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 has gotten better at dodging questions and was allowed to do so. Depending upon perspective, he is either in denial or is deliberately doing so. He has been a huge mistake for Disney. The extension he was given is a sign that enough if the board is happy with him ir willing to out ip with the bad as he continues price increases and they all make more money. I expect eventually, likely after this contract, the company will make a change, and won’t mind if blames gets laid on him as he exits. (He is getting paid for it, after all.) at that point, Disney will have some course correction, but I don’t think it’s reasonable to expect it be what it once was.
We had planned four trips this year. But after the first (which was conference based), and having the second cancelled because of a mistake, have not been back. My thought is I miss it, but am still not ready to go back. I hate I can’t bring myself to feel good about Disney right now. I never thought that would happen. I was a cast member at three different times and an annual pass holder for many years. I feel like I’ve lost something that was a big oart of my interest and past and was going to be a part of my wife and my future as we approached retirement. Now, that’s hard to say.
I have given up on Disney. I used to love it so much but now when I hear the name I feel a little sick inside.
Apparently the “Disney Difference” has been reduced to “not unlike anything other businesses do”.
“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.”
Uh…., Mr. Chapek, sir…., that audience your company catered to the last 100 years is the ones that are unhappy with the direction you are taking the company. Seems like you have quit catering to us. What’s next? Gambling casino, sports betting bars, strip joints? They all would probably make your company money with the new audience you are betting on. I for one, will not be counted in THAT audience.
Not to mention that the audience he is “catering to” is a small population minority and ignoring the much, much bigger majority one.
Disney used to be “my park”. I share a birthday with Walt Disney (different year) and always loved going there both as a child and as an adult. My husband and I had annual passes up until about 5 years ago. When Covid hit, I was anxious to get back to the park once things settled down. I was even going to try to get an annual pass, even with the increased costs, but they were quickly sold out, and haven’t opened up yet to purchase.
To get a park hopper ticket now would cost my husband and I almost $500 JUST TO GET IN, not counting snacks and/or meals. How can a family even afford to visit the parks now? And it seems that Disney is now getting away from the “family” aspect of things, and catering more towards teenager/young adults with fewer things for young children and older people. Let’s keep some of the old branding and not re-imagine it, ok? Not everyone watches Marvel movies, not everyone watches Star Wars movies. (I do, and think they’re cool, but not everyone does). What was it Walt said? “Here you leave today and enter the world of yesterday, tomorrow, and fantasy” Can we keep the troubles of the world out of the park and make it a place of escape and fun for all and not just those with deep pockets?
Even though I know this is all lip service from Chapek we will still go to DisneyWorld. For me and my family it’s about making the most out of our trip and we can still go on a budget. It just means they won’t be getting as much of my money as they use to. I have a special needs child and unless they get rid of DAS we will be there making our own magical memories.
i loved going to Disney World. I used to go twice a year. I can no longer afford to go. Next year I am taking my family to Universal Studios instead. Already saved over a thousand dollars. Huge difference in price.
That’s most definitely our next vacation! Just can’t justify Disney dollar wise or sentiment wise anymore.
Along with all the price gouging has also come cheap souvenirs and not as clean of parks. And like a lot of people gave said there’s lots of breakdowns for extended periods of time. The one thing they seem to forget is that it’s the adults that take their kids to Disney World because they remember all the magic of all the original Disney characters and movies as children themselves. Disney is now creating an era that is going to be pretty forgettable as the years go on and therefore when these younger kids become adults they won’t have the memories from all the originality that Disney really is. We used to go twice a year and spent lots and lots of money but I’m done with Disney until they can see the errors of their ways . It certainly is extremely sad.
I’ve already said it, but…I mean…Universal (pick a coast)…Dollywood/Pigeon Forge/Gatlinburg…Nashville…New Orleans…Quebec…Mexico…the Caribbean…Europe…so many, many, many other awe-inspiring places on the planet I can take my family for a week on less than what Bob Paycheck’s Disney expects me to pay for the same weeks we used to spend at DLR and WDW for far less THREE YEARS AGO. Or for the same newly jacked up price, but now we’re talking about Hawaii…or Japan…or Australia. As much as my partner loves a good Disney pool and I love Space Mountain at 8 a.m., we will NOT be financially participating in Bob’s next bonus.
When I met him, I was wearing my “we love Disney Cast Members” tee shirt. I made him stop and read it. I had some choice words picked out for him, but I did appreciate what he had to say about the cast members. While I hate what he is doing to my Happy Place, I do feel like he actually believes that the CMs are the backbone of the company.
I don’t think Bob’s a jerk, he just acts that way sometimes.
If he cared as much about cast members as he claims, he’d treat them better. Roy Disney’s granddaughter has been quite vocal about that. She said it shames her to know that “Cinderella” sleeps in her car because she can’t afford housing on her salary (Disneyland).
And Cheapek only spoke out about Florida’s “Don’t Say Gay” bill after there was a lot of backlash about him staying quiet about it & not defending the LBGTQ cast members.
I agree that I don’t mind his candidness however I too don’t appreciate the smug delivery and body language always used. Great interaction story to hear but that just reminds me of smiling face management talk. My question to you is would he have had the same conversation if he bumped into you at a grocery store? I doubt it. Coming from the parks he knows what guests want to hear. You having that shirt on tells him exactly what to say to you to make you walk away happy for your interaction with him. He’s not running a multi-billion dollar company without knowing how to please people. He’s where he is because he makes the company money. Until people grow the spine to walk away from their product there is no reason for change. During COVID the WDW cast members I ran into were more miserable than a public transit bus driver. I had one tell me he was a maintenance man at a resort that wasn’t open. When he came in one day they said we’re closing you can take this job picking up trash in the parks or you just don’t have a job here anymore. Very disappointing to hear. I remember who was in charge of parks then and who cut 27,000 jobs to make the company money. The same week they announced their layoffs they announced they made 1.6b in their 5th quarter of disney+. Folks should have come to their senses then. He gives this interview and lays out that demand dictates their price, but we all know if they had a dip in attendance and made 650m instead of a PROJECTED 750m there’d be hell to pay in board meetings and prices would rise due to ‘a recent sudden decline in attendance’. Now on top of all of that you have this company making political statements with your money and trying to shame your beliefs because ‘they’re listening to their audience’. Time to move on.
I couldn’t agree more about the smug candidness. Maybe he should try an experiment. Make him stand outside the gates after a day in his park with a clipboard and take guest satisfaction surveys. If he thinks that people will say anything positive just for the privilege to meet him, I’d love to be one of those people getting surveyed. I would have no problems giving him an earful. I’m from NY and couldn’t care less what his position is.
I was at Disneyland in early September when it was 100 degrees every day. I did not find one drinking fountain that worked. So I was forced to pay near $6 for a bottle of water.
Btw, you can bring water bottles from home.
All this is, is nothing but lip service. So far this week, Spaceship Earth, Haunted Mansion, Liberty Riverboat, Splash Mountain, Frozen, Spaceship Ranger Spin have all been down for an extensive period. Four of which we had Lightening Lane time slots for. Nothing in return. We couldn’t even get a first visit celebration pin for my daughter because there is a ‘pin shortage’ at all the resorts and parks. This trip has been such a miserable experience, I’m not coming back for at least 10 years. Really have had enough unless changes are made for the better and which returns the magic. We’ve lost alot of money on this trip due to overcrowding and down attractions, thereby leaving the parks and going back to our resort. Only touching the iceberg of how angry this trip had made us.
Totally agree with you .. coming from the UK its hardly cheap, but something we all looked forward too having last visited 10 and 13 years ago .. live the house of mouse.. but this time .. the experience was awful .. the magic taken oit of it .. spent most of my time looking at the app to see when we could join lanes, or enormous wait times, rides often breaking down.. so we couldn’t use them but couldn’t reserve the park for another day as it was fully reserved.. I won’t visit Disney again.. its just dollar grabbing after the pandemic.. im sure they aren’t bothered, we are just one family, there’s always another behind us.. Universal were better this time.
I will not be alive 10 years from now and I’m so bitterly disappointed in the money grubbing attitude of Chapek and those who run this company. We used to go twice and year and had APs but no more. I’d never go back except that the kids asked for a trip for the little ones who haven’t been yet. It’s very sad how the experience has been destroyed for some of us old timers. I don’t know if the kids will even get to do even half of the things they want to do. If not for the Disney Vacation Club property in Hilton Head I would never use Disney again.
I hear ya! We’re at Disney World now. Haunted Mansion was down for a long time yesterday. Stayed at Bay Lake Towers, only to find the rooms don’t have any USB ports for charging the Magic Band+ and phones you need to have on you to navigate the parks anymore. Guest Services told me Disney has portable chargers I could get (at $30 a pop). I doubt we’ll be back
Disney is making it very difficult for anyone to want to come back. I feel as if all the joy and memories my family and I had from past visits to Disney World will just that. When I look at our photo albums loaded with pictures of my kids at Disney I feel sad that we might not be able to afford to go back again. Walt created Disney World for all families to come and enjoy not just the ones who are rich.
I like Bob’s beard.
Makes him look like Kris Kringle in Miracle on 34th Sr.
Not sure if you’re kidding, but I agree that it’s a good look. (Not that it matters, but a previous article indicated it was Kristina Schake, not Chapek’s wife, who convinced him to keep the beard: https://www.nytimes.com/2022/09/11/business/media/bob-chapek-disney-expo.html)
As for your other comment, tens of thousands of people read this site daily–it’s a statistical inevitability that many of them are going to have some ‘out there’ opinions. 😉
“Yield management” Another rule of accounting: You can’t count sunk costs. With that in mind, perhaps it is time to fully depreciate the Chapek production line.
“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.”
If that were really true, they wouldn’t be cutting services, portions sizes, park hours, etc. WHILE increasing prices. You can try to justify price increases as a way to stem the crowds and improve guest experience, but you cant do that while you knowingly make guest experience worse removing things.
The Teflon Bob, lol.
NOt one positive comment here and I wont be the first to add one. Chapek is so out of touch that he’s going to go down as their worst CEO ever. Profits will go up, guest satisfaction will go down. Thats the reality of the WDW company right now…….
This guy is such a putts it’s insane!
I’ll give a positive comment!! I still enjoy Disneyworld – I’m a passholder but
I guess I have a different perspective as I live in central Florida and go on average once a week or so. I have never had an issue getting a same day reservation. I have never done the genie thing and don’t do long waits. Can’t say I have ever met a disgruntled cast member anywhere. We usually walk from TTC to MK or from Epcot to HS for exercise. I enjoy the parks but it’s not my “vacation week” so I know I don’t have the frustrations that true vacationers have. My biggest gripe though is navigating the awful I 4 to get there!!!
Great, so let’s try the Chapek Challenge:
Take the WSJ reporter out for a fun day at the parks before the end of the year! Chapeks task is to ride/experience the following:
Arrive and leave MK like a regular person (park at TTC or resort transportation)
3/4 of the Mountain Range plus 7DMT
2/3 of Pirates/Haunted Mansion/Peter Pan
Fireworks
That’s it! Completely doable set of tasks. Laughably easy for readers of this blog, in fact. He can buy Genie+, ILL, but he’s got to work MDE all on his own.
Have fun!
Make him pay for Genie plus and ticket prices at an inflated price adjusted to his salary. Multiply by 7 days.
My response to the reservation system? I book a reservation everyday even though I probably won’t go. That’s where they can stick their algorithm. I encourage everyone to do the same, even if they’re an out of state AP.
The magic started disappearing around 2012 and has progressively gotten worse. Eisner, Iger and Chapek have gutted a brand that was built by those who came before them all for corporate greed, PE ratios and golden parachutes. If Chapek really believed everything they do is for the Cast then he, nor any other executive at Disney salaries’ would be a ratio more than 1:200 of the average employee. The corporate raiders, Iger and Chapek care zilch for Cast or Guest.
I’m a local, 35mins away from WDW, AP and DVC. I go to the parks a lot. I can tell you EVERYTHING is broken and dirty. One of my fellow local Disney fans yesterday perfectly described the new post-covid Disney employees as the new rude Walmart defects. It is true, I see it every time I go and I go a lot.
The resorts are filthy and I have dozens of pics to back it up.
They locked my family out of our room 4 hours before checkout and refused to reactivate our reservation or to send anyone to let us in to get our stuff and said we had already checked out. We didn’t and they couldn’t or wouldn’t tell us which of their Cast checked us out erroneously. My 5yo and I had to stand outside our room for an hour until my husband found housekeeping and they came and let us in. That was the Beach Club so no, paying a premium doesn’t even guarantee premium service. And every single resort guest who came by while we waited I made sure to let them know Disney locked us out while we were at breakfast and refused to let us back in our room to get our stuff. That is how reputations are ruined.
If Chapek cared about cast or guest he would slash his pay, bring back the magic and stop worshipping to the hedge fund managers and venture capitalist who control the board room.
Disney needs a visionary at the helm and not these corporate raiders that have been in power for 15 years sucking the life out of Disney.
Iger and Chapek need to learn a little appreciation and respect, APs kept Disney a float during the Great Recession and covid. And while streaming is a great revenue generator, it won’t keep Disney in business. The parks create the fairy tale and dream and streaming keeps the memory going. Neither can be neglected.
I agree about the new breed of cast members . Checking in to Kidani the lazy cm said “Welcome Home” while she yawned and looked like she hated being there. I later found out she never documented my missing jewelry I reported. I couldn’t imagine a cm would steal them but after my last visit I think that’s what happened. The Magic is dimming . If it weren’t for my grandchildren that would have been my final visit to WDW.
AMEN!!! I was such a fan. Trying to change everything in my life affected by this place has been a long haul. Even in my email names and more. Not anymore. I had annual passes when I lived in NY. That’s how often I would go. Now I live here! I had annual passes for the first two years, now 7 1/2 years later, don’t even watch a movie. I will not have anything to do with them. I was even hired years ago to sing for them. Now I am thankful I turned it down. Their moral compass pertaining to what Disney created has been completely annihilated by these greedy unethical individuals. I only wish that every person would see that and stop handing their money over to it to make it bigger. That may wake them up a bit. I pray all the time that God destroys that whole area with the worst storm in history and in Cali the worse earthquake along with no injuries or death. Just the places to fall into the abyss. I will continue to pray that happens until it does. Maybe more people should join in.
Stephanie, get help.
Tom, when your readers pray that the main attraction you cover slides into the abyss, it’s time to get new readers.
I agree with this. I’ve never seen so many attractions broke down, experienced such rude cast members, rude guests, filthy restrooms all while paying abhorrent prices.
We used to go once a year, but this was supposed to be a special trip for my daughter’s first time and first trip in 10 years.
I’ve had enough of Disney, Chapek and the price gouging at every turn. Maybe we will rethink our position in another 10 years, maybe not. We will visit Universal long before we come back here.
Wow, thanks for letting us all know what a horrible person you are Stephanie.
Chapek has zero creative vision for Parks – Disney has got an absolute plethora of outstanding IP and there’s so little enthusiasm to do anything with it. It’s just sweat the existing assets.
Encanto, Frozen, Coco, Mandalorian – all of these are such strong IP that can support entire new lands or even hotels but there’s seemingly no enthusiasm for stuff that’s even a ‘safe bet’.
My armchair suggestion is extend the Skyliner to a new lakeside resort complex and build a DVC property and two hotels and a conference suite – develop out the land rather than shoehorning rubbish into small spaces. Demand is there already and will only grow – from USA but also wealthier visitors from Europe, Brazil, Mexico.
None of this stuff is ‘risky’ like a fifth gate would be – it’s just a reluctance to invest.