Disney’s $1.1 billion renovation of its California Adventure theme park in Anaheim is showing results, the company’s CEO said on Tuesday. (Check out a nifty infographic of all the companies Disney owns, courtesy of CableTV.com.)
In the past, 75 percent of guests at the Disneyland Resort would go to Disneyland in Anaheim, with only a quarter going to California Adventure. Now on most days, it’s 45 percent of the resort’s guests that go to California Adventure, said CEO Robert Iger.
“That’s an incredible change and it enables us to drive real bottom-line growth,” Iger said. “… We’re getting pricing out of California Adventure that’s substantially above what we were able to drive before.”
California Adventure had a rough start when it launched more than 10 years ago. Visitors didn’t latch onto the concept.
The renovations to the park included water show World of Color, a new entry area and the much anticipated 12-acre Cars Land, Disney’s real-life adaptation of Pixar’s 2006 Cars film. Disney unveiled Cars Land last June. On a typical weekend, people wait in long lines to ride Radiator Springs Racers, one of the top attractions.
That demand has caused visitors to spend more money and stay longer at Disney hotels. Parks and resorts generated $3.3 billion in sales in the quarter ending March 30, an increase of 14 percent compared to a year ago. Revenues were also boosted by last year’s launch of Disney’s Fantasy Cruise ship.
Iger’s comments were made during a second quarter earnings call with investors. Disney reported a second quarter net income of $1.5 billion, up 32 percent from a year ago.
Companies Owned by Disney – An infographic by the team at CableTV.com