Early Disney Genie+ Reception, Possible Dining Portion Size Changes, and Other Disney Park Highlights From Disney’s Earnings Call

This afternoon, The Walt Disney Company discussed its fourth quarter and full 2021 fiscal year earnings results. We have a run-down for you of all the Disney Theme Park and Resorts related items mentioned.

Walt Disney World Resort, Disneyland Resort, and Disney Cruise Line Highlights

Financial figures:

  • In 2021, Disney spent $1.6 billion on capital projects at their domestic theme parks, compared to $2.1 billion in 2020.
  • Disney states that less money was spent on capital expenditures due to various delays. They expect to reverse that, due to renewed spending on things such as the Disney Wish, other park projects and corporate initiatives.
  • Costs will increase next year due to inflationary pressure, Avengers Campus at Disneyland Paris, the Disney Wish and the continuing transformation of EPCOT.
  • Guest spending at Walt Disney World is up 30% compared to pre-pandemic levels.

Bookings:

  • So far, Disney is seeing strong bookings for the 2022 fiscal year at their Parks and Resorts.
  • The first four months of voyages on the Star Wars: Galactic Starcruiser are “virtually sold out.”

Guest experience:

  • Mobile food ordering, contactless check-in and virtual queues all lower costs while improving the guest experience.
  • According to Disney CEO Bob Chapek, the response to Disney Genie and Disney Genie+ at Walt Disney World has been extremely positive.
  • So far, an estimated one-third of park guests have paid the $15 upgrade to Disney Genie+. Chapek talked about how much of an impact, in terms of earnings, having one-third of guests paying an extra $15 a day will have.
  • When Disney Genie and Disney Genie+ launch at the Disneyland Resort, Disney expects the reaction to be just as strong, if not stronger than at Walt Disney World.

Magic Key:

  • 40% of Magic Key sales at the Disneyland Resort were to people that were not previous Annual Passholders — although it’s unclear whether this figure means that guests weren’t passholders when the parks closed or had never had an AP before. Most sales are for the top two levels, including the now sold-out Dream Key.

Inflationary changes?

  • When asked about handling inflation, Christine McCarthy, Senior Executive Vice President and Chief Financial Officer had a rather controversial answer: “We can adjust suppliers, we can substitute products, we can cut portion size, which is probably good for some people’s waistlines. We can look at pricing where necessary, but we aren’t going to go straight across and increase prices. We’re really going to try to get the algorithm right to cut where we can and not necessarily do things the same way.”

Disney Cruise Line

  • Psychical distancing aboard the Disney Cruise Line is expected to remain through at least March 2022.
  • Despite restrictions, Disney Cruise Line is seeing higher bookings and pricing now than before the pandemic.
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