Did everybody see this? (Posted by wdwkook on another thread):
Here is a link to a news article I just posted to the News and Rumors forum which includes some speculation about WDW's future discounts:
http://www.disboards.com/showthread.php?t=2453312
Here is part of the article by Jason Garcia of the Orlando Sentinel:
Braun and other analysts attributed Disney Worlds market-share gains to the resorts targeted use of discounts, which helped lure tourists despite a steep drop in travel overall. All of Disneys most significant promotions during the year including seven nights for the price of four and free dining required travelers to stay in the resorts hotels.
The promotions effectively worked in tandem with other strategic moves Disney has made over the years such as the launch of a complimentary airport shuttle and luggage service that eliminates the need to rent a car to help Disney keep an even greater share of its guests on its property and away from its rivals.
Abe Pizam, dean of the University of Central Floridas Rosen College of Hospitality Management, noted that Disney has historically avoided discounts for fear of undermining the premium prices it typically commands. But he said the resort clearly now sees promotions as a way to further its strategy of capturing the entirety of its guests vacation spending.
They have done it very smartly, Pizam said.
Still, the approach came at a cost for Disney: In large part because of those discounts, operating profit for Walt Disney Parks and Resorts shrank 25 percent during the companys 2009 fiscal year, which ended in October.
Analysts also said that Disney could have trouble returning to full prices without triggering an attendance drop. The company has said it is trying to wean consumers off of promotions gradually; Disney World, for instance, is currently reducing hotel rates by as much as 30 percent, which, while significant, is a significantly smaller discount than last years seven-days-for-the-price-of-four offer.
Discounts dont necessarily make for a sustainable market-share shift, Braun said.