Disney CEO Sees ‘Flat-ish’ Theme Park Revenue Amid ‘Slowdown’

07.08.2024 - 21:03 / skift.com / Bob Iger / Paris Olympics / Dawit Habtemariam

Disney expects theme parks attendance and revenue to soften in the coming months, executives said in an earnings call Wednesday.

Executives expect its theme parks and experiences division’s operating income to decline by mid-single digits compared to last year due to a moderation in domestic demand. 

Disney CEO Bob Iger said “the lower income consumer is feeling a little bit of stress” and the “high income consumer is traveling internationally a bit more.”

Iger’s comments come as some executives in the travel industry voice concerns of a slowdown in U.S. domestic spending on travel.

“I think you’re just going to see more of a continuation of those trends in terms of the top line,” said Iger. “We expect to see a flat-ish revenue number in Q4 coming out of the parks.”

In the third quarter, attendance and revenue growth for Disney’s parks and experiences division softened. Total revenue from the division rose 2%.

“Overall, I would just call this a bit of a slowdown that’s being more than offset by the entertainment business,” said Iger.

In the past three quarters, the theme parks experienced strong attendance and was a reliable source of revenue for the conglomerate. The company plans to invest $60 billion in its theme parks and cruises over the next decade.

The 2024 Paris Olympics has caused demand for Disneyland Paris to drop as tourists avoid the city. Once the event is over, demand should rebound.

“Disneyland Paris has obviously felt some challenge due to the Olympics,” said Iger. “Not a surprise, but something that happens and the good news is the Olympics are over in a couple of weeks and the booking will certainly look good in that regard, so overall feeling positively on that front.”