Did Disney Forecast the Demand Drop For Galaxy’s Edge?

Did Disney Forecast the Demand Drop For Galaxy’s Edge?

August 22, 2019

Disney, worried about park overcrowding and negative guest experiences with the opening this summer of the Star Wars Galaxy’s Edge attraction, managed instead to kill off demand.

Ticket prices were higher, annual pass holders faced blackout dates, guests required reservations to ride the new Star Wars ride, and hotel prices went up in front of anticipated demand.  These plans were so “successful” in warding off an onslaught of guests that park attendance dropped three percent over the summer.

In addition, some guests may be holding off till the second Star Wars ride opens at the Anaheim Disneyland in January, while fans of the Orlando park are awaiting their first one at the end of this August.

Despite lower attendance, higher ticket prices contributed to a 10% jump in average guest spending, while hotels saw their occupancy rates increase from 86% to 88%.


Video Spotlight: WHAT’S HAPPENING with Star Wars Galaxy’s Edge?!


This post is based on the Business Insider article, Disney Discouraged “Star Wars” Fans From Visiting Its New Galaxy’s Edge Area, and Domestic Park Visits and Profits Dropped, by Theron Mohamed, August 7, 2019; the Fox News article, Disney CEO partially blames Star Wars land for Continue reading

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USPS Delivers With Self-Driving Semis

USPS Delivers With Self-Driving Semis

A driver shortage is spurring demand for self-driving trucks that operate on highways on long-haul routes.  Interestingly, truck routes are less complicated for autonomous vehicles to maneuver than tricky urban city roads.

The United States Postal Service commissioned a two-week pilot test for TuSimple’s self-driving semis, to perfect the AI-based on-highway autonomous technology.

The semis were loaded with mail to complete five roundtrip runs between distribution facilities in Phoenix and Dallas.


Video Spotlight: Self-driving trucking start-up CFO on its new partnership with USPS


This post is based on the Forbes article, U.S. Postal Service Delivers Mail Using TuSimple’s Self-Driving Trucks, by Alan Ohnsman, May 21, 2019; and the YouTube video, Self-driving trucking start-up CFO on its new partnership with USPS, by CNBC Television, May 28, 2019. Image source: Chesky/Shutterstock

Discussion Questions:

1. What are the operational benefits of autonomous truck hauling services?

Guidance: One benefit is offsetting the shortage of human drivers. It should also save costs; large-scale commercialization of highway autonomous technology means higher productivity when using the truck as the input. Human drivers are limited by law to the number of hours they can drive, for safety reasons. Remove the driver Continue reading

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Amazon Go Goes Back to Cash

Amazon Go Goes Back to Cash

A previous OM in the News post looked at the impact of several laws requiring businesses to accept cash.  In light of these new laws and pressure from customers, Amazon Go will start to accept cash, and so will Sweetgreen.

Sweetgreen dropped taking cash in 2016 when cash sales that had been around 40% of their sales dropped to less than 10%.  By not accepting cash, Sweetgreen was able to perform 5-15% more transactions per hour.


Video Spotlight: Shopping at Amazon Go in San Francisco


This post is based on the Market Watch article, Backlash Against Cashless Stores Forces Sweetgreen And Amazon Go To Reverse Their ‘No-Cash’ Policies, by Jeanette Settembre, April 30, 2019; and the YouTube video, Shopping at Amazon Go in San Francisco, by CNET, October 24, 2018. Image source: Corbis/SuperStock

Discussion Questions:

1. Should retailers accept cash?

Guidance: Perhaps the answer is yes from a social justice perspective.  However, with the 5-15% increase in sales that can be processed in the Sweetgreen example, cashless transactions result in less waiting time, and shorter lines.  Overall, that’s a better customer experience – unless you need to pay by cash.

2. Continue reading

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