incorporate the 'Wizarding World of Harry Potter' into their theme park. It has been a great success thus far, boosting Universal's attendance and profit margins. The affect on Walt Disney World? Our attendance increased as well!**
Monday, May 9, 2011
SECA 8: Product Differentiation/Quality
A long time ago, Walt Disney was at a small, local amusement park with his daughters. As he sat on a park bench watching them enjoy themselves on the merry-go-round, he came up with an idea, to build a theme park where kids and adults could enjoy experiences together.
"We believed in our idea - a family park where parents and children could have fun - together." - Walt Disney
With that thought, the idea of Disneyland was born! Or at least, that's how the story goes. But the idea behind the story, that Disney Parks and Resorts are a family destination remains the same. As a brand we focus on family entertainment over everything else and that focus has resulted in five (soon to be six) theme park/resorts all over the world, with Walt Disney World in Orlando, FL holding the crown as the number one theme park destination in the world.
Over fifty years later, the idea of appealing to families remains the focal point of the success at Disney.While other theme parks owned by Six Flags, Cedar Fair, and Universal offer great experiences, none of them have been able come close to the success experienced at Walt Disney World, as it remains the top theme park destination in the world. These other companies tend to develop attractions that will offer guests thrills and chills, building roller coasters and drop towers that go to insane heights! Disney however, spends eons of time developing a story behind its attractions, creating a world of fantasy and imagination that immerse our Guests into an incredible experience. This attention to detail and focus on providing entertainment every family member can enjoy together has been a consistent recipe for success at Disney, and is one we will not stray from.
"Your dead if you aim only for kids. Adults are only kids grown up, anyway." - Walt Disney
The strategy of focusing on family entertainment has also helped drive the success of other Disney business ventures, including our movie studios and entertainment media (ABC, ESPN, etc.), only strengthening the belief held by Walt Disney all those years ago.
"We believed in our idea - a family park where parents and children could have fun - together." - Walt Disney
With that thought, the idea of Disneyland was born! Or at least, that's how the story goes. But the idea behind the story, that Disney Parks and Resorts are a family destination remains the same. As a brand we focus on family entertainment over everything else and that focus has resulted in five (soon to be six) theme park/resorts all over the world, with Walt Disney World in Orlando, FL holding the crown as the number one theme park destination in the world.
Over fifty years later, the idea of appealing to families remains the focal point of the success at Disney.While other theme parks owned by Six Flags, Cedar Fair, and Universal offer great experiences, none of them have been able come close to the success experienced at Walt Disney World, as it remains the top theme park destination in the world. These other companies tend to develop attractions that will offer guests thrills and chills, building roller coasters and drop towers that go to insane heights! Disney however, spends eons of time developing a story behind its attractions, creating a world of fantasy and imagination that immerse our Guests into an incredible experience. This attention to detail and focus on providing entertainment every family member can enjoy together has been a consistent recipe for success at Disney, and is one we will not stray from.
"Your dead if you aim only for kids. Adults are only kids grown up, anyway." - Walt Disney
The strategy of focusing on family entertainment has also helped drive the success of other Disney business ventures, including our movie studios and entertainment media (ABC, ESPN, etc.), only strengthening the belief held by Walt Disney all those years ago.
Friday, April 22, 2011
SECA 7: Cost Structure/Leadership
As a front-line manager at the Walt Disney World Resort, one my main responsibilities is to manage the amount of labor being utilized in relation to the attendance in our theme park. This is the main cost leadership strategy I use.
It is actually a fairly simple strategy. Each morning, the opening manger on the team will log into our network and run a labor report, allowing them to see the daily attendance forecast and the amount of labor hours being utilized at each of our attractions. They will then e-mail this report to the rest of the team, allowing us to see where we stand from a labor perspective at the start of the business day. Typically, each attraction will be several hours over budget at the start of the day, as we build in extra labor in anticipation of Cast Members arriving late or calling in sick for their shifts.
Later in the day (usually 5 hours after the opening manager arrives), when the next manager arrives, they will run the report again, allowing us to see how much closer to our budget we have come. At this time, we will also be provided with a revised forecast for our park attendance. If the forecast has risen or stayed even, little to no action is required on our part as a leadership team. If the attendance forecast has dropped however, we must start granting Cast Members early releases from their shifts, as our labor budget will drop as well.
This is an efficient strategy because when attendance is lower than expected, it usually means revenues will be lower than expected as well. For this reason we will shed labor to compensate for the difference. For example, if attendance was originally forecasted to be 72,000 on Saturday, my team will make sure we staff our attractions appropriately. At the Jungle Cruise attraction, this high attendance forecast means we will have all of our efficiency positions up, including fastpass distribution, fastpass return, wheelchair assist, and stroller parking while running ten boats on the river. These positions will allow us to accommodate our guests in the most efficient manner. However, by mid-day the attendance forecast has dropped to 59,000, I will now drop these positions earlier or not utilize them at all. There now may only be a need for 8 boats on the river and one Cast Member can handle fastpass distribution and return by themselves.
Shedding labor based on our attendance figures helps us remain profitable on a daily basis. It also allows us to remain as efficient as possible. Think about this, if it is forecasted to be a busy day, I will staff my attractions accordingly. If that forecast drops by mid-day however, would I still need all of the same positions? No. In fact, if I were to keep them, my Cast Members would most likely distract themselves, engaging in idle conversations due to the lack of guests and overbalance of Cast Members on the clock. They would be tripping all over each other!
In this case, our cost structure goes hand in hand with efficiency, which are two areas of focus Disney excels in.
It is actually a fairly simple strategy. Each morning, the opening manger on the team will log into our network and run a labor report, allowing them to see the daily attendance forecast and the amount of labor hours being utilized at each of our attractions. They will then e-mail this report to the rest of the team, allowing us to see where we stand from a labor perspective at the start of the business day. Typically, each attraction will be several hours over budget at the start of the day, as we build in extra labor in anticipation of Cast Members arriving late or calling in sick for their shifts.
Later in the day (usually 5 hours after the opening manager arrives), when the next manager arrives, they will run the report again, allowing us to see how much closer to our budget we have come. At this time, we will also be provided with a revised forecast for our park attendance. If the forecast has risen or stayed even, little to no action is required on our part as a leadership team. If the attendance forecast has dropped however, we must start granting Cast Members early releases from their shifts, as our labor budget will drop as well.
This is an efficient strategy because when attendance is lower than expected, it usually means revenues will be lower than expected as well. For this reason we will shed labor to compensate for the difference. For example, if attendance was originally forecasted to be 72,000 on Saturday, my team will make sure we staff our attractions appropriately. At the Jungle Cruise attraction, this high attendance forecast means we will have all of our efficiency positions up, including fastpass distribution, fastpass return, wheelchair assist, and stroller parking while running ten boats on the river. These positions will allow us to accommodate our guests in the most efficient manner. However, by mid-day the attendance forecast has dropped to 59,000, I will now drop these positions earlier or not utilize them at all. There now may only be a need for 8 boats on the river and one Cast Member can handle fastpass distribution and return by themselves.
Shedding labor based on our attendance figures helps us remain profitable on a daily basis. It also allows us to remain as efficient as possible. Think about this, if it is forecasted to be a busy day, I will staff my attractions accordingly. If that forecast drops by mid-day however, would I still need all of the same positions? No. In fact, if I were to keep them, my Cast Members would most likely distract themselves, engaging in idle conversations due to the lack of guests and overbalance of Cast Members on the clock. They would be tripping all over each other!
In this case, our cost structure goes hand in hand with efficiency, which are two areas of focus Disney excels in.
Thursday, April 14, 2011
SECA 6: R & D
Innovations in the theme park industry are always affecting Company's decisions. Every year, theme parks are faced with the challenge of creating new experiences for their guests that will lore them away from their competitors and keep them coming back to the park on a regular basis.
One of the most recent innovative trends in the theme park industry is the use of mobile devises to alert guests of attraction wait times throughout the park. The ironic part of this situation, is that it was not pioneered by the industry, but of the guests visiting the parks. Suddenly, apps (like "Disney World Wait Times Free) were available for download in Apple's App Store and the Google's Android Marketplace, allowing guests who were in a particular theme park to update wait times they observed throughout the day for other users of the same application.
Shortly after these user-inspired apps hit the market, Walt Disney World partnered with Verizon Mobile to create the Verizon Mobile Magic Application, which instantly became a much better substitute for guests visiting our theme parks than previous, user-based apps. Disney's Verizon Mobile Magic allows guests to receive live, up to the minute updates on wait times at their favorite attractions, character meet and greet locations, and restaurants. It is truly a time-saver, allowing guests to strategically map out their day by avoiding lines, utilizing out Fastpass system where appropriate, and make lunch/dinner plans away from the busiest times of day.
When it comes to incorporating the time-cost trade-off into decisions to introduce new products, Walt Disney World is very strategic. We rely on a system called "synergy," in which we to self-promote our brands/products within our Company simultaneously. For example, in 2008, we debuted one of our most popular attractions, Toy Story Mania at Disney's Hollywood Studios. Two years later, with the attraction still soaring in popularity, the movie Toy Story 3 was released by our movie studio, further increasing the Toy Story brand and helping promote it to people who may have yet to experience the attraction in our theme park. While I am not privy to the introduction of new products yet (give me time, I'll get there), this strategic synergy system is always employed in the debut of new attractions. It can be seen again this summer, with the debut of "Cars 2" from our movie studio, and the unveiling of "Cars Land" a brand new, 12-acre addition to Disney's California Adventure theme park at Disneyland in Anaheim, CA. It is obvious that Disney is self aware of the time-cost, trade-off system and the benefits of using synergy to ensure it is utilized properly to maximize their profits.
To explain the extent to which The Walt Disney World Company is an innovator would take many, many blog posts. in 1955, Walt Disney shook up the "Amusement Park" world with the debut of Disneyland, the world's first "Theme Park." It has all continued on from there. Since 1955, the Walt Disney World Company has created many "firsts" in the theme park industry including the debut of the world's first steel roller coaster (Matterhorn Mountain), the first park-hopper passes (allowing Guests to visit multiple parks in one day on a single ticket), and the creation of a Fastpass system (allowing guests to bypass standby lines). Going forward, the Walt Disney World Company will continue to be an innovator, as recently highlighted by the Orlando Sentinel in an interview with Tom Staggs. In the interview, Tom revealed plans for Disney's future, where Guests will enjoy the benefits of reserving ride times from home, entertaining themselves while in line through the use of "interactive queues," and a more efficient check-in process at our resorts. The interview (quoted below) only solidified Disney as a true innovator, not only in the theme park industry, but the travel, tourism, and entertainment industries as well.
Here is an article from the Orlando Sentinel Article surrounding Disney's "Next Generation Experience" project, reported by Jason Garcia on February, 17, 2011:
"Future visitors to Walt Disney World will be able to reserve ride times from their home computers and bypass hotel check-in desks once they arrive at the resort, the head of the Walt Disney Co.'s global theme-park division said during an investors conference Thursday.
Those advances are among of a series of technological initiatives Disney is developing in hopes of making visits to its increasingly crowded theme parks easier to plan and less intimidating to navigate, Walt Disney Parks and Resorts Chairman Tom Staggs said at the conference in Anaheim, Calif.
"In the coming years, we'll introduce a broad set of systems and tools that will help us create a more seamless and personalized experience and help guests get more out of their visit with us," Staggs said. The ultimate goal, he added, is "to welcome more and more people, while making their experience more satisfying, more personal and more immersive."
Staggs' comments provided the first detailed glimpse at a secretive initiative dubbed "Next Generation Experience," or "NextGen," that Walt Disney Parks and Resorts has been working on for more than a year. The budget for the project is said to be around $1 billion — as much money as Disney spent to build its recently launched Disney Dream cruise ship.
In his remarks Thursday, Staggs described a "version of Fast Pass for an entire Disney vacation." Future guests, he said, will be able to reserve specific ride times for popular attractions, secure seating for shows, make restaurant reservations and pre-book other experiences before they leave their homes on vacation. They will also be able to obtain their room keys in advance, eliminating the need to check into hotels and allowing them to proceed immediately to their rooms or a theme park once they arrive on Disney property.
Other advances, he said, will include personalizing rides and character greetings for individual guests, adding more interactive queues to entertain people while they wait in line for attractions, and designing behind-the-scenes systems for operations workers to better monitor and steer crowd flow to ease congestion.
Disney will also aim to cull more personal information from its guests, which Staggs said "will put better information into the hands of our cast, so they can deliver even better and more personalized service for our guests." Although Staggs did not specify what information Disney would seek, possibilities range from simple details such as names and birth dates to favorite characters and credit-card numbers. Access to such information would allow Disney to target more personalized sales offers to guests, even as they wander around its parks.
Staggs didn't go into further details about how Disney intends to implement some of the plans, and the company would not elaborate on his comments. But there is widespread speculation among former Disney executives and bloggers who follow the company that some of the plans will use radio-frequency identification, or RFID, microchips that can be implanted into tickets or wristbands, loaded with personal information and used to interact with sensors installed in everything from hotel-room doors to ride animatronics.
Disney has signed a confidentiality agreement with a California company that manufactures RFID wristbands, whose clients include other amusement operators such as Great Wolf Resorts.
Staggs declined to say when Disney will launch many of the initiatives, though some elements — such as interactive queues — have been slowly rolling out in parks in recent months. Staggs said Disney has applied for "a number" of patents related to the work.
"It will be some time before we roll out the bulk of these developments," he said. "But we're well into development."
The decision to pump $1 billion or more into developing systems that help with vacation planning and crowd flow underscores one of the biggest challenges facing Disney's flagship theme-park resorts — particularly Disney World, which has four parks and roughly 25,000 hotel rooms.
As those resorts have grown bigger over the years, they have also become more complex to navigate and more crowded, threatening to undermine Disney's historically high guest-satisfaction ratings and to deter repeat visits.
"We know that our guests love creating great memories," Staggs said. "We also know they don't exactly relish waiting in line, checking in at the resort, worrying about missing their favorite attractions, or feeling uncertain about how to best navigate and access our properties."
There are risks. Former company officials have questioned whether technological advances would boost attendance or guest-spending enough to justify the billion-dollar price tag — or whether advance-planning by some guests could spoil the experience for those who do not pre-plan and arrive at a park only to find the most popular attractions already booked.
Privacy advocates could also protest if they think Disney is collecting too much personal information about its guests.
But Scott Smith, an instructor at the University of Central Florida's Rosen College of Hospitality Management, said there are also several advantages to the projects Disney described. Issuing hotel-room keys in advance, for instance, will ensure Disney gets its guests into its parks more quickly.
Smith likened it to similar advance-check-in options at some Las Vegas casino resorts where "the idea is that you go right to the craps table.
"Disney is probably looking at the same type of philosophy," Scott said. "The sooner we check you in, the sooner you go into our parks and start spending money."
Also, a new generation of technology-savvy travelers increasingly expects features such as customizable vacations and interactive attractions, he said.
"Their audience is so much more sophisticated now," Smith said. "If you're not investing in this already, you're going to get left behind. And the last thing Disney wants is to be saddled with the reputation of being old school.""
As you can see from the article, Disney is the definition of innovation.
One of the most recent innovative trends in the theme park industry is the use of mobile devises to alert guests of attraction wait times throughout the park. The ironic part of this situation, is that it was not pioneered by the industry, but of the guests visiting the parks. Suddenly, apps (like "Disney World Wait Times Free) were available for download in Apple's App Store and the Google's Android Marketplace, allowing guests who were in a particular theme park to update wait times they observed throughout the day for other users of the same application.
Shortly after these user-inspired apps hit the market, Walt Disney World partnered with Verizon Mobile to create the Verizon Mobile Magic Application, which instantly became a much better substitute for guests visiting our theme parks than previous, user-based apps. Disney's Verizon Mobile Magic allows guests to receive live, up to the minute updates on wait times at their favorite attractions, character meet and greet locations, and restaurants. It is truly a time-saver, allowing guests to strategically map out their day by avoiding lines, utilizing out Fastpass system where appropriate, and make lunch/dinner plans away from the busiest times of day.
When it comes to incorporating the time-cost trade-off into decisions to introduce new products, Walt Disney World is very strategic. We rely on a system called "synergy," in which we to self-promote our brands/products within our Company simultaneously. For example, in 2008, we debuted one of our most popular attractions, Toy Story Mania at Disney's Hollywood Studios. Two years later, with the attraction still soaring in popularity, the movie Toy Story 3 was released by our movie studio, further increasing the Toy Story brand and helping promote it to people who may have yet to experience the attraction in our theme park. While I am not privy to the introduction of new products yet (give me time, I'll get there), this strategic synergy system is always employed in the debut of new attractions. It can be seen again this summer, with the debut of "Cars 2" from our movie studio, and the unveiling of "Cars Land" a brand new, 12-acre addition to Disney's California Adventure theme park at Disneyland in Anaheim, CA. It is obvious that Disney is self aware of the time-cost, trade-off system and the benefits of using synergy to ensure it is utilized properly to maximize their profits.
To explain the extent to which The Walt Disney World Company is an innovator would take many, many blog posts. in 1955, Walt Disney shook up the "Amusement Park" world with the debut of Disneyland, the world's first "Theme Park." It has all continued on from there. Since 1955, the Walt Disney World Company has created many "firsts" in the theme park industry including the debut of the world's first steel roller coaster (Matterhorn Mountain), the first park-hopper passes (allowing Guests to visit multiple parks in one day on a single ticket), and the creation of a Fastpass system (allowing guests to bypass standby lines). Going forward, the Walt Disney World Company will continue to be an innovator, as recently highlighted by the Orlando Sentinel in an interview with Tom Staggs. In the interview, Tom revealed plans for Disney's future, where Guests will enjoy the benefits of reserving ride times from home, entertaining themselves while in line through the use of "interactive queues," and a more efficient check-in process at our resorts. The interview (quoted below) only solidified Disney as a true innovator, not only in the theme park industry, but the travel, tourism, and entertainment industries as well.
Here is an article from the Orlando Sentinel Article surrounding Disney's "Next Generation Experience" project, reported by Jason Garcia on February, 17, 2011:
"Future visitors to Walt Disney World will be able to reserve ride times from their home computers and bypass hotel check-in desks once they arrive at the resort, the head of the Walt Disney Co.'s global theme-park division said during an investors conference Thursday.
Those advances are among of a series of technological initiatives Disney is developing in hopes of making visits to its increasingly crowded theme parks easier to plan and less intimidating to navigate, Walt Disney Parks and Resorts Chairman Tom Staggs said at the conference in Anaheim, Calif.
"In the coming years, we'll introduce a broad set of systems and tools that will help us create a more seamless and personalized experience and help guests get more out of their visit with us," Staggs said. The ultimate goal, he added, is "to welcome more and more people, while making their experience more satisfying, more personal and more immersive."
Staggs' comments provided the first detailed glimpse at a secretive initiative dubbed "Next Generation Experience," or "NextGen," that Walt Disney Parks and Resorts has been working on for more than a year. The budget for the project is said to be around $1 billion — as much money as Disney spent to build its recently launched Disney Dream cruise ship.
In his remarks Thursday, Staggs described a "version of Fast Pass for an entire Disney vacation." Future guests, he said, will be able to reserve specific ride times for popular attractions, secure seating for shows, make restaurant reservations and pre-book other experiences before they leave their homes on vacation. They will also be able to obtain their room keys in advance, eliminating the need to check into hotels and allowing them to proceed immediately to their rooms or a theme park once they arrive on Disney property.
Other advances, he said, will include personalizing rides and character greetings for individual guests, adding more interactive queues to entertain people while they wait in line for attractions, and designing behind-the-scenes systems for operations workers to better monitor and steer crowd flow to ease congestion.
Disney will also aim to cull more personal information from its guests, which Staggs said "will put better information into the hands of our cast, so they can deliver even better and more personalized service for our guests." Although Staggs did not specify what information Disney would seek, possibilities range from simple details such as names and birth dates to favorite characters and credit-card numbers. Access to such information would allow Disney to target more personalized sales offers to guests, even as they wander around its parks.
Staggs didn't go into further details about how Disney intends to implement some of the plans, and the company would not elaborate on his comments. But there is widespread speculation among former Disney executives and bloggers who follow the company that some of the plans will use radio-frequency identification, or RFID, microchips that can be implanted into tickets or wristbands, loaded with personal information and used to interact with sensors installed in everything from hotel-room doors to ride animatronics.
Disney has signed a confidentiality agreement with a California company that manufactures RFID wristbands, whose clients include other amusement operators such as Great Wolf Resorts.
Staggs declined to say when Disney will launch many of the initiatives, though some elements — such as interactive queues — have been slowly rolling out in parks in recent months. Staggs said Disney has applied for "a number" of patents related to the work.
"It will be some time before we roll out the bulk of these developments," he said. "But we're well into development."
The decision to pump $1 billion or more into developing systems that help with vacation planning and crowd flow underscores one of the biggest challenges facing Disney's flagship theme-park resorts — particularly Disney World, which has four parks and roughly 25,000 hotel rooms.
As those resorts have grown bigger over the years, they have also become more complex to navigate and more crowded, threatening to undermine Disney's historically high guest-satisfaction ratings and to deter repeat visits.
"We know that our guests love creating great memories," Staggs said. "We also know they don't exactly relish waiting in line, checking in at the resort, worrying about missing their favorite attractions, or feeling uncertain about how to best navigate and access our properties."
There are risks. Former company officials have questioned whether technological advances would boost attendance or guest-spending enough to justify the billion-dollar price tag — or whether advance-planning by some guests could spoil the experience for those who do not pre-plan and arrive at a park only to find the most popular attractions already booked.
Privacy advocates could also protest if they think Disney is collecting too much personal information about its guests.
But Scott Smith, an instructor at the University of Central Florida's Rosen College of Hospitality Management, said there are also several advantages to the projects Disney described. Issuing hotel-room keys in advance, for instance, will ensure Disney gets its guests into its parks more quickly.
Smith likened it to similar advance-check-in options at some Las Vegas casino resorts where "the idea is that you go right to the craps table.
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Also, a new generation of technology-savvy travelers increasingly expects features such as customizable vacations and interactive attractions, he said.
"Their audience is so much more sophisticated now," Smith said. "If you're not investing in this already, you're going to get left behind. And the last thing Disney wants is to be saddled with the reputation of being old school.""
As you can see from the article, Disney is the definition of innovation.
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