Disney Park’s results for Q1 2024 attendance was flattish in Florida and higher in California; ticket and room rates were higher at both, although these were partially offset by lower per-cap spending and hotel stays. Regarding Q2 2024, CFO Hugh Johnston said, “As it relates to demand, while consumers continue to travel in record numbers, and we are still seeing healthy demand, we are seeing some evidence of a global moderation from peak post-COVID travel.” And CEO Bob Iger also noted, “First, in terms of attendance, what we're basically communicating is relative to the post-COVID highs, things are tending to normalize” i.e. 2023 was “peak travel” – aligning with our view that 2023 was the peak of “more fun”.
United Parks & Resorts (SeaWorld and Busch Gardens) delivered a +2.1% increase in attendance (largely the Easter shift) and a +4.0% increase in in-park per-capital spending. Interestingly, the press release quotes CEO Marc Swanson saying, “In addition, in the first quarter of 2024, international visitation, while still down compared to 2019, improved meaningfully compared to 2023." That is the first strong comment on inbound tourist visitation that we’ve read since the pandemic and is thus encouraging on multiple fronts. The press release also cited “adverse park mix” as a debit to average admission rate, which likely reflects stronger growth at Williamsburg, below. (The list price for Busch Gardens Williamsburg is $50 vs. $90 for SeaWorld Orlando.) Additionally, group is up strongly this year and ahead of 2019, which is also a debit given the discounting that comes with group travel.
The table below shows revenue and attendance vs. pre-pandemic and illustrates what we’ve written about of the industry has increased the monetization of attendance with revenue up 35% to 2019, but attendance up only 3%. Driving the +35% was rate to offset inflationary costs for labor and supplies, as well as better food & beverage (mix) and technology (mobile order, etc.) to enhance monetization. The increase also pays for the parks’ new attractions, which in turn drive attendance and market share. However, long-time visitors will also remember the lower admission price (avg admission this year is $86 vs $66) and while that may not have perturbed them last year, this year, higher price levels on most things are doing a lot of perturbing, which is one factor for last year being “peak fun.”
