Disney Parks are the latest business to face slowing consumer demand in the face of higher prices.
Disney’s parks segment was down at bot expectations and profit decreased minimally; however attendance was comparable while people spent more.
The economy is feeling weaker here, which who previously helped the company and its movie and streaming business.
Thus, everyday Americans decide to remain at home can pose a threat to the economy once the job opportunities decrease.
Disney’s park problems followed disastrous Airbnb results, which dumped its shares when it warned that US consumers are not demand as before.
Disney has noticed the domestic park and its international parks and cruise division is not the same, middle-low income is a slightly stressed situation while the high-end income travels.
Still people are not ready to back out from vacations, particularly if it has a Disney backing to it even if it costs more.
Marriott also revealed that it was posting better results in its luxury resorts than in the low cost chain hotels.
A bright spot for Disney
Disney’s streaming service turned a profit for the first time, a feat which only Netflix has been able to achieve consistently.
The media giant announced price hikes across the board for Disney+, Hulu and ESPN+ on Tuesday.
Its entertainment division has also benefited since the Covid period when going to movie theaters was unbecoming common.
Johnston said this Wednesday auf CNBC we have gotten back to the standards which we had earlier where we were doing several billion dollar films per year and look at the three biggest films of this year which is the biggest film in May, biggest film in June and the biggest film in July.