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Disney’s parks and experiences division has reported a 7% increase in revenue up to US$9.1bn despite rising operational costs and lower guest attendance at the Disney World resort in Florida
Lauren Heath-Jones | Planet Attractions | 12 Feb 2024
The Disney World Resort in Florida experienced low visitor numbers in Q1 2024 Credit: Disney
Disney’s parks and experiences division has reported a 7% increase in revenue, to US$9.1bn (€8.4bn, £7.2bn), for the first quarter of 2024, despite experiencing a drop in visitor attendance at its domestic parks, including the Disney World resort in Florida, US.
The company also reported a decrease in operating income, largely attributed to inflation and the performance of its domestic parks, with operating costs rising from US$2.4bn (€2.2bn, £1.9bn) in Q3 2023 to US$3.1bn (€2.9bn, £2.5bn), despite the company implementing several cost saving initiatives.
According to the earnings report, Disney World’s Q1 performance was impacted by several factors including higher operating costs driven by inflation, and decreased overall guest attendance in comparison to the previous year – the resort’s fiftieth anniversary year.
The Disneyland Resort in California saw a spike in visitor numbers and guest spend throughout the quarter CREDIT: DISNEY
The Disneyland Resort in California, meanwhile, saw a growth in visitor attendance and guest spend, however this was offset by increased operating costs.
Higher average ticket prices at both resorts and a decrease in guest occupancy at Disney hotels also contributed, however, these factors were largely offset by the growth of Disney Cruise Lines, as well as an increase in guest spend and lower average daily hotel room rates.
Disney’s international parks in China also saw a higher volume of visitors, most likely due to new attractions at the parks including the World of Frozen at the Hong Kong Disneyland Resort and Zootopia at Shanghai Disney Resort. While attendance at the Disneyland Paris resort in France dropped.
Hong Kong Disneyland Resort saw the opening of World of Frozen CREDIT: DISNEY
Despite the weaker performance at the company’s US park operations, Disney CEO Bob Iger remains hopeful for the future.
“Just one year ago, we outlined an ambitious plan to return The Walt Disney Company to a period of sustained growth and shareholder value creation,” he said.
“Our strong performance this past quarter demonstrates we have turned the corner and entered a new era for the company, focused on building streaming into a profitable growth business, reinvigorating our film studios, and turbocharging growth in our parks and experiences.
“As we build for the future, the steps we are taking today lend themselves to solidifying Disney’s place as the preeminent creator of global content. Looking at the renewed strength of all of our businesses this quarter – from sports, to entertainment, to experiences – we believe the stage is now set for significant growth and success.”
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