Earlier this week, Disney reported that profits at its Experiences division – which consists primarily of its theme parks – fell 3% in the latest quarter. The company warned that the situation is unlikely to improve much in the near future. Disney’s CFO said: “Lower-income consumers are a little stressed and are cutting back on their time at the parks a little bit.”
Meanwhile, Comcast reported a 10% drop in revenue at its Universal parks.
Megan Heneghan is a Disney superfan. She visits Disneyland in Southern California about three times a week with her season pass and has a podcast and Instagram account about it.
She has a pretty simple test to find out how busy the park is: Open the Disneyland app and see how long the wait time is for the popular Indiana Jones ride.
“At four o’clock in the afternoon in Indy, you have to wait 35 minutes? And in the summer? Wow, I think to myself, the park is empty,” Heneghan said.
Inflation is part of the explanation. Higher prices put a strain on everyone’s budget, and Disneyland is expensive.
Heneghan said even her superfans’ expenses would be cut.
“I tell myself, let’s have lunch at home and then go to the park so we don’t have to spend money on a Disney lunch,” she said.
A Saturday ticket to Disneyland costs almost $200, and that doesn’t include flights, hotel, and Disney lunch.
“The first thing that goes away when you face financial problems of any kind is your travel, leisure and entertainment expenses,” says Carissa Baker, assistant professor of theme park management at the University of Central Florida.
Baker said, however, that inflation is not the only factor causing the downturn in theme parks. Part of it is also due to visitor numbers returning to normal after a post-pandemic rebound. Bad summer weather is also damaging.
But while cash-strapped consumers are foregoing multi-day trips to Disney World or Universal Studios, regional theme parks like Six Flags are doing well.
“If there is a local regional theme park where tickets are cheaper and there are no airfares, the regional park looks quite attractive,” explains Paul Golding, analyst at Macquarie Golding.
And with the money you save, you can buy your child an extra funnel cake after the roller coaster ride.
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