OM in the News: Capacity Planning Issues at Disney

Disney makes billions of dollars by persuading people to watch its movies and TV shows, play with its toys and games, and visit its theme parks. Yet the entertainment titan did its best to discourage fans from visiting the new Star Wars area in Disneyland, California last quarter, pushing attendance at its domestic parks down 3%. (Disney had been expecting a surge in guests to visit the new attraction).

A second Star Wars themed land opened Aug. 29th at the Disney park here in Orlando. But this time, Disney hopes it learned from the May opening at its California version, reports the Orlando Sentinel (Aug. 30, 2019). There, guests had to be staying at one of the company’s hotels or sign up for online reservations that quickly filled up. Fans in California may also have stayed away because they thought Disneyland would be too crowded. Local hotels raised prices. (Both new lands are opening with only one of the two main rides finished, something that may have further discouraged guests).

Restrictions that limit access for many annual-pass holders are ending this week, allowing more guests to enter the Florida attraction without paying extra. That wasn’t the case in California, which opened at the start of the peak summer season when many annual-pass holders couldn’t use them. Fans in Florida were able to come inside the park as early as 4:45 a.m., 3 1/4 hours earlier than the regular opening time. Crowds were at capacity, with some Star War loyalists lined up at 3:30am, only to face lines that reached 5 hours for new rides. Discounted ticket prices were offered for guests to wait until noon to enter. Orlando-area hotels are also offering discounts timed to the Star wars opening.

Disney took a big bet on Star Wars this year, whose expansions cost $1 billion at each of the two parks. But for theme park devotees, Thursday was the equivalent of Black Friday shopping — a controlled chaos that was enjoyable nonetheless.“I’m still on the high,” said a New Jersey guest who hadn’t slept in 24 hours.

Classroom discussion questions:

  1. What tactics discussed in Supplement 7 did Disney employ to impact capacity in California?
  2. In Orlando?

Leave a Reply

Discover more from The OM Blog by Heizer, Render, & Munson

Subscribe now to keep reading and get access to the full archive.

Continue reading