News Disney plans to accelerate Parks investment to $60 billion over 10 years

[UNCgolf]

It is already evident that is not the case.

Rip Ride Rockit,
Texas
Vegas
Fast and Furious
England

And these are not counting the ones more rumored and the areas something will be done with such as Lost Continent and Expansion plots.

The diversification in the themed entertainment was/is very wise.

How exactly is it already evident that that's not the case?

My point is that projects that haven't begun (especially the rumored ones) are likely going to be delayed or cancelled because of the current economic conditions -- just like Disney. I didn't say they were going to stop work on things already in progress.

 

[Laketravis]

Using MK...

Attendance is down compared to pre-pandemic.

But pre-pandemic was crazy crowded such that the GSATs showed that guests saw that as problematic. Not only because too many bodies, but MK didn't have sufficient capacity (for years) for that many people, and people couldn't get on enough rides to think their visit was satisfactory. MK was hosting 10 million more people per year than the park was designed for.

All the price hikes and park reservations were purposely designed to reduce that crowd. And it did. And Disney raised prices to make up for less attendance. And Disney raised prices enough that park profits still went up.

In order to increase the number of people in MK back to pre-pandemic levels (while keeping pricing high), Disney still needs to increase MK's capacity. That's extra super-duper profits.

Tho, I say all their extra capacity money should have gone in to the other three parks to make them more attractive, but... MK is king.

I'm willing to bet a large portion of that expansion capital was projected to come from high-margin LL sales in various configurations. Whether attendance decreases or not, price sensitivity will most likely increase further, dampening those high margin revenue streams.

 

[Steamboat71]

Rivers of America saved?!?

 

[Vegas Disney Fan]

They’re literally not going to have a choice. Travel agents in Canada are reporting that bookings to America are down 90 percent. There were 1.2 million Canadians who travelled to Orlando in FY 2023. That’s about 2 percent of all WDW visitors. And that’s just Canadians. Extrapolate that to travelers from the rest of the world, add in a crashing domestic economy and domestic travel as well, there’s just no way they can expand. They’re going to have to cut to survive.

Hopefully Disney leadership is thinking long term and not short term, if Covid taught them anything it should be that there is a rebound after a downturn.

What’s happening right now is temporary, it will rebound, if Disneys smart they’ll push forward and prepare for that huge rebound rather than cancelling projects and then regret it in a year when things quiet down.

It takes Disney 5 years (or more) to complete a project, what’s happening today will likely be a distant memory by the time any of this becomes reality.

Edited to add I hope this saves ROA, that’s one project I wouldn’t mind seeing cancelled.

 

[Disgruntled Walt]

Rivers of America saved?!?

Don't just randomly post things like that without any reason! My heart skipped a beat!

 

[Jrb1979]

How exactly is it already evident that that's not the case?

My point is that many of those projects (especially the rumored ones) are going to be delayed or cancelled because of the current economic conditions -- just like Disney.

I can see the UK one being delayed. Vegas and Texas is too far along to be delayed. I think the Rip Ride Rockit replacement will still happen.

What will most likely happen is any project not announced for expansion will likely be cancelled or delayed.

 

[UNCgolf]

I can see the UK one being delayed. Vegas and Texas is too far along to be delayed. I think the Rip Ride Rockit replacement will still happen.

What will most likely happen is any project not announced for expansion will likely be cancelled or delayed.

Right, that was my point. They aren't going to stop construction of something that's already begun but I don't expect to see them start major overhauls at USF/IOA or add anything to EU right now.

 

[monothingie]

Only he can lead them (as they make 360 degree rotations around the bowl)

bUt STreAmInG!!!!

 

[Batman'sParents]

Hopefully Disney leadership is thinking long term and not short term, if Covid taught them anything it should be that there is a rebound after a downturn.

What’s happening right now is temporary, it will rebound, if Disneys smart they’ll push forward and prepare for that huge rebound rather than cancelling projects and then regretting it in a year when things quiet down.

It takes Disney 5 years (or more) to complete a project, what’s happening today will likely be a distant memory by the time any of this becomes reality.

Edited to add I hope this saves ROA, that’s one project I wouldn’t mind seeing cancelled.

The main issue is securing materials like steel or aluminum. You're looking at least an increase of 35%, if not higher. Now, if interest rates are low enough, it may be enough to overcome price burdens, but construction would be expensive.

 

[Jrb1979]

Hopefully Disney leadership is thinking long term and not short term, if Covid taught them anything it should be that there is a rebound after a downturn.

What’s happening right now is temporary, it will rebound, if Disneys smart they’ll push forward and prepare for that huge rebound rather than cancelling projects and then regretting it in a year when things quiet down.

It takes Disney 5 years (or more) to complete a project, what’s happening today will likely be a distant memory by the time any of this becomes reality.

Edited to add I hope this saves ROA, that’s one project I wouldn’t mind seeing cancelled.

Has it really rebounded? IMO outside of the UNPRECEDENTED DEMAND year, they haven't rebounded at all. iMO an economic downturn is a really bad thing for both Disney and Universal.

Look at the changes they did with Covid, with paid FP removing Magic Express and delaying significant investments.

 

[Disgruntled Walt]

the fault of fans of a former animatronic

???

 

[rd805]

I don't see either company stopping at this point: WDW knows they need to hit on these investments & fans will flock back once done. The only gripe is the lengthy turn around times.

Uni: They are going to make a crap ton of money on Epic. It would be foolish to think otherwise (new wands, nintendo power up bands), plus the people that are already doing the buy 2 days for 1 day at epic = minimally 3 days of packaging & full money in their hands. The 1 day ticket is NOT cheap - and express pass is going to rake in the $$ once people see crowds are (at the worst) semi-high. I don't see Universal being in ANY trouble in the immediate future and will capitalize on the same way that WDW does (souvenirs & express passes!).

 

[Jrb1979]

I don't see either company stopping at this point: WDW knows they need to hit on these investments & fans will flock back once done. The only gripe is the lengthy turn around times.

Uni: They are going to make a crap ton of money on Epic. It would be foolish to think otherwise (new wands, nintendo power up bands), plus the people that are already doing the buy 2 days for 1 day at epic = minimally 3 days of packaging & full money in their hands. The 1 day ticket is NOT cheap - and express pass is going to rake in the $$ once people see crowds are (at the worst) semi-high. I don't see Universal being in ANY trouble in the immediate future and will capitalize on the same way that WDW does (souvenirs & express passes!).

Agreed. The likely thing to happen is significant cuts to plans significant delays.

 

[Sirwalterraleigh]

The main issue is securing materials like steel or aluminum. You're looking at least an increase of 35%, if not higher. Now, if interest rates are low enough, it may be enough to overcome price burdens, but construction would be expensive.

The main issue is you’ve already outpriced your parks…and the people who you need to patronize them are set up to get smacked in their wallets from all sides

 

[Sirwalterraleigh]

I don't see either company stopping at this point: WDW knows they need to hit on these investments & fans will flock back once done. The only gripe is the lengthy turn around times.

Uni: They are going to make a crap ton of money on Epic. It would be foolish to think otherwise (new wands, nintendo power up bands), plus the people that are already doing the buy 2 days for 1 day at epic = minimally 3 days of packaging & full money in their hands. The 1 day ticket is NOT cheap - and express pass is going to rake in the $$ once people see crowds are (at the worst) semi-high. I don't see Universal being in ANY trouble in the immediate future and will capitalize on the same way that WDW does (souvenirs & express passes!).

Universal is in a better position

The money has been spent and they have room to expand their market

Down the street?
Anyone want an ugly timeshare?

 

[BrianLo]

All the Universal expansions/replacements that have been rumored are pretty unlikely to happen now. Maybe one or two of them but I'd be shocked if they go on a spending/building spree; those projects are mostly going to get pushed back if not cancelled.

That's thing, this economic (and tourism) situation is lousy for all theme parks but both WDW and Uni have a significant international clientele. With Comcast's financial situation, I would be just as skeptical of them spending a ton of money in the future as I would be for Disney.

If anything, the massive financial outlay for Epic Universe would probably make Uni even more stingy than Disney in the near future until they get some decent ROI on that project.

Indeed. The fanboism excuse aside, Comcast is horribly exposed. It’s one thing to be forward looking and build during a recession, it’s another entirely to open major product at the start of one.

Along with their broader and worse exposure to the ongoing linear downturn and their worse positioning in the pivot to streaming. The company is in a horrible place. It’s not like Disney is in a grand one either.

They aren’t going to hit their metrics on Epic, Disney for better or worse hasn’t really opened much product to hit metrics on and the cruise ships can be moved if the US totally implodes.

 

[BrianLo]

Rip Ride Rockit,
Texas
Vegas
Fast and Furious
England

The diversification in the themed entertainment was/is very wise.

Super diversified. Domestic, domestic, domestic, domestic, brexit.

Best of luck to them!

 

[Sirwalterraleigh]

Indeed. The fanboism excuse aside, Comcast is horribly exposed. It’s one thing to be forward looking and build during a recession, it’s another entirely to open major product at the start of one.

Along with their broader and worse exposure to the ongoing linear downturn and their worse positioning in the pivot to streaming. The company is in a horrible place. It’s not like Disney is in a grand one either.

They aren’t going to hit their metrics on Epic, Disney for better or worse hasn’t really opened much product to hit metrics on and the cruise ships can be moved if the US totally implodes.

Comcast has been “horribly exposed” for decades…its Comcast

But what is their product? High speed internet.

What is Disneys? That’s a problem. Missed in the headlines is YouTube passed Disney as the worlds biggest media company this week.

Now will Comcast be hurt at epic? Yes. Unlike the made up nonsense Wall Street will pull to justify “getting their money back” …parks need normal folk to walk through the gates. No way to pluss that (though DIS sure has tried)…so those about to be screwed are gonna pass along the pain to the park companies.

 

[BrianLo]

I didn’t even think of the cruise ships, wonder if they’re somewhat isolated from the posturing since they’re made in Germany.

They are indeed, made with EU steel. They are further foreign flagged and sheltered. They don’t diversify the company from a recession impacting travel and tourism, but the margins and booking on DCL is disgusting (like a positive disgusting if you are an executive) and so they really don’t seem at risk of having abundant slack capacity anytime soon.

They could face targeted measures that would be different than tariffs, think more like a tax for home porting in the US, but they are actually a good maneuver in this current economic environment. A Texas cheap kiddie park TBD.

 

[doctornick]

I didn’t even think of the cruise ships, wonder if they’re somewhat isolated from the posturing since they’re made in Germany.

And all the vessels are flagged in the Bahamas so they aren't really "domestic" even if they use US ports.