People walk in front of Cinderella Castle at Magic Kingdom Park in Walt Disney World on May 31, 2024 in Orlando, Florida.
Gary Hershorn | Corbes News | Getty Images
All is well in the Magic Kingdom.
disney Theme park division’s revenue and profits hit record highs FY2024Full-year revenue increased by 5% to US$34.15 billion, and operating income increased by 4% to US$9.27 billion.
Experiences, which include parks, resorts, cruises and consumer products, are Disney’s second-largest revenue driver after its entertainment unit, which reached $41.18 billion in fiscal 2024. However, the entertainment unit’s operating profit was smaller, at only $3.92 billion.
Revenue growth in experiences is the strongest of any Disney division, and company executives expect the good times to continue.
Disney expects experience profits to grow 6% to 8% in fiscal 2025, and that’s before breaking ground on a series of planned land expansions, new rides and re-themed attractions.
Be part of Disney Investment in this field will exceed US$60 billion over 10 years Guests will finally be able to see the world beyond Big Thunder Mountain at the Magic Kingdom, visit the Land of the Dead with the cast of “Coco” at Disneyland, and meet Thanos at the Avengers Campus at California Adventure Kings fight.
Many of these plans were revealed during the company’s D23 Expo returns in AugustHowever, it would be several years before Disneyland guests would have a chance to explore the new additions.
At the same time, the company is boosting revenue by raising ticket prices as well as in-park entertainment and limited-time services to keep visitors coming back.
Frequent visitor
Visitors to Disneyland range from year-round locals to once-in-a-lifetime visitors from afar.
“There are different types of visitors here who are all interested in having a great day at Disneyland, but their motivations are different,” said Gavin Doyle. Founder of MickeyVisit.com.
For those who visit the parks less frequently, new large attractions and parks can be an incentive to book tickets and hotel stays.
Over the past five years, Disney has added two Star Wars-themed lands and a Marvel park, and opened new rides such as Epcot’s Cosmic Rewind (featuring characters from “Guardians of the Galaxy” ) and Magic: The Gathering’s Tron Coaster Kingdom. Disney also recently redesigned the iconic Splash Mountain attraction with characters from “The Princess and the Frog.”
Exterior of the Millennium Falcon at Disney’s Galaxy’s Edge: Smugglers Run.
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On the other hand, those who visit annually or multiple times a year need only “a minimal push,” Doyle said. This can come in the form of new live performances, character meet-and-greets, holiday specials, seasonal festivals, and parades and nightly performances.
“There are things happening throughout the year that make every day of the year different,” Doyle said. “There are festivals all year round…limited-time parades and fireworks celebrations. It ties into the Disney Vault strategy, where you have something super exciting and it has a timer and a ticking clock that drives people Come and enjoy I think it’s very important for them and it will drive people to come to the park more.”
Mickey Mouse and Minnie Mouse floats pass by during the Daily Fantasy Parade at Magic Kingdom Park at Walt Disney World on May 31, 2024 in Orlando, Florida.
Gary Hershorn | Corbes News | Getty Images
While Disney expects to take a $130 million hit from the impact of Hurricanes Helen and Milton, it’s these regulars that will be critical to Disney’s projected profit growth of 6% to 8% in fiscal 2025. The pre-launch cost impact for the fiscal first quarter was $90 million.
As Disney works on bigger, longer-term projects like converting its Frontier Land in Florida into a Cars theme and a new Avatar-themed park in California, these projects have more than just the day-to-day on-site entertainment options, also offering unique experiences. , seasonal menu items can help increase revenue.
“It’s the little things that add up to the big things,” said David Lightbody, senior vice president of Disney Live Entertainment.
The company also hopes to take advantage of competitors’ upcoming openings Universal Florida’s new Epic Universe theme park is expected to boost tourism in the region and spur development at Disney’s local parks.
Limited time only
Visitors who visit more frequently have the strongest emotional attachment to the park and have more purchasing opportunities in terms of merchandise and offers.
Disney does not break out food and merchandise sales at its parks but said visitors spent more at its domestic parks in the latest quarter.
Doyle said many guests take advantage of seasonal offerings, such as limited-time holiday food and beverages, as an excuse to go on a scavenger hunt in the park to try all the new treats.
Holiday treats at Disney theme parks just in time for the holidays.
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This also extends to Disney’s holidays, which often offer unique menu items not available at any other time of year.
These park visitors are more likely to purchase limited-time merchandise such as exclusive popcorn buckets, liquor jerseys, mugs and pins, which have become popular collectibles among the company’s biggest fans.
Disneyland is offering limited-time holiday merchandise.
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Likewise, there are some guests in this group who come just for the Disney vacation experience—like Oogie Boogie Bash at California Adventure or Mickey’s Christmas Party at Walt Disney World—for an additional fee on top of daily admission.
Proven glasses
Disney offers guests a variety of live entertainment throughout the year, including musical performances, character meet-and-greets, parades and nightly fireworks displays.
These events can change seasonally, with character costumes, music or color themes catering to different times of the year, catering to the park’s requirements for new surprises while maintaining its signature nostalgic feel.
“The parade and nightly spectacle play an extremely important role in Disney Days,” Lightbody said. “Because these are two times where everyone comes together as a collective experience throughout the day, and they kind of mark the day.”
To celebrate Disneyland’s 70th anniversary next year, the company is reintroducing its beloved nighttime parade, “Paint the Night.” The parade debuted in Hong Kong in 2014, was held in the United States in 2015 on the occasion of the 60th anniversary of Disneyland, and has continued on and off in 2018. Featuring more than 1.5 million LED lights, the parade pays homage to the long-running Main Street Electrical Parade. A fan favorite spectacle.
The Paint the Night Parade passes through Hollywoodland at Disney California Adventure on Thursday, April 12, 2018, the first day of Pixar Festival in Anaheim.
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“This parade is one of the best parades ever held at Disneyland and is loved by many,” wrote Lindsay Brookshier, content director for MickeyVisit.com, when Disney announced in October The return of the parade was previewed for the first time.
Disney has yet to confirm a start date for the parade, but social media is packed with guests eagerly awaiting its return.
Another major benefit of nightly live events is keeping guests in the park longer, which means extending the sale of drinks, snacks and other merchandise into the evening.
On July 1, 2021, a stunning fireworks show will take place at Magic Kingdom Park at Walt Disney World Resort in Lake Buena Vista, Florida. .
Liao Pan | China News Service | Getty Images
Lightbody calls Disney’s nightly shows “Kiss Goodnight,” a way to end the day and provide guests with an over-the-top show.
For most domestic park visitors, celebratory fireworks are usually limited to holidays such as National Day and New Year’s Day. So spending these moments at Disney highlights the special nature of this trip, he said.
“When a parade or a special event does well, it evokes nostalgia for your last visit, or nostalgia for a childhood you may have had, or a childhood you didn’t even have but just imagined,” Doyle said. “It also evokes nostalgia. It leans into that particular moment and creates a moment for your family…so it plays on nostalgia but also creates a new experience in that moment. It’s both a backdrop for a special moment and a special moment in time. reflection.”
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal will open the Epic Universe theme park next year.
