Disney World's Recent Action expands Shareholders' Joy in 3 Ways
Ditching virtual queues at Walt Disney's iconic Florida resort seemingly calls for a minor adjustment in their theme park operations, but this move could actually pack a bigger punch than one might initially think. On the 23rd of February, Disney World bid adieu to virtual queues for the last two rides utilizing the online reservation system, namely Tiana's Bayou Adventure at the Magic Kingdom and Epcot's Guardians of the Galaxy: Cosmic Rewind.
Before diving deep into how a seemingly minor tweak can significantly bolster its bottom line, allow us to draw a parallel with the Marvel Universe.
Magic Kingdom set the trend when it introduced an app-based virtual queue platform in late 2019 for Star Wars: Rise of the Resistance. This move primarily served to allocate access to its FastPass+ system, which granted guests the opportunity to secure free access to expedited queues. With the limited space for waiting riders on new, cutting-edge experiences, virtual queues also seemed like a logical solution. However, the pandemic hit just a couple of months later, and the platform took on a whole new meaning when the Florida resort reopened to guests in the summer of 2020.
Social distancing measures reduced the capacity of traditional standby lines, and Disney introduced a premium replacement for FastPass, humorously dubbed "Genie+" in 2021, which allowed it to regulate demand by charging a variable premium for access to faster-moving queueing options. However, Tuesday, February 23, marked a significant departure. For the first time in years, there were no virtual queues at Disney World. Time for a rundown of why this development is far from insignificant.
1. Disney Hotels Raise the Ante
Disney World's sprawling 40 square mile resort boasts over 37,000 hotel rooms spread across various on-site hotels. Even the cheapest Disney-owned options command a premium over value-priced lodging available outside the House of Mouse. The added perks of convenient park transportation and resort theming are difficult to match among outside hoteliers. Moreover, Disney's priciest deluxe hotels offer access to Epcot or the Magic Kingdom on select nights for two hours after everyone else has left.
Tuesday's elimination of virtual queues not only signaled the end of the next-gen Guardians of the Galaxy: Cosmic Rewind roller coaster experience's virtual queue but also expanded the benefits of Disney hotels. All guests staying at any Disney hotel now have the privilege of enjoying the sublime coaster experience 30 minutes before day guests queue up behind them.
Disney's timing to pull off this change couldn't be more impeccable. Tuesday's decision to nix virtual queues on a day marked by the conclusion of the four-day sold-out Disney Princess Half Marathon Weekend was a coup de grâce. Runners and their families were most likely departing on Tuesday, and Epcot's Festival of the Arts wrapping up a day prior created a programming lull that Disney skillfully exploited.
It's a matter of hours until this weekend or peak travel seasons such as Spring Break or summer holiday seasons, when Disney hotels become crucial to saving visitors significant hours spent in line. Suffice to say, staying at a Disney hotel is now a more enticing prospect than ever before.
2. Lightning Lane Strikes Twice
Disney's domestic theme parks famously started charging guests for access to faster-moving lines in mid-2021, marking it as the last major theme park company to do so. Fanatics mourned the passing of the complimentary FastPass, but it wouldn't be surprising to see Disney hike Lightning Lane prices in the near future since similar offerings from competitors are already charging more for the convenience.
The virtual queue with limited daily capacity facilitated reasonably short wait times for the free, rival, standby line. With the latter now open to anyone walking through the Epcot turnstile, it's fair to assume that the standby lines will end up being significantly longer than before. For Disney World visitors, the perceived value of one-time Lightning Lane passes has skyrocketed.
Disney introduced a Lightning Lane Premier Pass, or Genie+, four months back, which allows users to experience each Lightning Lane attraction at Epcot across different days for a flat fee. That said, with standby queue times set to spike, the value of the highest-tier Lightning Lane offering has grown exponentially.
Comcast's Universal Orlando offers a comparable Express Pass for the same price, but it includes both of the resort's theme parks. Ironically, despite Universal Orlando's comparably more affordable offering, it might not be as enticing for visitors as the Disney World experience due to the longer standby lines at its attractions.
3. Disney Becomes Easier to Navigate
Virtual queues were problematic for Disney, creating stress, challenges, and uncertainty for guests, requiring flexibility without any guarantees of access to flagship rides. The elimination of virtual queues at Disney World has made the overall experience far more enjoyable and stress-free. While guests still have to contend with pricier Lightning Lane access or longer standby lines, at least the traditional hassle of securing virtual queues is now a thing of the past.
This seemingly insignificant alteration could have far-reaching financial implications for the entertainment bellwether, Disney. The removal of virtual queues will likely lead to increased revenue from Lightning Lane pass sales while also boosting demand for on-site accommodation at its resorts. The long-term impact, however, may be more nuanced, depending on how visitors adjust to the new system.
- The elimination of virtual queues at Disney World's Guardians of the Galaxy: Cosmic Rewind also extends exclusive benefits to guests staying at Disney hotels, providing them with a 30-minute headstart before day guests queue up.
- With the removal of virtual queues, the perceived value of Disney's Lightning Lane passes has significantly increased, as standby lines for popular attractions are expected to become longer.
- The elimination of virtual queues has made Disney World's theme park experience more enjoyable and stress-free for guests, as they no longer have to deal with the uncertainty and challenges of securing virtual queue spots.
- ThisRadical shift in Disney World's operations could potentially lead to increased revenue from Lightning Lane pass sales and boost demand for on-site accommodation at its resorts, though the long-term impact may depend on how visitors adjust to the new system.
