Attendance decline at Disney as new Star Wars attraction fails to draw in visitors | attractionsmanagement.com news
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NEWS
Attendance decline at Disney as new Star Wars attraction fails to draw in visitors
POSTED 08 Aug 2019 . BY Andy Knaggs
Star Wars: Galaxy's Edge opened to much fanfare but hasn't been the hit it was initially predicted to be
We feel great about the product that we've created. It's just going to take some time for things to work themselves out in terms of how the marketplace is reacting
– Bob Iger
Despite its domestic parks achieving record revenue over the last three months, it's been a tough quarter for Disney, which fell short of expected visitor figures following the launch of its new Star Wars addition in California.

Disney's acquisition of Fox produced what the company's chair and CEO, Bob Iger, described as "complicated" numbers for the company overall. For parks, revenue increased by 7 per cent to US$6.6bn (€5.89bn, £5.43bn) while operating income rose 4 per cent to US$1.7bn (€1.52bn, £1.4bn).

During the same quarter, Disney launched its highly-anticipated Star Wars: Galaxy's Edge land. With significant increases in attendance expected, the opposite actually happened, with attendance at Disney's domestic parks dropping by 3 per cent.

"I think a number of things happened," said Iger, addressing the drop in attendance during an earnings call.

"First of all, there were tremendous concerns in the marketplace on overcrowding when we opened Galaxy’s Edge, so some people stayed away just because they expected that it would not be a great guest experience.

"The same time that was going on, all the local hotels in the region expecting a huge influx of visitation raised their prices.

"In addition to that, we brought our daily price up substantially from a year ago and then we opened up Galaxy’s Edge with one attraction instead of two.

"We're opening Galaxy’s Edge in August in Orlando. The second attraction there will open in December. The second attraction in Anaheim will open in January. We feel great about the product that we've created. It's just going to take some time for things to work themselves out in terms of how the marketplace is reacting."

The timing of Easter has affected like-for-like figures, with the entire Easter holiday falling within Disney's Q3 this year, instead of a single week in Q3 2018.

Overall, the company reported decreases in its earnings per share for the quarter as it wrestles with the integration of Fox, which it acquired in March 2019. Its Marvel, Pixar and Disney movies have made US$8bn (€7.14bn, £6.58bn) at the box office so far this year, and it's due to launch Disney+ – a subscription video-on-demand service – in the US in November.
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Jobs   News   Products   Magazine
NEWS
Attendance decline at Disney as new Star Wars attraction fails to draw in visitors
POSTED 08 Aug 2019 . BY Andy Knaggs
Star Wars: Galaxy's Edge opened to much fanfare but hasn't been the hit it was initially predicted to be
We feel great about the product that we've created. It's just going to take some time for things to work themselves out in terms of how the marketplace is reacting
– Bob Iger
Despite its domestic parks achieving record revenue over the last three months, it's been a tough quarter for Disney, which fell short of expected visitor figures following the launch of its new Star Wars addition in California.

Disney's acquisition of Fox produced what the company's chair and CEO, Bob Iger, described as "complicated" numbers for the company overall. For parks, revenue increased by 7 per cent to US$6.6bn (€5.89bn, £5.43bn) while operating income rose 4 per cent to US$1.7bn (€1.52bn, £1.4bn).

During the same quarter, Disney launched its highly-anticipated Star Wars: Galaxy's Edge land. With significant increases in attendance expected, the opposite actually happened, with attendance at Disney's domestic parks dropping by 3 per cent.

"I think a number of things happened," said Iger, addressing the drop in attendance during an earnings call.

"First of all, there were tremendous concerns in the marketplace on overcrowding when we opened Galaxy’s Edge, so some people stayed away just because they expected that it would not be a great guest experience.

"The same time that was going on, all the local hotels in the region expecting a huge influx of visitation raised their prices.

"In addition to that, we brought our daily price up substantially from a year ago and then we opened up Galaxy’s Edge with one attraction instead of two.

"We're opening Galaxy’s Edge in August in Orlando. The second attraction there will open in December. The second attraction in Anaheim will open in January. We feel great about the product that we've created. It's just going to take some time for things to work themselves out in terms of how the marketplace is reacting."

The timing of Easter has affected like-for-like figures, with the entire Easter holiday falling within Disney's Q3 this year, instead of a single week in Q3 2018.

Overall, the company reported decreases in its earnings per share for the quarter as it wrestles with the integration of Fox, which it acquired in March 2019. Its Marvel, Pixar and Disney movies have made US$8bn (€7.14bn, £6.58bn) at the box office so far this year, and it's due to launch Disney+ – a subscription video-on-demand service – in the US in November.
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UK government invests £250m into cultural and creative infrastructure projects
Funding support for York's National Railway Museum, Coventry's 2021 UK City of Culture programme and infrastructure and maintenance work at local and regional museums across the country are all included in the UK Government's proposed new Culture Investment Fund.
Blackpool Museum to evoke lively spirit of UK's seaside entertainment heritage
A £13m (US$16.8m, €15.1m) project to create a museum that celebrates Blackpool's role in the development of British popular culture is moving forward, following the award of a £4m (US$5.2m, €4.7m) grant from the National Lottery Heritage Fund.
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GANTNER Ticketing was established in 1990. [more...]
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iPlayCo was established in 1999. iPlayCo Corporation Ltd is the owner and key stakeholder. [more...]
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Founded in 1966, the Antonio Zamperla SPA is privately owned by Mr Alberto Zamperla. Located in Vi [more...]
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FEATURED SUPPLIER

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Red Raion - Trailer Pinocchio - A Modern Tale VR
Red Raion is the CGI studio specialized in media based attraction. Find out more...
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+ More videos  

CATALOGUE GALLERY
 

+ More catalogues  
DIRECTORY
+ More directory  
DIARY

29-31 Oct 2019

Mediterranean Resort & Hotel Real Estate Forum (MR&H)

Hilton Athens, Athens, Greece
18-22 Nov 2019

IAAPA Expo

Orange County Convention Center, Orlando, United States
+ More diary  
 


ADVERTISE . CONTACT US

Leisure Media, Portmill House, Portmill Lane,
Hitchin, Hertfordshire SG5 1DJ Tel: +44 (0)1462 431385

©Cybertrek 2019

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