Life is about to get a little easier for the biggest fans of Walt Disney's (DIS -0.04%) popular theme park resort in Florida. Disney World announced earlier this week that annual passholders will be able to visit nearly every park after 2 p.m. -- without having to make a reservation -- starting April 18.
Securing park reservations is a pressure point for many passholders. The reservation platform rolled out when Disney World's gated attractions reopened to guests in the summer of 2020, attempting to keep capacity on a short leash after a four-month pandemic-related closure. The number of guests able to walk through the resort's turnstiles has increased as regulations have eased and staffing has strengthened, but that's just one (supply) side of the equation. On the demand front we're seeing international travel bans lift and visitors worldwide desiring to flock back to the House of Mouse.
Disney needs to make sure there's a way for premium-paying visitors to have access. It's here where passholders -- paying between $1 and $5 a day for almost year-round access -- are paying the figurative price for the floodgates cracking open to accommodate a growing number of less frequent visitors willing to pay more. Disney needs to keep its frequent riders and infrequent flyers happy. It takes a step in that direction in two months.
Image source: Disney.
Mining for pixie dust
The move to lift the requirement for park reservations starting in the afternoon isn't news. It was initially announced in early January, as a positive tweak that would take place at a later date. Right now, all visitors need to lock in a reservation for any park they wish to visit. Availability varies by seasonality and expected attendance surges. Visitors with park-hopper access -- and passholders have that -- can then visit the other three parks after 2 p.m. as long as they checked into their reserved park earlier in the day.
The new normal come April 18 is that annual passholders won't need a reservation at all to visit Animal Kingdom, Epcot, or Disney's Hollywood Studios as long as its after 2 in the afternoon. Magic Kingdom is available for the reservations-free afternoon and evening visits as long it's not on Saturday or Sunday. Blockout dates still apply. It may not seem like much of a move, but it's a big deal for diehard Disney enthusiasts.
Disney is deliberate with its starting date for this favorable passholder tweak, even if it does not say so outright. Disney World's 18-month celebration for the resort turning 50 concludes at the end of March. The highly anticipated Tron Lightcycle Run roller coaster officially opens on April 4. The final week of spring break for some schools is the week after Easter, which is April 9 this year. In short, the week including April 18 should be the beginning of the lull before heading into the busy summer travel season. It's the time when Disney will want more passholders at the parks to make up the for the void of seasonal visitors on premium tickets.
Blocking the reservation-free afternoon visits from Magic Kingdom on weekends also makes sense. It's the world's most visited theme park. It won't have a problem drawing crowds with the speedy Tron coaster and a new nighttime fireworks experience opening earlier in the month.
This move is a win for passholders. Disney World may never return all of its pre-pandemic perks, and it certainly won't go back to pre-pandemic pricing, absent a global economic collapse. But it's all about the little victories now, and April's shift brings back the whimsy of a spur-of-the-moment trek to Disney World like the old days.
Disney shareholders could also win. Passholders may not spend as much as less frequent visitors to the parks, but that also means that they are more likely to hop in standby lines instead of paying up for the premium Genie+ platform with access to expedited queues. By making traditional lines longer -- later in the day as the parks historically start to thin out -- it will make the purchase of Genie+ even more valuable.
There are win-win scenarios out there in the realm of travel and tourism stocks. Disney can still make everybody happy by giving both sides more of what they want.
