With what some analysts are calling one of the worst stock market crashes since Black Monday in 1929 happening as we speak, the Walt Disney World Company is going to have to increase the bottom line in order to do their part to help return faith in the market to all those people who are running to the hills.
In order to rebuild faith, you must have dividends. One of the best way to increase dividends is to increase profits.
That means Disney will either:
Face it, when you have a huge economic downturn like we are experiencing, Mr. & Mrs. lower-to-middle class won't be able to vacation that often unless they stay at home.
- Do more cost cutting measure like reducing menus at restaurants and removing other amenities
- Or, increase prices and reduce the number of people coming to the parks, but getting more money out of those who do.
That means the people who'll be spending the most money at the parks are those who aren't that affected by the latest changes in the financial market....most of the upper middle class.
My predictions is Disney will start providing more options that cater to the more luxury guests.
My parents told me back in 1985 when we took our big 14 day trip to WDW (right before I started 7th grade), the price to go to Disney was outrageously high. They often wonder why they decided to make it so cheap. They felt they got a better experience when the prices were higher, the frequency of trips had to be less but you really felt like every penny you spent was worth it.
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