[ad_1]
Walt Disney Company and Universal are the two biggest names of theme parks, both of which have historical extensions to the experience business.
In May, Universal Orlando Resort opened Gates in its magnificent Universe, the fourth theme park at the flagship resort. The epic cost was $7 billion, according to figures provided by the University of Central Florida. Brian Roberts, chairman and CEO of Universal parent company Comcast, called “a single investment Comcast made by NBCuniversal in the theme park business.”
“It’s very different from what we’ve built up so far, but I certainly think it’s not what everyone has built,” said Karen Irwin, president and COO of Universal Orlando.
The opening of Epic coincides with an expansion of the Universal Orlando’s Resort portfolio, adding three Loews hotels to a total of 11 at the facility. Universal bets that adding the epic will turn the resort into a weekly destination. This is a distinction that is normally reserved for Crosstown’s neighbor Walt Disney World.
To prevent it from being performed, Disney is working on its own historic initiative.
In 2023, Disney announced plans to invest $60 billion in experience segments that include theme parks, cruise ships and consumer products. Of that investment, $30 billion will go to national theme parks, Disney World and Disneyland.
“We have a lion’s share of that investment,” said Michael Hangen, portfolio executive creative producer at Walt Disney Iggilling. “It’s about finding the one that strikes the best creative intentions in the most valuable way possible.”
These investments come when both Disney and Comcast are cutting or spinning on the linear television segment, the arena that have seen volatility in recent years. In comparison, theme parks are a consistent revenue driver for post-Covid tourism bounce companies.
However, the timing of these openings and expansions can prove difficult for both theme parks. Epic’s opening summer coincides with the fear of slowing travel due to economic volatility.
“If you’re unsure about how the economy will develop, you’ll try to be more cautious about your spending,” said Jorge Rydodelsto, an associate professor of Rosen Hospitality Management at UCF.
Will these massive investments pay off for Disney and Universal? Or, a slump in tourism could disrupt Orlando’s “magnificent” summer. Check out the video above for more information.
Disclosure: Comcast owns NBCuniversal, the parent company of CNBC.
[ad_2]Source link
