Disney World is changing…again. After announcing a ton of updates for the parks and hotels — like the return of the Disney Dining Plan, the end of park passes for most guests, and new perks for Annual Passholders and Cast Members — we learned even more news about what’s on the horizon for the Most Magical Place on Earth.
The Walt Disney Company recently held its second-quarter earnings call for the year, and we got some insight into just how the parks are performing. Profits are up, and that likely means pricing won’t change anytime soon — but here’s why you’ll want to book that summer Disney World trip anyway.
It’s no secret that summer can be a busy time at Disney World. Kids are out of school and many others take the warmer (er, sometimes sweltering) weather as an excuse to book it to the parks. But, that can also make you want to stay away from all the chaos. We recently learned how the parks are doing financially — including a big reason why this summer might be the best time to visit: Disney World could be empty.
Parks Revenue
During the company earnings call on May 10th, 2023, Disney shared a bit about how the parks are performing financially and more. In Q1 of FY 2023, the division reported a revenue of $8.7 billion, thanks in large part to more guest spending on things like Genie+. So how are they doing now?
Things are still looking up for the parks, but it’s complicated. The revenues for Disney Parks, Experiences, and Products for this past quarter (Q2 of FY 2023) did increase by 17%.
At the domestic parks and resorts, however, Disney notes that the results were “slightly unfavorable to the prior-year quarter.” What happened? Well, it seems there was a DECREASE at Disney World that was offset by “growth” at Disneyland.
But for Disney World, the decrease was due to “higher costs” thanks to “cost inflation, increased expenses associated with new guest offerings, and higher depreciation.” So, while profits at the parks are up overall, Disney World didn’t necessarily bring home the bacon this time around.
What We’ve Seen
Lately, in Disney World, we haven’t noticed quite as many crowds as we’re used to — and we certainly haven’t seen wait times nearly as high as they were over spring break. Often, virtual queue spots for Magic Kingdom’s newest ride, TRON Lightcycle / Run, are available even hours after the queue has opened. There are typically lulls in crowds here and there, but if this trend continues, we could see an empty Disney World this summer.
Not only that, but Disney tends to ramp up the discounts and special offers when they’re trying to get people in the parks and fill up those hotel rooms. Right now, there are deals for Florida Residents, Annual Passholders, Disney Visa Cardmembers, and all theme park guests, too.
Disney also recently announced that starting January 9th, 2024, guests who purchase date-based tickets will no longer need to get Park Pass Reservations. These are the standard tickets most guests use. Plus, Annual Passholders and Cast Members will be able to visit the parks without reservations on select days starting in 2024.
Plus, we haven’t seen demand for Annual Pass sales quite as high as we were expecting — as of right now, all four Disney World Annual Pass tiers are available for purchase, in additional to park pass availability being wide open for the most part.
What Disney Has Said
After Disney reported on Disney World’s financial state, CFO Christine McCarthy shared a bit about growth at the parks. More specifically, she said, “Per cap growth was more moderate this quarter as we are comparing against the first full quarter of offering Genie+ and Lightning Lane at both parks in the prior year.”
But, she continued, “Please keep in mind that in the back half of this fiscal year, there will be an unfavorable comparison against the prior year’s incredibly successful 50th-anniversary celebration at Walt Disney World. We typically see some moderation in demand as we lap these types of events, and third quarter-to-date performance has been in line with those historical trends.”
Essentially, Disney has confirmed that demand in the parks is waning post-50th anniversary, and that trend is expected to continue. The fiscal year ends in October, so it’s likely that we could see fewer crowds and lower wait times around Disney World through the summer. Once the holidays roll around (which by Disney’s clock is basically August), crowds could start to creep back up — but we’ll have to wait and see.
No matter what happens this summer and beyond in Disney World, you can be sure we’ll be here to update you every step of the way. Stay tuned to AllEars for the latest Disney news!
Check Out All the Major Changes Recently Announced for Disney World
Are you heading to Disney World this summer? Tell us in the comments.
I would expect Orlando tourism down this year and next due to Epic Universe not opening until 2025. Even though EU is not a Disney park, those who don’t go to Orlando every year will likely wait until Universal’s new park opens.