Today, August 9, marks a significant day for the Walt Disney Company. With the release of the company’s quarter three reports, Disney has revealed some extremely significant information regarding the current situation of the Walt Disney Company.
This previous quarter has been a tumultuous one for the Walt Disney Company. With the announcement of CEO Bob Iger’s contract extension as well as the ongoing strikes happening against the studio in Hollywood, it is clear that the drama is not over for Disney.
Disney Places Blame on Unlikely Source
The results revealed a massive amount of numbers and percentages that help give investors a good grasp of what exactly the company is dealing with. This data helps illuminate what areas of the Parks are suffering and what areas are thriving.
One of the most significant pieces of data was the lowered domestic results for Disney Parks. Disney explains that “The decrease at Walt Disney World Resort was primarily dye to higher costs and lower volumes.”
Disney also named the Star Wars: Galactic Starcruiser hotel as a key contributor to these lower results. This announcement surprised some people due to the fact that the hotel is not set to close until the end of September.
“The increase in costs was attributable to inflation and accelerated depreciation related to the planned closure of Star Wars: Galactic Starcruiser.” On the earning call, Iger revealed that the Starcruiser cost a “$100 million accelerated depreciation charge.”
The Galactic Starcruiser will close at the end of September – but Disney took on the accelerated deprecation in the quarter.
"The increase in costs was attributable to inflation and accelerated depreciation related to the planned closure of Star Wars: Galactic Starcruiser."
— Scott Gustin (@ScottGustin) August 9, 2023
Galactic Starcruiser Continuing to Cause Issues for Disney
It was announced earlier this year that Disney’s boutique hotel experience, the Galactic Starcruiser, would be shutting its doors. This star wars-themed hotel has provided fans with an immersive and futuristic experience since its opening in March 2022. However, its final voyage is set for September 28, marking the end of an era for every Star Wars fan.
The Galactic Starcruiser offers a two-night, all-inclusive adventure, giving each Guest the opportunity to live out their Star Wars story. Upon arrival, Guests are immediately immersed in the galactic universe as they are welcomed into the starcruiser by the ship’s crew. This project was completely unique, and unlike anything Disney has ever attempted before.
Unfortunately, the extremely high price point was enough to turn Guests away. From this latest comment by Disney, it seems clear that Disney is ready to see the Galactic Starcruiser close for good.