Disney Braces for Lower Attendance Across All U.S. Theme Parks

Disney is bracing for lower attendance and decreased demands for its theme parks.

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The Walt Disney Company released its earnings report for Q3 2024 earlier today, providing insight into the company’s income and revenue. Overall revenue was up, with Disney’s streaming business reaching profitability for the first time ever. Historically, Disney’s streaming division, specifically Disney+, had operated at a massive loss, but the company was able to turn things around for Q3.

However, operating income was down by 3%. According to the new report, Disney is expecting this “moderation” to impact the company and its theme parks.

Disney Expects to Lower Attendance and Guest Demand for Parks

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In the earnings report, Disney alludes to what it calls “demand moderation” for the domestic parks, expecting it to lead to an overall decline for Q4.

Senior Executive Vice President and CFO Hugh Johnston discussed this further in a post-report Q&A, saying, “While we saw a slight moderation, we wouldn’t call it a significant change.”

Johnston cited the reduction as “a bit of a slowdown that’s more than offset by [Disney’s] entertainment businesses.” Johnston went on to mention 60% of all domestic revenue includes Disney Cruise Line, which the company has made significant investments in over the last several years.

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Both Disneyland and Walt Disney World Resorts are expected to see drops in overall attendance.

The Walt Disney Company cites “recent economic uncertainty” as a reason for the demand moderation, but “remains confident about the long-term opportunities before us.”

At our Experiences segment, we expect that the demand moderation we saw in our domestic businessses in Q3 could impact the next few quarters. While we are actively monitoring attendance and guest spending and aggressively managing our cost base, we expect Q4 Experiences segment operating income to decline by mid single digits versus the prior year, reflecting these underlying dynamics as well as impacts at Disneyland Paris from a reduction in normal consumer travel due to the Olympics, and some cyclical softening in China.

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The Disney theme parks have undergone significant changes in recent years, with several brand-new rides, attractions, lands, and experiences opening up. The Magic Kingdom in Florida has seen some of the biggest changes, with new attractions like Tiana’s Bayou Adventure and TRON Lightcycle / Run opening to guests over the last two years.

EPCOT has also seen significant changes in its attraction lineup, with Guardians of the Galaxy: Cosmic Rewind, Journey of Water Inspired by Moana, and Remy’s Ratatouille Adventure all opening within the last three years.

Disney is expected to make several more exciting announcements at the company’s annual D23 event, which kicks off on August 9.

This is where Disney reveals all of the projects it’s currently working on, ranging from new entries in the Star Wars and Marvel sphere, as well as its latest advancements in theme park ride and attraction technology.

During the event, which lasts until August 11, Disney is expected to make announcements regarding Animal Kingdom Park in Walt Disney World, Disneyland’s upcoming Avatar expansion, and a new Marvel attraction.

Have you visited the Disney theme parks recently? What’s your favorite new ride or attraction?