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

[WaltWiz1901]

How do you budget for completely erratic and nonsensical price increases based on nothing grounded in reality?

cannot stress enough how off-base it is that much of Disney's contemporary short-sighted decision-making is still being attributed to vague "budget cuts" like it's still the early 2000s and Paul Pressler is still at the helm.* there is such a thing as bureaucracy and it can be wasted spectacularly
*though to be honest, it certainly feels like it

 

[Lilofan]

I keep abreast of a lot of what's going on in Florida as it feels like my second home so yes I was aware of 'kids' being allowed to work to backfill labour jobs. I try to stay out of politics as it's not something I can vote on and it's not my country. You can tell those on here who are arguing politically at times because they get very defensive over things they don't agree with and try hitting back.

For instance me saying that my wife and I aren't coming this year or next despite coming every year because of the markets and prices and a bad taste in our mouths currently doesn't say what side I'm on and isn't being 'political', but rather practical because of circumstances. Even so I was instantly told "Your country doesn't allow free speech and imprisons people for it" and then told "Watch your own country pal and don't comment on ours" or similar despite me not criticising America as such. I could have responded with remarks about American political decisions but didn't as it's not the place to do so here, but that's the reply I get.

I assume they're on the defensive because they read the comment 'bad taste in our mouths' and assume that's connected to one particular political party? Surely that's an assumption based on what, the notion that the party they support has done something that could be deemed as wrong, hmmmm? It could be comments or policies from any group as I have no allegiances with either and is just a statement on the reasons we're not coming this year or next.

Anyhow let's hope that the change in economics doesn't affect the building at theme parks which is what this thread is about.

The change in economics is tightening one’s belts to possibly include streamlining operations which many knows what that means. To keep building out theme parks while laying off - how’s that going to sound to the world?

 

[Lilofan]

Why not? It’s the excuse Disney will use to pull back on investment. There is always something like they can use. This is just the latest.

In future earnings reports to Wall Street and shareholders is absolutely the reasoning for not meeting targets. Disney won’t be the only player using the tariff buzzword

 

[Sirwalterraleigh]

They will still close Dinosaur because that’s a savings. It will just stay closed for a long time.

Mmmm hmmm…

Because they gave it the splash treatment…let it absolutely rot for years so they can replace it and slap “new” on it.

What clever people they have. Buzz is in that realm too.

 

[celluloid]

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

Best of luck to them!

Yes, you had to really reach to have an issue that these examples were domestic theme park based(still their primary market) and ignore the fact that they just built new attractions in Japan, and just opened an entirely new theme park resort in Beijing just 4 years ago, including its version of the most popular halloween event in the world growing in a market that suddenly loves it.

Also, you post as if geography is the only way to diversify.

Don't start posts with "fanboism aside" type statements and then showcase it.


Epic is hitting metrics fine, because besides a minority set of VIP guests, every body you see within thate gates at the very LEAST have ticket media of over 140 dollars a day admission value. You will be surrounded by many who paid near 200 dollars for that day for just admission. Not Annual Passholders getting in gratis, not discounted multi day tickets, (remember you only get one admission day per package set and those days at EPIC cost ya) and you won't be seeing Team Members there with their admission as a perk to their ID as they are blocked out.

 

[Sirwalterraleigh]

Yes, you had to really reach to have an issue that these examples were domestic theme park based(still their primary market) and ignore the fact that they just built new attractions in Japan, and just opened an entirely new theme park resort in Beijing just 4 years ago, including its version of the most popular halloween event in the world growing in a market that suddenly loves it.

Also, you post as if geography is the only way to diversify.

Except they didn’t build anything in Japan…they spent as much on that stuff as I used to when I built something in roller coaster tycoon

 

[celluloid]

Except they didn’t build anything in Japan…they spent as much on that stuff as I used to when I built something in roller coaster tycoon

Their events have expanded and diversified in the last decade.

Mario Kart and Nintendo aside the last decade, the events that have loosely inspired Fan Fest have grown as part of that diversification. And USJ is not hurting. You also have to give Comcast a little slack, since that is who is being scrutinized here. They became the owner full just semi recently in 2017. So Mario, Minion land all the parades and recent events(Spy Family, Pokemon, DK Coaster, and other hubub have been their doing. Spidey replacement also imminent.


And attendance shows it has been a success as Attendance in USJ grew by 2 million in 2023 against its highest ever before that. Solid ROI going on since 2017.


Compare to DHS pre–Galaxy's Edge or AK pre Avatar(and now Post Avatar) to see the stagnation in comparison. Parks DIsney has always Soley owned and operated.

 

[TheDisneyParksfanC8]

I think if any major projects got cut like say Coco or the second Cars attraction, rumors or info will leak out. We shall see what happens. How long do you think it will be before Disney takes the ax to projects?

 

[Disone]

If an economic downturn slows or stop the new additions, then that same economic downturn will reduce the number of guests such that the additions aren't needed.

I am surprised...

My thoughts (which is not what Disney is going to do)

You don't build things only when it busy and you need capacity. Opening new attraction's going to draw more crowds anyway possibly offsetting any theoretical addition to capacity. Especially with virtual que!

During a slump you don't need the capacity, but you to create demand and doing nothing because you no longer need capacity could be a bit short cited. Demand comes back eventually and you have nothing to offer, so the demand goes where the new shiny offering is.

I think some of the projects will get canceled but Disney was still pushed through for the others because they know the downturn will not be forever and they will need something fresh and exciting to entice people to come back when their wallets are ready.

I just hope the ones that do go through are top notch and not value engineered To second rate watered down attractions. Guardians has been the best attraction they've offered in a while but even that isn't great. IMO It's just really good. I'll even go as far as saying surprisingly better than expected but Disney needs a great new hit attraction.

 

[Casper Gutman]

By the way, if I’m Disney, I absolutely shut down any project that isn’t Tropical Americas right now. Full stop. If I’m Universal, I do the same.

Disney should be relentlessly criticized for not building when times were good. But now… this isn’t on them.

 

[Streetway Again]

Can’t wait to wake up tomorrow morning and for the past 2 days of discussion to be gone!

 

[TheDisneyParksfanC8]

Remember that four ships announcement? I think we have the big play pavilion winner!

Disney knows the parks are more important than the cruise line. if they ax those ships and redirect the funds to the parks as a cushion, thats probably fine by most of us here.

 

[Sirwalterraleigh]

Remember that four ships announcement? I think we have the big play pavilion winner!

I think the deal there is they’ve lost all their momentum to exploit the parks…so bobs plan was to pivot to exploiting the cruiseline as the hole in the portfolio opens up…

But the smart move would be to protect parks at all costs. But they’ve already proven they won’t do that.

Think bobs next contract is gonna change that?

 

[MisterPenguin]

Why not? It’s the excuse Disney will use to pull back on investment. There is always something like they can use. This is just the latest.

Your posts seems to assume that Disney is reluctantly being forced into spending that $60B investment in the parks.

That is not the case at all. At. All.

Iger, in defiance of what Wall Street would have wanted, doubled down on defending that big Capex Spend (never mind it's pretty much the same rate of Capex spending in recent history).

In the quarterly call he pointed out that the segment of TWDC that has the highest Rate Of Investment is the parks. So, they're going all in on expanding the parks (never mind that that means higher prices for guests for the new and improved attractions).

The point is, Iger is not looking for an excuse to not spend that Capex. He wants to spend it and reap its ROI.

 

[Lilofan]

Yes because Disney and the Republican party are on such good terms

Disney is on good terms with whoever if they get their way. ( ie Amendment 3 had lots of Disney $$” to influence “ which it passed. No Vegas style casino set ups in FL and even the Seminole Tribe donated millions $$ to make sure A3 passed. It passed 71% of the vote.

 

[peter11435]

Disney knows the parks are more important than the cruise line. if they ax those ships and redirect the funds to the parks as a cushion, thats probably fine by most of us here.

DCL has far better occupancy, margins, and GSAT scores than the parks. There’s also much more room to grow market share in that industry. So in terms of importance the parks do not exactly win over the cruise line.

Also being foreign flagged vessels constructed in Germany their construction won’t really be negatively impacted by tariffs. In fact it could have a positive impact by driving down costs of German steal.

 

[Lilofan]

DCL has far better occupancy, margins, and GSAT scores than the parks. There’s also much more room to grow market share in that industry. So in terms of importance the parks do not exactly win over the cruise line.

Also being foreign flagged vessels constructed in Germany their construction won’t really be negatively impacted by tariffs. In fact it could have a positive impact by driving down costs of German steal.

Cruising we noticed is getting to know and party with the fun crowd many indulging in food and drink , excursions and ship options. When we enjoy the parks we see and get to know more fellow guests that are stressed out for various reasons. Cruising is the way to go.

 

[BrianLo]

That insider report doesn’t make a lot of sense. It’s the American market with tariffs on steel, not the German one.

The impact on the two existing ships (I assume this is referring to Destiny and Adventure) would be negligible. They are already blocked and built and floated out.

 

[Disone]

Disney knows the parks are more important than the cruise line. if they ax those ships and redirect the funds to the parks as a cushion, thats probably fine by most of us here.

DCL is able to command a significantly higher price any other non luxury brand, including even RCL's Icon, which had tremendous buzz around its inauguration.

I looked up all June's cruises, In the Caribbean, among celebrity, carnival, Royal Caribbean, msc, Norwegian, princess, and disney....

Disney Treasure significantly higher than second place icon of the seas. Here's a screen capture of icons most expensive cruise to Disney treasures cheapest cruise for the month of June.

This is why they are building more ships and I think they will keep those plans.

 

[Sirwalterraleigh]

DCL has far better occupancy, margins, and GSAT scores than the parks. There’s also much more room to grow market share in that industry. So in terms of importance the parks do not exactly win over the cruise line.

Also being foreign flagged vessels constructed in Germany their construction won’t really be negatively impacted by tariffs. In fact it could have a positive impact by driving down costs of German steal.

Exactly…

So “bad management 101”says to recklessly exploit the living CRAP out of it