Although the overall company earnings were down, Disney released its 4th quarter 2012 parks and resorts segment numbers with a marginally positive growth trend. The inability to grow ticket revenues much above ticket pricing power (as indicated by the Disney numbers) will require Disney and other Central Florida park operators to be reliant on new and attractions for real growth.
Gross revenues for the Disney parks increased 7% while operational profits were up 4% for the Disney parks and resorts. Click here for the 2012 full year end report. After the announcement, Disney CEO and Chairman Bob Iger stated that he fully expects park attendance to continue to grow in 2013.
Although 7% top line revenue growth was seen as positive, viewed in perspective, this is marginal parks and resorts growth considering ticket prices have risen 6% over the last decade according to the Orlando Sentinel. Depending upon ticket type, ticket prices for Walt Disney World® in 2012 did rise from 3-5% from 2011 levels . So at least for Disney, park revenues and Orlando park attendance are barely growing above the company’s ability to raise ticket prices.
Could Orlando Park Growth Be Topping – Is that Good for Visitors?
Yes, the fact that Orlando park attendance numbers may be topping in some cases will lead to parks rolling out new (or renovated) attractions to remain competitive. This is necessary to increase both net profit growth and to provide park consumers’ a sense of additional “value” for their entertainment dollar. This new attraction development is great for Orlando and visitors to Central Florida. Examples of continued efforts at spurring park growth attendance in 2013 include:
- SeaWorld’s new Antarctica – Empire of the Penguin attraction is expected to be a huge hit with families when it debuts in May 2013. A simulator ride through the attraction will also generate some new opportunities for visitor growth.
- Walt Disney World’s Fantasyland continues the theme of new Disney attractions for 2013. Reviews have generally been positive and bode well for generating interest in visiting the Orlando park in 2013.
- The big news for Universal Parks and Resorts® in Orlando will be the opening of Transformers – The Ride 3D in the summer of 2013.
Of course the big announcement most park enthusiasts are looking for is the opening of Phase 2 of Universal’s Harry Potter attraction – Diagon Alley potentially going into 2014. This phase of the attraction is currently in renovation where the Jaws attraction previously stood.
All of this continued renovation and Orlando park attendance growth refreshes the demand for lodging accommodations in Central Florida. By continuously updating park venues, Orlando will continue to be at the forefront for exciting new entertainment options.
New Park Attractions Piquing Demand for Orlando Vacation Homes
One of the biggest shifts we have seen is the increase in demand to be close to Universal as opposed to only Walt Disney World®. As a result, the resort communities of Vista Cay and the Isles at Cay Commons in Orlando are very much in demand. OVH 360 books vacation homes in both of these outstanding communities.
If you are interested in making Central Florida a part of your vacationing plans in 2013, give the team at Orlando Vacation homes 360 (OVH 360) a call at 888-826-0551 toll free. The friendly and knowledgeable team has knowledge of most resort communities in not only Orlando, but Kissimmee, Davenport and Clermont as well. If you want to be near the major park attractions, OVH 360 has a perfect vacation rental solution for your individual needs.