Disney’s theme parks revenue increased, despite attendance flat-lining according to the Q4 earnings call that took place earlier today.
According to Disney, this is because of increases in ticket prices, hotel prices and food prices.
Growth at Disneyland Resort was primarily due to higher guest spending, partially offset by expenses associated with Star Wars: Galaxy’s Edge, which opened on May 31, and, to a lesser extent, lower attendance. Guest spending growth was primarily due to increases in average ticket prices and higher food, beverage and merchandise spending….
So basically Disney is getting as much blood out of the “rocks” that are still visiting Walt Disney World and Disneyland and are willing to pay almost $7.00 for a Mickey pretzel.
Of course, Disney being Disney, they spin this as a win with Parks, Experience and Products revenue increasing 8 percent in Q4 to $6.7 billion.
Blame it on the rain. But don’t you DARE blame Star Wars: Galaxy’s Edge.
Also discussed in the call was the reason for the attendance slump. Most media outlets blame price hikes and Galaxy’s Edge being utterly underwhelming, but Disney blamed Hurricane Dorian.
(Yeah, that was like, a week.)
Disney CEO Bob Iger refuses to acknowledge the failure of Galaxy’s Edge, instead boasting about how many people have been pushed through the single attraction (5 million he claims.)
And of course, Disney also talked about how they wanted the parks to be emptier for an “improved guest experience.” Of course to achieve that, they just have to jack the prices.
‘Rise of the Resistance’ will make or break Galaxy’s Edge.
Disney is betting heavy on Rise of the Resistance bringing more people to the parks when it opens in Walt Disney World in December and Disneyland in January.
According to Disney, bookings are up 5% over last year and they’re “feeling good” about next quarter.
But that couldn’t possibly have anything to do with the fire sales they’ve been having on hotel rooms lately.
Disney, as a whole, was up overall in Q4.
However, it’s not all “doom and gloom.” Disney was up overall this quarter, and managed to beat analysts’ predictions, which were slashed a few weeks ago.
[Hat Tip: Orlando Sentinel]