Update from yesterday's Disney earnings call:
Q: (Alexia Quadrani, JP Morgan)
"Any color you can provide on how we should think or how you're thinking about when it's OK to start raising capacity, attendance capacity, particularly at Disney World?"
A: (Bob Chapek)
"In terms of the parks and when we're going to sort of be able to raise our capacity limits. We've already started that given the guidance that just came today from the CDC and earlier guidance that we got from the Governor of Florida, we've already started to increase our capacities.
Obviously, today's guidance that we got from the CDC in terms of those that were vaccinated do not necessarily need to wear masks anymore, both outdoors and indoors, is very big news for us, particularly if anybody's been in Florida in the middle of summer with a mask on. That could be quite daunting. So we think that's going to make for an even more pleasant experience. And we believe that as we're now bringing back a lot of people back to work, that it's going to be an even bigger catalyst for growth in attendance.
And we've been quite pleased to date. So I think you're going to see an immediate increase in the number of folks that we're able to admit into our parks through our reservation systems that we recently implemented. So we're very, very excited about that."
Q: (Jessica Reif Ehrlich, Bank of America Merrill Lynch)
"Some of the pictures from the parks look like it's totally full even with this reduced capacity. So now with capacity increasing, how does that relate to like kind of normal attendance?"
A: (Bob Chapek)
"OK. So in terms of the parks' demand domestically, our intent to visit at Walt Disney World is growing and is actually already flat with '19, which is obviously our last pre-COVID year. So that's really good news for us. And since we've opened up
Disneyland Resort, intent to visit is actually growing well.
So we're thrilled with the guest response to that. So as capacity limits increase, we don't think we're going to have any problem at all sort of increasing our attendance to match that capacity. That is not something that keeps any of us up at night. In terms of our yield management, as you know, we've been practicing yield management for a while, and it's really become an art form with these extraordinarily limited capacities that we've been operating at.
But you've seen the margin's very healthy. Our yield is growing up from a very healthy standpoint. Consumers are spending more. And we're doing it under some tremendous cost management parameters because everything has become automated.
And so we've sort of got the perfect positive storm, if you will, where we've got plenty of demand. We've got really great yield management gains and cost management at the same time. And in terms of labor, we've had about 80% of our cast members return that we've asked to return. And obviously, one of the gating factors for us to continue to increase capacity is to continue to get more and more cast members back.
It thrills us to be able to do that, but we've had no problems whatsoever in terms of trying to get our cast to come back and make some magic for our guests."