Disney’s theme park division reported a new revenue and operating income record for its fiscal year 2024: revenue rose 5% to $34.15 billion and operating income increased 4% to $9.27 billion. This all grows with very important new investments in domestic and international parks, which are still awaiting completion. Still, prior even to their eventual opening, Disney is already experiencing pressure resulting from increased demand and related higher spending from its park guests.
Experiences – the company’s division that includes theme parks, resorts, cruises, and consumer products – offered the greatest revenue growth of any Disney division in 2024, even outpacing its entertainment segment. Disney executives expect the upward trend to continue, projecting a 6% to 8% increase in profits for fiscal 2025, even before the debut of planned attractions like new lands and rides tied to properties like Coco and Avengers.
While Disney invests $60 billion into its 10-year efforts to transform its parks, it will be years before these new developments come together and form a more complete experience. The company is banking on seasonal events, in-park entertainment, and limited-time offerings to keep people interested in the meantime. Repeat visits appear to be motivated by seasonal parades, unique food products, and special popcorn buckets and holiday-themed collectibles by frequent visitors.
In addition to expansions, Disney is also well-placed to benefit from new developments on the theme park front. In particular, Universal’s Epic Universe, which opened in Florida last year, will boost tourism in that region, which in turn should encourage further visitors to Disney parks.
Live entertainment is also one key focus of Disney, which keeps guests engaged. Parades and nighttime spectaculars, character meet-and-greets all offer memories to cherish and keep guests longer as well as spending more. For instance, for Disneyland’s 70th anniversary, Disney will again reinstate the highly anticipated Paint the Night parade which has already brought massive excitement amongst fans. Overall, the Disney theme parks just seem to continue rolling on with a great mix of strategic investment, new attractions, and momentum toward guest experience enhancement.
