Disney’s MagicBand System: Leveraging Technology to Enhance Customer Experience

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EXCERPTS

Companies across the globe had been leveraging technologies to add efficiency to their business operations and thereby increase revenues. Similarly, Disney had continuously used updated technologies to enhance its operations and had delivered revolutionary attractions. In 2013, Disney World introduced a vacation management system called MyMagic+ (MM+) to create a more magical atmosphere at Disney parks. Using this system, the company tried to recreate and enhance the visitors’ vacation experience. Through wireless technology, Disney introduced the MM+ system, ending many traditional practices. The system allowed users to select FastPasses and book their tickets through a website and mobile application ‘My Disney Experience’. After more than five years of development, the MM+ was finally launched in January 2013. The system was developed initially using 1,000 testers...

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The MagicBands were the centerpiece of Disney’s expansive program for changing visitors’ experience dramatically at the Florida resort. These wristbands were at the heart of Disney’s MM+ technology. Disney believed that the MagicBands could create deeper and more unforgettable memories for its customers...

The technology driven theme parks were expected to modernize the old Disney system. Under the traditional process, visitors had to purchase paper tickets, wait in line for their favorite rides, and buy merchandise either through cash or credit cards. The new system was designed to offer an enhanced experience to visitors...

The plastic flexible bands were easy to handle and carry, but being made of non-latex material, they could become irritating and sweaty. Also, the all-in-one device could not be taken off as it was an entry ticket as well. However, instead of taking a MagicBand, the Disney guests could opt for using a RF-enabled card that functioned in similar way...

The MagicBand was still in its infancy. Disney and its hardworking Imagineers had conceived and come out with a product that had huge potential. Besides enhancing visitors’ experience, Disney increased its revenue as well. In the first quarter of 2014 when the MagicBands were still in the testing phase, the revenue of the Disney parks and resorts segment jumped 6%. (Refer to Exhibit III for Revenues of The Walt Disney Company for 2009-2013) However, the increase could not be solely attributed to MagicBands...

Exhibit I : Revenue of the Walt Disney Company

Exhibit II : World Disney World Facilities

Exhibit III : The MyMagic+ System

Exhibit IV : Availability of Disney MagicBands

Exhibit V : Image of the MagicBand and the Touchpoint