Cruise and Theme Park Operational Updates due to Coronavirus

[sullivan.kscott]

Hyperbolic, yes, but I still maintain the same sentiment with which I've walked away from the last few earnings calls: the executive team is treating this as a linear ascent or recovery, and it's just not that. Given the nature of the situation, the recovery or "rising out" of the pandemic is going to be an ebb and flow. There will be progress and some backtracking then more progress. We've already seen that in some businesses (just ask the airlines). I understand his job is to project confidence, but his job is also to position the whole company (not just DTC/D+) to weather the immediate future. While I don't see a scenario where WDW shuts down again, I think it's very likely that bookings will not be nearly as strong in Q2 as they were in Q1. My frustration extrapolates beyond DPEP. TV and film production, for example, is likelier to slow or stop than WDW's operations are, but that could still have a large impact on the company. This is especially true when you have highly-paid talent and unions involved. What's the contingency plan for that? The media world right now is highly complicated and volatile and TWDC seems to be the only company I've heard from that won't publicly acknowledge any of that.

I’m sure some of that has to do with the pep rally nature of these calls, but I see your point on the linear path argument. Maybe we’ll learn more when they hash out details on DTC next month. The monopoly type umbrella that they could operate in is intriguing, and Netflix and Amazon have put out some great content lately.
I agree that they’re going to need some big theater releases for the foreseeable future, but new content shouldn’t be too much of an issue, honestly. So much can be created in Oceania, which has opened to new filming and has a pretty good grasp on the pandemic.

 

[rockpiece]

If they are going to increase capacity on the rides with plexiglass that is not a reason to let more freaking people into the park, have they not seen the lines at Hollywood Studios. They need to drop capacity back down imo.

 

[rosieposie3]

I assume increased park capacity would be tied to increased offerings? Fingers crossed.

 

[mattpeto]

https://twitter.com/x/status/1327009640408698880

Lol “Now” at 35%. Surrrre

The planned increase has probably catapulted the plexiglass installs and the rumors about rushing back nighttime entertainment.

Not sure how I feel about this honestly.

 

[New Mouse]

The planned increase has probably catapulted the plexiglass installs and the rumors about rushing back nighttime entertainment.

Not sure how I feel about this honestly.

From what ive seen in the community, most restaurants are acting like covid doesnt exist, so it wouldnt surprise me if Disney follows. Lines were modersate this week... sometimes absurd, sometimes completely empty. Its basically a whole new touring plan.

 

[anthony2k7]

The planned increase has probably catapulted the plexiglass installs and the rumors about rushing back nighttime entertainment.

Not sure how I feel about this honestly.

Its got a bit of a "make hay while the sun shines" feel to me. They’re trying to make as much money as they can whilst they can.

 

[sullivan.kscott]

The planned increase has probably catapulted the plexiglass installs and the rumors about rushing back nighttime entertainment.

Not sure how I feel about this honestly.

It does seem like odd timing, doesn’t it? It’s going to be an interesting next few months.
I don’t remember exactly how it lined up, but we flew to Orlando this summer when Montana had like 150-200 cases daily and Florida had hit the big 15k number within a week or two of our departure. It was a little scary but we made the best of it.
Every Saturday, I turn on about an hour of college football and I’m more shocked at the fans than the game.
Getting back to “normal” is going to be an interesting mental exercise, even after things improve.

 

[sullivan.kscott]

Its got a bit of a "make hay while the sun shines" feel to me. They’re trying to make as much money as they can whilst they can.

Yeah, I do think “the suits” are pushing WDW to carry the weight for the rest of their wholly owned Parks & Experiences brands, since they’re the only ones legally able to operate at all. And they’re definitely pushing the boundaries at what is the wrong time.
I also don’t fault them for it from a business perspective. Target is a bit crowded around here from time to time, too, and they don’t have staff reminding customers to wear a mask and stay off my backside in the checkout lane.

 

[Sarahslay]

Heads up to those traveling Thanksgiving weekend - Chapek just said so far they have been averaging ~77% of the reduced occupancy but are "close to capacity" for Thanksgiving week

https://twitter.com/x/status/1327005032189894658

Well I kinda figured since a lot of the parks (MK & HS) have no availability all week for any bucket. But it is still reduced capacity, it will not be normal thanksgiving, but people just need to check their expectations (including myself).

 

[andyman8]

Yeah, I do think “the suits” are pushing WDW to carry the weight for the rest of their wholly owned Parks & Experiences brands, since they’re the only ones legally able to operate at all. And they’re definitely pushing the boundaries at what is the wrong time.
I also don’t fault them for it from a business perspective. Target is a bit crowded around here from time to time, too, and they don’t have staff reminding customers to wear a mask and stay off my backside in the checkout lane.

The way I see it is very simple (and I say this as someone's who been at the parks quite frequently since the reopening): they have more to lose than they have to gain here. If they want to push the envelope, then so be it, but should things go south, they'll be dealing with that damage for a very long time. If you talk to the people on the ground at WDW (regional management, area Leadership teams, CMs, etc...), they fully get that, but the theme behind many of Disney's largest corporate failures: executive arrogance. I certainly hope that won't be the case this time.

 

[abs1978]

Oof that call has me stressed. I am a bit more nervous about our Thanksgiving trip now than I was. I don't quite see how they can increase capacity without adding more hours or shows. Waits were already at the brink. I guess we have another week to see how things go and then decide. I would hate to cancel but I would hate to put my family in an unsafe situation more. I totally get that Disney is a corporation and needs to make money but I have to say they have come off as pretty greedy this whole time.

 

[sullivan.kscott]

The way I see it is very simple (and I say this as someone's who been at the parks quite frequently since the reopening): they have more to lose than they have to gain here. If they want to push the envelope, then so be it, but should things go south, they'll be dealing with that damage for a very long time. If you talk to the people on the ground at WDW (regional management, area Leadership teams, CMs, etc...), they fully get that, but the theme behind many of Disney's largest corporate failures: executive arrogance. I certainly hope that won't be the case this time.

Yep. People going now would probably go no matter what, and like I said I understand some of the envelope pushing if we were at August/September pandemic levels. They’d probably be better off capping at 25% and sacrificing this year’s holiday season, but they have a business to run. It’s a razor thin margin of public perception right now, for sure.

 

[yulilin3]

The way I see it is very simple (and I say this as someone's who been at the parks quite frequently since the reopening): they have more to lose than they have to gain here. If they want to push the envelope, then so be it, but should things go south, they'll be dealing with that damage for a very long time. If you talk to the people on the ground at WDW (regional management, area Leadership teams, CMs, etc...), they fully get that, but the theme behind many of Disney's largest corporate failures: executive arrogance. I certainly hope that won't be the case this time.

And just to add, management knows for a fact that some guests are coming knowing they have the virus, hence the stronger language and enforcement, they know the risk. At the same time this is one of the big money making seasons, financially it makes sense to open it up more. I expect more power given to front of the line cm on enforcement and of course more guests hating that Disney cm are "telling" at them to follow the rules.
In central Florida we have all been holding our breaths on how the parks are doing in terms of the virus, we all have been impacted one way or another through the furloughs and lay offs, we quite simply need them all to succeed and continue increasing capacity in the safest but also fastest way possible

 

[rteetz]

From what ive seen in the community, most restaurants are acting like covid doesnt exist, so it wouldnt surprise me if Disney follows. Lines were modersate this week... sometimes absurd, sometimes completely empty. Its basically a whole new touring plan.

I was there this last week/weekend. Nothing was absurd.

 

[CogsworthTN]

I was there this last week/weekend. Nothing was absurd.

Did Disney increase the capacity weeks ago to 35% and announced the increase today? Or is this increase beginning today? I have a trip scheduled November 20-28 and the increase concerns me if it is more than the crowd levels I have been monitoring the past three weeks.

 

[rteetz]

Did Disney increase the capacity weeks ago to 35% and announced the increase today? Or is this increase beginning today? I have a trip scheduled November 20-28 and the increase concerns me if it is more than the crowd levels I have been monitoring the past three weeks.

It’s not entirely clear. I don’t think anyone would be surprised if this has already happened though as many didn’t believe the 25% to begin with.

 

[anthony2k7]

And just to add, management knows for a fact that some guests are coming knowing they have the virus, hence the stronger language and enforcement, they know the risk. At the same time this is one of the big money making seasons, financially it makes sense to open it up more. I expect more power given to front of the line cm on enforcement and of course more guests hating that Disney cm are "telling" at them to follow the rules.
In central Florida we have all been holding our breaths on how the parks are doing in terms of the virus, we all have been impacted one way or another through the furloughs and lay offs, we quite simply need them all to succeed and continue increasing capacity in the safest but also fastest way possible

Whilst I feel for the CM situation, I cannot see capacity continuing to increase. Chicago has just issued a new stay at home order I believe? With it out of control in more states than not now, further city or state stay at home orders are surely to follow soon.

 

[HikingFam]

Whatever happened to him saying they had no plans to increase capacity? Could they have already been at 35% then?

 

[hereforthechurros]

Its got a bit of a "make hay while the sun shines" feel to me. They’re trying to make as much money as they can whilst they can.

I said something similar a few weeks back. They’re in the milking it stage for now.

And just to add, management knows for a fact that some guests are coming knowing they have the virus, hence the stronger language and enforcement, they know the risk. At the same time this is one of the big money making seasons, financially it makes sense to open it up more. I expect more power given to front of the line cm on enforcement and of course more guests hating that Disney cm are "telling" at them to follow the rules.
In central Florida we have all been holding our breaths on how the parks are doing in terms of the virus, we all have been impacted one way or another through the furloughs and lay offs, we quite simply need them all to succeed and continue increasing capacity in the safest but also fastest way possible

Seeing that in the past week 1 in 378 people in the US have tested positive for the virus. So yes absolutely there are plenty of people at wdw with the virus. Probably on every ride and in every queue given those numbers. So really not sure I agree this is the best time to raise capacity but we’ll see. Especially without more shows and dining.

 

[NJlauren]

Did Disney increase the capacity weeks ago to 35% and announced the increase today? Or is this increase beginning today? I have a trip scheduled November 20-28 and the increase concerns me if it is more than the crowd levels I have been monitoring the past three weeks.

I don’t know when they increased, but I saw this coming. A friend asked to join out thanksgiving trip just two weeks ago, and mid last week was able to get all the same park reservations as us, even HS and MK on thanksgiving both previously booked and full.