UPDATE: Disney park attendance increases

November 12th, 2009, 4:00 pm · 29 Comments · posted by Sarah Tully

Disney's California Adventure

Attendance at Disney’s local theme parks spiked 15 percent in recent months as the company offered deals to lure more guests.

Walt Disney Co.’s latest financial report showed that the two Disneyland Resort parks increased visitation even with the economic downturn. On Thursday afternoon, the company released its figures for the end of the fiscal year, which concluded Oct. 3.

From July through September, Disneyland and Disney’s California Adventure brought in 15 percent more visitors than they did during the same period last year, said Thomas Staggs, Disney’s chief financial officer, during a conference call. At the same time, visitation in Disney’s Florida parks dropped 3 percent.

Overall, however, Disney tourists bought fewer Mickey ears and princess dresses: Visitors spent about 10 percent less on merchandise at the domestic parks, Staggs said.

Both locations saw hotel bookings dip during that three-month period.

Disneyland Resort’s three hotels had 4 percent fewer hotel stays compared to the previous year, Staggs said. That meant an 84-percent overall occupancy - the same as Disney’s Florida properties.

Hotel stays for next year are already falling behind, with bookings about 5 percent down, Staggs said. However, reservations started increasing when Disney announced new promotions this week. Disneyland, for example, is offering two free hotel nights to visitors who stay three nights and buy five-day park passes in the spring.

Over the past year, Disney has offered several promotions, including free park passes on birthdays and free nights as part of hotel packages. At Disney World, guests also could get free meals.

Those deals have helped drive attendance up, even though revenues dropped, said Bob Iger, Disney president.

“Parks spent a fair amount of time watching the marketplace and waiting before extending a discount,” Iger said. “When the marketplace warrants discounting … it’s a good thing to do even though we receive less revenue.”

Parks and resorts’ revenues dropped by 7 percent to $10.7 billion in the most-recent fiscal year compared to the prior year.

This report was updated after Disney’s conference call this afternoon.

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Philly Girl says:

November 12, 2009 at 2:14 pm

I would love to see the profit margin broken down by Walt Disney World (WDW) versus Disneyland Resort (DR).

Having gone to WDW once this year, it did seem less crowded than in the past.

Having been an annual passholder for DR for four years, this BY FAR was the most crowded year by a mile.

Granted, I realize that there was a birthday promotion, 2fer, and payment plan for new passholders, however the crowds (e.g. lines, parking structure) have been outrageous!

A former OC friend who now lives out of state visited me a couple of weeks ago. We went to the parks on a Wednesday. We were not in the middle of a holiday week. It was raining. We figured we would walk on everything. Wrong!! Days like that in the past would have been walk on days, but not 1/2 hr waits for Matterhorn, Indiana Jones, and Peter Pan!

Because of my observations (and I am not the only one who feels this way), I would love to see the profit margins for each park broken down. Anyone know where to find such info?

Tiki Tommy says:

November 12, 2009 at 4:47 pm

My wife , two children and I have also been APs for several years. This year attendance by my estimates have been almost to the point of exceeding what should even be allowed for anyone to enjoy the parks. The benefit of being an AP has always been the down slow seasons and small crowds. There have been several days in the past year that we have arrived at the DLR only to leave in less than an hours time because they are just to crowded. The parking is just a joke unless you get there early enough to make it into the Mickey and Friends structure. Remeber we are minus thousands of spaces now due to the current construction of the new CARS land in DCA. All the benefits to come in the next couple years will be wonderful and amazing for us all. My family and I are seriously considering taking a year of as APs though and saving a few thousand dollars this year versus what DLR usually cost us. I pitty the poor tourist who does not live in the area that comes for a short visit from affar and has to deal with the current crowds and delays. The monthly payment plan has undoubtably been the biggest contribution to the severe over crowding though. Whe n the AP program was first introduced many years ago, Disney expected to handle aprox 100,000 or so annual passholders annually. Since the cost of being an AP has became alot easier to nare in 12 easy payments , the number of APs has exploded to more than 850,000 members. Obviously the parks are not able to comfortably fullfill the demands of so many guest so often. We have gone from visiting a couple or few times a month to once or twice every month or two. Thats whats happening to your revenues Disney. WE would spend on average an additional $100 each visit on food and junk. Looking forward to seeing what its like just after the holidays . Our passes are due for renewal every February.
- Chad says:
  
  November 13, 2009 at 9:46 am
  
  Tiki Tommy, I could not agree with you more. I just renewed 2 passes, and I’m really regretting it. We have gone maybe 2 times since October, and they were both just hell. The parking, and the crowds have made it just miserable. I feel for the visitors that are visiting from out of state, they pay thousands, for what, huge rude crowds, and most of them are APs. This monthly payment plan needs to end. I love Disneyland, even worked there during college, but the love affair is starting to die.
  - kingkong5 says:
    
    November 13, 2009 at 10:24 am
    
    I agree with you both. We are longtime AP holders as well but let ours expire this year, and went with Knott’s Berry Farm instead. We were able to purchase 3 annual passes (no blockout days) for the family plus parking at Knott’s for less than the price of one Disney Deluxe AP.
    
    It’s a given that Knott’s is no Disney. The theming isn’t as nice, cast members aren’t as nice, the whole experience is a little different. But we’re going to enjoy saving money this year with all the crowds and construction, and come back to Disney once it gets back to business as usual. My kids are loving Camp Snoopy, and I’m actually kind of enjoying the adult roller coasters over there. For now, anyway.
  - Chad says:
    
    November 13, 2009 at 10:43 am
    
    kingkong5: Knotts is a good alternative, I do not blame you. As for the Cast Members being nicer than Knotts, well, I have seem MANY Cast Members at Disneyland working, that I think even Knotts would reject. The caliber of Cast Members has deteriorated over the years. I assume low pay has a lot to do with it, and that is what you get, bottom of the barrel sometimes. Plus, I do not think that having Disney on your resume is as impressive as it use to be. Oh well.
- Domina says:
  
  November 13, 2009 at 9:58 am
  
  Same situation for us. We’ve had A.P.’s for the last 5 years or so and used to go 2-3 times a month during “off season” times. We’d spend about $100 per visit in the park. Now we go less than once every few months.
  
  The crowds are bad now. Really bad. Sometimes it’s hard just to walk.
  
  We would pay a substantially higher amount for annual passes if it meant thinning out the horde.
  
  Raise A.P. prices and eliminate payment plans. You’ll increase the enjoyment of your guests and encourage visitors with deeper pockets to visit again, upping your merchandise and food/drink revenue.
  
  If you cater to the cheap crowd, you’ll continue to get masses of people in an uncomfortable park that are unwilling to spend a dime.

Wonginator says:

November 12, 2009 at 2:35 pm

I read an article earlier this year about amusement park attendance for the Southern California theme parks in 2008. I forget the exact numbers, but from what I remember, the top 5 list looked somewhat like this.

1. Disneyland, 15 million
2. California Adventures, 5.5 million
3. Universal Studios, 5 million
4. Legoland, 4.5 million
5. Magic Mountain, 4.2 million

Disneyland vastly outnumbers all of the competition, and its main competition is its sister park.

It’s not surprising that most of the new rides are being designed for California Adventures to try to boost its attendance levels. I’m most looking forward to the new Cars attraction that will come out in a couple of years.

Tiki Tommy says:

November 12, 2009 at 4:53 pm

I dont think those numbers are really valid . If they ever were then most likely not now as far as the Disneyland Resort anyway. We are annual passholders and we have full access to both parks at all times anyway. I cant even remember the last time I new or heard of anyone buying the single park pass for DCA or DL. That is with the exception of this past year where they made the FREE brithday pass recipients choose one park or the other. We love California adventure and are thrilled at what the future holds there with CARS land and Little Mermaid and World of Color. However we will sadly miss the days when DCA was a nice quiet break in the day from the everyday overcrowding inside Disneyland.
- Philly Girl says:
  
  November 12, 2009 at 8:43 pm
  
  I totally agree, Tiki Tommy. Right now California Adventure is our respite from the chaos of Disneyland. I am excited to see the new offerings, but will miss the serenity.
  
  And I also agree with your previous post- we often don’t even make it into the parks because 1) parking is horrible or 2) we hit a wall of people.
  
  My husband and I are the types of APs that spend money, especially on food and drinks. When we can’t make it into the parks, we are not spending $$ in the parks.
  - haminator says:
    
    November 13, 2009 at 10:10 am
    
    I’m with you two. CA Adventure’s my favorite of the two because it’s not crowded…oh yeah, and ‘cuz they sell booze too…

lsdkfjsdkj says:

November 12, 2009 at 8:26 pm

The numbers have increased with the number of guests buying annual passes.

mark says:

November 12, 2009 at 10:05 pm

watch this

sue says:

November 12, 2009 at 10:15 pm

yes, Disney has made it easier for many to obtain the annual passes (i.e., 12 mos. to pay). I do feel for a lot of families that will never be able to take their children for a day at Disneyland (do the numbers for family of 4). And with the new addition you are building the prices will be going up AND the crowds are so unbearable. My family tries to go on weekdays in the off seasons - which at times, that means taking the kids out of school for the day. I don’t think Walt Disney visioned the park to be so unobtainable for the families. It’s really very SAD. - it all boils down to corporate GREED

Troy says:

November 12, 2009 at 11:57 pm

No one goes to Disneyland any more, it’s too crowded!

Rory says:

November 13, 2009 at 5:08 am

Obviously, by your statement, they do.
- aceofspades says:
  
  November 13, 2009 at 9:54 am
  
  HAHA… that made my day.
- Sidney says:
  
  November 16, 2009 at 10:56 am
  
  Troy was actually quoting Yogi Berra. His was the clever comment, not yours.

joe says:

November 13, 2009 at 6:38 am

Disney does not care about thier guests, they only care about their wallets.

kingkong5 says:

November 13, 2009 at 10:30 am

Well, they are a business after all and not a charity. They care about their guests to the extent that it affects their wallet, but is that not true of any business? How long would they operate if they were losing money all the time?

Chad says:

November 13, 2009 at 9:39 am

They need to do something about the attendance at the park. It is outrageous, especially during the fireworks. I am really regretting the renewal of my Premium Annual Passports, I paid over 800.00 for two, and I get to park in some remote location, wait to get on the bus or tram, which can be 10-15 minutes, wait in a long line to get in the park, then try to dodge 60k plus people trying to cram on Main Street to view fireworks, it is crazy. You can’t move, or go anywhere. I think they need to limit the amount of annual passes that are for purchase, or start putting more admittance restrictions on the cheaper annual passes, like no admittance after 5pm on Friday, or black them out for the whole weekend. Get rid of the option to pay month to month on passes as well. I miss the old days when it was Disneyland, and not the Disneyland Resort! It is just not fun anymore, and they are laughing their way to the bank.

kingkong5 says:

November 13, 2009 at 10:31 am

I imagine that raising the prices was supposed to “limit” the amount of annual passes sold, as it would phase out the people on the low end of the demand curve. Yet, despite raising prices it seems that people still wish to purchase the Annual Passes, so go figure!
- Chad says:
  
  November 13, 2009 at 10:37 am
  
  It is because of the monthly pay plans, now anyone can get a pass, and pay a monthly payment. The price increase will do nothing, but prevent people from purchasing it in full.
Ted says:

November 13, 2009 at 11:17 am

It is very unlikely Disney will ever cap the number of passes.

Disneyland makes more money for every park attendant without having to spend any additional resources. Think about it–it doesn’t matter whether there are 5 people in attendance or 5,000, it still costs the same amount of money to keep all the rides and attractions in operation.

With such a fixed cost base, it becomes Disney’s incentive to cram as many people into the park as they can, regardless of how congested the lines for rides and attractions become.

I don’t even go to Disneyland any more because, with so much overcrowding, it’s not a fun experience for me.

Richard Deight says:

November 13, 2009 at 9:41 am

Any other theme park would expand and add rides. Disney spins off California adventure, a second-rate facsimile, charges a usurious admission price, and wonders why attendance falls far short of projections.

Who’s running the place? Mickey Mouse?

Used to Love Disney says:

November 13, 2009 at 10:03 am

I agree, its way too crowded now, I spent a $1000.00 dollars on annual passes for my family of five. I won’t be renewing this year due to the overcrowding, instead I am buying Knotts Berry Farm passes, they are 79.99 and no blackout days, save myself $600.00 and be able to enjoy ourselves