Earlier this week Disney released its quarterly financial report and though there was plenty of news about the company’s box office performance and the impending launch of Disney+, theme park fans took a look at the flat attendance levels that have been seen at Disneyland and Walt Disney World, and immediately chalked these disappointing numbers up to “prove” that Star Wars: Galaxy’s Edge has been a complete and utter failure.
And though its true that this new land didn’t exactly have the blockbuster attendance numbers for the company that Disney was likely hoping for, is it really fair to call this new land a failure just yet? Let’s take a bit of a deeper dive into what is going on with Star Wars: Galaxy’s Edge
Opening a land in phases – probably a bad idea in hindsight
Image: Disney
Disney is no stranger to phased land openings (New Fantasyland was one of the biggest in recent history), but many feel that Disney rushed Star Wars: Galaxy’s Edge open too early, and should have waited for the “E-Ticket” Star Wars: Rise of the Resistance attraction to be ready before opening this new land.
Interestingly enough, Disney seems to appreciate this point of view a lot more in hindsight, as executives said in recent conference call that bookings for the new year are up 5% because guests want to experience the full version of Star Wars: Galaxy’s Edge with its signature attraction, instead of coming down after opening and not being able to check out the full land.
Image: Disney
Of course, that won’t do much now as the attendance downturn at Disneyland (and only slight uptick at Walt Disney World) definitely have investors nervous about the billions of dollars Disney invested in these two lands. But surprisingly, there may be some good news when it comes to the dollars and cents of Star Wars: Galaxy’s Edge that doesn’t specifically pertain to attendance…
The power of spending in Star Wars: Galaxy’s Edge
Image: Disney
When the subject of lackluster attendance at Star Wars: Galaxy’s Edge was broached during a recent conference call Disney CEO Bob Iger defended his company’s investment, saying “Those two lands have been far more successful than what’s been reported,” adding that guests are spending more on food, beverages and merchandise in the lands, and the guest satisfaction is “very, very high”.
This is actually an important point, because, although attendance hasn’t been great, revenue at Disney Parks is up. Guests that have visited this new land are spending more money, and it looks like Star Wars: Galaxy’s Edge is doing a great job driving cash flow, with its multiple gift shops, $199 lightsabers, and dining areas. And at the end of the day, as long as this new land is producing an increase in revenue, Disney can live without record-breaking attendance metrics. At least, for now.
Looking long-term
Image: Disney
Of course, Disney would have been happiest with blockbuster attendance AND massive amounts of revenue generation, but for now, it looks like just the latter will do. However, make no mistake, Disney needs more guests to visit this new land in the long term.
2020 is going to be a huge year for Disney Parks, as it will not only see Star Wars: Galaxy’s Edge complete on both coasts (Star Wars: Rise of the Resistance opens in just a few weeks at Disney’s Hollywood Studios on December 5th, but it won’t be open until January at Disneyland), but it will also feature the opening of Mickey and Minnie’s Runaway Railway, Remy’s Ratatouille Adventure, and more at Walt Disney World. If this new land (along with these additional new attractions) can’t move the attendance needle in a big way next year and beyond, Disney just might have a $2 Billion dollar problem.
No matter what you think about the quality of Star Wars: Galaxy’s Edge, its early performance has been surprisingly slow, and not at all what guests (or executives) have expected. However, whether you blame price hikes, franchise fatigue, or Disney’s creation of a whole new planet for guests to explore (rather than creating famous locations from the films), it is clear that Disney’s expectations have yet to be met for this new land, and we’ll have to wait and see what the new year brings before we can really call this new land a success or failure.
