How Walt Disney Is Using Technology To Enhance Its Park Experience

by Trefis Team
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As Disney (NYSE:DIS) opens its Avatar-themed attraction in Orlando later this year, the company is also looking to officially debut its new Mobile One system along with this launch. The new system will be linked to the My Disney Experience app, and will allow users to order food remotely from the fast-casual eatery in the park and pay in advance. Similar to Starbucks’ Mobile Order & Pay system, this service will allow users to notify the restaurant of their arrival – at which point the food will be prepared and the restaurant will let users know that their food is ready and it can be collected from a designated window, allowing the customers to avoid lines.  The company plans to expand this system to other quick service and fast casual restaurants in its parks in the future. The Parks and Resorts business is Disney’s most valuable, according to our estimates, and if the company is able to attract additional customers to its restaurants by offering a more convenient experience, it could drive some growth for the company over the long run.

Parks and Resorts Most Valuable Segment

According to our estimates, Parks and Resorts account for nearly 30% of Disney’s valuation. We expect revenues from this segment to account for nearly 35% of the company’s total revenues by the end of our forecast period. We expect that the segment will see an increase in the number of guests at the theme parks, as well as the per capita guest spend, which should drive healthy revenue growth long term. You can modify the charts below to see how changes in these drivers would affect the company’s valuation.

As the company uses technology to make the park experience less stressful, it can expect higher per capita spend as well as more visitors. Food and beverage makes up around 20% of the per capita guest spending at Disney’s parks, and a more efficient and convenient food ordering system could entice more spending at its restaurants.

Furthermore, with Disney building several new attractions in the next few years, we believe that the automation of more processes will improve the guest experience and help boost revenues from the Parks and Resorts segment.

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