Disney didn't break down attendance at the Walt Disney World Resort in Florida versus the Disneyland Resort in California. However, anecdotal reports from fans suggest that theme park attendance across the board has been softer in the Orlando area this summer than it has in Southern California. A strong US dollar has made it more expensive for international tourists to visit the United States, which tends to hurts the Orlando parks more those in Southern California, which are more reliant upon local visitors.
In addition, tourism from Brazil — another traditionally strong market sending visitors to Orlando — has dropped significantly due to economic and political turmoil in that country. The Pulse nightclub shooting in Orlando certainly didn't help inspire visits, nor did a fatal alligator attack at Disney World immediately after that.
Finally, and perhaps most significantly, Disney's big price increases have limited demand on both coasts and Disney's revamp of its ticket and annual pass pricing has helped steer people away from the summer months toward traditionally less popular times of the year.
Disney World this summer opened a Frozen-themed revamp of its old Maelstrom ride in Epcot as well as a new version of its popular Soarin' travelogue in the same park. In addition, it expanded nighttime hours at Disney's Animal Kingdom and added a new Star Wars-themed fireworks and projection mapping show at Disney's Hollywood Studios. However, Disney canceled press events promoting these additions, then went silent for a week on all social media after their debut, following the Pulse shooting and alligator attack.
Disney World yesterday announced 20 percent discounts on select Disney resort hotel rooms in November and December and Universal Orlando recently lifted summer blockout dates in an effort to boost attendance. However, fears about the spread of the Zika virus in Florida still threaten the state's tourism prospects.
In California, the Disneyland Resort should get a boost this month from the impending closure of the popular Disneyland Forever and Paint the Night shows, but attendance might weaken after those shows close, especially with lower annual pass renewal rates since the price increases and program changes last year. Meanwhile, observed attendance gains at Universal Studios Hollywood following last spring's opening of The Wizarding World of Harry Potter appear to be at least partially offsetting the presumed attendance softness for Universal in Orlando.
Tweet
1. Drop ticket prices instead of the opposite.
2. Stop what you are doing and build re-Hollywood studios as a complete Star wars land.
3. Maybe finally build a new Adult ride.
And come on - If Disney would build a total complete Star Wars land, would that not be a wise investment?
People and not coming and it is a true downward trend, yes the US dollar is hurting Disney.. If Disney was even with regards to attendance, and has an increase for Theme park tickets, that would make more sense..
Movies are the saving grace here for Disney the past few years.
I suppose now's a good time for Disney to announce their new Sausage Party ride.
James: Made me laugh, Thanks...
There are other parks that would match your business strategy.
All the principals that Walt Disney held dear.
Brian, prices going down aren't going to help the profitability (unless its on select dates). Prices are less of a deterrence for many than crowds - I'd gladly sick it up and pay $5 more a day if it meant less queues. Disney analysts would have a pretty good idea where they are on the supply demand curve, which is why prices are going up. J Paul Getty was in his very different industry, where different factors affected pricing.
Disney resorts, on the other hand, doesn't have that advantage. It's resort capacity is limited and demand is very fickle. The huge drops in attendance on 2002 and 2009 demonstrates the risk. Further, the resorts have been created to make them not very substitutability, unlike one brand of oil for another (Universal Is the only substitute and they feed off of each other). ESPN is another example as their product is being substituted out by Millenials. The limited ability to control costs in a downturn and higher risk of adding capacity makes the business very different. As a result, margins are the business driver, not production costs.
Brian, "adult ride"? Can you name one year-round theme park attraction in all of Orlando that is aimed exclusively at adults? Maybe Spaceship Earth? The Great Movie Ride? Hall of Presidents? One Man's Dream? The movies in the World Showcase? Epcot is probably the most adult of all the Orlando parks - but it still has a good number of family oriented attractions. Is there anything that caters exclusively to adults at Universal? Hulk? The soon to be removed Dragon Challenge? Both rides have a 54" height requirement, but no, they aren't adult rides. That horror make up show at Studios? Maybe, but let's face it, the Universal parks largely cater to teens, preteens, and adults who read kids' books. What about SeaWorld? Maybe Manta, Kraken, and Mako because of their 54" height requirement, but the rest of their attractions seem very family oriented. I am not sure what you mean by "adult ride". Perhaps you mean "thrill ride"? If so, I would agree, Orlando needs more thrill rides, more coasters for sure... seems like only SeaWorld is interested in catering to the coaster fans, which is a real shame. If Disney and Universal put their imagination and deep pockets to it, they could build an amazing, record breaking adult coaster that would easily best even Fury 325 and Maverick (two of my favorites), but alas, they are not focused on the Coaster Boy market. And can you blame them? People seem very happy with the current crop of highly themed, narrative, mildly thrilling, screen/projection based attractions that cater to a wide variety of people and age ranges. Why build an adult oriented thrill ride when the whole-family market is much more lucrative?
Now Barry, I was simply making a similarity on how this can and will make monies. And apparently you need a lesson from the 1900's. Anytime you drop prices folks get excited and want to patronize said business..
Perhaps you have actually bought something just because it was on sale.
How about a stock - even buy one when it was down?
I would just love to see a company drop a ticket price if numbers are dwindling. It's not just about entry tickets. Once you have your captive audience it's Food, drinks, snacks and souvenir's....
Disney can't sustain itself if it keeps on building incredibly expensive attractions each year (especially at Walt Disney World) when so many other factors come into play. Infrastructure, growing security demands, labor, etc. Theme Parks are a business and Disney is very good at it. If you don't like the way the Disney Parks are run then blame our current economic system, not the company. Imagine being at your job and your company not maximizing its profit, or brand, to the best of its ability. Your company would find it hard to compete in today's marketplace.
I'm a Disney shareholder and I have seen my stock value increase by over 50 percent in the last decade. This trend began with Eisner and has successfully endured and succeeded with Iger. The criticisms, or business suggestions, I often read on fan boards from "fans" are often devoid of exactly how theme parks actually operate in the 21st century. Disney not only continues to excel in their field but also to push the envelope for the future. No one also has as much on the line as Disney. With today's fickle customer and current atmosphere of fear, all it would take is one small incident to destroy the industry as we know it. We have it really good right now.
I travel the world and no one gives better service than Disney. Actually, if you've been to Toyko Disney Resort, then you'll find that they provide better "Disney" service than you'll find in the states. Incredible! While the actual theme park fans want everything right now, Disney is planning 10-20 years down the road (and in some cases even more). With their recent acquisitions, they have the IP's to carry them through the next 3-4 decades easily. I'm reminded of that every time I buy my kids toys for Christmas or their birthdays. They're the same toys I got as a kid (Millenium Falcon anyone....)
@50.118.198.228, Disney makes about a billion dollars PROFIT every quarter. They can do anything they want to continually expand and grow their parks - anything.
£18 PER DAY X 10 VISITS OVER 14 DAY PERIOD £180 ON TOP OF RIP OFF TICKET PRICES. WE Brits won't be ripped off. we are returning this year Universal horror nights 14 day pass included, 7 night Horror nights £217
Disney 14 day pass £330 . Magic kingdom closes early 10 times during our stay to rip all customers off with raised prices for Mickeys not so reasonably priced Halloween Party.
This article has been archived and is no longer accepting comments.
When breaking the attendance down I'm sure most of the drop is accounted for by drop in annual pass visitors, which are likely the lowest spenders.
I do hope the drop in attendance though sparks the need for more vigorous development, particularly in WDWs lesser parks.