Why Disneyland’s $1 billion Star Wars land isn’t a bust despite flat attendance - OCR/SCNG

Disney Analyst

Well-Known Member
In the months following the opening of both Galaxy’s Edges, margins were either flat or down YoY at Domestic Parks (check the supplemental income). Disney did not open a land to have lower margins. The whole point of expanding a theme park is to leverage the existing infrastructure to bring more people in. That should increase margins if well executed. Instead, we saw a contraction in margins. Bob Iger endlessly brags about Disney’s ROI and Margins. Going to Iger with an investment idea that would not result in strong margins growth (or even a contraction) is an anathema. Galaxy’s Edge did not move Domestic Parks significantly, and likely even caused a contraction. Both @WDW Pro and MiceChat confirmed cuts were made to counter rising costs.

Lower margins at the parks isn’t always a bad thing. In some cases it means guests are getting better bang for their buck. Honestly, I wouldn’t mind if Disney decided to up quality and capacity for a few percentage points of margins. But was that what Disney was trying to do with Galaxy’s Edge? No, and any suggestion to the contrary is wrong.


Disney has stated that Galaxy’s Edge expanded Disneyland Park’s capacity by 20%. That was BEFORE RotR opened. Galaxy’s Edge, the new parking garage, the new tram area, and project sparkle were supposed to prepare the way for attendance growth of millions. Instead, we got flat attendance YoY. Anaheim was supposed to surge significantly. This idea that Disney added 20% capacity out of the goodness of their hearts is crazy. This is the same Disney that has happily stuffed thousands of guests into under-built parks like DAK and DHS.

They expected surging attendance and surging margins. They got neither. Why that happened remains up in the air...

At this point I was waiting for 5 years of data to see, as I just don’t think Disneyland would jump that significantly right away, regardless of the expansion, especially with a twin out at their flagship destination resorts.

but I don’t think we’ll ever know the real story, as COVID has certainly put a wrench in that data.
 

October82

Well-Known Member
Disney has stated that Galaxy’s Edge expanded Disneyland Park’s capacity by 20%. That was BEFORE RotR opened. Galaxy’s Edge, the new parking garage, the new tram area, and project sparkle were supposed to prepare the way for attendance growth of millions. Instead, we got flat attendance YoY. Anaheim was supposed to surge significantly. This idea that Disney added 20% capacity out of the goodness of their hearts is crazy. This is the same Disney that has happily stuffed thousands of guests into under-built parks like DAK and DHS.

Not to disagree, but it's worth pointing out that all of this investment was necessary because of years of underinvestment in Disneyland. I don't know if any of this was sufficient for actually adding guests more than it was finally making the infrastructure sufficient for the guests that were already there.
 

Disney Analyst

Well-Known Member
Not to disagree, but it's worth pointing out that all of this investment was necessary because of years of underinvestment in Disneyland. I don't know if any of this was sufficient for actually adding guests more than it was finally making the infrastructure sufficient for the guests that were already there.

Very good point. Sometimes we need to have this discussion from a broader perspective like that. It’s great that we can fight about whether the land is any good, or the IP, or whatever.

But you are right in the fact that Disneyland needed more space, badly. And now it has it.
 

BuzzedPotatoHead89

Well-Known Member
Not to disagree, but it's worth pointing out that all of this investment was necessary because of years of underinvestment in Disneyland. I don't know if any of this was sufficient for actually adding guests more than it was finally making the infrastructure sufficient for the guests that were already there.

I actually do agree with this. In the pre-pandemic age, we were looking at a Disneyland pricing model that was bulging with APs, and packed to the gils. While some of the “stardust” changes and Galaxy’s Edge itself were unpopular with fans, they were a necessity given the parks current pricing and attendance model.

While SWGE leaves more to be desired it also has room to work out its growing pains. The three biggest complaints - 1) the lack of opening day attractions, 2) lack of characters/kinetic energy, and 3) over-reliance on sequel trilogy characters, all can be addressed over time as the land (and presumably Lucasfilm’s storytelling) evolves.

Numbers 2 and 3 in particular can be easily addressed with little effort, particularly with the success of the Mandalorian. Number 1 was had been addressed in part by RoTR, though MFSR would benefit from new rotating “missions”. In a perfect world the “hard time setting” will be dropped/loosened and the land will take place in an “evolving” span of time between Ep. 6 and 7.

Thus, this would still allow us to keep the presence of the Resistance (and RoTR) but also maintain a multitude of Mandalorian and post-Empire themed settings for the Falcon. Maybe even the (long rumored) Endor-esque Ewok speeder bike coaster as an addition within the current “Resistance Forest” area. This could be done by overtaking Pooh/Hunger Bear section of Critter Country, and overtaking Muppets by formally morphing the rest of GE with Star Tours at DHS.
 

Disney Irish

Premium Member
In the months following the opening of both Galaxy’s Edges, margins were either flat or down YoY at Domestic Parks (check the supplemental income). Disney did not open a land to have lower margins. The whole point of expanding a theme park is to leverage the existing infrastructure to bring more people in. That should increase margins if well executed. Instead, we saw a contraction in margins. Bob Iger endlessly brags about Disney’s ROI and Margins. Going to Iger with an investment idea that would not result in strong margins growth (or even a contraction) is an anathema. Galaxy’s Edge did not move Domestic Parks significantly, and likely even caused a contraction. Both @WDW Pro and MiceChat confirmed cuts were made to counter rising costs.

Lower margins at the parks isn’t always a bad thing. In some cases it means guests are getting better bang for their buck. Honestly, I wouldn’t mind if Disney decided to up quality and capacity for a few percentage points of margins. But was that what Disney was trying to do with Galaxy’s Edge? No, and any suggestion to the contrary is wrong.


Disney has stated that Galaxy’s Edge expanded Disneyland Park’s capacity by 20%. That was BEFORE RotR opened. Galaxy’s Edge, the new parking garage, the new tram area, and project sparkle were supposed to prepare the way for attendance growth of millions. Instead, we got flat attendance YoY. Anaheim was supposed to surge significantly. This idea that Disney added 20% capacity out of the goodness of their hearts is crazy. This is the same Disney that has happily stuffed thousands of guests into under-built parks like DAK and DHS.

They expected surging attendance and surging margins. They got neither. Why that happened remains up in the air...

Edit: I’m going to link some quotes...
1) “We expect to see millions of new visitors come to Star Wars: Galaxy’s Edge, which will help support what we do for our residents.
We’re planning for the opening and will be working to handle the additional visitors to ensure everyone has a great experience.”

From City of Anaheim Doc.

2) ”We’re a world-class destination. We attract more than 22 million visitors every year to Disneyland and the West Coast’s largest convention center. With Disney’s new plan for Star Wars Land and the continued success of our professional sports teams, we expect even more millions in the years to come.“
State of Anaheim Speech 2016

3) “Meanwhile, The Anaheim Resort continues to see growth with new hotels and legions of new visitors expected for the May opening of Star Wars: Galaxy’s Edge at Disneyland Park.“
Anaheim First Proposal Document
I think its important to point out the lands ROI was never meant to be immediate. While yes I would agree there was an initial surge expected that never materialized (it can be debated endlessly on why that happened), however there wasn't meant to be 100% ROI in the first 12 months. This was a long term investment in the both Parks it was put into. The first 12 months I should remind you that was 1. without its marque ride for the first 6 months and 2. was interrupted by a global pandemic.

So the debate on whether this was a good investment is far from over. And one that I'm sure will be debated for years to come.
 

DDLand

Well-Known Member
I think its important to point out the lands ROI was never meant to be immediate. While yes I would agree there was an initial surge expected that never materialized (it can be debated endlessly on why that happened), however there wasn't meant to be 100% ROI in the first 12 months. This was a long term investment in the both Parks it was put into. The first 12 months I should remind you that was 1. without its marque ride for the first 6 months and 2. was interrupted by a global pandemic.

So the debate on whether this was a good investment is far from over. And one that I'm sure will be debated for years to come.
I agree with this. But this comment is more nuanced than what the article in question argued. This article tried to convince its readers that the current situation (just before COVID) is what Disneyland wanted. Disneyland wanted attendance increases and promised as much to Anaheim. Instead, it had a weak opening year.

I’m the type of person that believes an investment in Disneyland will pay dividends in the long run. Galaxy’s Edge will be an important part of Disneyland for decades to come. It’s not my favorite due to certain choices about its placement and execution, but I also know that it’s exactly the type of capacity expansion Disneyland needed/needs. So I think in the long run this land will be a net positive. But I also am loath to let Disney get away with gaslighting investors, fans, and the media. This was not a paradigm of success. The launch was bungled and this article is covering it up...
 

Disney Irish

Premium Member
I agree with this. But this comment is more nuanced than what the article in question argued. This article tried to convince its readers that the current situation (just before COVID) is what Disneyland wanted. Disneyland wanted attendance increases and promised as much to Anaheim. Instead, it had a weak opening year.

I’m the type of person that believes an investment in Disneyland will pay dividends in the long run. Galaxy’s Edge will be an important part of Disneyland for decades to come. It’s not my favorite due to certain choices about its placement and execution, but I also know that it’s exactly the type of capacity expansion Disneyland needed/needs. So I think in the long run this land will be a net positive. But I also am loath to let Disney get away with gaslighting investors, fans, and the media. This was not a paradigm of success. The launch was bungled and this article is covering it up...
Well over time they can make adjustments and more investments to the land, something I'm sure they thought of when cuts were made. "Hey we can always add this back later", etc. For example the restaurant, which I'm still hoping comes someday as its a cool concept. And something that appeared to be happening (at least rumored) right before the pandemic hit.

As for the article, eh, I always expect the Register to have a positive spin on all things Disney at this point.
 

SoCalMort

Well-Known Member
I'm more amused at Disney acknowledging the existence of The Star Wars Holiday Special than I probably should be...

If people did this on their own.....

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76714102_10103514010960789_5297759073473658880_n.jpg


...there is no way in heck D'land isn't going to monetize (even if just tacitly) this event.
 

waltography

Well-Known Member
There was a rumor being floated around on another site about seasonal overlays coming to GE, namely Batuuan Harvest Festival for Halloweentime and Life Day for the holidays. I doubt there's any truth to either of them because the only basis for the rumor seems to be the kids guide/activity book, but I'd absolutely love to see both of them come true.
 

George Lucas on a Bench

Well-Known Member
I know I've seen it all when I've seen a dorky Gen Z chick wearing an obscure 1980s Ewoks cartoon show shirt at Galaxy's End with a guy dressed in an ape suit. Has she even watched that crap?
 

TP2000

Well-Known Member
They saw poor attendance and the parks only had an increase in profit due to spending in other parks / areas. Sure the whole park wasn't a ghost town but you can't make the claim that what happened is what Disney planned. They talked about how they wouldn't need to advertise the land cause people would fill the land. They did Project Stardust to increase the size of walkways because they anticipated huge crowds to fill the park, and then nothing. They saw practically the same attendance as before it opened, if not worse. If they just wanted to maintain crowd levels why open up areas of the park and spend all the time and money widening walkways and removing planters for the same crowd levels?...

That's a perfect summary.

And the answer is obvious; they had planned for massively increased crowds in Disneyland, and they didn't get it. Not only did they not get it, the summer was a disaster until they started begging people to show up. Ahora!

What's fascinating is how in 2020 they are trying to rewrite history, and they've got a pathetic company shill like Brady McDonald to help them.

What plans for big crowds? What Project Stardust? We wanted to spend money to tear out planters and push stroller parking into old gift shops! We'd been trying to find the right story to tell in the old Tahitian Terrace for the past 15 years, and the Imagineered plot of Rosita the parrot was too good to pass up! We wanted to staff 100 extra CM's a day to stand around an empty Star Wars Land in June, 2019 so they could ignore the visitors and talk to each other about how much scheduling sucks. That was the plan all along! And have you seen Vi Moradi? Isn't she fun?!?

Please. :rolleyes:

The land was a flop. The summer was a disaster. They wasted a Billion bucks with little to show for it. And now Disneyland is heading into its fifth month of closure and they are scrambling to pull off a Life Day Festival next December to try and build interest in the sleepy land that Bob Chapek's budget cuts undermined.

Life Day! That tells you all you need to know. It reminds me of when a failed DCA hosted thrown together gimmicks in 2002 like ABC Prime Time Weekend and Rockin' The Bay concerts. Can they get Cynthia Harriss and the X Games back? 🤣

Look at Cynthia's tousled hair and stoner glasses! Look at that dude's awesome toupee! The kids will love this! DCA Rulz!
games-creator-ron-semaio-of-espn-and-cynthia-harris-disneyland-resort-picture-id2130598
 
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mickEblu

Well-Known Member
Disney developed the boarding group thingamabob for the entire land, anticipating an overcrowding situation the likes of which hadn't been seen since the last lifeboat on Titanic. After day 1 of official opening, the system was never used for the land again.


It took people one day to realize all there was to do in the land is get a ronto wrap and maybe ride Falcon if you re in the mood to ask for pilot. ROTR changes that obviously but really does nothing to change my perception of the land.
 

Screamface

Well-Known Member
Life Day! That tells you all you need to know. It reminds me of when a failed DCA hosted thrown together gimmicks in 2002 like ABC

But everyone would be absolutely thrilled for an event-based off the Star Wars Holiday Special!

It seems too perfect, it'd have to be true.

Build a Star Wars land without the beloved characters, based on a fictional location not from the films. Then when fans don't like it, try and appeal to them by referencing something that most people don't know about. Being something pointless and nothing, Disney would then need to invent what a life day celebration would be, so once again it would be Star Wars in name but not content.
 

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