Unfortunately, I was away during today’s slew of announcements from both the Centers for Disease Control (CDC) and the Walt Disney Company’s fiscal 2021 Q2 earnings report and investor call. Most major corporation earnings reports are rather boring and something people do not tune in for. Disney is unique in that many fans do pay attention to their reports and with that, they often give fans some details on studio releases and the theme parks.
The nitty gritty of the numbers is uninteresting to most so I will save you that of course. Disney did not meet all of the expectations that investors set out for them. Disney+ and their other direct to consumer products like ESPN+ and Hulu are the big focus of the company and their many investors right now. The parks are also very much in the lime light due to their current state and the rebound from the pandemic.
Initially, Disney CEO Bob Chapek did not comment on capacity other than saying the restrictions were still there. We finally got some detail or meat with the potatoes if you will in the Q&A portion of this call.
Chapek was asked when Disney may look to increase capacity given the new guidelines released by the CDC. If you didn’t already hear, the CDC announced new guidelines stating that it is now unnecessary for vaccinated individuals to wear masks in practically any situation indoors or out. Disney from the start has been very cautious with their guidelines. Following what both local and federal officials say and sometimes even taking that a step further. Disney has also had to converse with many employee unions who dohave a say in what some of these guidelines may say.
Things are constantly changing. We know come May 16th, Walt Disney World theme parks will no longer check temperatures prior to entrance of the parks, Disney Springs, or resort dining establishments. It was also announced this week that Disney will be reducing the distancing in many areas of the parks. Today, we got even more news…
Bob Chapek announced today, that capacity increases at Walt Disney World are already underway and will continue rapidly in the coming days and weeks. Prior to this, Disney said they were at 35% capacity, which often was scrutinized because people did not know exactly what metric Disney was using for that 35%. Disney did not note what they are currently at nor what they will soon top out at. For all we know they could be 100% and we just don’t know it. That said 100% is rarely if ever reached even pre-pandemic. You only ever see those kinds of crowds on New Years Eve or other holidays.
That is not all, Chapek noted that masks will soon be going away in the parks as well. Chapek would not give a time frame but said summer is a particularly hard time to wear a mask in a place like Florida. So, the assumption is sometime this summer masks will be no more. These are all massive changes (or soon to be changes) to come to the theme parks. Other parks such as Universal have already taken away temperature checks but nobody has commented on when masks may go away until Disney did today.
So what is next? Nobody really knows. We don’t know what capacity is at currently nor where Disney wants to be say next week, or next month. We do know its coming though. It should be safe to assume we aren’t too far from that 35% mark yet. Disney is in the midst of getting staff back up to speed. Not all hotels, dining venues or attractions have returned yet either. Later this month and into the summer even more hotels are scheduled to return. However, there are still some that don’t have dates yet.
The Disney College Program returns next month, and many third party restaurant are hiring. Ramping up to absorb these coming crowds is just beginning. Rumors are swirling for the return of Typhoon Lagoon later this summer and something everyone has been missing: fireworks. Chapek also noted today that 80% of the workforce they have called back has returned. Hiring even more Cast Members reinforces that things are coming back. The new guidance to reduce physical distancing, increase capacity, and removing mask requirements paves the way for everything to return to Walt Disney World.
People need to keep in mind none of this will happen overnight. It is methodical. Disney has been cautious and conservative throughout this entire pandemic. They will be the last major theme park to have removed temperature checks as just one example. They will take their time with removing other restrictions as well. I truly believe the 50th anniversary is a big target for Disney to get their big destination back to a pre-pandemic look. Will everything be the same as it was in say 2019? No of course not and nor should it. The theme park reservation system is likely here for the long haul or at least for a long while. Disney just has to be loving the data and control they have with that system.
We also have no idea how long it will be until those major guest experience items like runDisney (please oh please!), fireworks, parades, and character interactions will return. Oh, and maybe Fastpass too. This stoppage gives Disney the freedom and flexibility to bring back all of those things when, and how they want. Major changes to how Fastpasses work or look is incredibly likely. This is the perfect opportunity for Disney to finally introduce a paid version of the system whether we as consumers like it or not. The rate of vaccinations is truly what has made all of this possible.
Patience continues to be key here. We are right there on the cusp, and we cannot screw this up. We will have the Disney of old (or of new) very soon. Myself and the rest of the Crescent Lake Club team cannot wait to be back and enjoy all of those experiences we have missed.
What are your thoughts on Walt Disney World increasing capacity and possibly soon removing masks?
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