CAT: Capacity Planning Issues atDisney

Disney makes billions of dollars by persuading people to watch its movies and TV shows, play with its toys and games, and visit its theme parks. Nevertheless, the entertainment titan did its best to discourage fans from seeing the new Star Wars area in Disneyland, California, last quarter, pushing attendance at its domestic parks down 3%. (Disney had been expecting a surge in guests to visit the new attraction).

A second Star Wars-themed land opens this week at the Disney park here in Orlando. However, this time, Disney hopes it learned from the May opening at its California version, reports Bloomberg .com (Aug. 27, 2019). There, guests had to be staying at one of the company's hotels or sign up for online reservations that quickly filled up. Fans in California may also have stayed away because they thought Disneyland would be too crowded. Local hotels raised prices. (Both new lands are opening with only one of the two main rides finished, something that may have further discouraged guests).

Restrictions that limit access for many annual-pass holders are ending this week, allowing more guests to enter the Florida attraction without paying extra. That was not the case in California, which opened at the start of the peak summer season when many annual-pass holders could not use them. Fans in Florida will be able to come inside the park as early as 6 a.m., three hours earlier than the regular opening time. Moreover, there are discounted ticket prices for guests who wait until noon to enter. Orlando-area hotels are also offering discounts timed to the Star wars opening. The Four Seasons, for example, is giving a $500 Disney gift card to guests staying more than two days in a suite.

Disney took a big bet on Star Wars this year, whose expansions cost $1 billion at each of the two parks.

1.What tactics did Disney employ to impact capacity in California?

2.What tactics did Disney employ to impact capacity in Orlando?