International Marketing

What factors contributed to the EuroDisney's poor performance during its first year of operation?

The Massive Park

EuroDisney opened its doors to the public in April 1992, with its reputation as the biggest and most lavish theme park ever built by the Walt Disney Company(Disney) to date, Disney had projected that the new theme park will attract 11 million visitors and generate $100 million in operating earnings during the first year of operation.

The factors that contributed to the poor performance during its first year of operation

Expensive Lodgings

The Europeans failed to "go goofy" over Mickey. Families were reluctant to spent $280 a day needed to enjoy the attractions of the park, including food and drinks. They were also not staying overnight at the park as hotel rooms were too highly priced. A night's stay at the Newport Bay Club, EuroDisney's largest hotel amongst the six in the park and one of the largest in Europe, can cost between $110 to $380. In comparison, a room at a top hotel in Paris cost between $340 to $380 a night.

Transatlantic Travelling

The Paris location was a real estate dream came true. With the French government's generous incentives, together with impressive data on regional demographics, the Disney Management was swayed to choose the Paris location.

Demographics showed that some 310 million people in Europe live within two hour's air travel of EuroDisney, and 17 million people could reach the park within two hours by car. Paris is arguably Europe's most popular city destination among tourists of all nationalities.

In summer 1992, an unforeseen combination of transatlantic airfare wars and currency movements resulted in a trip to DisneyWorld in Orlando, with the guarantee of good weather and beautiful Florida beaches within reach, being cheaper than a trip to Paris. As a result, only