Disney uses discounts to lure visitors

Disney's attendance has been flat, the Orlando Sentinel reports, increasing 1 percent from March through June, the third quarter of the Walt Disney Co. fiscal year. But that looks good compared with nearby attractions, where attendance has dropped more than 10 percent, the newspaper said.
Disney is offering free dinners to people who book five-night stays between late August and Oct. 3. Some guests now staying at Disney World took advantage of a past offer, a seven-night stay at the price of four nights.
Disney executives believe keeping attendance up is crucial because satisfied customers are a good advertisement and source of future business, the reort said. They also help build the brand, including movies, toys and television.
But the discounts ultimately could hurt business, the newspaper said.
"We suspect Disney is fearful of maintaining a promo for too long, as it will be hard to remove the discounting in the future if consumers come to expect a certain promotion," stock analyst Richard Greenfield wrote this month on a blog maintained by his firm, Pali Capital.

Copyright 2009 by United Press International.