Walt Disney (DIS 0.08%) continues to loosen pandemic-era restrictions that have been a thorn in the side of Disney World's biggest enthusiasts. The Florida resort announced the welcome changes on Monday afternoon. They won't kick in until 2024, but they're more steps closer to the way things used to be at the world's most visited theme park destination.
Seemingly oblivious to the positive changes that keep stacking for guests at Disney World, rival Universal Orlando is tightening the screws a few freeway exits away. Comcast's (CMCSA +1.42%) theme parks recently raised prices for their most full-featured annual passes by as much as 23%. It's an opportunity for Disney and smaller rival SeaWorld Entertainment (SEAS +1.22%).
NYSE: DIS
Key Data Points
Parks shift into drive
Disney has picked up the pace of visitor-friendly changes since Bob Iger returned as CEO in November. The relaxation of park reservation requirements and restoration of some earlier passholder perks were well-received moves announced earlier this year. Last month it began selling annual passes to new buyers for the first time since late 2021.
This week Disney World announced more changes coming next year:
- Park reservation requirements will end entirely for dated admissions.
- Annual passholders will still be required to make reservations for visits if arriving before 2 p.m., but in 2024 Disney World will introduce "good-to-go" days when passholders and Disney cast members can tap through the turnstiles without squaring away a spot ahead of time.
- The resort will resume selling the Disney Dining Plan, which gives folks staying on-site access to discounted meal plans for table-service or quick-service restaurants.
- This isn't a new perk, but Disney confirmed that it will continue to reward overnight guests at its resort hotels with an extra half hour of access in the morning. The pricier hotels will also continue to offer exclusive after-hours visits to select parks.
- A pet peeve of guests paying for Genie+ -- the premium in-app platform that lets guests pay for access to expedited queue reservations -- is that they have to wake up early and spend more time planning an itinerary than enjoying the moment. Disney is hoping to roll out enhancements to the service in 2024, giving guests the opportunity to plan Genie+ usage earlier.
Image source: Disney.
It's not just Disney ramping up its value proposition in the touristy hotbed of Central Florida. SeaWorld Orlando is opening a new roller coaster later this month, billed as the world's first "surf" coaster. The marine life theme park operator also concluded an annual pass promotion over the weekend. Meanwhile, Universal Orlando has been taking down long-running attractions just as it's raising prices.
Poseidon's Fury -- a unique walk-through experience at Universal's Islands of Adventure -- will close forever at the end of Tuesday's operating day. At Comcast's adjacent Universal Studios Florida park, its KidZone play area for young guests was shuttered in January. Both areas will be refreshed for future attractions, but they aren't likely to reopen in the next 12 months. Comcast is also opening a bar-raising theme park just outside of Universal Orlando, but Epic Universe isn't slated to open until the summer of 2025. Some apologists will argue that Comcast needs to raise prices to justify the uptick in capital expenditures, but that's not fair. Universal Orlando isn't selling a three-year annual pass. It's offering a one-year pass, and there will be less to do in the year ahead than there was a year ago. The prices will likely continue to inch higher ahead of the Epic Universe open unless its rivals start gaining market share at its expense.
SeaWorld Entertainment reported record financial results on Tuesday morning. Comcast posted even stronger growth for its theme parks segment two weeks ago. It's a good time for travel and tourism stocks in general, and attractions operators in particular. Regional amusement park operator Six Flags saw its shares soar 19% on Monday after delivering a well-received quarterly report. Raising prices in this climate might make sense, but you don't want to overplay your hand when the competition is getting hungrier and better.
