Disney Is Spending Less on Its Parks, but Earning Much More

Disney Parks and Resorts worldwide saw an overwhelming profit increase last quarter.

Despite unseasonably low crowds at Walt Disney World Resort and the failure of Star Wars: Galactic Starcruiser, the Asian Disney Parks and Disneyland Resort saw growth in the last fiscal quarter.

According to The Walt Disney Company’s Quarter Three Earnings Report, Disney Parks, Experiences, and Products earned $8.3 billion in revenue, up 13% from last quarter. Shanghai Disney Resort and Tokyo Disney Resort saw record numbers. Hong Kong Disney Resort grew to a lesser extent following multiple COVID-19 closures. Disneyland Resort also increased substantially in Quarter 3.

These numbers were offset by lower revenue at domestic locations, mainly Walt Disney World Resort. Profit at Magic Kingdom, EPCOT, Disney’s Animal Kingdom, and Disney’s Hollywood Studios came from higher Food & Beverage spending per Guest and increased purchasing of Disney Genie+/Lightning Lane service. These made up for lower attendance and lower merchandise spending, as well as the significant losses from the closure of Star Wars: Galactic Starcruiser.

During the Quarterly Earnings Call, Disney revealed that companywide expenses were impacted by an abandoned, unnamed project. Disney Vacation Club (DVC) sales dropped in Quarter Three but were partially offset by an uptick in Disney Cruise Line spending.

Still, The Walt Disney Company spent less on its Theme Parks while profiting more. In the first nine months of 2023, Disney spent $1.54 billion on capital projects at Disneyland Resort and Walt Disney World Resort. This is down from this time last year when the company had already spent $2.23 billion on the domestic Disney Parks.

As the COVID-19 revenge travel bubble pops and travel costs rise, Disney needs to think creatively to keep up. Walt Disney World Resort, for example, has already revealed record discounts for Disney Park tickets, VIP Tours, Resort hotel rooms, and more. As travel destinations worldwide see revenue dips, The Walt Disney Company is spending less on new ideas and carefully considering price increases across the Disney Parks.

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