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You could make the argument that Disneyland is designed to be a loss-leader, and there's no reason for the parks to reach a price equilibrium per se. In its ori
by whatgoodisaroad 5y ago
You could make the argument that Disneyland is designed to be a loss-leader, and there's no reason for the parks to reach a price equilibrium per se. In its original formulations, the parks are one link in a much larger business model [1].
[1] https://www.businessinsider.com/1957-drawing-walt-disney-brilliant-strategy-2015-7 https://www.businessinsider.com/1957-drawing-walt-disney-bri...
- dangus 5y agoPerhaps they were originally loss-leaders, but today I wouldn't make that argument: "In 2019, the segment, which includes cruises and hotels, accounted for 37% of the company's $69.6 billion in total revenue" https://www.cnbc.com/2021/08/12/disney-earnings-theme-parks-post-first-profit-since-covid-struck-in-2020.html https://www.cnbc.com/2021/08/12/disney-earnings-theme-parks-...
- listenallyall 5y agoRevenue alone doesn't tell you anything about profit. (I doubt it's a loss leader either, but this isn't evidence to contradict the claim)
- daniel-cussen 5y agoWell yeah it's a lot of revenue, you're housing people in the Disney universe. The question is how much profit those hotels and cruises generated.