Disney’s Parks Generate the Highest Revenue and Aim to Sustain Success with a $60 Billion Investment
Disney’s experiences division, which includes its theme parks, cruises, and hotels, has emerged as the best-performing segment of the company, generating record revenue of $32.5 billion in fiscal 2023. Despite the challenges posed by the Covid-19 pandemic, the division has rebounded and offered stability to Disney during difficult times.
Under the leadership of Josh D’Amaro, chair of Disney’s experiences division, the company has focused on adapting its entertainment business to match changing consumer habits. D’Amaro took charge of the division in early 2020 and faced significant operating losses due to park closures and a decline in hotel visits. However, he saw the pandemic as an opportunity to rethink the operation and plan for the future.
During the park closures, Disney continued construction on new attractions and refurbished existing ones to keep guests engaged. This included the opening of Avengers Campus at Disneyland in California, World of Frozen at Hong Kong Disneyland, and a Zootopia land at Shanghai Disneyland. In addition, new rides were launched at Walt Disney World in Florida, such as a “Guardians of the Galaxy”-themed ride and a “Tron”-themed roller coaster.
Disney’s investments in new technology, such as mobile ordering and front-of-the-line access for certain rides, have also contributed to increased earnings. These innovations have helped attract guests and boost revenue at a time when the entertainment division is struggling.
To sustain its success, Disney has committed to investing $60 billion in experiences over the next 10 years. The majority of this investment will go towards creating new experiences in domestic and international parks, as well as cruise lines. The remaining funds will be allocated towards technology and infrastructure, including maintenance of existing attractions.
Innovation has always been a central goal for Disney’s theme parks. Walt Disney Imagineering, the creative engine behind the parks, has been at the forefront of developing new technologies and experiences. One example is the development of walking robotic characters, such as the Star Wars BDX droids, which interact with guests and bring the stories to life.
Disney’s focus on storytelling extends beyond its theme parks. It is evident in its cruise line, hotels, and video game business. The company plans to add three more cruise ships to its fleet by fiscal 2026, with each ship offering unique experiences based on popular franchises like “Frozen,” Marvel, and Star Wars.
The company’s immediate expansion plans include the opening of Fantasy Springs, a new area at Tokyo DisneySea, inspired by films like “Frozen,” “Tangled,” and “Peter Pan.” Additionally, concept and design work is underway for the Tropical Americas area at Disney’s Animal Kingdom in Florida.
Disney also has several “blue sky” ideas in early development, which may or may not come to fruition. These include a potential area based on films like “Coco” or “Encanto” in the Magic Kingdom, as well as an area overrun by Disney villains.
The $60 billion investment will provide Disney with the flexibility to pursue these projects and adapt to future opportunities. While Disney CEO Bob Iger is set to step down at the end of 2026, Josh D’Amaro is seen as a potential successor. For now, D’Amaro remains focused on driving innovation and storytelling forward, paying tribute to Disney’s fans, and continuing to grow the business.
