Walt Disney is set to invest $60 billion over the next decade into its experiences section, hoping to revolutionize its physical presence worldwide. Part of this investment will target improvements in ride technologies, digital reservation systems, and visitor amenities, while also focusing on sustainable practices.
Disney plans not just to improve its theme parks but also its cruise line services and resorts, as well as introduce new merchandise. This strategic investment aims to secure Disney’s position at the forefront of global entertainment.
Disneyland Resort in Anaheim is undergoing a significant expansion for $1.9 billion. The scope includes introducing new attractions and expanding hotel, retail, and food services, aiming to enhance the overall guest experience. The new attractions are expected to open within the next two years.
Despite losses to revenue, Disney’s theme parks serve a crucial role in turning popular movie franchises into attractions. It provides deeper connections to the Disney brand, boosting merchandise sales and brand loyalty.
Disney’s strategic $60 billion global upgrade
Disney’s theme parks are considered a strong branch of the company’s business model.
Disney’s theme parks have demonstrated consistent profitability. Assistant professor at the University of Central Florida Carissa Baker noted potential new experiences and attractions if the DisneylandForward initiative gets approved. There are, however, concerns about the impact on local infrastructure.
In the last fiscal year, theme parks made up about 70% of Disney’s operating income. The company’s focus is shifting from its TV networks towards its theme parks due to the rising popularity of streaming platforms. Disney has launched its own streaming service, Disney+, to accommodate this change.
Despite losses due to the COVID-19 pandemic, theme parks saw quicker earnings recovery than movie theaters. Dennis Speigel, founder and CEO of International Theme Park Services, commented on the significance of Disney’s detailed story offerings and the role of outdoor experiences in recovery. Speigel warns of potential unpredictability due to the continuously changing nature of the pandemic.
The DisneylandForward expansion aims to improve the park’s appeal by merging attractions with shopping, dining, and parking. There are hints that immersive Frozen, Tron, and Avatar-themed experiences may be included in this innovative venture.