America’s theme park giants can’t seem to agree on the health of the tourism economy.
Comcast, which owns the Universal parks, warned two weeks ago that higher fuel and airline prices and waning consumer confidence had prompted a pullback on spending in Orlando, Fla., the world’s theme park capital. “It’s an overall demand drop that’s hitting Orlando broadly,” Michael Cavanagh, Comcast’s co-chief executive, told analysts on an earnings call while discussing a 5 percent quarterly decline in overall Universal parks profit.
Disney offered a strikingly different assessment on Wednesday. Walt Disney World in Orlando had a “standout quarter, with healthy core attendance increases from domestic tourists and annual pass holders,” Disney said as part of its earnings report. Attendance at Disney’s parks in Florida and California climbed 3 percent; Wall Street had expected growth of half a percent.
“Obviously, we’re gaining share,” Hugh Johnston, Disney’s chief financial officer, said in an interview, suggesting that Disney had been taking visitors from Universal. He added that bookings at Disney World for the remainder of the year were “robust.”
In the quarter that ended on June 27, Disney’s domestic parks and cruise business generated $7.12 billion in revenue, an 11 percent increase compared with a year earlier. Profit soared 27 percent, to $2.1 billion. The results partially reflected the arrival of a new cruise liner, the Destiny. Souvenir and food sales at Disney parks increased 7 percent.
Theme parks have long ben seen as a bellwether for consumer confidence. But the conflicting Comcast and Disney results underscore how difficult it has become to read the state of the experiences economy. Americans continue to spend heavily on travel, but they are increasingly choosier about where to splurge, producing winners and losers even within the same market.
“Disney has successfully delivered marketing and discounting campaigns targeting young families on both coasts,” said Gavin Doyle, who runs MickeyVisit, a site unaffiliated with Disney that offers theme park news and vacation planning. He noted Disney’s spring debut of “Bluey” live shows, the first such attractions at its United States parks.
Universal opened its $7 billion-plus Epic Universe park in Florida last year, hoping to draw visitors away from Disney and expand the overall Orlando market. The response to Epic has been strong, but Universal’s older parks in the area have largely been relying on existing attractions as they await their next marquee ride, Mr. Doyle said. Epic also had a setback late last year when a man died after riding its signature Stardust Racers roller coaster. Authorities ruled the death an accident, but the episode generated negative headlines.
“We fully expect that once economic conditions and consumer demand stabilizes for us that we’ll be getting that attendance back and thrilling our fans,” Mr. Cavanaugh said last month. “We’re proud of the product.”
