How Disney parks are bucking a travel slowdown
Disney parks are defying a slump in international travel to the U.S., posting record quarterly revenue for the company's experiences division on Wednesday. The experiences segment, which includes Diโฆ
Disney parks are defying a slump in international travel to the U.S., posting record quarterly revenue for the company's experiences division on Wednesday.
The experiences segment, which includes Disney's theme parks, cruise line, resorts and consumer products, reported nearly $10 billion in revenue for the fiscal third quarter, a 10% jump from the same quarter a year prior and a quarterly record. The division has seen record revenue for six consecutive quarters.
The division recorded operating income of more than $3 billion, up 20% from the same period a year prior. Shares of Disney were 2% higher Wednesday.
"It's important, I think, to highlight that we're performing significantly better than our competition," Disney CEO Josh D'Amaro said during Wednesday's earnings call. "And in doing that, delivering strong volume and per [capita] spending results. And to remind everyone we're achieving this even during a period where there's a fair amount of macro uncertainty."
Last month, rival Comcast reported lags in theme park attendance , particularly in Orlando, Florida.
While tourism grew worldwide last year, the United States was the only major destination to see a drop in foreign visitors, according to the World Travel & Tourism Council. Overall, international travel to the U.S. fell 6%, the organization found.
Travel bans, visa fees and invasive searches at ports of entry are all factors in international travelers leaving the United States off their travel itineraries, according to the WTTC. Trade frictions, geopolitical unease and safety concerns have also contributed to the drop in demand for travel stateside, travel experts told CNBC.
And yet, at Disney, domestic park attendance was up 3% and guest spending rose 4%, CFO Hugh Johnston told CNBC. He also called out the "very strong attendance" at Walt Disney World in Orlando.
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