Bob Iger Discusses Disney Parks Pricing, Accessibility & Future Plans
Disney CEO Bob Iger spoke at the the Morgan Stanley Technology, Media and Telecom Conference on March 9, 2023 in San Francisco. The event is billed as a place to learn about the trends reshaping the technology, media and telecom landscape with new insights.
Iger did exactly that during his interview. During that, he explained how the world’s largest entertainment company is evolving its approach to streaming, and why he undid his predecessor’s restructuring. Iger spent a large portion of the interview discussing Disney+ and the potential Hulu acquisition; programming on linear television; the power of sports, value of ESPN, and inevitability of betting; as well as revenue from subscribers, advertisers, and the impact of competition in Disney’s businesses.
Iger also outlined his vision for the future, including what to expect from Disney+ and the company going forward. Most notable for our Walt Disney World and Disneyland-centric audience, Iger discussed his priorities for the parks. The interviewer opened this segment of the discussion as having investors anxious because the theme parks are overearning (a refrain from the ‘Restore the Magic’ campaign).
Iger started by praising the parks for their resiliency. He discussed how they had performed well coming out of the pandemic, but also post-9/11 and during the Great Recession. (He later mentioned that Disney wasn’t recession-proof, but is pretty close to it.) Iger also covered how well Walt Disney World and Disneyland have bounced back, and said this wasn’t just in the United States, but globally. Shanghai Disneyland, Disneyland Paris, and other destinations are all doing extremely well according to Iger.
On the over-earnings front, Iger stated that he’s “always believed that Disney was a brand that needed to be accessible.” He added that under the Chapek regime, there was a “zeal to grow profits [that] may have been a little bit too aggressive about some of our pricing. I think there’s a way to continue to grow that business but be smarter about how we price so that we maintain that brand value of accessibility.”
Recently, he’s brought this up while noting that measures have already been taken to make the parks more accessible–presumably referring to an increase in the cheapest single-day park tickets and rolling back of hotel parking fees.
One of the things I find most amusing about Iger’s interviews since returning as CEO is how carefully yet clearly he throws Chapek under the bus. It’s really impressive. There’s also a sense of plausible deniability–as if Iger is carefully skirting a non-disparagement agreement–but it’s so obvious to anyone who knows the story.
Iger also mentioned that Disney took certain steps when he came back to improve guest satisfaction and undo some of this damage, noting that these changes “resonated extremely well with consumers. And we’re not only going to continue to listen to consumers, but we’re going to continue to adjust.”
He hinted that more changes like this are on the horizon, without offering specifics. Iger simply said that Disney will continue to listen to guests and make adjustments based on feedback.
He also discussed striking the right balance between accessibility and crowds. Iger reiterated past remarks by Chapek and Parks Chairman Josh D’Amaro that some of the initiatives at Walt Disney World and Disneyland have been done to “protect” the guest experience and ensure that the parks are not too crowded.
“It’s tempting to let more people into the parks…but if guest satisfaction is going down because of crowding, it doesn’t work. We had to figure out how we reduce crowding but maintain profitability, and we did that well,” Iger said in reference to park reservations and the approach to yield management by Walt Disney World and Disneyland.
Iger also diverged from Chapek’s stock answer to this type of question, noting the need to be “careful” when dealing with capacity and pricing, as consumer sentiment can sour. He acknowledged that pricing or “features” could be viewed as too aggressive or alienating by guests. With that exception, Iger mostly stuck to the stript that would sound familiar to anyone who read our post about why Disney Doesn’t Actually Want Lower Crowds.Â
Iger briefly touched upon plans for the future, and reiterated his bullishness on parks. We discussed all of this in great length in Bob Iger Wants Big Expansions at Walt Disney World & Disneyland. He made it sound like additions in Florida and outside of the United States were both a given.
Most interestingly, Iger said there were “more opportunities” in California at Disneyland than most people were aware. Although he didn’t directly mention it by name, it would seem that Iger might’ve been referring to DisneylandForward, the proposed zoning initiative. It’s also possible he was hinting at the redevelopment of Tomorrowland, expansion to Fantasyland, or the second phase of Avengers Campus.
All of those are very real possibilities that are or have been on the table, sort of proving Iger’s point that there are plenty of opportunities at Disneyland Resort. If even two of those things happen during the next development cycle, that’ll be huge for Disneyland Resort.
Iger mentioned again that the company is planning on building an Avatar experience at Disneyland, but declined to provide additional details about the substance and nature of this. (See our latest update on the Avatar Experience Coming to Disneyland for the latest on that–nothing new on that.)
Iger also noted that as Disney continues to invest in the theme parks, the company will “essentially building out new capacity or new attractions, it gives us the ability to, one, service more people. The more attractions you have, obviously, the more people have to do.”
He also indicated that theme park expansions give Disney an opportunity to “mine our IP more effectively.” Iger added that the streaming and film franchises that perform well are also “truly leverageable at the parks level” as has previously been learned with the investments made in themed lands for Star Wars, Avatar, and Toy Story.
Iger said that this creates growth for Disney because it increases capacity and it improves marketability. With that, he said that Disney has “opportunity that is almost endless, but we obviously don’t have endless amounts of capital.” He added that Walt Disney World and Disneyland do have almost endless opportunity for growth if the parks are priced right, marketed well, and managed properly. Iger concluded: “It’s a business that, obviously, we’re betting on. I would bet on it.”
Ultimately, nothing really new here from Bob Iger out of the Morgan Stanley TMT Conference. He repeated familiar phrases and sentiment, including some that was common from Bob Chapek. The key distinction is one of balance. Chapek was not necessarily wrong with his comments about guest demand and pricing, but that seemed to be his singular focus. Chapek’s statements often had an arrogant, ‘fans can pound sand if they don’t like it‘ attitude to them.
Iger also discusses the business realities of the Walt Disney Company, but appears to be more keen on finding solutions other than just raising prices. He’s clearly concerned about the guest experience, and this is now the second time he’s discussed the need to grow capacity by building out the parks. His concluding remarks, which may not translate as well to text, were also reassuring, as he emphasized his willingness to bet on the theme parks and their potential for future growth.
From my perspective, Iger and Josh D’Amaro both saying the same things about expansion and future developments reinforces that there are substantive plans, and it’s not just posturing or hollow hype. Nothing new came out of this conference, but consistently repeating the same goals, ambitions, and willingness to bet big on building new lands certainly suggests that there’s something on the horizon. Here’s hoping we hear official announcements and actual specifics soon.
Planning a Walt Disney World trip? Learn about hotels on our Walt Disney World Hotels Reviews page. For where to eat, read our Walt Disney World Restaurant Reviews. To save money on tickets or determine which type to buy, read our Tips for Saving Money on Walt Disney World Tickets post. Our What to Pack for Disney Trips post takes a unique look at clever items to take. For what to do and when to do it, our Walt Disney World Ride Guides will help. For comprehensive advice, the best place to start is our Walt Disney World Trip Planning Guide for everything you need to know!
YOUR THOUGHTS
Did you watch Disney CEO Bob Iger’s interview during the Morgan Stanley Technology, Media and Telecom Conference? Thoughts on anything he said–or didn’t say? Thoughts on his comments about crowds, price increases, high demand, reservations, Cast Members, or anything else? Are you worried about the future of Walt Disney World, Disneyland, or the company in general? Think things will improve or get worse throughout this year? Do you agree or disagree with our assessment? Any questions we can help you answer? Hearing your feedback–even when you disagree with us–is both interesting to us and helpful to other readers, so please share your thoughts below in the comments!
I can live with the park reservations but don’t like the 2pm park hopping. We rope drop and sometimes want to park hop earlier than that.
Great news! Park Hopping has been changed to 11am – at least at the Disneyland Resort. It makes for a much easier day of planning!
Go back to fastpasses. Genie is not working as it is expensive and time consuming. Also with an annual pass park hopper, you should be able to go to any park at any time.
DVC owners should have more time prior to park opening. 1/2 hour is nothing!
Also, increase dining reservations to more than 60 days before resort booking day.
People who stay at deluxe resorts and DVC members should have magical express.
I totally agree! Bring back Fastpass. Genie+ is a disaster.
FP+ is not coming back, time to move on.
Blah blah blah! Iger was suppose to change all the things that evil Bob Chapek created. So what changes has he made to lower prices? Can you say good cop bad cop?
Planning on taking my family to Disney World in April but not looking forward to it. Closing Blizzard Beach is a big disapointment for me , and I don’t get the purpose of alternating the openings of the water parks if they are truly concerned about crowd control. I also am totally disgusted about paying for lightening passes and genie plus. Two weeks on my phone for sure! What fun!!!!!!
Disney used to be a magical vacation. so many things have changed – and not for the benefit of the guests. With the exception of no more resort parking fees, not much has changed since Iger came back. Parks are more crowded than ever, genie+ is awful to use, and park reservations/park hopping restrictions make spontaneity a thing of the past. Guests are nickel- and- dimed to death. Hope Iger turns things around, but I’m doubtful anything will change…for the good anyway.
this is such a garbage explanation by Iger. Chepak was only doing for the most part what Iger putting place before he left. Gee if crowding is su h an issue when Disney keeps an eagle eye on how many guest are 1st) local annual pass holders and how often they visit. 2nd) how many people already prebooked tickets. 3rd) % of Disney hotel guest (let us not forget it was Iger who had the bright idea to charge non DVC guest for parking at Disney hotels) who go to the park. and then there is the fact they keep a running ratio of guest in the parks. So with all that in mind it’s bull snot to say that park reservations are needed when all they need to do is STOP SELLING TICKETS when the park is close to the ratio they have calculated for all the other known issues. as a former Disney Freak I now see Disney for what it is. they never admit their mistakes, and deflect any criticism they deserve to someone who can’t defend themselves. Disgraceful!
The talk is what we want to hear. Actions mean more and while there have been a few, much much more is needed to win back the loyal park dwellers. We are also DVC and haven’t been back to the parks since late 2018. Summer 2022, we used the money from renting our DVC to have a kick ass time at Universal Orlando. Universal just wiping Disney’s arse in Flordia. Can’t wait for Epic. Perhaps by then, Disney will wake up. If not, we will resell the DVC to next sucker. If park demand is so bad that they can’t accommodate, then duh, build more parks already. Wakey, wakey.
“Recently, he’s brought this up while noting that measures have already been taken to make the parks more accessible–presumably referring to an increase in the cheapest single-day park tickets and rolling back of hotel parking fees.”
That’s the big difference to me. I can bide my time until the next actual announcement because Iger has put Disney’s money where his mouth is so far. (If only the extra money could be used to hire more employees to work in park operations, park maintenance, and in restaurants…)
Iger did alot of sideways talking about prices and costs for guests, but didn’t say anything except words intended to make guests feel like they are being heard. Until he says something concrete, it’s just Iger talking, which is what he’s good at and why he was brought back as CEO.
I think they should roll back the prices. this has gotten ridiculous
the only way to have crowding to less gst in parks.
they can’t sell AP then not have days available.
higher price for tickets is to keep crowds or LESS availability for park reservations.
This isn’t brain surgery put Disney back to pre-pandemic prices and stop worrying about stocks and worry about the people who enjoy the parks
Chapek allowed park design projects to get very boring and generic for a short period. Hopefully, those shortcomings will be reversed. Even under Iger there were a few missteps. Hopefully, Bruce Vaughn will fix these problems as he is know as a fixer of past problems. My top refresh project:
1. Little Mermaid attraction. The worst thing Disney has built in 20-years. Cheap and uninspired. This attraction demands the Peter Pan overhead ride system so guests swim along with the characters and not slide along in muck at the bottom of the sea.
2. Rethink the Polynesian tower design. Make cosmetic changes to look more like Aulani in Hawaii.
3. Add Swan and Dolphin embellishments to the Swan Reserve so the property looks somewhat like it fits.
4. Actually, the new tower at the Disneyland hotel is beautiful. Redesign the entire Disneyland hotel to match the new tower.
5. In Disney California Adventure, fix Pixar Pier: on Incredicoster remove the Jack-Jack on a stick installations, remove all the tunnel effects replacing them with full curved video screens (the tech exists) so each tunnel is a fully integrated character video loop, add AA characters to the final scene; retheme the Paradise Pier attractions to Pixar (i.e. Dory’s Jumpin’ Jellyfish or Wall-E’s Star Flyers).
6. Move the Monsters, Inc. attraction to Pixar Pier (the ride building could be backstage next to Toy Story Mania.
Well concerning the prices, after pricing a stay at disneyworld and a stay at universal studios orlando for 2 adults and 4 kids 1 an infant, we chose universal resort for the stay. We got our universal tickets and a 2 room suite for the price of a 5th sleeper room with no disney tickets. Just the disney tickets alone will cost about a little under 2/3 the amount of the reservation with tickets to universal!! That’s just ridiculous
I like that umbrella Chapek has been downgraded to black and white !!
We are DVC members and have been to Disney World many time over 30 years. The magic seems to be waning. The direction they have taken with both their animated and live action entertainment is disappointing They need to turn away from the attempt at ‘social engineering’ and political pandering. Focus on making Disney entertainment or the losses will continue.
if they didn’t waste money revamping already existing attractions and instead spent it on new ones, they might actually increase WDW’s capacity. I really do hope that universal blows them out of the water in 2025. I’m one of Disney’s most diehard fans. Or rather i was. Now i literally sneer at everything that comes out of their mouths, be it Iger or D’Amaro or whoever. They may talk guest experience, but it’s just talk. I sure hope it bites them in the ass one day.
Unfortunately, Disney World has been damaged beyond redemption (for us long term loyal fans, at least) by taking away most of the advantages of staying on site, while price gouging for many things. And to add insult to injury, putting in inferior replacements for things that used to be free (does anyone like the complete mess that is Genie+ or paying for the previously free magic bands?) and eliminating the single best thing about staying on site: the Magical Express and luggage handling. These are what really created the Disney bubble. It’s also what caused us to cancel our 8 day Disney World vacation and rebook it for later this summer at Universal.
Yes, demand is still high but I believe that will eventually level out and decline as the large army of once loyal fans abandon Disney for alternatives that value retaining their long term customers. Sadly, Disney is no longer one of them. They seemed pretty focused right now on the Disney streaming service, which is floundering. Ironically, the streaming service doesn’t build loyal Disney fans – the theme parks do and that’s why I fear that a few years from now Disney World especially will be floundering and looking to win back previously loyal customers…to no avail.
I know this sound pretty negative. We live in Seattle and were huge Disney fans and traveled across country 11 times in the past 20 or so years to stay in Disney World. It took a lot to turn us away from Disney, but the changes over the past 18 months or so managed to do it.
I completely agree. We live in the UK. A 2 week break at Disney World in a budget resort costs over £6000 without any tickets or dining plan. We simply can’t afford to go anymore so our money is being spent elsewhere in the world. Furthermore, with all the changes such as having to pay extra for things that used to be free, has made us not really want to go. It feels like you’re being robbed in broad daylight! Disney must be hemorrhaging money!
Low GBP exchange rate isn’t Disney’s fault.
The one problem with expanding capacity is that crowds will simply expand to fill every available square foot of space. As the universe expands, so doth Disney crowd levels… But I remain positive that our fearless leader The Real Bob will come through and bend the rails back on track.
I was expecting umbrella Iger…. Or at least umbrella Bricker lol
Maybe Tom can make the B&W version a little out of focus, fuzzy and ominous, like they do in political ads.
I almost commented that the monochrome was a little cold-blooded fro Tom’s usual cheery self, but I think we all know he’s not a Fake Bob fan any more than we are already…
@Husker lol – I can see it now
Chapek raised prices and took away the magic , he averaged making 7 babies a day cry
This ad was paid for by umbrella Iger
Umbrella Bricker is something I never knew I needed to see.
Hey, don’t be giving Sarah any more ideas…Tom’s in enough trouble as it is…