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Has Universal Lost Its Way?

  • Thread starter Thread starter Toxic34
  • Start date Start date Oct 17, 2017
  • Tags Tags
    attractions replacements universal orlando universal studios florida

Has Universal Lost Sight Of Its Vision?

  • Yes

    Votes: 18 22.5%
  • No

    Votes: 62 77.5%

  • Total voters
    80
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Z

zg44

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  • Oct 23, 2017
  • #141
There's no good breakdown of the finances of Universal Resort pre-Comcast (because Comcast earnings reports are far more detailed and separate specific businesses unlike GE or Vivendi, also Universal only received management fee/dividends for Orlando from 2000 to 2010 due to 50-50 ownership):

Ignoring investment costs (which are huge in this industry and higher in the most competitive markets, I'd assume around 10-14% of revenue goes straight to investment at least):

The earliest year reported: 2010 (which includes 6 months of Harry Potter at IoA): $1.6 billion revenue for Hollywood+Orlando, $1 billion costs, $600 million in operating cash flow

My guess for 2009 (completely pre-Potter and during a recession): $1.45 billion revenue for Hollywood+Orlando, $950 million costs, $500 million in operating cash flow

That's a healthy operation (it's not post-Potter Universal, but it's comparable or better than most other park operators). The earnings reports from Comcast definitely support @Disneyhead's point about increased spending on service:

Orlando+Hollywood costs of operation (excluding investment costs):
2009 (my estimate): $950 million
2010: $1 billion
2011: $1.1 billion
2012: $1.1 billion
2013: $1.2 billion
2014: $1.45 billion
2015: $1.7 billion

2015 is the last year before Japan's results are included.

So spending increased slowly at the parks from 2009 to 2013, then they dramatically increased spending from 2013 to 2015 (increased personnel costs and other costs to support much higher attendance and new attractions).

The thing supporting @Joe's point is that IF there was no Harry Potter, then it's highly likely that Orlando+Hollywood would have been sold to a private equity group or other operator (Six Flags/Cedar Fair) that would have to justify around $3 billion in debt (to buy the parks/hotel stake) and pay licensing fees for the various licenses/rights. I'd find it hard to believe that the parks could support an additional outlay of $200-300 million on interest/debt payments as well as licensing fees each year; that'd bring the margins on the parks to basically $0 after accounting for investment costs. Could the parks have survived in that universe? Sure, but they'd probably have faced significant cost cutting and spending on attractions would be nowhere near what it is when you look at what actually happened.
 
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belloq87

belloq87

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  • Oct 23, 2017
  • #142
Brian G. said:
No company is perfect but I'd rather have the Universal we have now then the pre-Potter version.
Click to expand...

In terms of management - absolutely.

In terms of the actual park offerings - not as clear cut. IOA is better now than it's ever been, but I've never enjoyed USF less than I do today (but it's still a good park).
 
Dinoman96

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  • Oct 23, 2017
  • #143
To be honest, I kinda do prefer original IOA.

Hogsmeade is great and all, but I dunno, I feel like the park had a bit more cohesion to its design pre-Potter. For example, I miss when being in Jurassic Park actually felt like being in a jungle on a remote island, an aspect that I feels been kinda lost with both Potter and Kong awkwardly jammed into its sides. I especially hate how the latter caused the demolition of the JP gate on the left side of the island, and I also hate how Forbidden Journey's ginormous white show building is in plain sight, which really ruins the immersion in Hogsmeade and especially Jurassic Park.

Some other stuff too, like how I miss when the Cat In The Hat was actually secretly an intense thrill ride before it got neutered some years back, or how I miss walking through Merlinwood, seeing Dueling Dragons in its prime with the amazing statues and the coasters dueling with other. I still enjoy the park, but I kinda don't feel the same magic going there that I used to when I was a kid. Maybe that's just me growing up...
 
Last edited: Oct 23, 2017
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belloq87

belloq87

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  • Oct 23, 2017
  • #144
Dinoman96 said:
To be honest, I kinda do prefer original IOA.

Hogsmeade is great and all, but I dunno, I feel like the park had a bit more cohesion to its design pre-Potter. For example, I miss when being in Jurassic Park actually felt like being in a jungle on a remote island, an aspect that I feels been kinda lost with both Potter and Kong awkwardly jammed into its sides. I especially hate how the latter caused the demolition of the JP gate on the left side of the island.

Some other stuff too, like how I miss when the Cat In The Hat was actually secretly an intense thrill ride before it got neutered some years back, or how I miss walking through Merlinwood, seeing Dueling Dragons in its prime with the amazing statues and the coasters dueling with other. I still enjoy the park, but I kinda don't feel the same magic going there that I used to when I was a kid. Maybe that's just me growing up...
Click to expand...

I don't necessarily disagree with any of this. I do think that Hogsmeade and Skull Island brought a pair of big-scale attractions to the park without replacing anything of similar substance, so I view those as massive trade-ups just from an attractions roster view.

I do fully agree with you about what's been done to Jurassic Park, though.
 
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rhino4evr

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  • Oct 23, 2017
  • #145
If Volcano Bay wasn't a huge Park Ops misstep I don't know what is. The park was planned poorly, and customer service in the park has a list of complaints online.

Disney continues to have the best customer service anywhere. They literally try to please everyone. If you have ever been to Disney on your birthday, you know the kind of attention they give you. Even the parking lot attendants say Happy Birthday. This adds a lot more to the park experience then most of you may be willing to admit. The park is also notoriously clean. It's rare when you see a full/over stuffed garbage can.
 
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brianlo

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  • Oct 23, 2017
  • #146
rhino4evr said:
If Volcano Bay wasn't a huge Park Ops misstep I don't know what is. The park was planned poorly, and customer service in the park has a list of complaints online.
Click to expand...

I was actually going to post about VB as a counterpoint as I was catching up on all the replies. I think it is the prime example of what people are trying to articulate.

It isn't that Universal has worse TM's or a poor frontline push, it is that corporately there seems to be a misunderstanding about proper park operations and a guest service culture.

IOA and USF pre-date this owner and the current general management. It's easy enough to not totally screw up something that was handed over in cruise control, with years of past experience.

VB (despite the silliness of all the little things we can nitpick) has one gaping issue: Operations and park services. It no longer is chalked up to a dry opening or areas that need to be finished. VB is still torn asunder by the GP, despite it having nearly everything going for it on paper. If they could just operate the park correctly with an actual understanding of what the park needs from guest services, I'm sure the reviews would start flowing in positively. From most people, not just those who have perks.
 
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quinnmac000

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  • Oct 23, 2017
  • #147
Universal hasn't lost its way. More so Universal leadership has become overconfident in their successes that they aren't paying attention to mistakes.

I also don't think their surveys are being helpful because rather than asking the most important question which is why did you like or not like this ride/attraction/show/etc? They ask the simpler multiple choice questions such as what things did you like about this ride? What IPs do you prefer? Which makes you more excited? Those are good questions but it lacks the key aspect that is fundamental in understanding anything which is why? If you don't know the motive, you can't solve the investigation.

In addition their online surveys are already skewed as people have to go out looking for them rather than being random people with no vested interest in Universal. I think shallow analytical research of guests and their interests and likes are what majorly negatively impacted Universal Operations stateside and I think increased qualitative research of understanding the guests and the types of guests would behoove UC and Ops a lot more than the current method of quantitative research where everyone is a number and x likes this over that.
 
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Miketheboss

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  • Oct 23, 2017
  • #148
They need to stop having those TMs on the street with ipads asking guests for questionnaires and instead have those same very people providing great customer service and interaction. In Disney, there are random cast members blowing bubbles. Do you really think that's the only reason why they are there? They have gone up to me and asked how I'm doing. If I have any concerns, they are able to direct me accordingly or even make my experience better by slipping me a fast pass, giving a sticker, saying a joke, etc. There's no reason why a ticket window should be closed in July, at 11am, with hoards of people waiting to buy a ticket. Or have a line of people standing in the sun at guest relations when there's space for two more employees inside.

As many of you have said, the Universal of today isn't the same one from 2008. They need to increase the amount of TMs dealing with operations and service.
 
Last edited: Oct 23, 2017
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shiekra38

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  • Oct 23, 2017
  • #149
I've had like on bad TM experience and I go once a month to Universal
 
Andysol

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  • Oct 23, 2017
  • #150
shiekra38 said:
I've had like on bad TM experience and I go once a month to Universal
Click to expand...
I’m the same way. No bad experiences. None.
Also, I enjoyed Volcano Bay so immensely that it was my favorite park day I’ve had in years and years.

That all said, what @rhino4evr @brianlo @quinnmac000 and @Miketheboss is still true. Kicking Disney in the nuts is fun. It’s easy to do. But their service is still the pinnacle. And Universal should be on that level. “No bad experiences” isn’t enough anymore like it was in 2008. It should be over the top service, like Disney has.
 
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JoeCamel

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  • Oct 23, 2017
  • #151
Miketheboss said:
They need to stop having those TMs on the street with ipads asking guests for questionnaires and instead have those same very people providing great customer service and interaction. In Disney, there are random cast members blowing bubbles. Do you really think that's the only reason why they are there? They have gone up to me and asked how I'm doing. If I have any concerns, they are able to direct me accordingly or even make my experience better by slipping me a fast pass, giving a sticker, saying a joke, etc. There's no reason why a ticket window should be closed in July, at 11am, with hoards of people waiting to buy a ticket. Or have a line of people standing in the sun at guest relations when there's space for two more employees inside.

As many of you have said, the Universal of today isn't the same one from 2008. They need to increase the amount of TMs dealing with operations and service.
Click to expand...
Um, it is called "data driven operation" and it is all the wave. Every company is deciding its future on the basis of survey information. Not what I would do but I am not running multi million dollar decisions. This is what is being taught, a few years ago it was kahnbahn and 9000 processes, this too will pass and hopefully we will get people that ask the guests what they want, what they like, what they don't like and put it in plain english rather than surveys that are slanted to produce a specific outcome.
 
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Miketheboss

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  • Oct 23, 2017
  • #152
JoeCamel said:
Um, it is called "data driven operation" and it is all the wave. Every company is deciding its future on the basis of survey information. Not what I would do but I am not running multi million dollar decisions. This is what is being taught, a few years ago it was kahnbahn and 9000 processes, this too will pass and hopefully we will get people that ask the guests what they want, what they like, what they don't like and put it in plain english rather than surveys that are slanted to produce a specific outcome.
Click to expand...

I got a survey from Disney after having visited Pandora through email. They even sent me a personalized, "hand drawn" Mickey postcard through the mail, thanking me for visiting WDW. Nice touch. I'd rather do a survey at home rather than after a long day at the park.
 
Lucky Planet

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  • Oct 23, 2017
  • #153
I do wish they gave a little something for doing the surveys.
Like if they gave a small pop corn or a little candy or something that u could claim at the park.
I mean, what would that cost uni?
 
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Lucky Planet

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  • Oct 24, 2017
  • #154
rhino4evr said:
If Volcano Bay wasn't a huge Park Ops misstep I don't know what is. The park was planned poorly, and customer service in the park has a list of complaints online.

Disney continues to have the best customer service anywhere. They literally try to please everyone. If you have ever been to Disney on your birthday, you know the kind of attention they give you. Even the parking lot attendants say Happy Birthday. This adds a lot more to the park experience then most of you may be willing to admit. The park is also notoriously clean. It's rare when you see a full/over stuffed garbage can.
Click to expand...

brianlo said:
I was actually going to post about VB as a counterpoint as I was catching up on all the replies. I think it is the prime example of what people are trying to articulate.

It isn't that Universal has worse TM's or a poor frontline push, it is that corporately there seems to be a misunderstanding about proper park operations and a guest service culture.

IOA and USF pre-date this owner and the current general management. It's easy enough to not totally screw up something that was handed over in cruise control, with years of past experience.

VB (despite the silliness of all the little things we can nitpick) has one gaping issue: Operations and park services. It no longer is chalked up to a dry opening or areas that need to be finished. VB is still torn asunder by the GP, despite it having nearly everything going for it on paper. If they could just operate the park correctly with an actual understanding of what the park needs from guest services, I'm sure the reviews would start flowing in positively. From most people, not just those who have perks.
Click to expand...

Why is volcano bay so bad?
 
Z

zg44

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  • Oct 24, 2017
  • #155
The Volcano Bay issues aren't due to new management or anything like that; it's mostly due to inexperience. It's Universal's first attempt at a water park, and they completely underestimated how timings/crowds/logistics would need to work in a much smaller water park with new technology. Most of Universal's top execs have several decades of experience at the resort, but very little of that is water park-related and the technology was experimental. Other than buying/owning WnW, they just didn't have that much experience in that segment is what it comes down to...

FWIW, Universal Resorts has kept the same top management for several decades (through all 3 major owners: Vivendi/GE/Comcast), the biggest change at management level has been in terms of overall spending levels and investment levels as well as expansion decisions (those kinds of decisions are determined with hefty input from the parent company, since it's the parent company taking on additional debt or spending and has to approve structural changes).

i.e. The main decision making that's changed has gone from Vivendi downsizing on expansion plans by selling off land or a 50% stake in Orlando versus Comcast buying back the 50% stake in Orlando as well as all of Universal Japan and some of the previously sold land. Comcast execs (and higher up NBCU execs) had input in the decisions related to increasing overall spending and such types of things.
 
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rhino4evr

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  • Oct 24, 2017
  • #156
TheCode said:
Why is volcano bay so bad?
Click to expand...

Just go on Trip Advisor and read. Not only are people complaining about the new Tapu system. They are also complaining about how clueless employees seem to be, how slow food/drink service is in a $$$ private cabana, and how guest services are overwhelmed due to Tapu Tapu malfunctions/replacements.

A part of this is lack of training, and the other is a park that has glaring service issues, not helped by how the park was actually designed.
 
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Mad Dog

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  • Oct 24, 2017
  • #157
zg44 said:
The Volcano Bay issues aren't due to new management or anything like that; it's mostly due to inexperience. It's Universal's first attempt at a water park, and they completely underestimated how timings/crowds/logistics would need to work in a much smaller water park with new technology. Most of Universal's top execs have several decades of experience at the resort, but very little of that is water park-related and the technology was experimental. Other than buying/owning WnW, they just didn't have that much experience in that segment is what it comes down to...

FWIW, Universal Resorts has kept the same top management for several decades (through all 3 major owners: Vivendi/GE/Comcast), the biggest change at management level has been in terms of overall spending levels and investment levels as well as expansion decisions (those kinds of decisions are determined with hefty input from the parent company, since it's the parent company taking on additional debt or spending and has to approve structural changes).

i.e. The main decision making that's changed has gone from Vivendi downsizing on expansion plans by selling off land or a 50% stake in Orlando versus Comcast buying back the 50% stake in Orlando as well as all of Universal Japan and some of the previously sold land. Comcast execs (and higher up NBCU execs) had input in the decisions related to increasing overall spending and such types of things.
Click to expand...
This...:thumbsup:
 
rhino4evr

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  • #158
I'm mean I literally once had the dude scooping horse poop on main street look up to me, smile, wish me a happy birthday, say something funny, and then go back to scooping poop. If that isn't incredible employee training, I don't know what is.

I think of Disney employees as paid actors more than actual working employees.

Now I'm not saying the employees at UOR are all bad or anything, in fact I've had overall positive experiences. Just nothing memorable. Other than a "walk around character" interaction.
 
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UniversalRBLX

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  • Oct 24, 2017
  • #159
Could employee service also be because of the type of audience? There’s a lot of families at WDW where UO has less younger families and a lot of teens and young adults?
 
Brian G.

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  • Oct 24, 2017
  • #160
At this point - this thread has become useless and repetitive. I'm going to lock the thread for the sake of sanity.
 
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