Tuesday, 7th February 2012

Resort revenues up 4%, attendance up 5%, not a rat to be found in First Quarter 2012 results

Disneyland Paris saw overall revenue growth of just 1% in the first quarter of its 2012 financial year, from 1st October to 31st December 2011. The results, published this morning by operating group Euro Disney S.C.A., make for unremarkable if somewhat reassuring reading given the economic climate. Resort revenues, for Theme Parks, Disney Village and Hotels, actually rose a good 4% in the quarter, brought down for the total figure only by lower real estate revenue compared to 2011. Park attendance itself grew a surprising 5%, due to higher numbers visiting from France itself, perhaps taking advantage of the mild late Autumn for last minute trips, with total Theme Park revenues up 7%.

Philippe Gas, CEO, comments that “improved attendance and guest spending are encouraging, especially in light of the challenging economic environment.”

However, average spending per guest in the parks was up by only 1% and average spending per room at Disney Hotels up only 2%. Total Disney Village and Hotel revenues grew by just 1% and room occupancy at Disney Hotels actually fell by 1.1 percentage points. It seems that, despite continued success in getting guests through the park gates, the resort still struggles at turning these numbers into anything more than negligible increases in revenue, probably driven more by price increases than additional purchases. It has to be said that, for a visitor, the resort’s casual dining fare remains largely out of date and uninspiring, while the merchandise range simply fails to engage for many demographics. At a time when a guest will consider and reconsider every additional purchase on top of their ticket, the resort certainly isn’t doing badly, but it is failing to make many consequential gains.

Nor is the dip in hotel room occupancy disastrous, especially after a sharp (and perhaps, unsustainable) jump of 5.6 percentage points in FY2011. Yet perhaps it reflects a growing feeling amongst visitors that the Disney Hotels do not offer the best value for their money. High standard room rates have combined with aggressive discounting over several years to suggest that “the price on the label” may not necessarily be the price they’re worth. A quick visit to any online trip planning forum will immediately bring up potential visitors merely biding their time for the next “big offer” or “flash sale” — hey, like this one! — which, while useful for propping up numbers, must surely be harming the brand value associated with Disneyland Paris. Will anyone ever want to pay full price again?

Signing off, Philippe Gas mentions only the 20th Anniversary: “In April we look forward to launching our twentieth anniversary celebrations with brand new experiences for our guests, including the Disney Dreams®! night-time show, an innovative light and color spectacular. It will also be
an opportunity to celebrate a two-decade journey with our cast members, our guests as well as our key public and private partners who have helped Disneyland Paris become Europe’s number one tourist destination.” Meanwhile the footnotes include only the same passing mention to the launch of a “multi-year expansion of the Walt Disney Studios® Park, which includes a new attraction.” So, despite construction having begun, no Ratatouille dark ride announcement yet; and all eyes on the 20th…

VIA Euro Disney S.C.A. Fiscal year 2012 – First Quarter Announcement (PDF)

Thursday, 10th November 2011

More visitors but higher losses in 2011 Financial Results as Disneyland Paris invests in assets

Increased revenues from the Parks, Hotels and Disney Village failed to outweigh the extra investment pumped into maintaining those assets during the past year, Disneyland Paris has recorded in its Fiscal Year 2011 Results, leading to a net loss of €64 million. Though these Resort operating revenues rose by €60m to €1,275.2m, they couldn’t make up for an increase of €42.3m in direct operating costs to pull Euro Disney SCA, the operating group behind the resort, out of a net loss. As CEO Philippe Gas comments, “This past year we further invested in enhancing the overall guest experience, by introducing longer park operating hours, adding new entertainment and improving the appearance of our guest facing assets. Although these investments increase our costs, they are critical to maintain our long-term attractiveness as Europe’s number one tourist destination.”

Numbers are made to look worse, year-on-year, by the exceptional €47m sale of the land beneath the Val d’Europe shopping centre last year, which also affected Third Quarter 2011 results. Had this not taken place, rather than losing “just” €45.2m in 2010 the company would have seen a €92.2m net loss last year. Considering the heavy operational investment leading up to the 20th Anniversary and the lack of new attractions, the resort perhaps didn’t fare too badly in 2011. In fact, the figures which remain strikingly positive are those for visitor numbers. Park attendance rose to a new record of 15.6 million visitors, while hotel room occupancy grew back up to 87.1% from 85.4% last year (it was at 87.3% in 2009). Average spending per room also increased by around €10 to €219.74, no mean feat given the economic climate across Europe and continuous special offers.

But, as ever, the challenge for Disneyland Paris remains turning these strong numbers into a profit on the bottom line. €123 million in borrowings was reported to have been paid back this year, but if the resort can’t turn a profit on 15.6 million visitors, will it ever climb out of its estimated €2 billion debt? Was the heavy investment in refurbishments this year a one-off, or just the level of rolling investment the resort should be putting into its parks and resort all the time? And if visitor numbers rise again for the 20th Anniversary, will that translate into a profit, or will grand plans for the new nighttime spectacular (etc) — and the longer opening hours required to present it — outweigh the gains yet again?

Speaking of which, the report finally confirms: “In April 2012, Disneyland Paris will launch the celebrations of its 20th Anniversary. A number of brand new experiences await guests, including Dreams, a night-time show with classic Disney storytelling and the latest technical special effects.”

Perhaps the greatest special effect Dreams can pull next year is that, come November, Euro Disney SCA inches into a profit. That’ll take more than faith, trust and pixie dust.

FULL REPORT Euro Disney SCA Fiscal Year 2011 Results (PDF)

Thursday, 6th October 2011

Disney Village closes New York Style Sandwiches… but only for refurbishment

Is Disney Village seeing the first effects of Disney recently taking back control of some restaurants previously run by an outside company? The small New York Style Sandwiches shop, positioned between the Sports Bar and The Disney Gallery, closed on Monday 3rd for a refurbishment that will last until Friday 21st October. The windows have been completely covered over during the works. It’s currently unclear how big the changes will be: whether this is simply a freshen-up to get things back to Disney standards, or if changes could be on the way to the rather tired venue, previously operated by Groupe Flo along with Café Mickey, The Steakhouse and Annette’s Diner.

Opened in 1992 as Carnegie’s Deli with full table service, it was renamed after just a few years. In May this year, it gained some hefty competition from the new-build Earl of Sandwich just across the way and subsequently altered the focus of its menu away from sandwiches to pizza slices and other Italian-American snacks. Curiously, the signage notifying of the current closure (captured here by Mouetto on Disney Central Plaza) uses the New York Style Sandwiches logo but in its text calls the location by a new name: “New York Deli”. With the Earl now having the Village’s hot sandwich market wrapped up, will Disney further reposition the shop to offer greater variety?

This follows a major refurbishment of the Disney Fashion store nearby in June, which saw the formerly dull outlet gain a more quirky “boutique” feel. Of the retail units in Disney Village — notably Disney Store, Hollywood Pictures and World of Toys — that store was the least likely to effectively be made redundant by the opening of World of Disney next year, perhaps calling for an even bigger rethink of the offer along this side of the street, which has long been somewhat uninspiring.

VIA @InsideDLParis (Twitter)

Sunday, 24th July 2011

Disney to take control of Groupe Flo-operated Disney Village restaurants?

You might never have realised it, but that Chip ‘n’ Dale’s Fish ‘n’ Chips you ate at Café Mickey wasn’t necessarily a “Disney” meal at all. Along with most of the other Disney Village restaurants, Café Mickey is actually managed and operated under contract by Groupe Flo, a large French catering company. Or at least, for now it is — member Mr Freddy on Disney Central Plaza Forum has shared the interesting news that Café Mickey, along with Annette’s Diner and presumably The Steakhouse, all part of Groupe Flo’s “Euro-Gastronomie” subsidiary, will come under full Disney control when the current contract ends on 1st October 2011. Citing the fact that Disney now has more experience in restaurant management in Paris and can probably make some considerable savings (it is said to pay Groupe Flo €10m a year for the contract), another member suggests the handover could even mean each of the restaurants closing for between a week and a full month at the end of the this year, ready to become fully Disney-operated establishments from January. The change won’t affect Rainforest Cafe or King Ludwig’s Castle, which are managed under separate contracts to Groupe Flo and will likely always be separate to Disney.

With Disney able to completely control the management and operation of the venues, rather than just make changes at arms-length, it will be interesting to see what differences, if any, we might spot when the changeover takes place. Looking at the bigger picture, this move may even tie in with promised developments for the Village over the next ten years, as Disneyland Paris slowly continues to improve the offering and give it more of a “Disney” stamp with projects like World of Disney.

And if DLRP Today had been handed the contract instead? Well, besides some poorly-cooked Fantasia Mushrooms, for starters you’d at least see that tacky blue tent add-on to Café Mickey ripped off and a proper extension built onto the building instead.

VIA pussinboots (magicforum), Mr Freddy (Disney Central Plaza)

Tuesday, 28th June 2011

Earl of Sandwich inaugurated by John Montagu, 11th Earl of the same name

Earl of Sandwich Disney Village inauguration

It’s almost a month since Earl of Sandwich grabbed a slice of the fast food action in Disney Village, bringing an ample selection of freshly-prepared hot sandwiches to the banks of Lake Disney. The restaurant, the chain’s first in mainland Europe, was officially inaugurated back on Wednesday, 15th June with Euro Disney CEO Philippe Gas, Planet Hollywood founder Robert Earl (second from right) and the 11th Earl of Sandwich himself, John Montagu (third from right). A predictably oversized ribbon and scissors were brought out for the occasion.

So far the restaurant already appears to be earning a loyal following of European fans, with many positive remarks for service, taste and the design of the new building. One negative, though is for the price of drinks: with a 500ml bottle of Coca-Cola at €3.50 they’ve managed to make the €2.60 normally charged by Disney seem like a steal (although a 400ml cup is available for €2.50). For a family, it soon makes a reasonably-priced sandwich into a rather expensive fast food meal.

You can find the full Earl of Sandwich menu on our Restaurant Menus pages, which has also seen the menu for the nearby New York Style Sandwiches updated. In response to the new competition, this small Disney-owned eatery has changed its focus away from hot paninis to pizza and pasta.

What are your first impressions of the Earl? Got a favourite sandwich from the 16 on offer yet?

Wednesday, 15th June 2011

Disney Fashion store in the Village is finally… fashionable!

Disney Fashion store

You could have been entirely forgiven for thinking, up until now, that the Disney Fashion store in Disney Village was something of an afterthought — because it was. Originally known as Team Mickey, stocking Disney-branded sports gear, it continued to amble along with that name even after the sports items had long been phased out in favour of general clothing. Eventually given a rebrand in 2007, its interior was functional and uninspiring, like a dull factory outlet shop. But now, after briefly closing for a complete restyling, the store has been transformed — it’s finally fashionable! Less factory shop more quirky boutique, products are laid out in busy themed areas filled with colourful furniture and eclectic props, with as few dull racks as possible. Yes, very trendy — or should that be “Tren-D”? It’s looking very much like the TrenD store in Orlando’s Downtown Disney, which is a nice surprise indeed.

As we’ve discussed before, the opening of the all-encompassing World of Disney next year negates the need for several of the original Disney Village stores along this side of the street, offering an opportunity for a much-needed revitalisation. The generic (and tired) Disney Store is an obvious one to be replaced with something new, whilst Disney Fashion probably seemed the safest — and this seems to confirm it. For the remaining Hollywood Pictures and World of Toys next door, it would be nice if Paris could look to other concepts from the Downtown Disney districts, such as D Street or Disney Vault 28

MORE PHOTOS Disney Gazette

Friday, 3rd June 2011

Earl of Sandwich now open at Disney Village – first impressions, facts & photos!

Earl of Sandwich Disney Village

One year of heavy construction and several years of planning later, Earl of Sandwich is now open at Disney Village! The new counter service restaurant overlooking Lake Disney officially opened on Wednesday, 1st June after a special preview event on Monday. Photos here come courtesy of Xavier Triquet (full album), while you can see even more via NewsParcs, Matthieu Bernet and Disney Gazette. Stepping inside the huge glass box building, you’re welcomed by a warm wooden floor and a thoroughly modern interior — with plenty of nods back to the 18th Century. The ground floor has an airy double-height dining area with a suspended globe and a ring of modern ball lights, leading through to the ordering and serving area underneath the first floor mezzanine.

Here, you first join the queue to order your sandwiches and hot snacks, with a novel timer handed to you to indicate when they’re ready. You’re then free to pick up any extras such as desserts or potato chips, all well-presented on the counter, before paying and enjoying your meal. At the centre of the upper floor is a unique circular bench with two semi-circular tables wrapping around it –sure to become a popular dining place, especially with that stunning view across the lake to the hotel district. The outdoor terrace is more basic, with more modern furniture and a rather industrial-looking awning canopy.

Earl of Sandwich Disney Village

Earl of Sandwich Disney Village

Official figures cite the investment by Earl of Sandwich here, for its 15th restaurant overall, at 5 million euros with 80 jobs created. They hope to serve between 2,000 and 2,500 sandwiches a day, with a threshold of around 3,000 on busy peak days. The restaurant offers a choice of no less than 16 hot sandwiches — including three new creations for Disney Village such as the delightfully named “Le Frenchy” — all priced at a flat €5.50, while special breakfast sandwiches and kids sandwiches are priced at €3.50. Intriguingly, there’s no set-price “menu” that the Disney counter service restaurants are so fond of — where you have a choice of two meal combinations giving a slight saving — with the Earl instead preferring everyone to piece together their own meal for now, which can also include hot soup, salads and wraps. With this level of choice (roughly four times as many sandwiches as Market House Deli or Blockbuster Café), great presentation and cheaper prices, we hope the Earl also handed out a few free sandwich coupons to Disney’s own restaurateurs.

VIA Xavier Triquet / Vinylmation Disneyland Paris, Disney Gazette

Wednesday, 25th May 2011

Earl of Sandwich rushes to Disney Village opening with final touches, signage… and prices!

Earl of Sandwich

One week from now, you’ll be able to enjoy your very first Earl of Sandwich meal in Disney Village! It’s been a long wait for this new sandwich chain to open its Disneyland Paris location on the edge of Lake Disney, but now the final touches are being applied inside and out. As the photo taken on Saturday by @InsideDLParis on Twitter above shows, signage is up on both sides of the building, floating stylishly in the middle of the glazing. Pieces of the circular tower and other elements of the façade have finally begun to arrive, at last hiding the steel frames we’ve been watching for months. At the side of the building, the staircase up to the rear terrace is going in. Also of note, the relaid ground in front of the new restaurant. When this was dug up, fans wondered if it might mark the start of a new paving scheme for the Village, but no — it’s the same wavy coloured style as the rest of the street.

Earl of Sandwich

The first official photo from inside the restaurant also emerged recently (above), showing an Earl of Sandwich-branded construction helmet in front of the faux-bookcase positioned next to the mezzanine level. This shows good progress towards the final design, which we’ve not posted before, shown below. The main feature as you walk inside will be a huge historic wall map of Europe, centred on England.

Earl of Sandwich

And how much will an Original 1762 or Full Montagu cost in Paris? Apparently sandwiches will be set at a flat €5.50 each. That’s around €1.25 more than the $5.99 charged in the US (around $6.35 with tax), and a euro more (based on current rates) than what the Earl is charging in his first European restaurant. Yes, that’s right — although the Disney Village location was touted as Earl of Sandwich’s entry to the European market, it was beaten just this month by a restaurant on Ludgate Hill in the City of London, which is charging £3.95 per sandwich. That’s roughly similar to the many other sandwich and coffee chains lining the same street, which leads up to St Paul’s Cathedral. Still, even if the Disney Village outlet is the most expensive, Earl of Sandwich is still going to be beating Disney’s own counter service sandwiches (priced €6.00 and up) by a neat 50 cents — for freshly-prepared-in-front-you, hot snacks. Better watch out, Disney — the real sandwiches are coming.

VIA InsideDLParis (Twitter), Disney Gazette, Grandmath (DCP)

Wednesday, 27th April 2011

Villages Nature website launches with public debate on 259 hectare project …and a logo

Les Villages Nature de Val d'Europe

Les Villages Nature de Val d’Europe might not have the most catchy name, particularly for non-French speakers, but the project’s new website has just launched at a more succinct www.villagesnature.com. This is the 50/50 development between Euro Disney and Pierre & Vacances Center Parcs, a huge new leisure and accommodation destination planned to be built on land surrounding Disney’s existing Davy Crockett Ranch a few kilometres south-east of the parks. A first phase of 1,730 accommodation units (710 apartments surrounding the main lake, 1,020 individual cottages further south) would also see the creation of a unique geothermal heated lagoon and the largest water park in Europe, along with restaurants, shops and other amenities. This new website seeks to collect questions and opinions from those affected in the local area, with a budget  of €700 million “subject to public debate”. Of that, €430 million would be for accommodation units, to be leased to individual investors for periods of 9 years, whilst €260 million would be for the water park, leisure facilities, shops and restaurants.

The results of this public inquiry will be known in August, when the authorities are hoped to give the go-ahead. Marketing would then begin towards the end of this year with construction starting in the first quarter of 2013 for a first phase opening date of first quarter 2015. Don’t think this project will be a self-contained expansion, either — we’ll certainly see the effects back up at the main esplanade. The Transports page confirms some big changes, such as the long-awaited construction of a southern entrance to the TGV platforms, opposite the new World of Disney, allowing travellers from Val d’Europe and the south to access the high speed rail station without crossing the busy park entrances. Not only that, but a southern RER entrance is now also planned, and a southern bus station to be positioned in front of the Disney Village parking building.

Les Villages Nature de Val d'Europe

Even more dramatic, Disneyland Paris would no longer be the end of the RER A line, with a plan to extend the line to join up with RER Line E at the town of Esbly to the north-east — currently very close but hard to access from the resort. Sadly for international travellers there’s no such rail extension in the pipeline up to Charles-de-Gaulle Airport (which would surely be both profitable with tourists and hugely useful for locals, better than using the TGV for such a short hop), but an “intensification of shuttle services”. The envisaged tramway system also appears to have hit a buffer-stop when Val d’Europe lost its bid for the French Open tennis tournament, meaning the super-eco-friendly project will probably be relying on shuttle buses. Although a stop at least looks to be provided for Davy Crockett Ranch, which will remain separate from the project, allowing trappers to leave their cars behind to get to the parks. Finally, the road network would be improved — in particular with an entrance to the Villages Nature themselves branching south from the main Exit 14 of the A4 autoroute, visible in the map above.

Les Villages Nature de Val d'Europe

Les Villages Nature de Val d'Europe

Architecturally, many of the buildings revealed so far are certainly daring. In fact, you might worry that these are going to be the 2015 equivalent to 1992’s soon-dated Festival Disney. But a strong artistic direction at this stage could also be reassuring. The most exciting aspect so far is that Joe Rohde, the lead designer of Disney’s Animal Kingdom, has been mentioned as part of Walt Disney Imagineering’s artistic involvement, and it seems you can see that influence already in the buildings overgrown by plants, creating a mélange of man and nature. Arts & Crafts and Art Nouveau are strong influences, with the styles of Frank Lloyd Wright and Friedensreich Hundertwasser quoted officially as inspirations.

VIA Projet Villages Nature

Tuesday, 26th April 2011

Window arches in place for Disney Village’s grand World of Disney entrance

World of Disney

World of Disney has continued to grow following our big construction photo tour a few weeks ago. The latest additions to the concrete perimeter are three giant arches above the the future entrance, which start to bring the store’s concept art to life. Each arch will have several large glass windows, giving a view inside to the base of the giant globe sitting atop the hexagonal entrance. In reality it’s likely that the northern and southern hemispheres will be two separate domes, with visual trickery making them appear as one single globe “floating” above the space.

World of Disney store

VIA @InsideDLParis (Twitter)

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