Bob Chapek Admits Walt Disney World Attendance Lower Than Expected, Revenue is Exceeding Costs Though
It’s been a long four months of furloughs, unprecedented closures, and project cancellations, thanks to the turbulent effects of COVID-19, and today, as scheduled at the end of every fiscal quarter, The Walt Disney Company presented its third-quarter earnings report to its investors and the public.
However, it seems not all is lost for Walt Disney World, as it seems the resort is operating at a meager profit, or at the very least exceeding variable costs. Roughly 50% of Walt Disney World’s guest base is still traveling in from a distance, with the other 50% coming from in-state.
While the resort has seen a higher level of cancellations, they’re still trying their best to fill the parks at the current capacity limits while still maintaining social distancing, with Annual Passholders filling in for the loss of out-of-state travelers.
Disney believes they should be in good shape once consumer confidence returns. While demand is not as high as expected, they do they expect demand to pick up once COVID-19 case numbers lower.