Disney World and Disneyland will be implementing many costly new procedures to help ensure the safety of guests and Cast Members upon the reopening of their theme parks.
Disney World
All of these potential health measures and capacity cuts mean that Disney could be in a tough position — losing money to be able to make it again. Prior to the reopening announcement, we explored the financial impacts of opening the theme parks versus keeping them closed. With the parks officially reopening, some analysts are noting what Disney will need to do to make money again.
Disney hasn’t and won’t be generating anywhere close to the pre-closure levels of revenue in the Parks, Experience, and Products sector for a while. In an earnings call that took place last month, Disney CEO Bob Chapek noted that the company would not reopen any park unless it would ultimately generate profit.
It’s Chewbacca!
So, with the Disney World parks reopening and Disneyland set to follow soon after, Disney may have determined what levels of capacity the parks need to maintain to keep a profit going. According to the Hollywood Reporter, Bernstein analyst Todd Juengar has estimated that Disney will need to maintain 25 percent of normal [pre-global health crisis] run-rate attendance to turn a profit.
Magic Kingdom Sign
The 25% attendance assertion is interesting. Disney has not made any indication as to how steeply park capacity will be reduced. If Juengar is correct, we may see it cut down to that 25% figure. Disneyland Shanghai saw a similar capacity decrease with a figure somewhere below 30% pre-closure attendance.
When we looked into this topic a month ago, we noted that at current operating cost, Disney would be operating at a loss if they lowered capacity by any more than 28%. Still, we also explored the fact that operating costs will greatly decrease as well with the continued closure of many attractions, resort hotels, dining experiences, and more. Take into account the cuts to operational costs and a less than 30% capacity opening starts to seem likely.
Cinderella Castle
Again, Disney executives have explained that they do not intend to publicly release reopening capacity figures at this time. It seems that we’ll have to determine if Juengar (and our) predictions are right once the parks reopen and we can see how crowded (or not-crowded) they are. Chapek said that guests would have to be “lucky enough” to access the new theme park reservation system, so we can assume that capacity will be significantly limited — maybe even all the way down to 25%.
Click here to see how much it’s costing Disney to keep its theme parks closed!
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I hope they lose a boat load of money fir curing out everything and for implementing this ridiculous reservation system. I hope their parks are full of only AP holders and that’s it! They want to cut everything out abd not reduce ticket costs it proves how greedy they truly are. At least universal is trying to bring back some characters and shows. They even account for every onsite guests into their parks do they always get into the parks, they even have a mask waiver for people with a medical need. Disney doesn’t even guarantee park entry for hotel
Guests. Who the heck would go under those circumstances?
I deal with public health on a day to day basis, and i have been saying since this pandemic started: I don’t see how the theme park concept survives this. It is antithetical to current societal need.
Why anyone would consider going to Disney World is beyond me. Florida still has a “14 day self quarentine” for anyony coming from NY, NJ and CT prior to checking in to any Disney Resort, Hotel, or entering A park. Disney has also eliminated most of the venues that guests most value when going to WDW – parades,
Character interactions, fireworks, dining, and the ability to preplan your trip to WDW. Disney has also eliminated park-hopping which is a highly valued benefit to going to WDW. Any one going to WDW with these restrictons and limitation will have a diasterous vacation in WDW and will never go again. I have been to WDW over 70 times and do not plan to ever go again until things change.
Bob, just to clarify, Disney has not officially said Park Hopping will end. But I do hear you; it’s a lot of change all at once, and many people agree with you that the value isn’t there.
Its a club. And ur not in it.
I’m going. I’ll be there on opening day through July 17th. Staying at the Polynesian. My family can’t wait. The fireworks is a bummer, but I could care less about the parades.
Going when capacity will be less than 1/3 of maximum is ideal. No waiting in lines, no need for fast passes, could care less about park hopping since I’ll be there for 7 days. I’ll get to experience all the parks and have an amazing time.
As of this day the convention will be held in jacksonvill.The Govenor has no intrest in keeping Disneys guest safe in any way ..If I’m correct news meteor and other are not getting the information needed how the increase of epidemic is rising and no concern from the Govenor of Florida how is any body going to self Quarantine for 14 days when arriving in Fl. When only spending a week where would they stay ..Please advise if Im incorrect thanks..
Kris, have a wonderful trip.