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Credit: Lee Bailey / Flickr It looks like Disney is continuing to fall into a dangerous spiral when it comes to guests visiting the theme parks.
The Walt Disney Company (DIS) is set to report its third-quarter fiscal earnings on Wednesday, August 7, before the market opens. A conference call with management will follow at 8:30 a.m. EDT.
Disney stock has fallen over 27% from its 2024 high of 123.74, reached in March. On May 7, the stock dropped 9.51% following the release of second-quarter earnings, marking the biggest daily percentage decline since November 2022. The company had a strong start in 2024 with a solid first-quarter earnings report, but enthusiasm quickly waned. Will the Q3 numbers provide a turning point for the stock?
Recently, Disney stock traded around $90, just above the 2024 low of 88.69 from January. This level may attract value buyers who are long-term bullish on the stock. Conversely, a drop below this level could trigger additional selling.
Even former Marvel boss Ike Perlmutter has sold his entire stake in Disney for nearly $3 billion after his attempt to overhaul the board was decisively rejected.
Perlmutter, once one of Disney’s major stakeholders, sold all of his 25.6 million shares for a total of $2.9 billion.
The billionaire businessman sold his shares between early April and mid-July at an average price of just under $115, citing a lack of confidence in the company’s current management. Perlmutter joined Disney as CEO of Marvel Entertainment when it was acquired by the media giant in 2009.
The stocks are not the only area that we can see a noticeable dip in fortune when it comes to Disney.
Prices at Walt Disney World, Disneyland, and all of the Disney parks have gone up, leaving many to choose to stay home.
Since its grand opening in 1971, Walt Disney World Resort has undergone a significant evolution, marked by technological advancements, immersive storytelling, and expansion. However, a parallel transformation has occurred in the resort’s pricing structure, raising concerns about the accessibility of the quintessential Disney experience for an increasing number of guests.
Historically, Walt Disney World was positioned as a family-friendly destination with relatively affordable admission prices. In 1971, guests could enter the Magic Kingdom for just $3.50. Today, peak-season tickets for the same park have soared to over $180, representing a substantial increase of over 5100%.
This upward trajectory extends beyond individual tickets, with annual passes and resort accommodations experiencing comparable price hikes.
The overall cost of a Disney World vacation has expanded beyond admission fees. Dining options, once perceived as reasonably priced, have become increasingly expensive, and complimentary amenities like the Magical Express and free Magic Bands have been discontinued.
Additionally, the introduction of paid FastPass services, such as Disney Genie+ and Lightning Lane, has added a significant cost burden for guests seeking to optimize their park experience.
As a result of these cumulative increases, the average family vacation to Walt Disney World now requires a budget of several thousand dollars. This figure encompasses essential expenses like park tickets, accommodations, and food, but may exclude additional costs associated with character meals, merchandise, and other premium experiences.
Recent data further underscores this trend. The base price for single-day theme park tickets has risen from $109 to $119 in just one year, contradicting CEO Bob Iger’s stated commitment to maintaining accessibility. This price hike has raised questions about Disney’s dedication to providing affordable experiences for all guests.
The escalating costs at Walt Disney World have the potential to create a significant barrier to entry for many families, limiting the ability to create cherished memories and experience the magic of the resort.
Typically, in the summer, we are used to seeing the Disney parks, especially Magic Kingdom, packed to the brim. If you are traveling in the bottleneck of Fantasyland where Peter Pan’s Flight and “it’s a small world” cross over, you should expect to be a sardine next to the other sweaty tourists.
That being said, this has not been the case.
We have even seen some of the more popular rides that require a virtual queue to wait in line, like TRON Lightcycle / Run and Tiana’s Bayou Adventure not sell out during their respective “drop” times, which was typically never the case.
Now, Disney is nearly begging to make more money on those guests that are choosing to be in the parks and pay for the cost of a Disney vacation.
meet n’ leet (@LeetMor) seems to be in the Magic Kingdom today, where they noticed multiple signs out attempting to sway guests into eating at a table service restaurant.
Both Diamond Horseshoe and Liberty Tree Tavern both have signs out that note that they are accepting walk-ins, meaning that dining reservations are incredibly slow today. The firework dessert party is also advertising for same-day bookings, an add-on that used to sell out weeks in advance.
Nobody’s biting today. Literally. pic.twitter.com/368r2beRZG
— meet n’ leet (@LeetMor) July 28, 2024
With around 100,000 guests able to enter Magic Kingdom each day, it speaks volumes to see Disney attempting to fill dining reservations in this manner.
Interestingly enough, the comments on the post do bring up a good explanation as to why this is happening, and it may be that the recent additions of having to pay to skip the line on certain attractions, and to have to do so for your whole family, has cut the budget when it comes to dining, meaning advanced dining reservations are put on the back burner and quick service meals are prioritized due to their lower cost.
Personally, I will even opt for a quick service kids meal on days where I am looking to keep my visits budget friendly.
Even if we look at the wait times today, a Sunday, which would typically be a busy day to visit due to it being a weekend day, we can see that the parks have low crowds.
Rise of the Resistance, one of the most coveted rides in Disney’s Hollywood Studios, is a low 55-minute wait, Pirates of the Caribbean is only a 10-minute wait, Rock ‘n’ Roller Coaster Starring Aerosmith is 30 minutes, as is Tower of Terror, Haunted Mansion and Soarin. These are all attractions that typically boast massive wait times, but now, no longer appear as daunting.
It seems that Disney may have taken things to far when it comes to their never-ending price hikes, and now, their greed has left them with an unwanted warning to guests, telling them to stay home if they do not want to end up in debt, which, according to recent studies, many families have reported debt due to their Disney vacations.
Even with that being said, it does not appear that there will be any changes when it comes to price points at Disney anytime soon.
What do you think about the current cost of a Disney vacation?