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Walt Disney Company provided more detail Thursday on its $30 billion, multi-year expansion of its theme parks and cruise line at its annual shareholder meeting.
“We have more [projects] being designed, developed, and built today than at any other point in the 70 years we’ve been in the theme park business,” CEO Bob Iger told shareholders.
Parks Affordability Question
One reason the company is expanding its parks and adding attractions is to provide more capacity to help keep prices in line.
When asked about theme park affordability, Iger said the company has taken steps to address the issue and that the company has kept its lowest-priced tickets for Disneyland at pre-pandemic levels.
“Two years ago, when I returned [as CEO], we tripled the number of days that low-priced tickets were available,” he said.
The question-and-answer exchange came after last month’s report in the Wall Street Journal saying that Disney’s internal research showed that the percentage of Walt Disney World and Disneyland visitors planning return visits began declining in late 2023.
Iger didn’t acknowledge any cracks in demand. “With strong guest satisfaction scores and intent-to-visit ratings very high, our parks remain the most popular offering in the industry and a solid growth business,” he said.
Some have argued elsewhere that the ticket prices aren’t the true rates many park attendees are paying.
“The majority of Disney visitors these days are coming into the parks on annual passes, discounted tickets, or vacation plans that bundle tickets at below-list rates,” according to Robert Niles, the founder of the Theme Park Insider site.
Parks Expansion
Disney’s expansion of its theme parks includes the largest-ever addition to Magic Kingdom, featuring new areas inspired by the movie “Cars” and the villains in many Disney stories.
Disney’s expansion of its theme parks includes the largest-ever addition to Magic Kingdom, featuring new areas inspired by the movie “Cars” and the villains in many Disney stories.
When asked if the company planned to expand its Aulani hotel and resort brand that has locations at many Disney parks, Iger said no.
Disney Cruise Growth
Iger said Disney plans to double the capacity of its cruise line business.
Following the recent launch of the Disney Treasure, seven more ships are in development, including the two set to launch later this year. One of these, the Disney Adventure, will call Singapore home — extending the company’s cruise presence in Asia.
Iger on Tech and AI
When asked about the company’s investment in tech, Iger showcased animatronic “BDX droids” created by Disney Imagineering.
Iger showed off the droids, demonstrating how they can maneuver over rough terrain and dance without losing balance while also mimicking some human emotions. Iger said the droids will be included in a 2026 movie, “The Mandalorian and Roku,” from Lucasfilm and will eventually appear in theme parks.
When asked about AI, Iger wasn’t specific about how the company is using it or might use it.
“It may, in fact, be the most powerful technology that our company has ever seen,” he said. “It’s already enabling our company to be more efficient.”
“However, given the speed that is developing, we’re taking great care to make sure of three things,” Iger said. “One, that our IP [intellectual property] is being protected. That’s incredibly important. Second, that our creators are being respected. Last, that our customers are being considered and valued.”
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