Universal Studios parent Comcast (CMCSA 0.43%) offered up more details on Tuesday for the ambitious theme park it will be opening in Central Florida next year. There weren't a lot of surprises in the big reveal. The internet is blessed with permit-sleuthing vloggers and helicopter-flying shutterbugs -- a hat tip to @AliciaStella and @bioreconstruct, respectively -- and fans already know most of what will open at Epic Universe in 2025.
It doesn't mean that theme park enthusiasts aren't excited. The news makes it that much more real. Fleshing out the rides, restaurants, and experiences winds the clock of expectations. It also winds the clocks on rival Walt Disney (DIS +0.14%). What will the world's leading theme park operator do to counter the attention that its rival a dozen miles away will be generating next year? Does it have to do anything? Let's take a closer look at the battle of two travel and tourism stocks that can still end with both parties winning.
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A whole new world
Comcast broke ground on Epic Universe five years ago. It was set to open in 2023 until the pandemic and economic concerns paused construction. It's going to be popular with several roller coasters and immersive dark rides that will draw attention to Disney's largest rival.
It can use the spark. Disney World's Magic Kingdom was the planet's most visited theme park in 2022 according to the annual TEA/AECOM attendance report, attracting 17.1 million visitors. There were 47 million guests going through the turnstiles of Disney World's four gated attractions, compared to 21.8 million at the two current Universal Orlando theme parks. Epic Universe will be a hit, and it doesn't have cannibalize Comcast's existing parks.
The goal here is that three theme parks along with the Volcano Bay water park it introduced in 2017 should be enough for tourists to book weeklong stays without having to leave Universal's property. It doesn't mean that Disney will suffer.
Universal hasn't added much since the opening of the second Wizarding World of Harry Potter in the summer of 2014. Volcano Bay draws less than 2 million visitors a year. In the last nine years it's been just a pair of impressive roller coasters opening at Universal's Islands of Adventure and little of note at its flagship Universal Studios Florida park. The two parks have still seen their guest counts climb from 18.4 million to 21.8 million.
Disney has been the one adding the head-turning attractions over the last decade. Disney World's Flight of Passage, Rise of the Resistance, Guardians of the Galaxy Cosmic Rewind, and Tron Lightcycle Run have been major draws to the region. Universal Orlando has benefited from the uptick in tourists. If the tables turn and it's Comcast raising the bar next year that tide should lift all ships.
Image source: Universal Orlando.
The empire strikes back
Disney won't just coast on Comcast's coattails next year. It will make moves. It's unlikely to open a fifth gate anytime soon. It will be easier to increase the capacity at its existing parks. A few months ago Disney announced that it would be doubling the capital expenditures at its theme parks, cruise ships, and experiences to $60 billion over the next 10 years.
Comcast has a lot to gain, especially since theme parks make up less than 10% of its revenue right now. Disney will be fine. It will have the same flexibility to increase ticket and annual pass prices, just as Comcast has done over the past few years with Disney behind the wheel. Epic Universe will live up to its grand moniker, and Disney shareholders and theme park enthusiasts will be all the better for it.
