Why Disneylands are still full

Disney (DIS) shares rose 5% Wednesday, a day after the giant media and theme-park company blew away Wall Street’s fiscal first-quarter earnings expectations. One eye-opener in Disney’s report was the strong performance of its theme park business. Revenue there rose 11% from a year ago, and operating income surged 25%, as guests continued to flood through the gates of the Disney resorts around the globe.

If a slowing economy and high energy prices are forcing U.S. consumers to be stingier, how can theme park results be so strong? Clark Dodsworth, a San Francisco entertainment and technology consultant, sees many answers. He says Disney’s theme parks do a strong repeat business because the company continually rolls out new attractions. He adds that when recessionary conditions cause some consumers to cut back on travel, people who live near the company’s parks in California and Florida become more apt to visit. And don’t forget, a weak dollar is boosting foreign tourism as well, he says.

Dodsworth points to one other factor behind Disney’s success: the company’s years of experience in branding, combined with growing efforts to harness the power of new technology. He cites Disney’s Pal Mickey, a stuffed-mouse toy that “will let you in on insider park tips, give you parade and showtime reminders, tell you when your favorite characters are nearby, and let you know about short waits at your favorite attractions,” Disney’s web site advises. Even if that sounds like too much information, Dodsworth says Pal Mickey reinforces an important point about the company. “Disney knows how to get your attention,” he says.