Disney CEO Says A Third To Half Of Domestic Theme Park Guests Are Choosing Costlier Ticket Options As Sales Set Records
Disney’s once-battered theme parks are back with revenue doubling and solid profits last quarter, besting pre-pandemic levels and even setting records. Execs cited a combination of increased attendance and higher average per capita ticket prices — although both of those have caused griping on social media with Reddit chatrooms complaining about lines and costs.
CEO Bob Chapek said “demand” is behind the rising prices. “This is a supply and demand business, unfortunately. Unlike Disney+, we have a finite supply,” he told CNBC today. An infinite number of people can tune in to the streamer on any give day (and Disney hopes they do).
More from Deadline
Parks and streaming had Wall Street applauding, and bidding up Disney shares by 8% in late trading. Parks, experiences and resorts had sales of $7.2 billion, more than double a year ago and repping a third of Disney’s $22 billion in total sales. The division swung to an operating profit of $2.45 billion for the December quarter from a loss of $119 million the year before.
Chapek said on a conference call that a third to half of park goers are opting to upgrade to a tier called Genie+ — “which is way above what we expected.”
New higher-priced tiers on offer include Disney Genie and Disney Genie+ as well as Lightening Lane. Chapek noted that the price of a base ticket hasn’t changed. But it’s hard to nab a spot during the most in-demand times and it used to include amenities that have now become extras.
Chapek said the changes are all about “customization and personalization” of the park experience.
Numbers at international parks are likely to remain a bit volatile in the current quarter, with some mandatory Covid-19 related capacity and travel restrictions. Hong Kong Disneyland, for instance, just closed again amid a resurgence of the virus.
CFO Christine McCarthy cited financial upside for parks in mobile dining and mobile hotel check-in, as well as Genie and Lightening Lane, and guests just spending more on food, beverages and merchandise.
She said live events will likely be the last thing to return to parks in a post-Covid world. Fireworks and parades are where people gather “and we don’t want our guests to feel density.”
Chapek gave a shout-out to the two-night immersive attraction, Star Wars: Galactic Starcruiser at Walt Disney World; the Guardians of the Galaxy: Cosmic Rewind roller coaster coming to Epcot this summer, and the Avengers Campus in Disneyland Paris, also opening this summer.
Best of Deadline
Sign up for Deadline's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.
Solve the daily Crossword
