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Why Disney's MagicBands Are a Cash Cow in the Making

Disney found another way to simplify guests' resort experience and make a ton of money in the process. Just in time for summer, Disney has rolled out RFID-enabled MagicBands for guests visiting the Walt Disney World resort.

Worn on visitors' wrists, MagicBands link to the company's new guest planning management system, MyMagic+, which allows guests to book reservations and keep track of their trip from an app on their computer or smartphone. Using MyMagic+, guests can link their credit card, hotel reservations, park tickets, FastPass+ reservations, and PhotoPass card to their MagicBand, which they keep around their wrist throughout the trip.

MagicBands contain an RFID chip, and with a swipe of their wristband near a scanner, guests can access all of these aspects of their trip throughout the resort. Scanners are placed throughout the parks, hotels, shops and other points of interest. Also, hidden long-range scanners set up throughout the resort keep track of where guests are during their stay.

After Disney spent over 100m to make the project a reality, will MagicBands and the MyMagic+ system be profitable and produce a significant ROI?

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