Disney to Curb Park Discounts as Economy Recovers
The worldâ€™s biggest theme-park operator has already reduced discounts from a year ago, Iger said today at a UBS AG investor conference in New York. Disney added promotions in November 2008 to attract visitors during the credit crunch.
â€œWe will be able to continue to dial that back over the latter part of 2010,â€ Iger said, referring to discounts on hotel rooms, food and merchandise. â€œWe are not making these commitments yet until we see the marketplace conditions.â€
After previous recessions, Disney has scaled back the promotions, Iger said. Since last year, the company has offered free hotel nights and discounts on food and merchandise. The parks unit has reported four straight quarters of lower revenue and profit compared with year-ago periods.
Last month, Disney announced that Chief Financial Officer Tom Staggs and Jay Rasulo, head of the companyâ€™s parks, will swap positions in a move designed to bolster the experience of both executives. The switch takes effect at year end.
Disney, based in Burbank, California, rose 2 cents to $30.70 at 4:15 p.m. in New York Stock Exchange composite trading. The shares have gained 35 percent this year.