Disney released quarterly earnings today with third quarter profit dropping 26%. The most important item for Orlando businesses was the fact that domestic park attendance actually rose 3% mainly due to heavy discounting. International parks and resort attendance dropped 9%. CEO Bob Iger also indicated that the company did see signs of economic stabilization.
The big question for any local businesses is how long the discounting will continue. The Disney CFO, Tom Staggs, indicated that discounts such as the “Buy 4, Get 3” promotion will continue as long as the economy remains weak. Without this heavy discounting, the drop in local transient leisure hotel occupancy would be even more dramatic.
Feedback from our sources indicates that proximity to the Disney parks is even more paramount from an occupancy impact. It’s pretty apparent that hotels further from the parks are really struggling. As it relates to vacation homes, distance to the attractions is important as well. Our site makes an attempt at profiling over 80 vacation home communities on several factors including distance to major attractions.
Disney Earnings
