Despite not yet completing its major expansions, Disney is already generating substantial profits from its theme parks.

• In fiscal 2024, Disney's theme park division experienced record revenue and profit, and this trend is predicted to continue in the upcoming year.
• The company is commencing construction on new developments and enhancements to its domestic and international theme parks, though it will take several years for these changes to be accessible to the public.
• To keep guests returning, Disney is employing in-park entertainment and limited-time promotions.

All is well in the Magic Kingdom.

In fiscal 2024, the theme park division recorded a record revenue and profit, with revenues increasing by 5% to $34.15 billion and operating income rising by 4% to $9.27 billion.

In fiscal 2024, Disney's entertainment division generated the highest revenue, while experiences, which encompasses parks, resorts, cruises, and consumer products, came in second with $20.22 billion. Despite this, the entertainment segment's operating profits were smaller, totaling $3.92 billion.

The Disney division with the strongest revenue growth was experiences, and company executives anticipate that this trend will persist.

Disney anticipates a 6% to 8% profit increase in fiscal 2025, which is prior to starting construction on numerous planned expansions, rides, and rethemed attractions.

Disney is investing $60 billion over 10 years to reveal what lies beyond Big Thunder Mountain at the Magic Kingdom, take guests to the Land of the Dead with "Coco" cast at Disneyland, and let visitors battle King Thanos at the Avengers Campus in California Adventure.

Although many of Disney's plans were unveiled at the D23 Expo in August, guests will have to wait a few years before they can explore the new additions in the parks.

The company is increasing revenue by offering higher ticket prices, in-park entertainment, and limited-time promotions to keep guests returning.

Frequent visitors

Throughout the year, Disney attracts guests from both local and distant areas, with some visiting frequently while others come once in a lifetime.

Gavin Doyle, founder of MickeyVisit.com, stated that there are various groups of guests who are excited about spending a wonderful day at Disney parks, but their motivations differ.

New marquee attractions and lands can motivate those who infrequently visit the parks to book tickets and hotel stays.

In the past five years, Disney has introduced two Star Wars-themed lands, a Marvel land, and new rides such as Cosmic Rewind at Epcot featuring characters from "Guardians of the Galaxy" and a "Tron" rollercoaster at Magic Kingdom. Additionally, Disney recently transformed the classic Splash Mountain attraction with characters from "The Princess and the Frog."

Those who visit annually or several times a year require only a small push, according to Doyle. This can be in the form of new live shows, character meet-and-greets, holiday food specials, seasonal festivals, parades, and nighttime spectaculars.

"Doyle stated that there are events occurring throughout the year to ensure that each day is unique. He mentioned festivals, limited-time parades, and firework celebrations, which align with the Disney vault strategy of offering exclusive and time-limited experiences that motivate visitors to plan their trips. According to Doyle, this approach is crucial in attracting more visitors to the parks."

The key to Disney's projected 6% to 8% profit growth in fiscal 2025 lies in its more-frequent guests, even as it anticipates a $130 million hit from hurricanes Helene and Milton and a $90 million impact from cruise prelaunch costs during the fiscal first quarter.

To boost revenue, Disney can offer daily live entertainment and unique, seasonal menu items in addition to its long-term projects, such as transforming Frontier Land into a "Cars" theme and creating a new Avatar-based land in California.

"Small things accumulating to significant outcomes," stated David Lightbody, senior vice president of Disney Live Entertainment.

Disney is also seeking to benefit from the anticipated opening of a new Epic Universe theme park in Florida, which is predicted to increase travel and tourism in the region and boost Disney's nearby parks.

For a limited-time only

Frequent visitors to the parks have a stronger emotional attachment and more purchasing opportunities for merchandise and concessions.

Disney doesn't reveal food and merchandise sales separately within its parks, but announced that guests spent more money at its domestic parks during the latest quarter.

Doyle stated that numerous visitors will utilize seasonal items, such as exclusive holiday dishes and beverages, as a reason to visit the parks and engage in scavenger hunts to sample all the new offerings.

Disney's festivals are renowned for their distinctive menu items that are only available during those specific events.

The same individuals who visit the park are more likely to buy the limited-time merchandise, such as exclusive popcorn buckets, spirit jerseys, mugs, and pins, which are highly sought after by the company's most devoted fans.

Some guests in this cohort attend Disney's holiday events, such as California Adventure's Oogie Boogie Bash or Mickey's Very Merry Christmas Party at Walt Disney World, which require an additional fee on top of a daily ticket.

Tried-and-true spectacles

Year-round, Disney provides guests with diverse live entertainment options such as musical performances, character encounters, parades, and nighttime fireworks displays.

The parks offer new surprises seasonally, with outfits, music, and color themes that cater to the time of year, while maintaining their nostalgic charm.

"According to Lightbody, parades and nighttime spectaculars are crucial in the Disney day as they bring everyone together for a collective experience, marking the beginning and end of the day."

Disneyland is reviving the popular nighttime parade "Paint the Night" to commemorate its 70th anniversary next year. The parade, which first appeared in Hong Kong in 2014 and was later brought to the U.S. for Disneyland's 60th anniversary in 2015, will return with more than 1.5 million LED lights and a tribute to the iconic Main Street Electrical Parade.

Disneyland's parade is highly acclaimed and cherished by many, as stated by Lindsay Brookshier, content director of MickeyVisit.com, in October when Disney initially announced its return.

The parade's return is eagerly anticipated by parkgoers, although Disney has not yet confirmed its start date.

By hosting nighttime live events, the park can increase sales of drinks, snacks, and merchandise by keeping guests there longer.

Disney's nighttime shows were referred to as a "kiss goodnight" by Lightbody, a way to conclude the day and provide guests with a spectacular display.

Disney fireworks are a special addition to the trip for most domestic parkgoers, who usually only experience them during holidays like the Fourth of July and New Years.

"According to Doyle, a successful parade or special offering taps into your fondness for a past visit or a childhood you may have never experienced. It also captures that particular moment, creating a unique memory for your family. Thus, it combines nostalgia with a new experience, creating a setting and a reflection of a special time."

Next year, Comcast's subsidiary, NBCUniversal, will launch the Epic Universe theme park.