Annual Passes at Walt Disney World Resort are currently paused. And based on the latest news in The Walt Disney Company’s Q3 Earnings Report, that may not be changing anytime soon. The Theme Parks division reported strong earnings for Q3. It looks like the normal guest demand will continue to delay Annual Passes returning.
Demand for Genie+ is High
Although this may go counter to a lot of prevailing opinions online, this quote from Bob Chapek, CEO, sums up how the company feels about Genie+.
Mr. Chapek specifically discusses how they can use Genie+ and park reservations to smooth out demand.
“So if we see any spikiness, we can actually smooth that in a way that we couldn’t before. And We’re real pleased with that because even our Genie product, which, as you know, we released just a little bit short of a year ago, now about 50% of the people that come through the gate actually buy up to that Genie product, which I think you can see the result of in our yields.” – Bob Chapek
Genie+ has become a real source of revenue for the company, so don’t expect any changes in the short term. The strength in this revenue also delays the need to release more AP in Walt Disney World.
Will Disney World Annual Passes come back in 2022?
I would bet a Mickey Pretzel that Annual Passes don’t return in 2022. Annual passes are distributed at Theme Parks to fill in demand and encourage consistent attendance. And once your in the park, everyone buys drinks, snacks, and merchandise. Without a large number of AP holders last quarter, Q3 Disney Parks segment revenue was up 70%.
Based on the current attendance and financials, Walt Disney World Resort isn’t under any pressure to bring those Annual Pass Holders back. In reality, demand is high enough that they may not bring back Annual Passes in 2023.