Effects of Coronavirus (COVID-19) On Entertainment & Tourism Industry

[awhen]

The ticket sellout tells us that, at 25% capacity, the tickets are underpriced and the business model of cramming as many people into the parks as possible hoping to drain wallets via in-park spending isn’t necessarily the way to go anymore.

 

[lowbudget]

I don't think EU will be canceled. Florida is putting to much money into the road work for it to be, IMO. But it'd be easy to cut a ride here or there, which would suck


Meaning you're not dependent on air travel. Places that are dependent on air travel aren't going to be at 75% for a long time.

We are dependent on air travel. 50%+ of our normal bookings are from 10 hours or further away with lots of fly ins. We've seen a shift geographically to a lot more folks within a 2-4 hour radius with shorter than normal stays. I think people are still traveling, but shifting to a more local travel. Luckily we have the regional population base to support us.

Now, somewhere like Orlando wit the theme parks that is disproportionately large for its regional population base is a whole different animal.

 

[Mad Dog]

CNBC is interviewing Live Nation President Joe Berchtold. He said he expects a solid rebound in his business for 2021, saying 2021 should match 2019 numbers. He says they've been doing very heavy polling and responses indicate Live customer feelings are positive for the future. He says the feeling among entertainment business leaders is that they feel strong progress is being made for treatment/vaccine by the beginning of 2021. Bottom line, he kept mentioning 2021 will be good, but he didn't talk much about 2020.

 

[JungleSkip]

 

[HandsomePete]

The ticket sellout tells us that, at 25% capacity, the tickets are underpriced and the business model of cramming as many people into the parks as possible hoping to drain wallets via in-park spending isn’t necessarily the way to go anymore.

They sold out because you’re getting a substantially “better” experience (way fewer people) for the same price as normal.

The reason parks don’t cap attendance and jack up prices is because there’s a diminishing return to consumers - being able to go on 20 rides in a day doesn’t improve your day much beyond being able to go on 10 because you have to ride your 11th through 20th choice, which is likely crap like the Treehouse or the second side of the Dumbo ride. It’s why Halloween and Christmas parties don’t cost $200.

 

[Mad Dog]

We are dependent on air travel. 50%+ of our normal bookings are from 10 hours or further away with lots of fly ins. We've seen a shift geographically to a lot more folks within a 2-4 hour radius with shorter than normal stays. I think people are still traveling, but shifting to a more local travel. Luckily we have the regional population base to support us.

Now, somewhere like Orlando wit the theme parks that is disproportionately large for its regional population base is a whole different animal.

I'd like to say thank you for your information contributions on what's happening in a real time, on the ground, situation in a sector of the economy. That's absolutely valuable information and perspective. I realize you may not be able to state your actual city due to employment concerns, but what state you're in would give an interesting view. I'm really curious, and excited by this snapshot of what's happening in a locale. A big thank you for your contribution to the Forum discussions.

 

[fryoj]

The AP issue will be interesting on how Disney handles capacity restrictions. Filling the park with AP holders would surely be less profitable than filling them with ticketed guests. They can't exclude AP holders, but they can't let them take all of the capacity either.

 

[Andysol]

Meaning you're not dependent on air travel. Places that are dependent on air travel aren't going to be at 75% for a long time.

+ International, which will compound places like Orlando further.

Vegas is doomed.

 

[lowbudget]

I'd like to say thank you for your information contributions on what's happening in a real time, on the ground, situation in a sector of the economy. That's absolutely valuable information and perspective. I realize you may not be able to state your actual city due to employment concerns, but what state you're in would give an interesting view. I'm really curious, and excited by this snapshot of what's happening in a locale. A big thank you for your contribution to the Forum discussions.

Some background, I'm a civil engineer in Myrtle Beach, and have a "duplex" for lack of a better word, beach rental. A lot of my clients are commercial in nature, retail, trade shops, lodging, restaurants, and tourism based. I wouldn't say I've got a handle on the economic situation, but I think I've got a decent window.

I think may will be about 60% maybe 70% of normal for us. But most people I talk to are thinking they can salvage 50% revenue this month, and slowly ramp up to about 70-75% during peak season. We lost all of the spring window, which really hurts when you have to pay 12 months of bills off a 6 month tourist season.

 

[shiekra38]

I don't think EU will be canceled. Florida is putting to much money into the road work for it to be, IMO. But it'd be easy to cut a ride here or there, which would suck

Me either, I'm just saying it isn't all doom and gloom

 

[Grabnar]

Re: the Drafthouse survey, it looks like they came to a similar conclusion y'all did so they launched a curated on-demand service. It's got some pretty good movies in here:

Alamo On Demand | Alamo on Demand

ondemand.drafthouse.com

 

[Mad Dog]

Some background, I'm a civil engineer in Myrtle Beach, and have a "duplex" for lack of a better word, beach rental. A lot of my clients are commercial in nature, retail, trade shops, lodging, restaurants, and tourism based. I wouldn't say I've got a handle on the economic situation, but I think I've got a decent window.

I think may will be about 60% maybe 70% of normal for us. But most people I talk to are thinking they can salvage 50% revenue this month, and slowly ramp up to about 70-75% during peak season. We lost all of the spring window, which really hurts when you have to pay 12 months of bills off a 6 month tourist season.

:thumbsup: Myrtle Beach, our Pittsburgh area people's favorite vacation destination between golf & the beach. It's a long drive, but many I know drive instead of fly there, so you'll probably still get a good chunk of them. We do the 15 hour drive to Orlando, but that's too long for most from here. Generally they'll fly to Orlando, so I doubt many will fly to Orlando this summer. I can see the typical Jersey, N. Carolina & S. Carolina beach crowd driving to those locations, not as strong as past years, but probably decent numbers. People I talk to, that are mostly the summer vacation beach crowd, are saying they're still going this year. They don't feel beaches & golf courses will be unsafe. And those vacations aren't usually as costly as the Orlando park vacations.

 

[lowbudget]

That's what we're hoping. We're a little more budget friendly and more outdoor oriented than some places.

I'll consider it a success if we break even this year, most people I talk to are of the same mind set.

 

[shiekra38]

I will fondly remember the days when flying was a comfortable experience and people were all smiles, gladly taking the middle seat

What have we become?

 

[Mad Dog]

That's what we're hoping. We're a little more budget friendly and more outdoor oriented than some places.

I'll consider it a success if we break even this year, most people I talk to are of the same mind set.

Good luck. I know Pittsburgh area people love your resort area. It's the number one vacation destination for people here. I've never been there myself, but I played in a couple of National Championship club soccer tournaments i n Wilmington, a bit north of your area. Great beaches there. We played most matches in the morning (July was hot) and hit the beach in the afternoon. The ocean waves were like a jacuzzi/sauna for our tired legs.

 

[Yabbadabba Doh]

Have a trip booked to WDW at the end of June. Just got a survey from them:

“We're conducting an important online survey among Guests who are planning to visit us. It is our desire to provide our Guests with the ultimate vacation experience, and your feedback will be very valuable to us. The survey should only take a few minutes of your time.”

Basically it asked if we were keeping our plans to come to the parks and what situations might make us change our decision.

 

[Jerroddragon]

+ International, which will compound places like Orlando further.

Vegas is doomed.

I feel bad for the works of Vegas but hate...hate how that city has been run the last few years. Even ten years ago it was a cheap fun place to go now its fees this and parking cost this and hoping this will cut that poop off real quick.

 

[Parkscope Joe]

Heard enough little birdies to know universal is looking to open the parks, resorts, and CityWalk.

 

[Mad Dog]

I feel bad for the works of Vegas but hate...hate how that city has been run the last few years. Even ten years ago it was a cheap fun place to go now its fees this and parking cost this and hoping this will cut that poop off real quick.

It was even better in the 70's and 80's. Free or cheap great drinks everywhere there was gambling. Now they charge you an arm & leg. Comps for room & dinners galore. now you have to gamble a fortune to get the good stuff. certainly no longer my kind of town......But, The Star Trek Experience, 15 years ago, was the BEST ATTRACTION EVER.

 

[Alicia]

Heard enough little birdies to know universal is looking to open the parks, resorts, and CityWalk.

Ditto.

Been hearing some of the ideas they’re exploring, like staggered opening and closing times for USF/IOA to help spread out crowds. Sounds like they haven’t fully decided on all procedures yet though. Should know more by end of the month as far as the parks go.

Also, I believe TM temperature checks have already begun for anyone coming into work.