Attendance at the Walt Disney World Resort in Orlando was down in the third quarter, Disney reported Wednesday, but the Disneyland Resort in California and Disney's international campuses performed well. Despite the decline in attendance, Walt Disney World still outperformed prepandemic results.
On the company's financial results call, CEO Bob Iger said the reduction in guests at the Florida parks comes after a particularly strong year last year when the resort celebrated its 50thanniversary. Additionally, demand continues to level in Florida after peaking due to Covid-related travel restrictions. The strong U.S. dollar is also dampening international visitation to the state.
"However, Walt Disney World is still performing well above pre-Covid levels, 21% higher in revenue and 29% higher in operating income compared to fiscal 2019," Iger said.
Those figures take into account accelerated depreciation associated with the closing of Star Wars: Galactic Starcruiser, Disney's Star Wars-themed hotel/experience.
According to Iger, guests are rating their in-park experiences positively, and the company is seeing positive indicators regarding guests booking return trips.
Universal and SeaWorld also saw drops in attendance in Orlando during the last quarter.
Interim Disney CFO Kevin Lansberry said the company expects "some moderation in demand at our domestic parks" going forward.
Disney cruises booked
Disney Cruise Line saw strong revenue and operating income growth, Iger said. Its fleet of five ships is at 98% booked for the fourth quarter.
The CEO also noted Disney Cruise Line capacity will nearly double when it adds two new ships in fiscal year 2025 and a third in fiscal year 2026.
Overall, Disney Parks, Experiences and Products revenue increased 13%, to $8.3 billion, while operating income increased 11%, to $2.4 billion.