park's opening (Subramanian, 1992, p. 54). The French in particular have stayed away in droves, while attendance from other European countries has remained lackluster (Gubernick, 1994, pp. 42-43).
Another major problem for the Euro Disney venture has been the American style of management of the enterprise (Sasseen, 1993, pp. 26-27). As a consequence of this management style, the venture was continually out of step with its European environment. Steps have been initiated to being a more European management style to Euro Disney (Sasseen, 1993, pp. 26-27). The step may be too little too late.
In the first six months of 1993, Euro Disney posted losses of FFr1.1 billion on revenues of FFr1.8 billion (Waiting for Dumbo, 1993, p. 74). Operating losses have been project to continue through 1996. Liquidity has been and is a major concern at Euro Disney (Ducking doom, 1993, pp. 73-74). The negative case flow in the first six months of 1993 alone was FFr2.1 billion. Euro Disney ran out of cash in early-1994 (Euro Disney bailout, 1994, p. B10).
Another major factor in the lack of success of Euro Disney has been the high volume of labor disputes involving the venture (Waiting for Dumbo, 1993, p. 74). The labor disputes largely have been a product of the style of management practiced at Euro Disney.
The Walt Disney Company and the other investors in Euro Disney had also assumed that the lodging facilities at the theme park would be major money makers (Waiting for Dumbo, 1993, p. 74). The French do not tend to stay overnight when they attend such recreation facilities as Euro Disney, however, with the result that occupancy rates at the theme park's hotels have hovered around 37 percent.
The Walt Disney Company had assumed that the firm had a "no- lose" situation in Euro Disney (Ducking doom, 1993, pp. 73-74). The assumption was that when Euro Disney made money, the Walt Disney Company would b...