Former Disney CEO Bob Chapek considered eliminating Disneyland's annual pass program, a move he acknowledged would be unpopular with the Anaheim theme park's most loyal customers. Chapek writes in his new book, "Behind the Castle Walls," that he understood the backlash such a decision would provoke.
Instead of complete elimination, Chapek aimed to "shift the math," focusing Disneyland's strategy on free-spending vacation travelers who stayed in Disney hotels. This approach meant less emphasis on budget-conscious annual passholders who might visit for only a few hours. Chapek viewed the passholder experience as a "fantastic deal for the passholder, but a terrible one for Disney and its more vacation-oriented guests."
Chapek became Disney parks chairman in 2015 before being named CEO of the company in February 2020. A month later, in March 2020, the COVID-19 pandemic led to the closure of Disneyland and Disney California Adventure for more than a year. While the parks remained closed, Disneyland officially canceled its long-standing annual pass program in January 2021. Chapek noted that the "pressure from the passholder not to change the status quo was enormous."
Disneyland reopened in April 2021 with limited capacity and ongoing pandemic restrictions. In August 2021, the new Magic Key program was introduced as a replacement for the old annual pass system. This new program featured higher prices, more restrictions, and limited access compared to its predecessor.
The changes to the program led to widespread outrage and public backlash from Disneyland's 1.1 million passholders, who largely blamed Chapek for the alterations. Chapek wrote that passholders reacted with "unease to outrage," feeling the changes "did not fit their personal interests and deemed them unfair."
The discontent culminated in a class-action lawsuit filed in November 2021. The lawsuit alleged that Disneyland misled and deceived Magic Keyholders by artificially limiting capacity and restricting reservations, despite a promise of "no blockout dates." This $9.5 million class action lawsuit was settled in 2024.
Chapek further solidified his controversial image among Disneyland passholders when he referred to them as "unfavorable" guests during a quarterly earnings call in August 2022. He explained in his book that "some customers generated more revenue than others," while also acknowledging his appreciation for the passholders' passion and enthusiasm for Disney. Chapek was fired in November 2022 and subsequently replaced by former Disney CEO Bob Iger.
