Chapek: Nearly 1/3rd of Disney World Guests are Purchasing Genie+

[Kbrb]

Parking is the lowest hanging fruit… they do nothing at all to the current system and rake in the cash if they put it up.

100 percent of users would have to lump it.

 

[Brian Noble]

I went back and read the transcript. Here were the things that stuck out to me:

From Bob:

We're also moving towards a greater presence in online sports betting, and given our reaching scale, we have the potential to partner with third-parties in this space in a very meaningful way.

I've definitely noticed this on ESPN's video/audio networks, and it's a big departure for the company. Not too many years ago, betting nearly didn't exist as far as ESPN was concerned. They might talk about "favorites" and "upsets", but that was about the extent of it. Now, College GameDay includes tens of minutes on wagering discussions. Sounds like that's only going to increase. That's especially because of the following statement near the end of Q&A:

It actually strengthens the brand of ESPN when you have a betting component, and it has no impact on the Disney brand.

Things come at you fast, I guess.

The majority of Genie and Genie+ users have said it improved their overall park experience with nearly 1/3 of park guests upgrading to Genie+

And during the Q&A:

There was a reference and I am not sure if everyone appreciates the gravity of this to the Genie+ success, 1/3 of our guests at Walt Disney World, are buying the Genie+ upgrade at $15, that's per guest, per day

Not a lot of wiggle room there; he made specific mention of per guest, per day, and it was circling back to prepared remarks, not just off the cuff. I suppose it is still possible that the denominator is "guests who used Genie at all" and not "guests who entered the park" based on the upgrade language, but that might be a stretch.

we continue to invest in our parks and resorts themselves. We introduced a host of new attractions as part of Walt Disney World's 50th anniversary celebration [...] and there is lots more in store in the coming month, including the highly anticipated indoor coaster Guardians of the Galaxy: Cosmic Rewind

I have to believe that's just an error. If Guardians were opening in December, it seems like we'd've heard about it by now. Everything so far has been "2022", hasn't it? But, it might also mean earlier in 2022 rather than later...I suppose the other possibility is that he said "months" but the transcript got it wrong.

our efforts to-date are merely a prologue to a time when we'll be able to connect the physical and digital worlds [...] in our own Disney metaverse

This sounds positively awful to me, but I'm a Luddite about this sort of thing.

From Christine:

Guest spending at our domestic parks also continued its strong trend, with per cap in the fourth quarter up nearly 30% versus fiscal 2019.

That's pretty phenomenal (and similar to what Sea World reported.) I suspect part of that is suspension of the AP programs on both coasts during much of 21Q4, meaning nearly all guests were day-tickets at higher per-day admission prices. It will probably come back down as the guest mix changes (though DLR seems to be serious about increasing the fraction of day guests in the parks.)

At DPEP, we expect that per cap spending at our domestic Parks in fiscal 2022 will continue to significantly exceed pre-pandemic levels, and we are particularly encouraged by the early response we are seeing to Genie at Walt Disney World.

More grist for the "slightly fewer guests paying meaningfully more" mill.

on the cost efficiency side [in the Parks], we really made some improvements, not only to the cost side, but also that improves the guest experience.

This is mostly the various ways in which Guests interact with Cast Members less frequently: mobile order, advance check-in, etc. I'm not so sure those are that awesome, but it's not exactly a Disney-only thing.

[Discussing cost containment in the face of inflation] We can adjust suppliers, we can substitute products, we can cut portion size which is probably good for some people's waistlines.

So nice of them. ;-)

 

[Jrb1979]

the difference in comparing Disney and Universal is by a percentage much more of Disneys income comes from the parks whereas a much smaller percentage of Universals comes from parks. Looking at the numbers, Universal park revenue is up, but not a huge amount.
Most of their profit came from media. Not surprising. As they build more parks, that number may swing more to the percentages that Disney has.

The parks are up a huge amount. Universal Orlando had its most profitable quarter. IMO the biggest difference is that Universal pretty much are back to normal, where as Disney continues to cut.

 

[PaladinButters]

No, you do not have to engage the bulk of the Genie to look at all that.

Well I don't have to engage with the planning part - but it sure does say "Disney Genie Service" at the top of the page so Chapek can go ahead and count me if he wants to get creative with the numbers. In this case I'm using Genie when I'm home today if he wants to bump that number but not counting me if he doesn't have to in the conversion number since I didn't buy G+ today.

 

[PaladinButters]

[Discussing cost containment in the face of inflation] We can adjust suppliers, we can substitute products, we can cut portion size which is probably good for some people's waistlines.
So nice of them. ;-)

This has been by far my favorite thing from the call to watch the internet react to.

 

[HopperFan]

Well I don't have to engage with the planning part - but it sure does say "Disney Genie Service" at the top of the page so Chapek can go ahead and count me if he wants to get creative with the numbers. In this case I'm using Genie when I'm home today if he wants to bump that number but not counting me if he doesn't have to in the conversion number since I didn't buy G+ today.

I just looked at the top of every page from the menu and none of mine say "Disney Genie Service". I have made sure to not engage it though. Even when they first started explaining the whole thing they differentiated Genie service from MDE. Since you can access all you need without Genie Service, I see their "upgraded" comment as diluting the numbers because you had to engage Genie first to meet their definition. It's not that they said 1/3 of all tickets scanned in to the parks are also paying for Genie+ ... only those who engaged Genie - which legit could be one person per party, maybe - upgraded.

Fuzzy math, it is what they do at these meetings. My only point was it was that they used a creative presentation .... 1/3 of those using Genie isn't even close to 1/3 of every single ticket scanned to enter the park. Those on the ground saw it in action or I should say low action.

I don't think it's a flop at all. From what I have read it seems the many here want it to flop in hopes it goes away. It's here to stay. I for one love it cause it means less people will use it. It's what I hated about FP+.

I don't think it's a flop and I don't think it's the success he portrayed. It is brand new, and many current guests didn't have the budget for it set, and many don't know anything about it and many are waiting for bugs to be worked out. Success will be determined in about 6-9 months.

Your example of why you love it works perfect in this conversation. There are reasons to love it and there are reasons to hate it. You actually can do both at the same time. I don't think most want it to fail because the alternative would likely be worse. They want a good product for their money.

The haters dont hate it for its useability though.

I 100% hate the usability of it - I used it last week for 5 days. I don't hate it for the cost, I think it is reasonable. I hate all the extra work and the lack of flexibility. I hate clicking too many times. I hope they do some IT work on it and make it operate easier like FP+.

The parks are up a huge amount. Universal Orlando had its most profitable quarter. IMO the biggest difference is that Universal pretty much are back to normal, where as Disney continues to cut.

Went to both parks in July and back again all last week. The crowds are almost double. There is NO WAY you will convince me Disney has any kind of impactful cap on reservations. Universal both trips was virtually impossible to eat or get snacks due to lines. They are back to normal crowd wise, maybe worse given I went when it's normally not crowded. This was worse than same time pre-COVID.

And I respect the fact that you voice your opinion having actually used it. I have not had that opportunity yet, but will next month. At least you have first-hand experience when coming to your decision. I get the impression many of the haters and the lovers haven't even used it yet. I'll come to my own conclusion in a few weeks. Who knows, maybe I'll join you!

I have used it and left a trip report about it. I hate some parts and love some parts. It is a very very individual perception of value and even within one person that changes with variables in play.

In terms of those who haven't used it ...
- They can hate they are paying for something that was free and now is monetized and offers less.
- They can hate they can no longer plan for 3 rides in advance at least having the base work done.
- They can hate getting up at 7 am on their phone/computer to get a ride not hours out.
- They can love that it costs much less than Universals basic express (though more work).
- They can love that HOPEFULLY less people will use it. (likely temporary unless they raise price).
- They can love that they don't have to plan in advance (except now they need park reservation).
There are parts you can hate or love without using, and that might impact if you buy it.

 

[goofy Jr. 88]

I went back and read the transcript. Here were the things that stuck out to me:

From Bob:

on the cost efficiency side [in the Parks], we really made some improvements, not only to the cost side, but also that improves the guest experience.

"Improves the guest experience"...???

What, like not having the trams up and running? If asked, he would spin it and say climate change is important to the mouse and we are trying to be "greener" and burn less fossil fuel.

On the last earnings call, he said having a park reservation system gives the guests more options.

I call BS on that man.

Dan

 

[Brian Noble]

What, like not having the trams up and running?

The specific examples were Mobile Order and Advance Check-in. And, to be fair, I like both of those things--they both reduce the amount of time I have to wait in a line to talk to someone. But, they also reduce Guest/Cast interaction, and I'm not sure how much of that is a good thing. And, the fewer someones I talk to, the fewer someones Disney needs to hire...also maybe good for business, but maybe not good for Things In General.

I call BS on that man.

As it happens, it was a woman that said that.

 

[DisneyKidds]

What, like not having the trams up and running? If asked, he would spin it and say climate change is important to the mouse and we are trying to be "greener" and burn less fossil fuel.

Don’t forget the synergistic relationship of this and those reduced food portions…..both of which will be good for guests waistlines!

 

[Mousey0324]

Wait for inflation to catch up with park prices…forget about park attendance and profitability; people won’t have money to pay for gasoline or put food on the table.

inflation is only going to get worse not better. To think it’s transitory is naive. We keep printing money, this house of cards is bound to topple.

I see lots of pain ahead for the travel industry. Typically the first thing eliminated when the public is faced with a diminished US$.

 

[Ikaikalani]

In the parks now. Would be shocked if the 1/3 number was true. Seems like very few are using it. We bought for one day at HS and it was not worth it. It is not a well-designed system.

I'm curious why it's not worth it? I'm not in the parks so I value your input. Are the Ll lines long or something? It seems to me that if ToT standby was 30 min, and my Ll gets me in a 5 minute line instead, then I'd be happy. But if the ll line is 25 min, then imma gonna be pis*ed off.

 

[vadersprincess12]

I read one post where someone paid around $90 additional for her family of 4 to experience the two LL attractions in one park. Do that in all 4 parks and it's $360 more! I think it's crazy!

 

[EPCOT-O.G.]

Wait for inflation to catch up with park prices…forget about park attendance and profitability; people won’t have money to pay for gasoline or put food on the table.

inflation is only going to get worse not better. To think it’s transitory is naive. We keep printing money, this house of cards is bound to topple.

I see lots of pain ahead for the travel industry. Typically the first thing eliminated when the public is faced with a diminished US$.

This is particularly the case when you consider how much Disney price increases typically increase above and beyond inflation

 

[Going to WDW]

We haven't been to WDW since Genie +/Lightning Line implementation (well really since the pandemic hit.) When we go back (solo trip for me in Dec 2022) I'll likely try the G+/LL if still in place since the cost is only for 1 ... so I guess I'd be in that 1/3 group. But if it doesn't meet expectations we will not do it on the family trip in 2023.... and may skip WDW altogether if not using it seems to make visiting without it too much of a pain. It will be very interesting to know what proportion of the 1/3 would buy again and how that trend line moves over time and how the services evolve.

We love the Universal Express Pass with RPR, HRH, PBR bookings. The balance of our stays in Orlando are tilting to adding days at Universal and dropping at WDW. We used to do 12 -14 nights each trip (10 -12 at WDW always deluxe/usually Club, 2 at UO always Club) but it's been pretty much evened out now so I'm doing 6/6 split for my Dec 2022 trip. Also the WDW resort prices are insane for the time period I'll be in Orlando. I can honestly say I can see us skipping the WDW resort stay altogether at some point (and just staying at UO instead) and just maybe go for a day trip to a WDW park.

 

[Meglen]

Genie + is just not worth it unless your all day at MK and want to ride everything once. I see value if we rope drop than park hop mid day and use it at 2 parks. This is only if there are still LL for the later park.

 

[HopperFan]

I'm curious why it's not worth it? I'm not in the parks so I value your input. Are the Ll lines long or something? It seems to me that if ToT standby was 30 min, and my Ll gets me in a 5 minute line instead, then I'd be happy. But if the ll line is 25 min, then imma gonna be pis*ed off.

It can be worth it if you are putting in a long day at one park or park hopping extending your day.

LL are not long aka not that many people are using it. So other than the usual slow lines like Jingle Cruise and Peter Pan most the LL were fairly walk on.

But it's not like FP+ where you could just roll non-stop that last time to something right after you ride the current ride. This system is inflexible and gives you the "next available" time (often not true because it changes as day goes on). It makes it very difficult to use as many as you want, especially if you want "E" ticket rides. Last week, ToT was no where near 30 minutes, much more, and every other top ride was in the 60-90 minute range. It makes Genie+ very appealing until you see they are bumping you out hours for your next ride. I get the point is to make you eat and shop and spend money. But once you put a dollar amount on a product, it is natural to want to feel like you got value and be able to use it on most the rides. You will run out of time, or the offer of return times long before you use up your allowance of one per ride.

I think it has value at MK and DHS BUT you have to put the time and work in. It had zero value in Epcot, especially if you are spending a day there not hopping. Good planning made more sense and to just purchase the ILL. AK, we used it on everything but the lines were so short other than FOP that it brought no value. It was almost embarrassing to be walking in a paid line where the free line was fairly empty. Kinda the reverse of old days when folks were packed in SB while the free FP+ line was empty.

 

[gharter]

I read one post where someone paid around $90 additional for her family of 4 to experience the two LL attractions in one park. Do that in all 4 parks and it's $360 more! I think it's crazy!

If you don't know/understand how to use it, this could easily happen.
We were able to do much better, but it depends on what parks you use it at. EPCOT makes no sense. MK and HS absolutely helps. AK is borderline.
But even at 2 rides, if you cut 60 minutes out of waiting time for each ride, would you pay $7.50 to do that?, Now if you do that for 3 or 4, it can make sense.

 

[meremac]

I can only speak anecdotally, but I have had 20 WDW clients since Genie+ launch. 19 (yes 19!) have added Genie+ for at least some of their park days, and 15 added it for all of their park days. Feedback from them has been overwhelmingly positive, although I do prep them HEAVILY for how to make the most of it, complete with personalized plans and links to watch beforehand. Obviously, the percentage of our clients who use it is going to be higher than average because we give them information about it beforehand to help them make an educated decision about whether or not it makes sense for them AND, like I said, we help them make the most of it. But I feel like that 1/3 number could absolutely be accurate. Again, though, this is just anecdotal.

 

[Brian Noble]

would you pay $7.50 to do that?

I think the trick is that $7.50 means different things to different people.