economy

[andrewmckay5]

<blockquote id="quote" class="ffs">quote:Originally posted by FraserLynn
We are out here at the moment and whilst I can't comment on individual situations, there was a report on the news yesterday morning that said visitor rates to Orlando were down 8% during January which is, apparently, the first fall in visitor numbers for 8 years.

I guess this must be having an impact somewhere, I wonder if it is in Hotel bookings as people want to take advantage of the better value a villa offers.
[/quote]

Did they say whether "visitors" included the numbers that go to the conferences etc rather than vacation.

I could imagine with the economy and the problems a number of business's are in then conference numbers will be down.

andrew

[FraserLynn]

<blockquote id="quote" class="ffs">quote:Originally posted by andrewmckay5
<blockquote id="quote" class="ffs">quote:Originally posted by FraserLynn
We are out here at the moment and whilst I can't comment on individual situations, there was a report on the news yesterday morning that said visitor rates to Orlando were down 8% during January which is, apparently, the first fall in visitor numbers for 8 years.

I guess this must be having an impact somewhere, I wonder if it is in Hotel bookings as people want to take advantage of the better value a villa offers.
[/quote]

Did they say whether "visitors" included the numbers that go to the conferences etc rather than vacation.

I could imagine with the economy and the problems a number of business's are in then conference numbers will be down.

andrew
[/quote]

I don't think so, or if they did I missed it. I think they just used the general term visitors. They were also not specific about whether they were from other parts of the US or the rest of the world.

Although, interestingly, the news tonight is leading on a story that Disney are about to lay off a large number of people. I guess that would suggest it is tourists rather than convention visitors.

I suppose though, that if villa bookings are up and overall traffic is down, then Disney will no doubt be feeling the squeeze on their hotels as they must have taken more than an 8% hit last month - that is pretty substantial[msnsad]

Although it does seem erratic, we went to dinner at Outback on Presidents day and it was heaving - 1 hour wait time for a table. The Waitress said it had been dead all month but on that night it as more busy than she has ever known it.

From a personal experience perspective, I have been this month every year for the last 5 years and I have never seen it so quite, good news for me as we have not had to queue anywhere and the traffic is really light on the main roads[msnsmile2]. No real surprise there though, I can't imagine that Orlando is any less subject to the current economic realities as any other holiday destination or indeed any other area of discretionary spend. Whilst I have no doubt individual villa owners and some Orlando based businesses are having bumper years, as a whole 8% less visitors has to impact somewhere.

That said, if people are really spending their redundancy money on a holiday just in case they can't get another job and therefore won't be able to afford a trip later......well, anything is possible!!!!

[Katys Grandad]

From the latest Disney results published 3 February 2009:

BURBANK, Calif. – The Walt Disney Company today reported earnings for
its first fiscal quarter ended December 27, 2008. Diluted earnings per share (EPS)
for the quarter were $0.45, compared to $0.63 in the prior-year quarter. EPS for the
current quarter included a gain on the sale of our investment in two pay television
services in Latin America, which resulted in a benefit of $0.04 per share.

“We faced a challenging first quarter with many of our businesses impacted
to various degrees by the economic downturn,” said Robert A. Iger, Disney’s
president and CEO. “We are forcefully confronting current circumstance while
investing in the great creativity, brands and assets that are Disney’s strengths and
keys to its long-term success.”

Domestic Operations
Lower operating income at the domestic operations reflected a decline in
attendance and occupied room nights at Walt Disney World Resort and Disneyland
Resort, mark to market adjustments on fuel hedge contracts and labor and other cost
inflation, partially offset by cost mitigation activities.

I suppose that goes some way towards answering the OP's initial question but whether the fall is evenly spread across US & international visitors as a whole isn't clear. Given that the vast majority of people who visit Orlando do so to attend the various Disney attractions, Disney's experience of the economic climate will be mirrored by a decline in visitor numbers to Orlando overall.

[titansfan]

We live int he states and have made the pilgrimage to Florida the last 5 years, but this year is questionable. The economic situation is becoming worse and there are no guarantees that it will not get worse. Still hopeful that we will be able to make the trip as this is my daughter's final year of high school and she wanted to go to Disney again as her graduation trip.

One thing that is more obvious to me though, we always schedule our trips around the school year which means we have to take our 2 week trip between June and the first of August. Most families in the states also have the same limitations. This leads me to believe that a large amount of the 8% decrease last month was from visitors outside of the US.

I usually already have our trip planned by now and a deposit placed on a villa, but this year we will be one of those afore mentioned that will be waiting to the last minute and looking for a great bargain, if looking at all. I guess the only upside might be fewer crowds in the parks, but that is no consolation.

Chuck

[andrewmckay5]

Thanks Fraser.

Its strange as we already have more days booked for 2009 than either 2008 or 2007. It "may" be that the message is getting through on how much better value villas can offer over hotels if you don't require the on site restaurant, room service etc. I have no wish to turn this into a hotel versus villa thread but firmly believe that a decent product can thrive in a downturn.

Famous last words[msnscared]

andrew

<blockquote id="quote" class="ffs">quote:Originally posted by FraserLynn
<blockquote id="quote" class="ffs">quote:Originally posted by andrewmckay5
<blockquote id="quote" class="ffs">quote:Originally posted by FraserLynn
We are out here at the moment and whilst I can't comment on individual situations, there was a report on the news yesterday morning that said visitor rates to Orlando were down 8% during January which is, apparently, the first fall in visitor numbers for 8 years.

I guess this must be having an impact somewhere, I wonder if it is in Hotel bookings as people want to take advantage of the better value a villa offers.
[/quote]

Did they say whether "visitors" included the numbers that go to the conferences etc rather than vacation.

I could imagine with the economy and the problems a number of business's are in then conference numbers will be down.

andrew
[/quote]

I don't think so, or if they did I missed it. I think they just used the general term visitors. They were also not specific about whether they were from other parts of the US or the rest of the world.

Although, interestingly, the news tonight is leading on a story that Disney are about to lay off a large number of people. I guess that would suggest it is tourists rather than convention visitors.

I suppose though, that if villa bookings are up and overall traffic is down, then Disney will no doubt be feeling the squeeze on their hotels as they must have taken more than an 8% hit last month - that is pretty substantial[msnsad]

Although it does seem erratic, we went to dinner at Outback on Presidents day and it was heaving - 1 hour wait time for a table. The Waitress said it had been dead all month but on that night it as more busy than she has ever known it.

From a personal experience perspective, I have been this month every year for the last 5 years and I have never seen it so quite, good news for me as we have not had to queue anywhere and the traffic is really light on the main roads[msnsmile2]. No real surprise there though, I can't imagine that Orlando is any less subject to the current economic realities as any other holiday destination or indeed any other area of discretionary spend. Whilst I have no doubt individual villa owners and some Orlando based businesses are having bumper years, as a whole 8% less visitors has to impact somewhere.

That said, if people are really spending their redundancy money on a holiday just in case they can't get another job and therefore won't be able to afford a trip later......well, anything is possible!!!!
[/quote]

[chrizzy100]

A lot of the people I know own Management Companies...and they have lost a good few owners over the last few months...
Disney is laying people off...so things can't be that good for them...

I have a friend on another forum who works for Disney...and it does seem to worry those who work there..

American's are maybe staying close to home..we live in a holiday place...and even with the bad weather its hard to get in to eat anywhere at the weekends...

[FraserLynn]

<blockquote id="quote" class="ffs">quote:Originally posted by andrewmckay5
Thanks Fraser.

Its strange as we already have more days booked for 2009 than either 2008 or 2007. It "may" be that the message is getting through on how much better value villas can offer over hotels if you don't require the on site restaurant, room service etc. I have no wish to turn this into a hotel versus villa thread but firmly believe that a decent product can thrive in a downturn.

Famous last words[msnscared]

andrew

<blockquote id="quote" class="ffs">quote:Originally posted by FraserLynn
<blockquote id="quote" class="ffs">quote:Originally posted by andrewmckay5
<blockquote id="quote" class="ffs">quote:Originally posted by FraserLynn
We are out here at the moment and whilst I can't comment on individual situations, there was a report on the news yesterday morning that said visitor rates to Orlando were down 8% during January which is, apparently, the first fall in visitor numbers for 8 years.

I guess this must be having an impact somewhere, I wonder if it is in Hotel bookings as people want to take advantage of the better value a villa offers.
[/quote]

Did they say whether "visitors" included the numbers that go to the conferences etc rather than vacation.

I could imagine with the economy and the problems a number of business's are in then conference numbers will be down.

andrew
[/quote]

I don't think so, or if they did I missed it. I think they just used the general term visitors. They were also not specific about whether they were from other parts of the US or the rest of the world.

Although, interestingly, the news tonight is leading on a story that Disney are about to lay off a large number of people. I guess that would suggest it is tourists rather than convention visitors.

I suppose though, that if villa bookings are up and overall traffic is down, then Disney will no doubt be feeling the squeeze on their hotels as they must have taken more than an 8% hit last month - that is pretty substantial[msnsad]

Although it does seem erratic, we went to dinner at Outback on Presidents day and it was heaving - 1 hour wait time for a table. The Waitress said it had been dead all month but on that night it as more busy than she has ever known it.

From a personal experience perspective, I have been this month every year for the last 5 years and I have never seen it so quite, good news for me as we have not had to queue anywhere and the traffic is really light on the main roads[msnsmile2]. No real surprise there though, I can't imagine that Orlando is any less subject to the current economic realities as any other holiday destination or indeed any other area of discretionary spend. Whilst I have no doubt individual villa owners and some Orlando based businesses are having bumper years, as a whole 8% less visitors has to impact somewhere.

That said, if people are really spending their redundancy money on a holiday just in case they can't get another job and therefore won't be able to afford a trip later......well, anything is possible!!!!
[/quote]
[/quote]

I think you are probably right Andrew, if you want to still travel to Orlando and don't want to compromise on the quality of accommodation, then people will be looking for other alternatives to hotels and you would have to think that Villas will become an even more obvious choice. There is no way we could repeat both the level of space and luxury that we have in the villa we are staying in without paying at least 5 times as much in a hotel.

The one thing I am sure of i

[Katys Grandad]

The one thing I am sure of is that during tough economic times there are always winners and loosers in a way that there isn't during strong periods of growth. Perhaps the silver lining here is that the current economic challenges will make people do a bit more research than they normally would and realise just what a great choice a villa is.



That's an important point - because of the exchange rate, there is now a compelling argument to go with a UK based owner/company and pay in £ sterling. I've been renting from a US based owner for many years (there aren't any owners on here with a property where I want to go). This year the exchange rate alone has put the cost up by almost 50%. I don't pay that much attention to Orlando rental prices but my impression is that the £ rental rate hasn't changed that much so the comparative value is enhanced. I don't know if that can be sustained but, as long as it can, it has to be the preferred option.

The other factor is the impact of the exchange rate on US hotel rates. They used to be fantastic value for money but finding attractive rates is now very difficult. Rates for a decent hotel in New York and Boston are now staggering.

[mary and colin]

A friend of ours went to Florida in September and was saying it is a bit expensive to repeat again this year, so had booked a trip to Devon. 14 of them so time it was 3 rooms (Florida one large 7 bed villa) worked out the price of entertainment and if it rains what will they do. So decided to look at one of the holiday camps and one of those adventure park holidays.
Well guess what she phoned me yesterday and said they were going back to Florida after all, because when they added all the extra bits and bobs it worked out almost the same price and as she said you can garuantee a great time in Orlando because there is no place like it. And really the £ rate was putting them of a bit because we have all been spoilt with it good for so long.
So my point in a long winded way is people will still take holidays and if they look at it like my friend then yes they will still go to Florida. Another friend like me has been made redundant this year, me i am still going over but only once not twice this year. She on the other hand has decided not to come with us as she is worried about not getting another job and needing her money.
Mary

[luckylady]

Andrew I believe that is exactly what is happening .More American families are considering staying in vacations homes opposed to Disney hotels.

Disney are advertizing some great offers at the moment, pay for 4 night stay for 7 including park tickets. I calculated the cost of this offer for a family of 4 adults and 4 children. Although it’s a great offer compared to a 4 bed.3 bath vacation home with pool, car hire and park tickets for a week., Price wise the latter wins hands down, apart from the fact you also have more freedom and luxury with a vacation home.