Disney’s Parks and Resorts Division Has Mixed Results in Second Quarter
Photo courtesy of Walt Disney World Resort
Disney announced that its new tiered pricing was one of the reasons behind a drop in attendance at Walt Disney World Resort, but the increase in the average admission price and the success of Disneyland helped offset the drop in numbers.
According to OCRegister.com, Disney held its second fiscal quarter conference call Tuesday, which revealed the drop in attendance at Florida’s Walt Disney World Resort following the introduction of the tiered pricing format. On the other hand, the company reported a slight increase at Disneyland and Disney California Adventure.
While park attendance overall stayed relatively level as each of the parks offset the losses and the gains of the others, Disney's Parks and Resorts division reported during the call that revenue increased four percent to $3.9 billion, and the operating income increased 10 percent to $624 million.
Disney’s chief financial officer Christine McCarthy announced during the call that the revenue increases for the Parks and Resorts division are a result of higher per-guest spending, increased ticket costs, more merchandise sales and elevated hotel room rates.
“We like the steps that we have taken in terms of pricing. We have taken a number of steps or made a number of steps to essentially grow revenue,” Disney CEO Bob Iger said during the conference call. “In some cases, actually, the expense of some attendance where we are changing our pricing approach, sometimes in part to moderate attendance so that the park experience is a little bit better, but all designed with the effect of essentially raising revenue.”
Iger also went on to speak about the company’s excitement regarding the opening of Shanghai Disney on June 16, and also spoke about the recent success of the Disney Cruise Line, which is part of the Parks and Resorts division.
The entire conference call and transcription can be found on Disney’s official website.
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