Disney4me Posted February 9, 2023 Report Posted February 9, 2023 Managing capacity — it’s something that has been discussed since the COVID-19 pandemic and continues to be important to the Disney parks today. Fantasyland Oftentimes, things like the Park Pass system are heavily discussed when it comes to managing capacity, but things like Genie+ can also help balance where people are in the park. During Disney’s earnings call for their first quarter of fiscal year 2023, we got a number of updates related to things in the parks. But one key thing CEO Bob Iger discussed was managing capacity. During the earnings call, Iger announced a new Avatar experience coming to Disneyland, theme park pricing, and more. But his comments on capacity were particularly interesting. Iger noted that he felt some of Disney’s pricing strategies were alienating people. He then shared that Disney is taking some steps to change things with its pricing, citing Disneyland as an example where the resort’s cheapest park ticket will now be available for more days out of the year. After discussing that change, Iger said they’d be “going to manage capacity very, very carefully.” (Quotes obtained thanks to the transcript from The Motley Fool) Crowds Iger continued by saying that some of the changes they’re making at Disney (which seemed to be a reference to the increased amount of cheaper Disneyland tickets), have enabled Disney to “shift [the] mix…from annual pass holders to people who may come just once in a lifetime or once.” Iger said that standard ticket guests (not annual passholders), “tend to be good customers of ours because of their per-cap spending when they’re there.” That’s something we’ve heard discussed before. In a 2020 earnings call, Bob Chapek stated that “someone who travels and stays for five to seven days is marginally more valuable to the business than someone who comes in on an annual pass” because those with an annual pass may “stay[] a day or two and consume[] less merchandise and food and beverage.” Crowds Switching back to the February call, Iger shared that some of the changes they’ve made in shifting the mix from Annual Passholders to other guests have helped Disney “manage capacity without…doing too much damage to the bottom line.” Interestingly, Disney does seem to be focused on this idea of balancing things more between Passholders and ticketed guests. Chapek once said that Annual Passholders sometimes use the parks “as their personal playground,” which Disney loves. But he said that they also have to make sure that there’s “room in the park for the family from Denver that comes once every five years.” The idea of restricting capacity more strictly when it comes to Passholders has been a point of contention for some though. The Park Pass reservation system’s limit on Passholder reservations spurred a lawsuit as it relates to Disneyland’s Magic Key passes, and a related lawsuit related to Disney World’s Passholders. Dumbo Magnet But restricting capacity further may not be Disney’s only option. During the February 2023 earnings call, Iger also pointed out that Disney has seen good results when they “invest in increasing capacity” in the parks, like through the building of new lands. Iger noted that they have other opportunities for increasing capacity and that he has spoken to Josh D’Amaro (Chairman of Disney Parks, Experiences, and Products) to see “where we can invest in them in the parks to increase capacity while — by preserving guest satisfaction.” Pandora Iger also discussed how they reduced capacity during the holiday season to improve the guest experience while still maintaining profitability. Iger shared that they’d “continue to look at opportunities like that, which is essentially to simply get more creative in terms of managing the capacity that we have.” From the sound of things, the Park Pass system could be sticking around for quite a while, but Disney may also be looking to manage capacity (and potentially increase it) by making other changes too. And the Park Pass system itself could be changing, based on recent adjustments we’ve seen announced at Disney World for Annual Passholders and D’Amaro’s comments on them. We’ll continue to keep an eye out for updates on this situation and let you know. Click here to see what Iger had to say about Disney’s theme park pricing Join the DFB Newsletter to get all the breaking news right in your inbox! Click here to Subscribe! Don't Miss Out on Any Disney Fun! Order Your Copy of the 2023 DFB Guide to Walt Disney World Dining Today! With more than 900 pages, the 2023 DFB Guide to Walt Disney World Dining is full of tips and planning tools developed by Disney World experts over 30+ years of visits. We've done the research for you, so you'll know just which spots will uniquely suit your family's needs! You'll get a Reference Guide, a 101 Plan, and a Printables and Resources Guide! With mini-reviews of every single restaurant, bar, lounge, kiosk and more; an entire chapter on the best snacks in Disney World; full Disney Dining Plan analysis; and a full chapter on discounts and deals; you'll have everything you need to plan your best vacation yet. Click here to order your copy of the 2023 DFB Guide to Walt Disney World Dining E-book with code WDW2023 to save 25% off the cover price today! Use code WDW2023 at check-out for 25% off the cover price today! http://www.disneyfoodblog.com/wp-content/uploads/2016/11/ready-to-shop-button.png Our guides are backed by a 100% money-back guarantee, so you have nothing to lose. What do you think about Iger’s comments? Tell us in the comments.The post Disney Will Continue to Manage Capacity to Shift the Mix Away From Annual Passholders first appeared on the disney food blog.View the full article Quote
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