In just the last few weeks, Disney has closed the Walt Disney World Resort in Orlando, Florida, and the Disneyland Resort in California.
Those closures are not due to health concerns, but they also aren’t due to financial reasons, and they are not the result of the company’s restructuring.
Rather, they were made in response to the company becoming more transparent and responsive to its shareholders.
As the financial news media continues to focus on the financial health of Disney, the company is now looking to capitalize on the changing landscape in the resort business.
“We are looking to do things that are a little bit different and not have as much of a burden on our shareholders,” said Walt Disney CEO Bob Iger in an interview with CNBC.
Iger said that he’s working to get more resorts in the marketplace, as the market is increasingly geared toward staying connected.
But the new focus on a new business model, with the resort as its core, isn’t going to be enough to help the company turn around the fortunes of the resort industry.
IGER: The resort business is going to need to grow for a while yet, as well.
I am working with [co-CEO] Tom Ward on ways to bring more of our resorts into the marketplace and be a more sustainable business.
Ward added that the company will be more transparent with its financials.
Disney will be releasing its full fiscal year results in the first quarter of 2021, but we’ll be looking to provide a more complete view of how the company has performed and what we’ve done to make the resort a more attractive proposition for families and small businesses.
“What we need to be doing is looking at our long-term business strategy, not just looking at the financials,” Ward said.
That includes taking a look at what can be done to better leverage our resorts for the future.
Ward said that the resorts business was growing faster than any other segment of the entertainment industry, and that is an indicator of a strong business and strong growth.
Ward is optimistic that the Disney brand will continue to be popular with the general public, which is why the company would rather focus on expanding the resorts brand in other areas than resort expansions.
“The resorts business is growing faster and is in a much better position to do that than other segments of the industry,” Ward added.
Igers plan to talk with Disney executives about what he sees as a need to diversify the resorts offerings, including more resorts outside of the theme parks.
“One thing that we will do is make sure we have a greater breadth of choices in the resorts,” Ward continued.
As the business continues to expand and the resort businesses continues to grow, I think there is going for a long time in the business landscape, and I’m not sure that is a bad thing for the company.”