The Walt Disney Company has been around for 101 years, through good times and bad, so a drop in business caused by inflation isn’t stopping it from doubling down on its entertainment offerings.
The company has announced plans to expand its theme parts and add to its fleet of cruise ships. The multi-billion dollar budget will produce more characters and more rides.
Disney tipped its hand during its D23 Expo, a three-hour presentation in Anaheim, close to Disney Land. Josh D’Amaro, chairman of Disney Experiences, addressed an audience of Disney fans about what the company plans for the future. And it’s ambitious.
There will be more Disney villains in the Magic Kingdom. Monsters, Inc. will get its own section at Disney’s Hollywood Studios. The parks will get more thrilling rides. The Disney Cruise Line will get four additional ships.
“Everything we’re going to share with you tonight is an active development,” D’Amaro said during the presentation. “I just want to be clear to all the fans out there: This isn’t blue sky.”
Ups and downs
The entertainment giant has had its ups and downs of late, largely beginning during the COVID-19 pandemic. Park performance has weighed on earnings.
In its latest earnings call last week, Disney reported that its parks business underperformed expectations and profits declined slightly. On the positive side, Disney said attendance remained steady in spite of higher ticket prices.
But company officials also admitted that a slowing economy and still-high prices are presenting headwinds. A rising unemployment rate could make those headwinds stronger.
Americans are still traveling this summer, but lately there has been a lot of travel to Europe, especially since the just concluded Olympics was held in Paris. Because of that, Disney’s international properties reported higher than usual traffic.