During the pandemic, Disney parks, experiences and products were the most affected, data from Statitsta indicate that only from 2019 to 2020, the annual evolution of the income of these products of Walt Disney Company fell 9,723 million dollars worldwide; however by 2022 the company has strategies and plans to reactivate Disneyland.
Losses of The Walt Disney Company during the pandemic
Although The Walt Disney Company is a world leader in entertainment and media, data from Statista shows that 2020 has been its worst year in annual earnings evolution, with a loss of $ 13.918 million. And, in 2021, according to the third quarter earnings report for this fiscal year – published by the company – it shows that the segment that had the least profits was Disney parks, experiences and products. However, the balance was balanced with the film business by streaming and television.
Disney parks, experiences and products were the most affected, the trend persists in its last published report, in the current nine-month period they decreased 1.6 million dollars compared to the previous period.
The loss was due to the fact that the parks and tourist centers closed and the trips and guided tours by COVID-19 were suspended. And, when operations resumed, from May 2020 to June 2021, restrictions on assistance capacity endured.
Also, as of March 2020, theatrical entertainment was canceled or postponed and resumed in the first fiscal months of 2021. A similar situation occurs to cinemas, productions and the availability of content including key programming on television, such as live sports, film content and home entertainment.
In response to this, the Walt Disney Company decided to address additional costs for government regulations and for implementing security measures for employees and guests. The costs, although they will depend on the resumption of activities, are stipulated to total 1 billion dollars in 2021.
New strategies to reactivate Disneyland in 2022
The business has had to make difficult decisions, whether economic or strategy, in the 2020 corporate responsibility social report, Walt Disney Company reported that, in the face of the health crisis, the company implemented an organizational strategy that accelerates growth in the dynamic direct-to-consumer (DTC) space.
The strategy is to give consumers what they want and deliver it in their favorite way.
The second strategy announced is related to experiences in its parks and resorts, it will focus on guest service.
With these strategies, throughout the spring of 2022, visitors will be able to once again enjoy three nightly shows: “Fantasmic!”, Word of Color ”and the“ Disneyland Forever ”fireworks show.
The Lunar New Year celebration and the Disney California Adventure Food and Wine Festival return to this park. Also, depending on their objectives, visitors will have the opportunity to live the experience in the Hotels of the Disneyland Resort and in the establishments and restaurants of the Downtown Disney District.
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