Disney Magic Bracelets Driving More People to its Parks

[Yellowstonetim]

I believe this article will create no debate at all and will be accepted by everyone. Of course, I believe in Santa Claus and Mickey Mouse, too.

The article I found: http://qz.com/174644/disneys-magic-bracelets-are-driving-more-people-to-its-parks/

digital kingdom
Disney’s “magic” bracelets are driving more people to its parks
By Dennis Schaal, Skift 6 hours ago

In the peak December holiday period, the introduction of MyMagic+ led to around 3,000 additional visitors per day to Magic Kingdom, Disney’s most popular theme park, officials said.


MyMagic+ is a new Disney tool for resort guests that centers around an RFID-powered Magic Band which serves as theme park tickets and room keys, and can be used to make dining reservations and fast-track around theme park attractions.

Disney CEO Bob Iger was particularly bullish about MyMagic+ during the company’s fiscal first quarter earnings call today, citing its ongoing rollout as beneficial for a better guest experience at the parks, making guests more likely to spend additional dollars, and be repeat customers.

In particular, Iger cited a new FastPass+ service tied to MyMagic+ as leading to more guest utilization than FastPass. FastPass+ enables visitors to skip the lines at an expanded number of attractions, including certain character greetings and other events.

The MyMagic+ introduction apparently doesn’t come cheap, however, as its rollout, together with higher labor costs and inflation, partially offset higher guest spending during the quarter, according to Disney.

Revenue in Disney’s Parks and Resorts segment increased 6% to $3.6 million during the quarter, and the operating income for this portion of Disney’s business jumped 16% to $671 million. Per capita guest spending was up 8% because of higher ticket prices, and spending on food and beverages.

The introduction of MyMagic+ is in its initial stages so the surge in visitors at Magic Kingdom over the Christmas period in Walt Disney World in Orlando didn’t lead to an overall jump in visitors for Parks and Resorts.

Although the division saw higher guest spending, attendance was comparable to the fiscal first quarter of 2013, CFO Jay Rasulo said.

Iger said the goal of MyMagic+ was the higher guest utilization of attractions and entertainment, as well as enhanced customization of their visits.

Guest satisfaction and how much time visitors spend in the parks are very important and have a significant impact on whether they “come back,” Iger said.

This post originally appeared at Skift.

 

[Lewisc]

During peak December days the Magic Kingdom closes (different levels) when capacity is reached.

Posters have said Magic Kingdom seemed more crowded Christmas week then previous years. The article suggests Disney is now letting more guests into the park.

 

[beer dave]

During peak December days the Magic Kingdom closes (different levels) when capacity is reached.

Posters have said Magic Kingdom seemed more crowded Christmas week then previous years. The article suggests Disney is now letting more guests into the park.

I guess they can because the park is now bigger?

 

[Yellowstonetim]

During peak December days the Magic Kingdom closes (different levels) when capacity is reached.

Posters have said Magic Kingdom seemed more crowded Christmas week then previous years. The article suggests Disney is now letting more guests into the park.

That is the impression I got, too, but I thought the limits on the park were set by safety/fire rules and limits, not ride capacity.

Unless he just means they can handle 3,000 more people comfortably around the park "in general" because of the management of people that the FP+ provides. I am not sure.

 

[rteetz]

I guess they can because the park is now bigger?

well technically it is so maybe

 

[oddman]

The story is based on a press release by Disney.

As such one must place a heavy discount on the information. It is far too early for DIS to know if the Magic Bands are in fact driving customers to or from the park. and when I say far too early , I mean way too far. The Board of any corp will tend to say a new service is doing well, they don't want to shoot it down they want to big it up (as the kids used to say)

What they can tell with ease, is the number of guests using it and the dollars spent per visitor and per day/hour.

FP+ may well work out great for DIS's bottom line, even if it does mean a big departure from the last 15 years.....

 

[mvk]

What they can tell with ease, is the number of guests using it and the dollars spent per visitor and per day/hour.

FP+ may well work out great for DIS's bottom line, even if it does mean a big departure from the last 15 years.....

They have reported that almost 90% of guests are using the new FP+ system as opposed to around 50% of the old system. Also, on the quarterly earnings report, they noted that per capita spending is up 8% and per room spending is up 5%.

 

[mvk]

One quarter of data does not make a trend, especially during the late year holiday period. Wait for a whole year of operational data and for the "gloss of newness" of the initiative to wear off before starting the cheerleading.

He asked for spending per person numbers, they gave it during the earnings report. Guest spending per capita was up 8% from the same time period the previous year (it was also during the late year holiday period last year).

 

[oddman]

He asked for spending per person numbers, they gave it during the earnings report. Guest spending per capita was up 8% from the same time period the previous year (it was also during the late year holiday period last year).

nope, I asked for nothing.

If you read it, you will find I merely pointed out what data they might have at this point and that it is no where near enough to show causation.....

 

[Yellowstonetim]

The story is based on a press release by Disney.

As such one must place a heavy discount on the information.

In all fairness to Disney, that headline is worded a bit over the top and is why I posted the article. The original posting of the article (link at end of this article) didn't have this title and Disney didn't say it this way.

This makes it sound like magic bands drew people on their own. "Hey, honey! We weren't planning a trip to Disney, but heck, they have magic bands, grab the kids!"

3,000 more people. Nooooooo problem!

 

[Golf4283]

Yes but the article can imply that the magic bands aren't deterring actual visits to the park like about 90% of this board is claiming they're going to be doing because of the magic bands and FP+.

The facts speak for themselves in that the usage rate of FP+ is higher than that of the old legacy FP system.

 

[anthony2k7]

So fantasyland expansion contributed absolutely nothing in 2013 over the initial improvement in 2012? Well that was a waste of money then wasn't it??

 

[anthony2k7]

Yes but the article can imply that the magic bands aren't deterring actual visits to the park like about 90% of this board is claiming they're going to be doing because of the magic bands and FP+.

The facts speak for themselves in that the usage rate of FP+ is higher than that of the old legacy FP system.

But surely that could be down to the fact disney is actually promoting FP+ more than it did in recent years of standard FP? Rather than FP+ actually being better for the guests...

 

[Golf4283]

Being "better" for guests is a relative term. I love the system and it worked perfect for us for our trip last year. Loved it way better than hoping to get a good legacy fastpass time when running to the kiosk. There are a lot of negative opinions on here about the system too so that argument can be thrown out the window in my opinion.

Sent from my iPhone using DISBoards

 

[Disneychick75]

Most people who have been to Disney World like the Magic Band. It's FP+ they don't like.
In a link to the original article, the title reads, "Disney Credits Its Magic Bracelets for Increased Holiday Traffic" so the information seems to originate with Disney.
http://skift.com/2014/02/06/disney-credits-its-magic-bracelets-for-increased-holiday-traffic/

 

[Disneychick75]

sorry double post

 

[rteetz]

But surely that could be down to the fact disney is actually promoting FP+ more than it did in recent years of standard FP? Rather than FP+ actually being better for the guests...

even tho it may not seem that way FP+ is better for all guests overall. The system is level the playing ground and to get more people to use it. Before they would run out by mid day and as many have now seen people would get 10+ a day. It doesn't appeal to everyone but the system itself is supposed to help everyone. That doesn't mean it's going to please everyone.

 

[Disneychick75]

even tho it may not seem that way FP+ is better for all guests overall. The system is level the playing ground and to get more people to use it. Before they would run out by mid day and as many have now seen people would get 10+ a day. It doesn't appeal to everyone but the system itself is supposed to help everyone. That doesn't mean it's going to please everyone.

It's leveling the playing field for now but what will happen down the road is still up in the air. As many have said, including Disney, it's still in the testing phase.