The Not-so-Wonderful World of Eurodisney – Things Are Better Now at Paris Disneyland

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Case 2-1: The Not-So-Wonderful World of EuroDisney – Things Are Better Now at Paris Disneyland

1. What factors contributed to EuroDisney’s poor performance during its first year of operations? What factors contributed to Hong Kong Disney’s poor performance during its first year?

Europeans failed to “go goofy” over Mickey in part because of the high prices of the theme park and nearby hotels. Families were reluctant to spend the $280 a day needed to enjoy the attractions of the park, including the food. Staying overnight was out of the question for many because prices ranged from $110 to $380 a night, and $340 to $380 a night at better hotels. Other factors that contributed to poor performance were unforeseen transatlantic airfare wars and currency movements, causing visitors to go to Disney World Orlando for vacation. EuroDisney successfully alienated many European visitors with its iconic American feel at EuroDisney. Many Europeans were put off by the Disney characters which they felt reflected only traditional American Disney characters, not European characters. Disney management’s conviction that it knew best what Europeans liked proved insensitive to the local culture.

2. To what degree do you consider that these factors were (a) foreseeable and (b) controllable by EuroDisney, Hong Kong Disney, or the parent company, Disney?

The reluctance of visitors to stopover at EuroDisney due to high prices of the theme park and nearby hotels could not be foreseeable, but surely controllable in some aspects. EuroDisney could not control the high prices of nearby hotels unless the hotels were under the Disney name, but they could certainly have lowered the prices of admission and attractions. Since transatlantic airfare wars and currency movements were unforeseen, these issues were neither foreseeable nor controllable. EuroDisney…...

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