Why Are Disney Resorts Remaining Open While Large Conventions and Sporting Events Are Being Cancelled?

As an annual pass member, I just received an email informing me that Walt Disney World is shutting down its theme parks but will keep some of the hotels, Disney Springs, and restaurants open until the end of March. This decision has raised several questions about the rationale behind these choices and the future strategies that Disney is likely to adopt.

The Rationale Behind Partial Closures

The simple answer is that the Disney resorts are there to support the theme parks. In times of crisis, these accommodations play a crucial role in ensuring that the operations of the parks can continue. Soft closures such as these allow Disney to maintain essential services while taking necessary steps to protect public health and the environment. Over the next few days, we may see further restrictions placed on the theme parks, followed closely by changes to the resorts.

Global Consistency and Local Regulations

Other Disney locations around the world have also implemented similar measures:

Hong Kong Disneyland is closed. Shanghai Disneyland is closed. Tokyo Disneyland is closed until at least the end of March. Disneyland Parks in California are set to close starting March 14. Disney World in Florida and Disneyland Paris will also close starting March 15.

This global consistency in actions reflects the fact that different regions are following guidelines from their respective governments. For example, the theme parks in California are closing based on recent actions by the Governor, while those in Florida and Paris will likely follow suit once local decisions are made.

Impact and Resilience of Disney's Operations

The decision to keep some resort operations open is indicative of the company's strategic approach to maintaining operational resilience. By preserving accommodations, Disney can ensure that:

Employees have a place to stay and continue to work. Central services, like food and beverage establishments, remain operational. Guests seeking alternatives might still find some accommodations available if they require hotel services.

This partial closure also reflects a broader business model that emphasizes enterprise-wide flexibility. It allows Disney to prioritize essential services while minimizing the spread of the virus and reducing the overall risk to public health.

Future Outlook and Reopening Strategies

Looking ahead, the next few weeks will be critical in determining the future of Disney's operations. As governments and health organizations evaluate the situation, Disney will continue to adapt its strategies to align with local regulations and safety guidelines. Here are a few potential scenarios:

Gradual Reopening: Once the situation improves, Disney may adopt a phased approach to reopening the parks and resorts. This would involve testing new safety protocols and ensuring that all visitors and staff are following guidelines. Enhanced Safety Measures: The parks and resorts might introduce new procedures to maintain social distancing, enhanced cleaning protocols, and other safety measures to provide a secure environment for guests. Flexible Ticketing: To accommodate the uncertainty of future events, Disney may offer more flexible ticket options that allow guests to easily postpone or reschedule their visits.

Ultimately, the future of Disney's operations hinges on the effectiveness of these strategies and the pace at which public health measures can be lifted. Stakeholders, including employees, shareholders, and fans, are closely watching these developments to ensure that Disney remains a leader in the hospitality and entertainment industries.

Conclusion

While the partial closure of Disney's theme parks and maintenance of some resort services may seem contradictory at first glance, it is a carefully considered approach that aims to balance the needs of the company with the safety and well-being of the public. As the situation continues to evolve, Disney will be closely monitoring guidelines and adapting its strategies to ensure a safe and successful return to operations.