Are crowd levels DOWN in Disney World this summer?
While the parks haven’t truly been empty, they’re also not seeming to be as packed as they have been in past summer travel seasons. Many fans have noticed this and speculate as to the reasons why. Some claim that Disney World has finally “priced out” the average guest — but is that the REAL reason the parks aren’t as packed as usual? We’re diving in to find out.
Recently Disney CEO Bob Iger addressed the lower crowd levels at the parks during The Walt Disney Company’s Q3 earnings call. There has been a decline in demand for the parks in recent quarters, particularly at Disney World. So what’s going on?
Mainly, there seem to be two reasons for this decrease in attendance. The first has to do with a phrase that was popular in the past — “revenge travel.” You see, as pandemic restrictions lifted around the country in 2021 and 2022, tourists began to start booking their “revenge” trips — AKA, the trips that were canceled in the early part of the pandemic due to travel restrictions and safety.
Because of “revenge travel” there was a huge vacation boom as things began to return to normal. But now, we’re on a downward decline for those numbers. Iger said in the earnings call, “We saw softer performance at Walt Disney World from the prior year, coming off our highly successful 50th Anniversary celebration. Also as post-COVID pent-up demand continues to level off in Florida, local tax data shows evidence of some softening in several major Florida tourism markets.”
The other main reason that Disney attributes the decline in demand to is the current inflation situation. Iger credited the “strong dollar” as a hindrance for international visitors currently. With everyday expenses costing more for average Americans (everything from groceries to gas to rent), it’s likely that travel isn’t as much of a priority for some domestic visitors as well.
Iger did go on to say in the earnings call, “However, Walt Disney World is still performing well above pre-COVID levels, 21% higher in revenue and 29% higher in operating income compared to fiscal 2019, adjusting for Starcruiser accelerated depreciation. And following a number of recent changes we’ve implemented, we continue to see positive guest experience ratings in our theme parks, including Walt Disney World, and positive indicators for guests looking to book future visits. This includes strong demand for our newly returned annual passes.”
So despite the effects of travel decline and inflation, it seems that Walt Disney World is still on track to make decent revenue. There have been a number of price increases and bonus expenses added for guests since 2019 (like Genie+ and MagicBand+), so it would make sense that Disney is bringing in more money.
We’ll keep an eye on the financial situation for Disney and keep you updated as we learn more. In the meantime, stay tuned to DFB for the latest updates you need to know before your Disney World vacation!
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Have you been to Disney World this summer? Tell us in the comments!
It feels like Chapek’s strategy of reducing low-spending guest volumes and maintaining high spenders, which in turn increases guest satisfaction (because it’s less crowded) is paying off.
Ironic really
Sure those are factors but a huge one that doesn’t seem to be discussed is how Disney has finally “jumped the shark” with woke agendas and political stances. Many people that grew up with Disney and have spent many thousands of dollars on Disney World visits in the past are just done with this company and the way they are catering to the woke mob. There are plenty of other ways to spend their vacation dollars. Disney no longer carries the family brand reputation it did in the past. They can blame themselves for that, not inflation or Covid. Sad but true.
Isn’t it nice to not have the Parks so jam packed that you can’t move, especially with children. In the 30 years I’ve been going to Disney World, I’ve seen this before. Those are the trips we enjoyed the most!
Hmmmm, numbers are down but revenue is up. Could it be because of the outrageous prices they’re charging as well as nickel & diming guests?
You are exactly right JF! There are many. many customers who have left Disney due to their woke agenda. No one in upper management seems to be able to figure this out or they just don’t care. As consumers we do not want these political agendas shoved in our face! We want to go to WDW and similar destinations that provide entertainment for our children.
So many excuses so little time. What’s to be the explanation when Epic Universe opens? Oh….but they have a Moana water walk thru attraction and a redo of Splash Mountain that they’ll probably charge extra for on Genie plus. That’s their response to a whole new park.? C’mon man!
Yea Disney has definitely turned off a large crowd of people with their new agenda. However it’s also the prices always going up and the nickel and diming. It seems like every time you turn around it’s an extra charge or an extra buck or a smaller portion size. I love Disney but they really do take advantage of that.