Disney and Universal Vacations Face Mass Cancelations, Resort Hotels Hit Hard

Walt Disney World Resort and other theme park giants like Universal Orlando Resort have seen some pretty good numbers over the last few years since the end of the COVID-19 pandemic. But are things returning to a new normal where crowds, Resorts, and parks might significantly dip?

A Dip in Resort Stays Coming Soon to Disney World and Universal Orlando Resort?

Despite the usual hustle and bustle, this summer at Orlando’s theme parks seemed to lack its typical magic. While certain days saw the parks packed with eager visitors, others were reticent, leaving many to wonder what had changed. Central Florida’s attractions have been somewhat unpredictable for the past few months.

One week might see heavy foot traffic, while the next might feel like a different season. This inconsistency didn’t go unnoticed by theme park regulars. “July wasn’t as busy as last year. In my opinion, nothing felt like ‘OK, this is peak season.’ I didn’t get that feeling this summer,” shared Ethan Hershaft, the owner of the Orlando Tourist channel on YouTube.

This year, after the initial post-pandemic surge, when Florida resorts experienced a boom, a different picture has been painted. According to STR’s Destination Report, which keeps tabs on U.S. markets, hotel occupancy in the area has been slipping, with dips each month in 2024 compared to last year. In June, occupancy in Orlando fell by 2% from the previous year, and July saw a further decline of 3.1%.

Michael Stathokostopoulos, senior director of hospitality analytics at CoStar Group, noted that while other urban centers like New York and Boston are seeing a rise in hotel occupancy, Central Florida’s hotels face some tough challenges.

So, what’s causing this downward trend? Experts believe a combination of factors is at play. The middle class is feeling the pinch, travel costs are rising, and new destinations are tempting tourists to look beyond Central Florida.

“There seems to be some weakening in domestic leisure because of what’s happening with the high prices,” Stathokostopoulous explained, “especially the middle-income and budget-conscious travelers.”

Travel agent Jaime Noble echoed these sentiments, pointing out that economic uncertainty, the soaring cost of living, and rising interest rates make people think twice about spending. “It’s an election year, so no matter how you feel about that, it affects the economy. People kind of are waiting to see what’s going to happen,” Noble said.

The cost factor isn’t just limited to travel logistics; it’s deeply rooted in the theme park industry. Dennis Speigel, CEO of International theme park Services, linked the shift in cost awareness back to Bob Chapek’s time as CEO of Walt Disney Co. Some fans felt that Chapek’s focus on financial gain came at the expense of Disney’s creative essence.

Theme Parks in Orlando Are Preparing for Cancelations and a Mass Exodus

This sentiment seems to have rippled through the entire industry, leading to a perception that theme park vacations are becoming prohibitively expensive. “There was a trickle-down effect on that, and people began either understanding or believing it is expensive to go to theme parks. So there has to be a correction,” Speigel added.

Walt Disney World, known for its intricate and often costly vacation planning, has its challenges. Len Testa, who owns the vacation-planning site Touring Plans, highlighted the growing complexity of Disney vacations, where park reservations, smartphone apps, and pre-scheduled ride times have become the norm.

While these changes were introduced during the pandemic, their continuation has left some visitors longing for simpler, more spontaneous experiences.

However, Disney is making efforts to address these concerns. In late June, the company relaxed some of its reservation rules and made it easier for guests to plan their visits. Testa believes it will take some time for these adjustments to resonate with visitors, but it’s a step in the right direction. Even as attendance fluctuates, Florida remains a top destination for many.

Visit Florida recently reported that 34.2 million visitors traveled to the state in the second quarter of this year, marking a 1.7% increase over the same period in 2023.

Yet, there’s no denying that the theme parks have felt the effects of these broader trends. Disney’s most recent earnings report showed a modest 2% increase in revenue from its parks division worldwide, which CEO Robert Iger described as “a bit of a slowdown.” Universal’s theme parks, meanwhile, saw an 11% drop in revenue.

Looking ahead, all eyes are on Epic Universe, the new theme park under construction near the Orange County Convention Center. Set to open next year, it’s poised to be the first major theme park debut in Orlando since Islands of Adventure in 1999.

Universal’s leadership remains optimistic that this new addition will significantly boost the area’s tourism industry. But until then, the ebb and flow of Central Florida’s tourism will continue as visitors weigh their options in an ever-changing landscape.

As the allure of fresh travel destinations and new attractions elsewhere grows, some seasoned visitors may be holding off, waiting for Epic Universe to open its gates. Others might seek different experiences, from European adventures to the booming cruise industry. Despite the challenges, the magic of Central Florida’s theme parks isn’t fading; it’s just evolving.