Disney Annual Passes May Not Be Coming Back Anytime Soon
Expectations were high for Walt Disney (NYSE: DIS) investors heading into Wednesday afternoon's earnings call. The company delivered, posting better-then-expected results on both ends of the income statement. The shining star in the report was once again the entertainment behemoth's domestic theme parks business.
Disneyland and Disney World combined to bring in $5.4 billion in revenue for Disney's fiscal third quarter, more than double -- up 104% -- what the resorts rang up a year earlier. Segment operating income of $1.7 billion continues the record pace of the the high-margin recovery at Disney's gated attractions.
It's great news for Disney shareholders, but the same can't be said about annual pass holders hoping for a return to the way things used to be at the parks that they grew up at. The House of Mouse is killing it now, and it's making it happen with park reservation requirements, premium-priced access to expedited queues, higher prices on just about everything, and a dearth of new annual passes to sell. If you're waiting for reservations-free park-hopper visits, complimentary FastPass access, low price points, and annual admissions without blockout dates or hoops to jump through, you're living in the past. Disney's Carousel of Progress is moving on without you.
Source Fool.com
