Disney Demonstrates How to Make Long-term Change to your Business Model, MIC Key™ Snaps, V3 I14

Tuesday, July 14, 2020 5:03 PM

As crazy as things are right now, this may be an opportunity, like Disney is doing, to make long overdue changes in your business model.

Walt Disney World, including the Magic Kingdom snapped above, reopens this week and some of the Mouse House responses to social distancing needs, although inconceivable a few months ago, could evolve into long-term improvements.

Parks – Unlike before, tourists will need an advance reservation to enter the parks. Disney has, for years, faced an over-attendance problem. Disney’s purpose of happiness is not fulfilled when the Mouse turns away people at the gate. In the past, Disney has tried two attendance control strategies: (1) allow everyone they possibly can into the parks and (2) encourage off season visitation via special events and date sensitive pricing. Neither has fully worked. Many other vacation destinations require advance booking: cruises and all-inclusive resorts for example.

Transportation – The monorails used to feature all-seated cabins. In recent years, monorails (and buses and boats) have crammed as many people as possible into each vehicle to minimize labor and maximize crowd flow. That approach no longer works. All transportation options will now be capacity limited.

Security – Disney has spent lots of time and money to build physical bag check stations. In an era of covid, security hosts can no longer place their hands into other people’s bags. Disney has now opted for a more extensive security check experience and expensive scanner technologies that allow people to be screened hands free may be coming. 

Attractions – Where the prior goal was to reach the peak hourly capacity for each attraction—often resulting in people sitting next to strangers on ride vehicles—the new goal is to keep different parties apart. For some rides that will mean partially empty vehicles. For others it will require loading every other vehicle. And the broken FastPass system of ride reservations is gone.

Character greetings – Hugging princesses and characters was the expected norn, but if covid clings to a costume, character performers are at risk. There will be character visibility offerings but minimal closeup interactions.

Parades, shows and fireworks – As I predicted months ago, sitting shoulder to shoulder on a curb waiting for a parade, is no longer feasible. Although fireworks and parades have been a baseline guest expectation, those big crowd-collecting extravaganzas have now been cancelled.

Foods – Standing in line at the fast food counter no longer works. Mobile ordering and payment is the new normal.

So, where does all this leave the Mouse? There is a big financial hole to climb out of and reduced ticket sales coupled with added personnel to keep things sterilized only makes it more challenging. Ironically, advance reservations, touchless security, lower entertainment expectations and mobile ordering may actually be improvements that Disney needed to make but could not because of guest expectations and corporate mentalities. It’s amazing what you can do when you have to get creative and your customers will accept a new normal.

What about your business. Are there opportunities to do things differently, more efficiently, more effectively? Can you use the moment to change customer expectations towards a more sustainable long-term business model? I can’t tell you what those changes might be, but times of great change are also times of great opportunity … if you have the foresight and courage to take advantage of them.