Source: PaxForex Premium Analytics Portal, Fundamental Insight
Summer has arrived a pivotal season for Walt Disney and its domestic theme parks. Unlike smaller regional parks that operate seasonally, Disney's attractions are open year-round, with visitor numbers spiking during school breaks. This time of year is ideal for families planning trips to Disneyland or Disney World.
In Florida, Disney is unveiling enhancements aimed at bolstering an already promising summer season. Upgrades to two popular attractions and improvements to its premium expedited queue program are set to invigorate the world's largest theme park company.
Disney is poised for this boost. It recently forecasted flat operating income for its theme parks division in the upcoming fiscal quarter, citing increased wage costs and the timing of holidays. To finish the fiscal year strongly, Disney is banking on a successful summer season, with three major additions at Disney World playing a pivotal role.
Announced on Tuesday, Disney's Genie+ service, which allows guests to make advance reservations for ride queues for a fee of $15 to $39 on top of park admission, is undergoing a transformation. Rebranded as Lightning Lane+ starting July 24, this upgraded service aims to streamline access and enhance guest experiences.
Despite some criticism from guests reluctant to pay for premium perks, Genie+ has proven popular, with up to 50% of daily visitors opting for the time-saving option. This success has contributed significantly to a 40% increase in guest spending per capita compared to pre-pandemic levels. However, one drawback of the current system is the early morning rush to secure desirable reservations, which isn't ideal for vacationers.
Lightning Lane+ addresses this issue by allowing guests to purchase the add-on three days in advance. Moreover, guests staying at Disney's on-site resorts gain an even earlier advantage, with the ability to book Lightning Lane+ up to a week ahead for their entire stay, spanning up to 14 days. This enhancement gives guests more reasons to opt for a premium resort experience, distinguishing Disney from competitors enhancing their own attractions.
Shifting focus to Disney World's Magic Kingdom, two exciting updates are set to debut this summer. First, Tiana's Bayou Adventure will replace the longstanding Splash Mountain this weekend. Previously based on the controversial film Song of the South, Splash Mountain now draws inspiration from the popular and more recent film The Princess and the Frog, enhancing its appeal to modern audiences. This transformation marks its debut on June 28.
The second anticipated addition is the reopening of the beloved Country Bear Jamboree on July 17. This iconic show, featuring singing audio-animatronic bears, has been refreshed with a country twist on classic Disney tunes. The updated soundtrack draws from songs featured in Disney's renowned animation studio films, aiming to captivate visitors with its renewed charm.
With the imminent launch of Lightning Lane+, Tiana's Bayou Adventure, and the revamped Country Bear Jamboree in the coming weeks, Disney anticipates a positive impact on its financial performance. These updates not only enhance guest experiences but also contribute to the enduring appeal of Disney's leading entertainment offerings.
As long as the price is below 105.00, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 101.77
- Take Profit 1: 98.00
- Take Profit 2: 94.00
Alternative scenario:
If the level of 105.00 is broken-out, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 105.00
- Take Profit 1: 110.00
- Take Profit 2: 114.00
