Chapek Addresses Disney Fan Outrage, Demand, Price Increases, Reservations & Reedy Creek
Disney CEO Bob Chapek spoke today at the Wall Street Journal’s signature technology conference in Laguna Beach, California. The event is billed as the most exclusive technology “where headlines and deals are made.”
Chapek did exactly that during his interview with Matt Murray, Editor in Chief of the WSJ. During that, Chapek explained how the world’s largest entertainment company is doubling down on its streaming, film and theme park businesses. Chapek also outlined his vision for the future, including what to expect from Disney+ and the company’s film pipeline at the box office.
Most notable for our Walt Disney World and Disneyland-centric audience, Chapek discussed “how innovations inside its theme parks have enhanced the customer experience.” (Wall Street Journal’s words, not mine.) You can watch the full interview for yourself below–we’ll be covering the “highlights” that follow…
Most of the session focused on Disney+ and the company’s intellectual property, so not much of relevance there. (Chapek did seem to suggest that Disney will refocus on creating content in-house rather than leaning on acquisitions, so that’s good!)
One of the big non-parks things that has overlapping relevance with Walt Disney World came when Chapek was asked about controversial content that was banned in some markets. He noted that “We live in a world now where everything seems to be polarized, but we want Disney to stand for bringing people together.”
Chapek pushed back on the notion that Disney is ‘too woke’ by saying that “Disney is a company that has survived 100 years by catering to its audience, and it will survive another 100 years by catering to its audience.”
Turning to Walt Disney World and Disneyland, there were questions about how the company has successfully navigated reopening. When asked about high demand for the theme parks, and whether that meant Disney would build more parks, Chapek said that “parks were very successful before the pandemic, as you know, and we shut them down for a year or two years in some parts of the world.
Chapek said the company was “very pleased” by how consumers came back to its theme parks, attributing that to “trust” people had in the brand–consumers knew Disney would open in a responsible way. “Things like the NBA bubble…brought us a lot of confidence in people’s minds.” He indicated that since then, “business has been strong,” and that as long as Disney continues to do things the way it does, it will have robust demand.
When it comes to price increases, the interviewer noted that there were online debates among “passionate” Disney fans about price increases, with some that love them and some who hate the ever-increasing costs. The interviewer asked how to balance this without alienating Disney’s passionate fans.
Chapek answered, “we want to guarantee a great guest experience no matter when people come. If they come the second week of September, we want them to have a great experience. Maybe that’s not so hard then, but it is [during the week of] Thanksgiving.” He further said that the primary goal is ensuring guests have a magical experience and memories that last a lifetime.
“In a world where we don’t control demand, we’re left with one of two situations. You either let way too many people into the park, where they don’t have a great experience, or you manage it by turning people away at the gate.”
With that in mind, Chapek explained that the the reservation system was developed to make things predictable for “families from Seattle” that might have previously come to Disneyland around Thanksgiving at 10 am and previously been turned away. He indicated that this was done in a way similar to other businesses around the world, including airlines. (Note: airlines still overbook and bump people from flights, and do not require a separate airline reservation to be booked after airfare is purchased. Probably a bad example.)
Chapek struck a defiant tone, which is pretty consistent with past interviews I’ve seen where this comes up. He noted that the reservation system is “heresy” to some Walt Disney World and Disneyland fans, but not unlike anything other businesses do. He also stated that yield management is something all good businesses do, and it’s something analysts and investors expect. Chapek indicated that, essentially, pricing is a reflection of demand–a good business practice and good for the guest experience.
Moreover, he reiterated that it’s done to protect the guest experience to guarantee admission on busy days and ensure that the parks are not too crowded. He steadfastly stuck to the script that would sound familiar to anyone who read our recent post, Disney Doesn’t Want Lower Crowds. In fact, much of the commentary there could serve as a direct rebuttal to Chapek’s contentions throughout the WSJ interview.
Towards the end of the interview, Chapek was asked to reflect upon the Reedy Creek controversy and fallout between the company and the State of Florida “with a little time and distance” about what he did right and wrong, whether he’d do anything differently in retrospect, and what lessons he learned.
Presumably not wanting to stick his head back into that particular hornet’s nest, Chapek gave a relatively diplomatic non-answer. He did not say the governor’s name nor did he mention the piece of legislation. There were a lot of specific “red flag” words–and he didn’t utter any of them. So at the very least, his new corporate comms team has coached him on what not to say.
Instead, Chapek said that “the lesson, and what we always should’ve known, is that Disney is all about the Cast.” He noted that people might remember the castle and churros, but the reason people have magical memories that last a lifetime is the guest-cast interactions. He called Cast Members the “secret sauce” and the key to a great guest experience at Walt Disney World.
He said that the vast majority–around 99%–of the positive guest feedback he received when running Parks & Resorts was about Cast Members. Chapek said that he was “reminded” about the sentiment of Cast Members and the importance of them feeling valued and as if they could relate to the company. “You have to make sure the Cast is at the center of everything you do,” Chapek concluded.
Chapek was also asked about the personal criticism and attacks he’s received from outraged fans, with the interviewer mentioning forums and the online community. Chapek mostly brushing this off, saying that he ran parks for about a decade, and knew just how “passionate” Walt Disney World and Disneyland fans can be. He mentioned decisions that were unpopular with fans, saying “if we move a churro cart 10 feet, it’s a big deal.”
Chapek also mentioned the reimagining Tower of Terror into Mission Breakout, “while the lines went from 30 minutes long to 6 hours long.” (He was interrupted at this point by the interviewer, but the implication was that it was an unpopular decision with fans, but vindicated by the general park-going public.)
Either way, Chapek previously had this to say about long lines when Star Wars Galaxy’s Edge opened: “The deep secret is that we don’t intend to have lines. If you build in enough capacity, the rides don’t go down and it operates at 99% efficiency, you shouldn’t have 10-hour lines…So, 10-hour lines are not a sign of success,” he said. “It should be seen as a sign of, frankly, failure.”
It’s also a bit amusing that earlier in the same interview, Chapek talked up the importance of a guaranteeing a good experience for guests who are “actually inside the parks.” It’s like he forgot all about that when boasting about the decision to transform Tower of Terror into Mission Breakout. To his credit, that reimagining was the right call–and I can admit being wrong about it in hindsight. But I’m not sure how 6-hour long lines and a good experience experience are consistent messaging.
One of the things I find interesting about hearing Chapek speak is how he oscillates between sticking to the script and candid comments. When it comes to Disney’s “passionate” fans, he often has a glib and almost defensive tone with an “I’m right, you’re wrong…and here’s why” subtext. With other more mainstream topics and controversies, he’s much more diplomatic and deferential, carefully choosing his words in a way that’s (wisely) evasive.
I can’t say I necessarily blame him, and honestly, I appreciate Chapek speaking his mind even when he has something negative to say about fans like us. It’s just such a stark contrast to Iger, who was meticulous and purposeful with each word he chose–even though he probably thought a lot of the same things as Chapek. (Even though I’m personally fine with this, I don’t think this standoffish tone is savvy or plays well with most fans.)
To his credit, Chapek also indicated that he can shoulder the criticism if it meant doing the right thing for the Walt Disney Company and its long-term reputation. “We all want to make everyone happy all the time. I’m not sure that’s possible in this world. So again, we have to distill this down and say, ‘Who do we want to be? Who do we want the company to be?’ By the way, my own persona feelings aren’t really important. What’s important is how people feel about the company.”
Chapek closed by saying that “he takes himself out of it, and that sort of surprises…Everyone wants to be loved and to like them, but in this world, that’s not always necessary. I wash all of that away and say, ‘what do we want the capital ‘D’ Disney company to stand for?’ If we’re doing right by the company and can sleep at night, then…I can be teflon and know we’re doing the right thing.”
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 Chapek’s interview during the Wall Street Journal technology 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!
He is either a pathological liar or he hasn’t spent any time in the parks lately. They’re all overcrowded. The reservation system has NOTHING to do with guest experience. All about revenue. I get that Splash Mountain is being rethemed, but rather than let folks enjoy this wonderful, iconic attraction, they’re literally just letting it fall apart before it closes. The WDW Railroad has been closed for 4 years while building Tron. Universal built Velocicoaster (during the pandemic no less) in just over a year. Epcot is a mess. Hollywood Studios and Animal Kingdom both need more attractions. I really wish he’d just go away.
Agree 100 percent with all your comments. It’s like they are letting the parks fall apart. It’s kind of depressing riding splash mountain now which was one of my top 3 favorites. It’s like they are throwing band aids on everything just to get to the next earnings call.
Just having come back from WDW, I must say that I was extremely disappointed. They are starting to micro-transaction it to death. It is similar to the video game industry. You want the extra downloadable content and customization, you are gonna have to pay to unlock it, on top of the cost of the game. The difference though, is that the games are initially offered cheaper than suggested retail and they compensate with DLC. With that said, some of those perks for a truly magical experience are no longer there. Dining plans. It cost two adults and one child $200 with tip for character dining. I don’t know about you, but that is really steep for a working class family. I want to go and not worry about how we’re gonna pay for food. It makes it easier to budget for souvenirs. Speaking of characters…most of the charcter interactions throughout the park were extremely lacking. You’d think that with so much content, you’d be able to meet a plethora of memorable characters around every corner and that clearly didn’t happen. There were multiple times when rides broke down adding to wait times. You could tell that some cast members were just miserable, sure they might be (fake) smiling, but as I once read on a t-shirt, “The beatings shall continue until morale improves.” Another much loved but missing magical experience contributor, the shuttles to and from the airport. I don’t know why that went away, but I can tell you that I’m still paying more than I would if they were still there. I truly enjoyed having my luggage delivered right to my room so that I could go and enjoy the parks right away. I miss the store purchase to room delivery. What a pain to carry everything. It has been substituted with going to guest services and paying for them to hold it until you’re ready to leave the park. Another observation, the park hours vs event hours. While you’re trying not to go crazy with The Genie app and waiting for rides, sure you could pay extra to cut that wait time down, but you’ll still be waiting, some things close early, for example “Rafiki’s” whatever closed too early, like midday if i recall correctly, and we missed out. Now on to something that is and isn’t the park’s fault. The self entitlement of the guests. If wokeness involves this idea of I’m entitled to do what I want, when I want and how dare you for trampling on my feelings, then there was plenty of that. I was thoroughly angry that we made it for fireworks at Epcot and we had decent seats at an outdoor restaurant on the water, but the minute the show started, there was a rush of adults and teens stampeding their way in front of families with children. When asked to make way or return to the back so that the waiting families that had been there for a while could enjoy the show, they scoffed, cursed, threatened to fight, and refused to make way for the smallest of children. Where was security? I dunno. This was the same experience on the buses to and from the parks to the on-site hotels. Women, the elderly, and children standing. This infuriated me to see an exhausted child having to hold a railing, while grown, supposedly adults, engrossed themselves on their phones, taking selfies, giving whatever eye rolls, sat on their rears. I witnessed this atleast a dozen of times in a five day span. Maybe I’m old fashioned, but I was raised differently. If this is the wokeness mentality where ones self and their feelings are truth, then I don’t want any part of it. I’ll take my masculinity elsewhere. Thanks Disney for providing and encouraging this environment. You truly are magical for making my money disappear and for reminding the kid in me that there is no such thing as true magic, it is just business.
Wokeness is not my feelings trump yours, it’s actually the opposite. It’s an acknowledgement that your viewpoint and experiences are not the only ones in existence, and that differing viewpoints can be equally (not more and not less) valid. Being woke is acknowledging that hey, this thing here doesn’t particularly affect/bother me, but it does affect/bother this other group of people, so maybe we can do something different to accommodate them. And acknowledging that at the end of the day we are all people, and while we have our differences there is a lot more that unites us in that we all want to be healthy, happy, and able to survive.
I want to be clear, I am *not* denying that you experienced a lot of rude behavior from other guests on your visit to the parks; I’m sure you did. I’m just asking that you not conflate the *selfishness* you saw with wokeness, as they are not the same, even if you see traits of both in the same person.
Love your comments J. Wish we could return to the days of manners and selflessness. Sounds like Jared needs to pontificate less and give his seat up instead.
He’s just not likeable. Love or hate Eisner and/or Iger, they at least could turn on the charm and make you somewhat believe they understood the Disney magic. Chapek has zero charisma and is a horrible corporate personality to be the face of a creative company like Disney.
That all said I think he’s trying and has the usual mixed bag of successes and failures of 99% of CEOs. It’s rare for any corporation get a true visionary like Disney, Jobs, or Musk at the helm. We probably won’t see that again in the CEO chair of Disney for decades, if ever.
He’s out of touch with the guests.
Im not sure how he can say he wants to give guests a magical experience when they come to the parks. The price keeps going up and almost every E ticket attraction is in sad disrepair. To cheap to pay for maintenance and would rather see disappointed guests then give up one red cent. They don’t call him Paycheck for nothing! $$
Universal is running a good deal
5 days/5 nights at Cabana Bay 2 adults and 2 kids with 4 day 3 park to park tickets $1750… Sunday through Thursday stays!
I will Disney would offer a really good deal… Cabana Bay is similar to Art of Animation and you get 30% off
Honestly, the park reservation system kind of ruins the best thing about going from park to park, which is the Disney transportation. I had hoped the reservation system would go away once things started to normalize after COVID. They ruin the benefit of staying in some monorail or Epcot resorts unless guests always intend to start their day in the park closest to them. We used to stay on the monorail resorts, and walk through Epcot, and hop on a boat (or the Skyliner, more recently) to get to Hollywood. Now, even at the best resorts, you end up taking a bus unless you want to start you day at the same park and hang out there until after 2pm every day. For me, that is the most frustrating side-effect of the reservation systems. It’s no longer fun to move from park to park, because it can’t be done at your leisure but is instead done all en masse with thousands of other park hoppers. I wouldn’t be surprised if the next price gouge is paying extra to be able to park hop all day vs. only at 2pm. Super frustrating.
Interesting article. Disney still puts out high quality content and there are some good deals on Disney cruises. Overall they are muddling through. Some mistakes and stupid decisions, but try buying a new pickup truck. Everything’s more expensive and worse.
Chapek and all other execs and Imagineers need a serious reset and go back to true Disney roots. I’ve read Walt was big on walking the parks personally and encouraged others, especially Imagineers to go into the park as guests and see what guests really experienced. Hear what they are saying. He made lots of changes just by watching what guests did. Execs and Imagineers would learn a lot by being one of the regular people…
FWIW, Josh D’Amaro (head of parks) and Jeff Vahle (head of WDW) both spend a good amount of time in the parks. I’ve seen both on numerous occasions, and WITHOUT handlers.
Similar story with Imagineers, although that really does vary. Some of them view it as nothing more than a job and thumb their noses at the parks; others are incredibly passionate and are with their families and friends all the time.
This is also one reason why, historically, Disneyland has been held to higher standards than WDW–it’s the home park for a lot of powerful people.
Good point about Josh and Jeff, Tom! I think Chapek would do well to try it as well. I know not every poorly received decision is his and his alone but he definitely comes off as clueless to the real guest experience. Long time ago on my first (non Disney) cruise, we met a nice gentleman who asked how we were enjoying the ship. We gave him honest feedback that this particular ship was geared heavily towards a much older person and we, as teens found little to do. He eventually admitted to being the CEO of the cruise line and I was mortified! He, however, thanked me for my honesty and said he was going to take my comments back to his people. I’ve only cruised Disney since so not sure what changes he made, but I think sometimes big wigs need to hear straight from the little people how they really feel
We’ve given ip
Our out of State premium Annual Passes. Everything Chapek has done shows that Disney does not care about pass holders. We’ve got one more trip booked and pre-paid; if we didn’t book it before all this woke BS we would not be going. It’ll be our last trip for a long time and I started visiting WDW and DL beginning in June 1973. I’m so angry at Disney now. Their ridiculous policies, cost, wokeness had ruined it for me.
Thank you for posting Nonna. My family’s first trip was in September 1973. (Three generations have visited at least once a year) Our last trip was #43 from Texas last December. Because of the woke policies, Corporate Greed and putting the dollar above the visitor experience we are done. The magic is gone from Disney.
What this “wokeness” of which you and other commenters here speak? What am I missing?
I find it funny the way he claims it is for guest experience when it is not. The parks are beyond a comfortable capacity. It is really about refining demand pricing even further. I wonder how far away from demand pricing for hot chocolate on cold days cause there are too many hot days to start with cold things.
Chapek singularly cares about one thing: revenue. And as long as he brings in the money, the shareholders will be happy. The fans aren’t part of the equation.
Sad but true.
Also a long time Disney fan (first visit 81′). Disney has always been a corporation and always had responsibilities to their shareholders.
I just seems that before they found a balance of the magic and being profitable with annual price hikes.
Now, it seems they can’t hide their contempt for those who have paid and visited over the years, paying the increased prices.
Chapek is lying. The reservation system is not for crowd control. Every park was packed on our trip this summer.
It was our last trip. We enjoyed being on vacation as a family, but the magic is definitely gone.
What did Disney stock do today after that pontification? He is one condescending man.
Stock is down slightly after hours, but it most likely has absolutely nothing to do with this.
As a general matter, I would caution against drawing any connections between Disney’s share price–up or down–and ANY current events–good or bad–related to Walt Disney World or Disneyland.
Direct to consumer/streaming is the big driver behind Disney’s share price, with its streaming competitors, broader market trends, recession worries, and interest rates being secondary. I keep seeing fans trying to connect the dots between the stock and parks, but I just don’t think it’s a key consideration right now.
I think Chapek needs some humble pie. The demand the parks are seeing is built on the belief that Disney isn’t like other companies, that they actually care about their customers and making happy, magical memories. It doesn’t matter if this is actually true (it almost certainly isn’t), but people want to believe it. It becomes much harder for people to maintain that belief when the company chairman is actively telling them that actually, their concerns have no merit because he/the company knows better than them. The company currently is benefiting from goodwill and initiatives that were started long before Chapek took over, and he needs to do a better job maintaining those things or things will go south fast.
Iger may have thought the same way Chapek does. But Iger was smart enough to know that if people found out he thinks that way, the con is over and they will take their money with them. I think Chapek is going to learn that lessons the hard way, and probably end up being the fall guy when profits start going down.
I definitely agree with you in theory, but I wonder what percentage of the general public–or even fans–hear his comments?
It sure seems like a huge number of people both know who Chapek is and dislike him. I wonder if that’s a matter of selection bias, or if there’s something to it. I truly do not know.
Chapek’s comments are so typical, and could come for virtually any of today’s CEO’s. These CEOs follow a woke DEI or “ green “ agenda to show their great concern for being “ responsible “ corporate citizens. But in the end, their concern costs them absolutely nothing, personally, as it is their customers/victims who are forced to pick up the huge tab for their mock “ compassion “ in the form of much higher prices, and much smaller customer satisfaction. And he has the guts to maintain ridiculously short park hours, and maintain huge crowds in the parks. I’m glad Florida’s Governor gave him a black eye.
I agree with you 100%!
He says that all businesses do yield management. That’s true, but what he’s missing is that to many people, Disney is not just a business. I mean, I know it’s a business and I know it always has been, but Disney has been very good over the years at really de-emphasizing the business part in the guest experience. (Chapek was apparently sick that day at Disney School). Fans will grumble about prices and standing in line, but with a little playful misdirection, a good story and some warm and fuzzy interactions with CMs, we’ll forget about our pain points and remember the whole experience fondly (“A Disney Vacation: Like Giving Birth, but Not” will be the title of my b-school thesis). Our happy feelings are underscored by the myriad ways Disney is part of our national culture–movies, Broadway plays, Disney Channel and Disney+, the ubiquity of the characters all help us forget about the bus being super late that one time and get caught up in the myth.
Chapek seems uninterested in all that and it shows. .
“A Disney Vacation: Like Giving Birth, but Not”
That’s a really, really clever idea. And one that seems like it’s right on the money. (Not that I have any experience giving birth, but I’m familiar with the underlying theory!)
As a former cast member Disney doesn’t care one bit about their cast members. The reservation system was put in place during Covid to control the number of people in the park to control Social Distancing and Pass Holders were the only people to hold WDW together for the first year after opening. But now he claims they hold now value and they are the last ones allowed in the parks. They now control crowds by the reservation system and by price. The bottom line every little thing is a fee.
I mean- he said what he had to.
Personally I’m not convinced the park reservation system is actually used- parks are massively overcrowded.
“Personally I’m not convinced the park reservation system is actually used- parks are massively overcrowded.”
Right. How he claims the system is used in these interviews and how it’s actually used are two very different things.
Probably worthy of a standalone article…
Tom, please do that article. I really hate this reservation system and the park hopping constraints.
Mr. Chapek may not be an animator, but he sure is a highly paid professional BS artist. “You have to make sure the Cast is at the center of everything you do,” ?? Maybe he can go over to YouTube and watch the nightmares associated with the Disney College Program. And saying that “passionate fans” complain about the churro cart being moved is nothing more than an insult to the core park audience and the reality of what everyone is really complaining about. Maybe he needs to go back to his job at the Churro cart for a day to hear what people are saying.
He is not good at it, though!
Say what you want about Eisner and Iger, but they were really, really good at selling something, whether it was in reality a goat or the GOAT. Chapek just can’t get into that next gear, and just get excited about something. He just can’t spin things to make them sound like they are good.
Chapek is an amateur/NCAA level BS artist who got over promoted because Iger liked him better that Staggs or Rasulo. Now I didn’t always agree with Eisner or Iger, but at least they could spin me or Wall Street; Chapek will likely be fired because no matter what he does with Hulu he can’t convince institutional investors that his choice is the right one.
Not that I don’t agree with everyone about Chapek making short term decisions, I just think he also doesn’t sound assertive from a creative *or* an executive standpoint.
I didn’t watch the video but the highlights sound like a lot of nothing new.
It’s all about the cast? While I agree the cast need to feel appreciated, they’re not the ones spending the big bucks.
I would have liked to hear more about concern for the guests that are discouraged by across the board price increases and large crowds.
We have one more family Disney trip planned for next year but after that we’ll be checking out Universal, beach rentals or staycations to Busch Gardens.
Disney prices have gotten out of control.
From what I was looking at Universal one day tickets are more expensive than Disney’s♀️
While I agree with you completely, I just am skeptical of people who say they are done and then end up booking anyway eventually. (and I’m talking to myself here….) That’s the problem. Until people stop going…..we can expect more of the same. unless we fall into a serious recession …..then it’s a whole different matter.