Disney Officially Confirms Star Wars Galaxy's Edge Underperformed

[WDW Pro]

"Revenue at parks, experiences and products rose 7 percent to $6.6 billion. Galaxy's Edge, the new Star Wars area at Disneyland, didn't live up to attendance expectations over fears of "huge crowding ... some people stayed away just because they expected it would not be a great guest experience," said Iger. Plus, Disney raised ticket prices and surrounding hotels raised room rates in anticipation of the grand opening, and the higher costs scared some away."

https://www.hollywoodreporter.com/news/disney-earnings-disappoint-hefty-studio-performance-1229777

Well, that's one way to spin a drop in attendance of more than 50% on weekdays in June for Disneyland. Luckily for the report, Walt Disney World revenues were significantly up due to increased ticket prices in spite of weaker summer attendance on both coasts. Anyway, Iger has officially confirmed now that attendance expectations weren't met (as opposed to some defenders on the site and their statements), even if we all know there real reasons for the park being significantly less crowded had little to do with people afraid of crowding. People are waiting many hours to ride a bike coaster over in Harry Potter; they're surely okay with doing what it takes to see the latest new thing that they're interested in.

 

[Kram Sacul]

Well yeah. Everyone thought it was going to be a madhouse. Add in the convoluted reservation system, APs that are still blocked it’s no wonder the park was light.

 

[Figments Friend]

"Pleased, I am" - Master Yoda.



-

 

[Hakunamatata]

"Revenue at parks, experiences and products rose 7 percent to $6.6 billion. Galaxy's Edge, the new Star Wars area at Disneyland, didn't live up to attendance expectations over fears of "huge crowding ... some people stayed away just because they expected it would not be a great guest experience," said Iger. Plus, Disney raised ticket prices and surrounding hotels raised room rates in anticipation of the grand opening, and the higher costs scared some away."

https://www.hollywoodreporter.com/news/disney-earnings-disappoint-hefty-studio-performance-1229777

Well, that's one way to spin a drop in attendance of more than 50% on weekdays in June for Disneyland. Luckily for the report, Walt Disney World revenues were significantly up due to increased ticket prices in spite of weaker summer attendance on both coasts. Anyway, Iger has officially confirmed now that attendance expectations weren't met (as opposed to some defenders on the site and their statements), even if we all know there real reasons for the park being significantly less crowded had little to do with people afraid of crowding. People are waiting many hours to ride a bike coaster over in Harry Potter; they're surely okay with doing what it takes to see the latest new thing that they're interested in.

Is attributing the attendance drop to actual verifiable reasons spin? If he had said “attendance numbers were weak, but we view that as a positive because its allows us to level set and calibrate for future guest experience” I would call that spin. But to say it was due to expected crowding and increased prices, well isnt that accurate?

 

[shambolicdefending]

I'm more interested in how they adapt to the problem than how they spin it.

Will they do something to try and win back the regular ticket-buying customers that have clearly lost some interest in Disneyland? Or will they just double down on the AP infestation?

 

[WDW Pro]

I

I'm more interested in how they adapt to the problem than how they spin it.

Will they do something to try and win back the regular ticket-buying customers that have clearly lost some interest in Disneyland? Or will they just double down on the AP infestation?

My understanding is no decisions will be made for changes until at least January. However, top execs are absolutely aware now that significant changes are needed.

 

[Queen of the WDW Scene]

Well duh lol.

 

[THE 1HAPPY HAUNT]

This is what happens when people can't walk up the ramp.

 

[Sirwalterraleigh]

Is attributing the attendance drop to actual verifiable reasons spin? If he had said “attendance numbers were weak, but we view that as a positive because its allows us to level set and calibrate for future guest experience” I would call that spin. But to say it was due to expected crowding and increased prices, well isnt that accurate?

I think it’s “partial spin”

Were what spray tan bob cited “real” reasons? Yes...they were

But not the entire reasons. My belief (supported by reality) is the crunch on pricing over the last year/years have affected a lot of traveler and reduced their desire to “trust/spend” on Disney...
AND they have a Star Wars problem. They thought that all those people waiting in line for phantom menace were still there and willing to pay whatever the price to invade a Star was land.
Are they there? The core fans that have the money? Or the the new generations who don’t pay rent or car insurance yet?

Pursuant to the above: Star Wars fans - old and new - would embrace an OT now and for the next 20 years in much more harmony than what they chose. Not to say that what they’ve done can’t or won’t work...but they still ignored the easiest path to success.

Well duh lol.

We got a lot of “duh” on this stiff

If anyone wants to talk about pricing or decline in the quality of IP...eventually they’ll swirl the drain and go down

 

[socalifornian]

If anyone wants to talk about pricing or decline in the quality of IP...eventually they’ll swirl the drain and go down

Hopefully

 

[mandelbrot]

Sounds like Disney finally figured out how much the average guest values a day at DLR. The prices increases have been too aggressive and now they know where that line is. They will take this data and use it to maximize profits and attendance. DLR will be more packed than ever soon and we'll all remember fondly summer of 2019 as the last time Disneyland was pleasant.

 

[Sirwalterraleigh]

Sounds like Disney finally figured out how much the average guest values a day at DLR. The prices increases have been too aggressive and now they know where that line is. They will take this data and use it to maximize profits and attendance. DLR will be more packed than ever soon and we'll all remember fondly summer of 2019 as the last time Disneyland was pleasant.

Their portfolio dictates that revenue and profit from parks increases exponentially.

This is about stock value that is evaluated down to the nanosecond in the modern world. And that stock is bobs retirement piggy.

Expect worse to come

 

[Ismael Flores]

one thing that was omitted in the original post was that they also reported that even though attendance was down, the amount of paying daily attendance customers was up.
I wonder if that was an increase of foreign paying travelers or local visitors

to me i would think its from foreign travelers and the lack of local travelers was due to the high ticket prices added to the fear of the overhyped crowds.
Crowds dis seem to pick up end of July and first week of August when news of park being empty spread and when the discounted AP friend ticket was announced.

 

[Disney Analyst]

one thing that was omitted in the original post was that they also reported that even though attendance was down, the amount of paying daily attendance customers was up.
I wonder if that was an increase of foreign paying travelers or local visitors

to me i would think its from foreign travelers and the lack of local travelers was due to the high ticket prices added to the fear of the overhyped crowds.
Crowds dis seem to pick up end of July and first week of August when news of park being empty spread and when the discounted AP friend ticket was announced.

Exactly. They did mentioned paid guests was up, which is actually good for them. The reason for lower attendance is lack of APs. All will be back to normal soon... and all on here will complain about crowding.

 

[George Lucas on a Bench]

Where are all the people who were claiming Disney somehow wanted lower crowds now? You know, like they were trying to increase guest satisfaction by limiting entry, blocking APs, raising ticket prices etc. Yeah, right!

 

[Deleted member 107043]

Where are all the people who were claiming Disney somehow wanted lower crowds now?

*raises hand*

While this isn't the outcome they wanted the fact that spending increased despite a 3% decline in attendance proves that the P&R business can thrive financially in this economy with fewer people. Disney has zero reasons to be concerned about DLR's performance this quarter.

 

[TROR]

*raises hand*

While this isn't the outcome they wanted the fact that spending increased despite a 3% decline in attendance proves that the P&R business can thrive financially in this economy with fewer people. Disney has zero reasons to be concerned about DLR's performance this quarter.

But does that mean they aren't?

 

[Deleted member 107043]

But does that mean they aren't?

In the call iger was clear that he wasn't concerned. The bottom line, which, let's face it, is all they really care about, is that the parks performed well financially this quarter even with the downturn in traffic. Wait and see how the next quarter goes after the APs are unleashed. I'm predicting attendance will bounce back to normal.

 

[MisterPenguin]

When will Disney acknowledge that Donald has anger issues?

 

[TP2000]

In the call iger was clear that he wasn't concerned. The bottom line, which, let's face it, is all they really care about, is that the parks performed well financially this quarter even with the downturn in traffic. Wait and see how the next quarter goes after the APs are unleashed. I'm predicting attendance will bounce back to normal.

I fear you are right. As you note, the economy is booming and everyone has a job and discretionary income is high. The steps TDA took this summer to prevent AP's from getting into the park were legendary. In about two weeks the blockouts will lift and it will be interesting to see what happens to the wait times for Millennium Falcon.

I still think the Star Wars Land they debuted on May 31st feels surprisingly flat and lifeless, but heck I jumped in an Uber in late June and checked it out myself only because I could. Once all the other AP's are unblocked, everyone will want to see what all the talk is about for themselves.

Then in 2020 when the Resistance ride finally opens, they'll do it all over again. I only hope that they use the Resistance ride opening as a way to re-launch the new land with all the interactive entertainment and characters they used to say it would have to begin with. But that's another story that I'm not convinced Mr. Chapek knows is a problem, or even knows he should care about.