The Walt Disney Company’s earnings report was released today, giving us some interesting insight into how the company has been operating and raking in profits and growth.
According to the report, the company brought in over $7 billion in its first quarter, an impressive feat regardless of the ongoing COVID-19 pandemic. In Q4 of the fiscal 2021 year, Disney reported a 38% profit increase in the Direct-to-Consumer industry. The Disney Parks, Experiences and Products revenues for the quarter also increased to $5.5 billion, compared to $2.7 billion in the prior-year quarter.
This growth is due to an increase in Guests visiting the parks as well as an increase in the average “per capita ticket revenue”, meaning the company made more money from one ticket than it previously had before. The report attributes profits to Guests both upgrading to Disney Genie+ and using the individual Lightning lanes at the Parks. We also found out that up to 50% of Guests are opting to upgrade to the paid Genie+ service.
Disney Genie+ and Lightning Lane were released last year to much criticism and frustration, leaving many Guests feeling confused by the service. In theory, this paid service should enhance Guests’ experience at the Parks, but in practice, it seemed to just be an expensive itinerary planner. These paid services allow Guests to skip lines for a price, meaning Disney now has a financial incentive to have long lines. At Disney World, for $15.00 per day per Guest, you can skip the long standby queue by making a Lightning Lane reservation (new FastPass) and returning at that time.
The report stated:
Guest spending growth was due to an increase in average per capita ticket revenue, higher average daily hotel room rates and an increase in food, beverage and merchandise spending. The increase in average per capita ticket revenue was due to attendance mix and the introduction of Genie+ and Lightning Lane. Higher costs were due to an increase in operating costs, due to volume growth, and higher marketing spending. Our domestic parks and resorts were open for the entire current quarter, whereas Disneyland Resort was closed for all of the prior-year quarter, and Walt Disney World Resort operated at reduced capacity due to mandatory COVID-19 restrictions.
Let the expert team at Academy Travel help you plan your next magical vacation to Disneyland Resort, including Disneyland Park, Disney California Adventure, and the Downtown Disney District. Or what about Walt Disney World Resort’s four theme parks — Magic Kingdom, EPCOT, Disney’s Animal Kingdom, and Disney’s Hollywood Studios — and the Disney Springs shopping and dining district!