Chapek explains his reasoning on why new Disney World annual pass sales have halted. Take a look and see if you agree with him.
Third Quarter Earnings
Disney Parks shares that the parks, experiences, and products reports a revenue of $7.39 BILLION in the third quarter. However, they projected $6.65 BILLION in revenue. This beat expectations by almost 1 billion dollars.
Disney shared the following: Operating income growth at our domestic parks and experiences was due to higher volumes and increased guest spending, partially offset by higher costs. Higher volumes were due to increases in attendance, occupied room nights and cruise ship sailings. Cruise ships were operating during the entire current quarter while sailings were suspended in the prior-year quarter.
Second Quarter Increase
Bob Chapek, Chief Executive Officer, The Walt Disney Company, shares the following reasons for success: “Our strong results in the second quarter, including fantastic performance at our domestic parks and continued growth of our streaming services once again prove that we are in a league of our own.”
Chapek’s Statement on Annual Passes
In an interview with The Hollywood Reporter at the D23 Expo, Chapek shared the following statement. “We love all our fans equally. We love the superfans, obviously. But we also like the fans that don’t have the same expression of their fandom. We want to make sure that our superfans who love to come with annual passes and use [the parks] as their personal playground — we love that.
We celebrate that. But at the same time, we’ve got to make sure that there’s room in the park for the family from Denver that comes once every five years. We didn’t have a reservation system and we didn’t control the number of annual passes we distributed and frankly, the annual pass as a value was so great that people were literally coming all the time and the accessibility of the park was unlimited to them and that family from Denver would get to the park and not be let in.
That doesn’t seem like a real balanced proposition. I guess it’s possible that the superfans look at that as a disadvantaging of the way they consume the park, but we’ve got to make sure that not only are we heeding the needs of our superfans, but we’re heeding the needs of everyone who travels from across the country one time every five years. We have a real high-class problem: We have much more demand than there is supply. What we will not bend on is giving somebody a less than stellar experience in the parks because we jammed too many people in there.”
We will not bend on giving somebody a less than stellar experience in the parks because we jammed too many people in there.
Bob Chapek, Chief Executive Officer, The Walt Disney Company
Do you agree with Chapek that they limit attendance or does it seem as crowded as it was in parks before reopening? Chapek previously stated that annual passholders are “unfavorable guests.” Do you think it’s fair to limit annual passes? Please let us know your thoughts on the KtP Facebook Page and follow us on Twitter.
Source: The Hollywood Reporter
Well said Connie! Thank you!!
We couldn’t renew our annual passes because we stayed away from crowds during COVID. Our passes of course expired and now we’re not allowed to renew them? That’s not fair to loyal fans who are tossed aside in favor of people who show up every five years. WE are where the profit comes from! Wake up Chapek!!!! Loose us and you might as well close. That and the fact that you’re not maintaining the equipment. Bring back Michael Eisner! He knew what he was doing. YOU DON’T!!!
Was an annual pass holder for four years. Not sure if I’ll do it again. Before COVID it was a little crowded and I remember one year they stopped letting people in when the Magic Kingdom did get over crowded.
I own 30 shares of Disney stock, and last year there wasn’t a dividen payment. Why? Hope this year they have one
My family hasn’t bothered to renew our APs mostly because of the way Chapek has messed up WDW. The Board made a huge mistake hiring him. Now that they know, why is he still there!?!?
So correct! The parks are making substantial profits without the annual passes now
Going in hi July this vacation for room and 5 day tickets for 4 8597.00 they won’t bring back dinning plan,no bus,pay to get fast pass , IAM that family once in 4 years and this will be my last
Went to Halloween Horror Nights at Universal on Sunday. $129 for one ticket, $90 for a Fast Pass to the event houses, 18 miles of steps, $20 for a bottle of water and a snack, lines no less than 20 minutes, even using the “fast” pass. And $35 for a T shirt, $40 for a souvenir wallet.
As long as you don’t let your pass expire, you can renew, with a 15% discount. NEW passes are on pause, except for children turning age 3 and newly adopted children.
He touts the profitability of the parks, yet Disney shares are priced below their share price before the report. DIS has lost 34% of its value since its high of 180.
He us trying to lay the blame on APs.
I m a tesident of OC Ca, and couldn’t renew my DL Magic Key, and now it looks like I won’t be able to renew my DVC Sorcerer’s Pass.
I own 690 DVC points, a Platinum Castaway Key cruiser, a Disney + bundle subscriber, Double pass holder, Dusney Visa Card holder, D23 Gold Member, and they think I am unwelcome.
Fine. I can do a lot of other things with my money.
My family has been annually pass holders for years from almost its beginning. We continue to pass down our Disney traditions to our kids & their kids On top of that we spend almost $6000 a year on these passes that we work very hard to pay for. I hate to hear passholders talked about in this fashion. Very sad and discouraging. Mr Chapek may get what he asks for less people in the parks as this is the first time we have thought about not renewing. It breaks my heart ❤️
As Florida residents we have our own passes that are just for us. We go more because we’re closer. It would be dumb to get rid of our pass.
I live in orlando. He’s full of crap. The parks are busier then ever. They are offering less for more money and his overt greed will come back to bite him where the sun don’t shine. Shame on him and all of disney
He certainly isn’t heeding the needs of our locals and retirees who may have health problems or other issues. That works best when they can come on the spur of the moment when health and other issues align. But try getting a last minute reservation especially if you don’t use a computer! Certainly doesn’t care for those fans.
This guy has lost his mind. AP do not limit those who want to come to Disney from out of state. You can’t make up his stupidity with this kind of nonsense. I have been a passholder for many years and I spend just as much money as those who travel. Guess what, I’m not the only one either. If this hypothetical family from Nebraska wants to visit, then do like the rest of us and book your vacation. AP holders have never ever been the problem. Disney beat the target in the 3rd quarter for revenue and now is seeing a decline in attendance. You know why? Because AP holders are fed up w his crap…and those that travel to Disney can no linger afford it. So, it’s his fault that attendance is down…not AP holders. For many many years, there was never a problem w AP holders but now that he has taken over its a problem.
well-said! My sentiments exactly.
What he is saying is they have enough guests coming from out of state to be paying full price for single day tickets! But I promise you once them sales go back down a lil bit they will be pushing annual passes again. It’s pure greed of them to even put us on the back burner while they try to make even more money!!!
Not anymore
Queue the eye roll. Anyone that thinks Disney parks have lost the magic never understood what made them magically in the first place.
Chapek never said that he wants to get rid of annual passholders. He just wants to be able to control the mix in the parks, especially in Disneyland where passholders make up at least 25% of the guests at any one time. I have spoken with several merchants at Disney Springs in Florida, and they have said that they would not survive without the passholders and DVC members. Disney Springs needs guests who patronize their businesses on a regular basis. The WDW parks are not full. They can accommodate passholders with no problem. I could see WDW limiting the sale of passes to Florida residents and DVC members.
Is the fictions family from Denver having fun yet?
Our annual passes expire in February. After many years as a pass holder, this will be the end. Disney has lost the MAGIC with Chapek in charge. The reason for the increase in revenue is not the number of season passes sold. This was because of all the cost increases. Food prices went up (Mickey Mouse Ice cream bar doubled) Season Passes cost went up (my season pass double in cost) Resort cost went up. Can the ham and bring back someone that is DISNEY not a leftist.
My pass renews in March and after 25 years I am saying goodbye..it is no longer my happy place.
How soon they forget it was fl resident annual pass holders that kept wdw alive during the pandemic…passholder for 23 years…never again…
Y’all sorry but I agree with this, the parks are literally too crowded and it’s because of APs… The only way to fix the issue is to price people out or stop the sales. Literally what else are you gonna do to stop the capacity issue
During our busiest seasons, you can’t really tell the difference between now and pre-park pass days. Disneyland is more affected by AP, but they still sell a cheap AP to locals there.
How? As a pass holders you can come hit the rides you want and leave. To only come back later
“Chapek previously stated that annual passholders are “unfavorable guests” when did he say this? Actual quote please and not assertions
https://www.kennythepirate.com/2022/08/10/disney-says-annual-passholders-are-unfavorable-for-quarter-3-revenue/
Chapekwill be the person to lead Disney to an early grave. He will lead them into irrelevance quicker than a $5 hooker work in the Trail. The experience is about the same now.
I love Disney World and have had a FL resident pass for many years. To be honest I find it annoying having to have the app on my phone to reserve a time at a park or a ride. Wish they would bring back the Fast Pass system.
APs will return when Mickey needs the money. Let’s face it, Disney is a business and they are all about the bottom line. When a product line or service is not profitable, Mickey ends it. When non AP guests get tired of the prices and stop spending, Mickey will draw upon the Disney starved masses to fill in the corners.
We are passholders until April 2023, but never again. They are making it almost impossible to really enjoy your time in the parks now with all of the required preplanning. Plus, the passholders benefits are shrinking. In trying to find a room, they fully limit anything for passholders or Florida residents. We live seven hours away, but it used to be fun to pull a spontaneous weekend out and go for a few days. Those days are over and they are really squeezing everyone for tons more money.
Actually, Chaepek knows EXACTLY what he’s doing. We just haven’t caught on yet to his evil scheme. There’s nothing we can do about it. The rich will continue to flood the doors and the rest of us will just have to deal with it. Chaepek…Does…Not…Care. NEVER!!!
That’s a joke!!! I spend more then $8000 a year between my 5 annual passes and staying every other month for 3 to 4 night plus our random day trips, food we buy at the resort or parks and souvenirs. My family has been AP holders for 13 years I think I’ve spent way more then that family that comes every 5 years for a week that brings in coolers and backpacks with food and visit 192 to buy Disney souvenirs. Nothing wrong with those family’s but don’t discredit and talk down to AP holders like that. It’s more of a slap in the face. AP holders are a guarantee guest that spends money on a more regular bases.
I was just going to say that. I can maybe understand his argument but then the last people he should be offering new annual passes to is FL residents. I live in MN and spent a lot on a Disney Vacation Club and I can’t get an annual pass?
This what happens when you hire from within the finance department.
You get Bib Paycheck instead of the love Disney deserves.
Absolutely
correction to my reply- Annual pass holders should NOT be allowed to renew their APs.
I agree wholeheartedly and would like to add that current annual pass holders should be allowed to renew their APs. Let’s even the playing field.
We used to be Annual Passholders who lived 1200 miles from Disney and would schedule 3 visits within that 12 month period. When we visited, we spent a lot of money on food, souvenirs, etc. during each visit. We currently have a trip planned in October 2022 and the price of a 5-day parkhopper ticked is outrageous. It will probably be many years before we return because the cost of tickets is no longer affordable. We enjoy coming to Orlando but we will probably be visiting the “other park” because it is much more affordable.
I also have to laugh at the “less than stellar experience” comment. Unless you pay $$$$ to get a private tour guide, EVERYONE is having a less than stellar experience when compared to pre-covid times. This man (and his enablers) have NO clue.
If they are so worried that the parks will be too full why keep cramming in one hotel after another. As far as the locals flooding the rides. I waited two years to ride Pandora and stood in line for 3 hours last winter to ride Rise. It’s not the local AP holders, it’s far too many hotels.Walt must be spinning in his grave.
Then let’s end the Florida resident annual passes as well since annual passes are causing too large crowds for those once every five year folks.
This is nonsense. The parks are not full and Disney wouldn’t have a problem with APs if they would get everything back up and running. People who visited the parks pre-COVID had a superior experience than the guests who visit under current conditions. Those who had park hoppers could visit whichever park(s) they wanted on a whim, and each guest was able to make at least three FastPass reservations. Pieces of the FastPass system were broken, but Disney could make things fairer for those complaining that they were never able to experience attractions such as Rise of the Resistance or Flight of Passage, by limiting the number of times each guest can experience an attraction during a defined period (e.g., once or twice every 30 days). (I personally do not believe that an attraction should ever have more than a 90 minute wait.) This would give everyone an opportunity to experience these attractions. The park reservations, Genie+, and ILLs are nothing but a money grab for Disney.
I personally appreciate the limiting of sales. Thus limiting people. Just an example, In the past locals flooded the park just to ride Rise of the Resistance and leave. People coming in for a week from afar such as myself could not get on the ride. Clearly the annual passes were oversold and unprofitable for the company. People coming in for a week from afar such as myself could not get on the ride.
Well they have created exactly what he says he won’t promote in the Disney Wish. It is All about pay to win. If you aren’t in the Concierge section of the boat you can not do anything except ride the boat. No extra experiences. And you don’t get to connect with guest services for help either!
This is the problem with Chapek’s logic…My brother and his family went with us to WDW in 2018. They are the once every few yrs vacationers. They really enjoyed the trip, but that was because I was able to plan fast passes catered to everyone and dining reservations, had free magic bands, magical express, etc. My sister-in-law said, “Disney knows how to do it right!”
Well none of the above is true now. I, as a DVC member and annual passholder (and stockholder), still go 4 times a yr (from out of state). My brother and his family will be there summer of 2023. Not sure they will be nearly as impressed due to the higher prices and less customer service. If people like this aren’t impressed, they won’t return…ever. And word of mouth from dissatisfied guests isn’t going to help Disney. So while Chapek and his minions may have short-term gain, I don’t foresee it working in Disney’s favor in the long-term. I can’t believe the board voted to extend his contract. Just proves that they need replaced too.
And it’s the loyal Disney fans that will keep coming back hoping things will eventually change…until even we get tired of thr mess Chapek has created.
WHAT a crock of bs….
Self-Serving B.S!
This guy just doesn’t get it ..