For many, the recent state of the economy has hit hard.  Gas prices are at an all-time high and airline fares are growing more expensive by the day it seems.  While I try to avoid discussing things outside of Walt Disney World in this column, the current state of the economy begs an interesting question about Walt Disney World… that is: Is Disney recession proof?

Andy Rooney briefly talked about a novel idea this past weekend on 60 minutes.  He believes that the price of gas, the expense of air travel, and the increasingly unpleasantness at airports and airplanes, Americans should all pick a week next year and not travel anywhere for vacation.  No trips to the lake, no getaways to the water park, and most certainly no trips to Walt Disney World.  This unified statement, in theory, would send a clear message to the travel industry that we have had it with them, their high prices, and their shoddy service.  While a nationwide boycott of the travel industry seems incredibly unlikely, this got me thinking; how is Disney preparing themselves for the tough economic road ahead? 

As many of you know, Walt Disney World is the top tourist destination in the world.  It generates a huge amount of money for the Walt Disney Company, and it appears to do better every year.  Guests, however, are not the beneficiaries of this Disney windfall.  Discounts, reductions in room rates, and ticket prices are few and far between.  For example, as of April 2008, a double stroller rental costs $31 a day.   That is more than some car rentals!  Hard ticketed events have also increased in price in the past few years.  A ticket to Mickey’s Very Merry Christmas Party on November 14, 21, December 4, 5, 11, 12, 14, 18, and 19 (all premium dates) will set you back almost $60 including tax.  That is almost the cost of a day’s admission to the park ($71), and for only five hours.  The benefits of these special events have gotten worse over the years too.  Gone are the days of the free picture and other nice perks for attending the party – it is a lot of money for such a small return.  Moreover, annual passholder discounts seem to shrink each year, with fewer rooms allotted for guests to take advantage of.  Values are definitely becoming harder to find nowadays.

What will amaze me even more than Disney’s lack of substantive value or cost-cutting, will be if guests aren’t phased by struggling economy.  While it is too early to tell what effect, if any, the economy has on attendance at Walt Disney World, let me say that I have not noticed any dip in the crowds when I have been to the parks.  I don’t credit this to a poor choice by guests – far from it.  If it turns out that the struggling economy had little or no effect on Disney’s earnings this year it will most likely have to be thanks to the incredible brand Disney has created here in Orlando.  There’s something to be said about your company if people are willing to go out of their way, spend more than they would have a couple of years ago just for the chance to experience your product, which in this case is Walt Disney World.  Perhaps the product Disney offers, which includes not only the parks, but the level of service, the friendliness of cast members, the family friendly environment, and the nostalgia that many feel when on property, is enough to attract people here from all over the world, despite the hassles, the costs, and the headaches.  Don’t get me wrong, Disney is far from perfect – but overall, Disney has created something special over the last few decades, something that brings guests back year after year, or even makes someone like myself move some 6,000 miles to be close to the “magic”. 

I return the question I asked earlier in this column: How is Disney preparing themselves for the tough economic road ahead?  From what I can tell, the answer is that they aren’t doing anything at all.  Disney will most likely stay the course, raise prices when they feel like they can get away with it, and trim what benefits and value guests are privy too.  But all that matters not.  Walt Disney World has become such an ironclad brand, such a well-renowned destination – that it indeed is recession proof.  Even with the U.S. economy at a slowdown, people will continue to flock to Orlando, Florida, clamoring to see a mouse. 

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