Disney has hit some STRUGGLES when it comes to domestic theme park attendance and demand.
Disney CEO Bob Iger had predicted that theme park attendance will decrease as post-COVID travel trends normalize. For Q3 of fiscal year 2024, Disney revealed that its operating income at the parks decreased compared to the prior year, due to lower consumer demand than the company expected. But Disney insisted that the parks business is “fundamentally in good shape.” Now, we’ve got an updated look at demand in the parks — has it gotten any better since Disney’s last report? Let’s find out!
Disney released its earnings report and held its earnings call for Q4 of fiscal year 2024 on November 14th, 2024. Disney previously indicated that they expected it would take a few quarters to fully recover from lower-than-expected demand. So how are things looking now?
Well, it seems like things are improving for theme park attendance, even at the domestic level. The Parks and Experiences part of the company (which includes theme parks) had record revenue and operating income for the full year. In the fourth quarter, this revenue increased by 1 percent, although operating income of $1.7 billion was a decline of about 6% compared to this time last year.
Domestic Parks and Experiences revenue increased in the fourth quarter. Domestic Parks took in $5,521 million in Q4 2024, as compared to $5,384 million the same time last year, an increase of 3 percent. Disney attributed hte growth to increases in guest spending at theme parks and with Disney Cruise Line, but this growth was partially offset by lower sales of Disney Vacation Club units, inflation, new guest offerings, increased technology spending, and higher operations support costs, as well as depreciation related to the closure of Star Wars: Galactic Starcruiser.
However, international theme park experiences revenue is down. Disney reported an income of $1,136 million in Q4 2024 as compared to $1,111 the same time last year. Disney attributed the decrease in lack to declines in attendance, an increase in costs, and a decrease in guest spending.
Despite some less-than-ideal demand levels in Q3, Disney World and Disneyland seem to be rebounding. Also, Disney doesn’t seem to be slowing down when it comes to investing in its domestic theme parks considering the expansion planned for Avengers Campus in Disneyland, the expansions planned for Magic Kingdom, the retheme of DinoLand USA in Animal Kingdom, and the Monsters, Inc. space planned for Hollywood Studios.
Perhaps those things will continue to encourage visitors to return to the Disney domestic theme parks. Only time will tell. Stick with us for the latest news!
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We are upper middle class, even in retirement our income is well into six figures. And we think it’s ridiculously expensive. We took our grandson a few months ago and felt like we were being ripped off at every turn. We’ve always known that Disney squeezes every dollar they can from there “guests” but it’s gotten to the point where if you want to get on a ride you have to pay and pay and pay some more..