Is Disney's New 'Star Wars'-Inspired Hotel Turning Into A Flop?

[KayMichigan]

'Star Wars' as a franchise isn't dying, BUT - it doesn't mean the same thing to today's kids that it means to those of us who were around when the first three movies came out in 1977-1983.

I work at a library and a kid in a SW shirt told me once that he didn't really like the movies, he was into the TV shows like Clone Wars. He looked about six or seven. That's what today's kids think of when they think Star Wars. The cartoons that they watched on TV and maybe the streaming shows on Disney+.

I don't know how long they're going to go with the Rey / Kylo timeline. That seems to be done and over, They aren't making any more movies or TV shows in that timeline that I'm aware of. Now it's all stuff set before the sequel trilogy like The Mandalorian and Obi-Wan Kenobi.

I give it maybe three-five years before Batuu is redone into a new time period. They can't keep it as it is now without bringing out more new content to support it, and there seems to be a LOT more interest in other timelines than in the sequel trilogy era.

 

[RamblinWreck]

They never said the survey's were because it was doing poorly. In fact, according to any public statements from Disney, it's going well (better than they expected) and they are happy with the results. There are even rumors of them doubling down and building a second one based on the results they have had so far. You wouldn't build another if you thought it was doing poor.

it's standard practice to run focus groups on any new product to see where improvements can be made.




Compared to WHOSE expectations? Who made this chatter? Disney or the internet? Disney never expected to have every single room filled completely 2 months in. From every investor statement I have seen for the past few years, Disney had reasonable expectations that just like any new product, it would take time for the idea to develop and spread. They have always said they expect it to take 1-2 years before it will hit it's prime. They are doing something more or less completely new in the marketplace, and new ideas always take time to hit their prime spot. Just like they did not roll out Disney+ with expectations of 200+ million subscribers in a month, the same is true with the Halcyon.

By every indication from Disney, the Galactic Starcruiser is meeting and/or beating their expectations. The fact that the internet had unreasonable expectations about availability can't be controlled. That's what happens when you have millions of sofa-seat investors who all think they are experts at marketing and business, but really don't know anything about it.

There is no way on this planet that they are thinking of building another Starcruiser when they can’t even fill this one.

What would even be the point, unless they wanted to charge half the price?

Realistically they may make it a long term success at a significantly lower price point. Right now it’s a niche product that for nearly all customers will be a one time only experience.

 

[TiggerBouncy]

There is no way on this planet that they are thinking of building another Starcruiser when they can’t even fill this one.

What would even be the point, unless they wanted to charge half the price?

Realistically they may make it a long term success at a significantly lower price point. Right now it’s a niche product that for nearly all customers will be a one time only experience.

and yet according to Disney, it’s going well, and I’ve read that rumor in at least four articles now.

the only people who think it’s doing poorly are disconnected people on the internet who do not understand how new product launches work and clickbait articles.

 

[Leight19]

and yet according to Disney, it’s going well, and I’ve read that rumor in at least four articles now.

the only people who think it’s doing poorly are disconnected people on the internet who do not understand how new product launches work and clickbait articles.

My understanding is the rumors of the second one came purely from typo on the survey where they said Disneyland instead of Disney world. Comically I think the survey itself is main reason to believe it’s not doing as well as Disney would like; I don’t believe Disney would be having paid feedback session if hotel was doing what they expected but I admit it’s all conjecture at this point.

 

[_19disnA]

Disney PR will say the Star Wars hotel is doing great regardless of the reality. That is what PR people at big companies do. Just like the comments about Genie. It is a wonderful/amazing experience and then a few months later they will modify it to address the 'issues' they are seeing and call it enhancements.

 

[J-Dog]

I see that this has been asked many times on this thread and never answered, as far as I can tell: How does anyone know what the availability rate is?

Unless you have inside information, all any of us can do is look at the availability charts. But all that tells us if that particular day is completely sold-out or not. It doesn't say anything as to whether 10% of the rooms are booked or 95% of the rooms are booked for that day.

IMO, its not surprising in any way that an expensive experience like this is NOT completely sold out every day. I don't have any more information than anyone else, but I'm willing to bet that Disney doesn't expect that either. I'm betting that they are happy with XX% of rooms sold-out (XX because none of us know the exact number). Whether they are hitting that number is data that NONE of us are privy to.

Therefore, this entire thread is just wild speculation and nothing more...

 

[TiggerBouncy]

I don’t believe Disney would be having paid feedback session if hotel was doing what they expected

but that’s a silly viewpoint. We used to do focus groups all the time on some of our best products. EVERY product has room to expand. Every product can do better.

Dont you think if someone made the greatest product that everyone loved, they would still want to know it’s faults and it’s strengths so they could improve it?Coke used to spend a ton on research groups back when they completely dominated the market.

Doing ongoing market research doesn’t mean your failing. Only that your planning on continuing the product and looking for quality feedback. If anything it expresses confidence that there is likely a future for the product.

if it were a complete bust and I had no confidence in it, I wouldn’t drop more money and time into it; I’d put it on a life support budget.

 

[New Mouse]

and yet according to Disney, it’s going well, and I’ve read that rumor in at least four articles now.

the only people who think it’s doing poorly are disconnected people on the internet who do not understand how new product launches work and clickbait articles.

They also say genie plus is going well. What do you think they are going to say? It was a terrible idea and is underperforming our expectations? Everyone would be fired if they told the truth.

 

[TiggerBouncy]

They also say genie plus is going well. What do you think they are going to say? It was a terrible idea and is underperforming our expectations? Everyone would be fired if they told the truth.

from their standpoint, over 40% of their customers are paying an extra $15 a day. That translates to… what? A little under a million a day? over a third a billion in a year. That doesn’t include the ILL. Add those in, maybe half a frikkin billion.

sounds like from a business standpoint, Genie+ is doing very well, indeed.

Genie+ would be a business failure if it were losing money. Now, yeah. From your standpoint, you may not like it. From from an investor standpoint which was the audience Chapek was talkin* to, it’s an unmitigated success.I don’t know how much it cost to build and run, but it sounds profitable to me.

As far as what I expect them to say, they have for other areas said “we missed the mark on that one, but here is our plan to turn it profitable “. In fact, they have repeatedly expressed concern on Disney+, but continue to provide guidance on when they expect it to be profitable. They have indicated issues with DCL. Not being honest about an investment could get them in trouble with the SEC. So, yes…. If the hotel were not meeting expectations, I absolutely would expect them to indicate that to their investors along with a course correction. it’s too closely monitored and the data too public to do otherwise.

remember, from a business standpoint, success is measured in income, not your goody feelings about it. from a financial standpoint, the galactic star cruiser is meeting business expectations.

 

[SteveAZee]

but that’s a silly viewpoint. We used to do focus groups all the time on some of our best products. EVERY product has room to expand. Every product can do better.

Dont you think if someone made the greatest product that everyone loved, they would still want to know it’s faults and it’s strengths so they could improve it?Coke used to spend a ton on research groups back when they completely dominated the market.

Doing ongoing market research doesn’t mean your failing. Only that your planning on continuing the product and looking for quality feedback. If anything it expresses confidence that there is likely a future for the product.

if it were a complete bust and I had no confidence in it, I wouldn’t drop more money and time into it; I’d put it on a life support budget.

Yes, they could be looking for ways to improve, ways to accentuate the positives, or even look for ways to cut the less positives/negatives from the experience. If they thought X was going to be loved, and people are 'meh' then they could either look for ways to make it better or cut it entirely, which might either make for increased profits or (perhaps) lowering the price if push comes to shove.

 

[SteveAZee]

from their standpoint, over 40% of their customers are paying an extra $15 a day. That translates to… what? A little under a million a day? over a third a billion in a year. That doesn’t include the ILL. Add those in, maybe half a frikkin billion.

sounds like from a business standpoint, Genie+ is doing very well, indeed.

Genie+ would be a business failure if it were losing money. Now, yeah. From your standpoint, you may not like it. From from an investor standpoint which was the audience Chapek was talkin* to, it’s an unmitigated success.I don’t know how much it cost to build and run, but it sounds profitable to me.

As far as what I expect them to say, they have for other areas said “we missed the mark on that one, but here is our plan to turn it profitable “. In fact, they have repeatedly expressed concern on Disney+, but continue to provide guidance on when they expect it to be profitable. They have indicated issues with DCL. Not being honest about an investment could get them in trouble with the SEC. So, yes…. If the hotel were not meeting expectations, I absolutely would expect them to indicate that to their investors along with a course correction. it’s too closely monitored and the data too public to do otherwise.

remember, from a business standpoint, success is measured in income, not your goody feelings about it. from a financial standpoint, the galactic star cruiser is meeting business expectations.

From what I recall, the phrasing for the uptake on Genie+ was something along the lines of 30% of guests have made a purchase... which might mean they bought it once, but doesn't say whether they bought for the rest of their park visits. I'm sure someone here has the exact quote.

 

[john7994]

From what I recall, the phrasing for the uptake on Genie+ was something along the lines of 30% of guests have made a purchase... which might mean they bought it once, but doesn't say whether they bought for the rest of their park visits. I'm sure someone here has the exact quote.

From the transcript in the Q1 Earnings (February 9th):

"At the same time, we’re giving Guests new tools to personalize their visits… and spend less time in line, and more time having fun. While we anticipated these products would be popular, we have been blown away by the reception. In the quarter, more than a third of domestic park Guests purchased either Genie+, Lightning Lane, or both. That number rose to more than 50% during the holiday period"

 

[New Mouse]

from their standpoint, over 40% of their customers are paying an extra $15 a day. That translates to… what? A little under a million a day? over a third a billion in a year. That doesn’t include the ILL. Add those in, maybe half a frikkin billion.

sounds like from a business standpoint, Genie+ is doing very well, indeed.

Genie+ would be a business failure if it were losing money. Now, yeah. From your standpoint, you may not like it. From from an investor standpoint which was the audience Chapek was talkin* to, it’s an unmitigated success.I don’t know how much it cost to build and run, but it sounds profitable to me.

As far as what I expect them to say, they have for other areas said “we missed the mark on that one, but here is our plan to turn it profitable “. In fact, they have repeatedly expressed concern on Disney+, but continue to provide guidance on when they expect it to be profitable. They have indicated issues with DCL. Not being honest about an investment could get them in trouble with the SEC. So, yes…. If the hotel were not meeting expectations, I absolutely would expect them to indicate that to their investors along with a course correction. it’s too closely monitored and the data too public to do otherwise.

remember, from a business standpoint, success is measured in income, not your goody feelings about it. from a financial standpoint, the galactic star cruiser is meeting business expectations.

Statistics are wonderful. You can use them to tell either side of the story any way you want to. Is it doing well as a straight purchase financial success? Yes. Has it hurt the reputation of the company which may financially impact them? The stock market in part says yes. Will it hold its gains for repeat visits or are these first time one time purchases that are being disenfranchised from the product and the company because of poor execution? Tbd

 

[TiggerBouncy]

Statistics are wonderful. You can use them to tell either side of the story any way you want to. Is it doing well as a straight purchase financial success? Yes. Has it hurt the reputation of the company which may financially impact them? The stock market in part says yes. Will it hold its gains for repeat visits or are these first time one time purchases that are being disenfranchised from the product and the company because of poor execution? Tbd

But those things don’t generally get talked about during an investor update. From Disneys standpoint, both are currently doing well.

it’s up to the investor to decide if the company is moving in the right direction. My personal standpoint, I have sold a good deal of my shares as I do not think it’s moving in the right direction. But as I said early on, from a financial standpoint, the galactic starcruiser is meeting Disneys expectations. some fans on the internet may deem it a failure, but it’s not. At least, not yet.

 

[john7994]

Statistics are wonderful. You can use them to tell either side of the story any way you want to. Is it doing well as a straight purchase financial success? Yes. Has it hurt the reputation of the company which may financially impact them? The stock market in part says yes. Will it hold its gains for repeat visits or are these first time one time purchases that are being disenfranchised from the product and the company because of poor execution? Tbd

The Market is far more concerned about the next 6-12 and the impacts to discretionary spending in regards to entertainment, hospitality, and media consumption - of which - Disney is exceptionally exposed too. Genie+ is a blip on the radar (a decent one no less to shore up revenue) just as it was a blip in the Q1 earnings discussion.

Disney doesn't show unique / return visitors on its financial reconciliation report accompanying earnings, but it is expressed in their overall segment bottom-line - which will surely fluctuate given the headwinds everyone expects. Whether Customer Experiences become a bigger part of that story is a separate issue, but it will likely be papered-over as it is in every earnings call until its too obvious to ignore from drops in attendance - compared to peers - and corresponding reductions in revenue.

 

[New Mouse]

But those things don’t generally get talked about during an investor update. From Disneys standpoint, both are currently doing well.

it’s up to the investor to decide if the company is moving in the right direction. My personal standpoint, I have sold a good deal of my shares as I do not think it’s moving in the right direction. But as I said early on, from a financial standpoint, the galactic starcruiser is meeting Disneys expectations. some fans on the internet may deem it a failure, but it’s not. At least, not yet.

I wouldn't call it a failure but its not a huge hit either which doesn't bode well for the long term success of it.

Investor meetings are great PR machines these days. Provide me some real data points on the hotels financial success. (They will not do that)

 

[Jimmy Mouse]

I think it's funny reading all the post bashing the Starcruiser by people that haven't been on it. I haven't been on it either, yet. My kids (8 and 11) both asked to go for Christmas so I booked it. I was going to book it sooner but all the dates that shown available were actually not available when I called. The CM called those dates (Phantom) meaning that the computer showed available but the dates were not. I seen episode IV, A New Hope in the theater when I was a kid. I have always enjoyed Star Wars but I am not a "Super Fan" by no means. The only reason I decided to book it was for my kids but in previous post some are saying this does not appeal to kids lol. But again, these post are from people that haven't been on the cruise. I also hope for a 50% booked stay on the Galactic Starcruiser. Less people may be a better experience but then again, maybe the amount of rooms and guests at capacity is the perfect balance for a great experience. I'll find out this December.

 

[bsmcneil]

from their standpoint, over 40% of their customers are paying an extra $15 a day. That translates to… what? A little under a million a day? over a third a billion in a year. That doesn’t include the ILL. Add those in, maybe half a frikkin billion.

sounds like from a business standpoint, Genie+ is doing very well, indeed.

Genie+ would be a business failure if it were losing money. Now, yeah. From your standpoint, you may not like it. From from an investor standpoint which was the audience Chapek was talkin* to, it’s an unmitigated success.I don’t know how much it cost to build and run, but it sounds profitable to me.

As far as what I expect them to say, they have for other areas said “we missed the mark on that one, but here is our plan to turn it profitable “. In fact, they have repeatedly expressed concern on Disney+, but continue to provide guidance on when they expect it to be profitable. They have indicated issues with DCL. Not being honest about an investment could get them in trouble with the SEC. So, yes…. If the hotel were not meeting expectations, I absolutely would expect them to indicate that to their investors along with a course correction. it’s too closely monitored and the data too public to do otherwise.

remember, from a business standpoint, success is measured in income, not your goody feelings about it. from a financial standpoint, the galactic star cruiser is meeting business expectations.

I'm surprised by how often you act smarter than everyone and yet demonstrate something different. Income isn't success for a business - profit and profit gain are measures of success. Income from Genie+ may well be as you've described it (we don't know) - but it also may come at the cost of other things (reduced profits from ticket prices, less spending overall, guest satisfaction and long-term commitment to Disney and its properties).

Most publicly-held companies walk a tight line between honesty and obfuscation. You're not going to get complete transparency from publicly-held companies (because there needs to be room for mistakes, corrections, etc). But yet you seem to suggest Disney is completely clear about the financial health of an individual resort (how much do we know about the financial health of All Star Sports, or Old Key West, or Boardwalk), even as a new product that is just launching (which inevitably has kinks to work out)? It just doesn't work that way. It just would be nice if your posts weren't so dismissive of other people's opinions (all while being really clear with their own biases, etc).

 

[Yarbogash]

My guess is within 2-3 years it will be gone, or at least significantly redesigned. The paid focus group thing is not a positive sign. I agree with many of the Disney bloggers; Starcruiser needs a lot more positive word of mouth. Given that it’s not going to attract many return customers, it needs to continually attract new ones and have a lot of ongoing positive buzz and hype. I like the idea. I like that Disney has tried this. The price is of course absurd but the concept shows some actual imagination and guts. I just don't think it has come off as they hoped. and the way the economy is headed, this is gonna be more and more of a tough sell.

 

[KayMichigan]

I don't think it's going to be gone, they'll just drop most of the role playing stuff and it'll be just a themed hotel. They might keep a few things like characters walking around and other similar touches but you won't be required to stick to an itinerary and the price will drop to that of other hotels.

Or, you might be able to opt in to the role playing or just stay at the hotel and not do the role playing stuff for a lower price.

But it isn't going to stay strictly a $6000+ two-day role playing experience forever. There's no way that's sustainable over the course of several years, especially as the franchise moves away from the the sequel movies and onto other eras.