Orlando, the theme park capital of the world, has long relied on strong tourism numbers to sustain its booming hospitality industry.

However, in 2024, hotel occupancy rates saw an unexpected dip, largely due to economic factors and shifting travel patterns.

Now, with Universal Orlando Resort’s Epic Universe set to open in 2025, industry experts are questioning whether this will bring a resurgence to Orlando’s tourism and challenge Disney World’s long-held dominance.

Mickey Mouse waves in front of a vibrant aerial view of Disney World at night, where colorful fireworks illuminate the sky. In the distance, various attractions and structures shimmer below, a reminiscent spark against whispers of abandonment by 2025.
Credit: Inside The Magic

Orlando, Florida’s Hotel Occupancy Trends: A Year of Highs and Lows

For most of 2024, Orlando’s hotel occupancy rates were on a downward trajectory. The city, which boasts 130,000 hotel rooms, saw an annual occupancy rate of 71.6%, a 1.1% decline from 2023. This dip can be attributed to multiple factors:

  • Inflation and Economic Concerns: Travelers felt the pinch of rising costs, leading many to seek more budget-friendly destinations.
  • Strong U.S. Dollar: A stronger dollar made international travel more appealing to domestic tourists, diverting visitors from Orlando to overseas destinations.
  • Post-Pandemic Travel Trends: The ‘revenge travel’ phenomenon that boosted Orlando’s tourism in 2023 began to fade, with travelers choosing alternative vacation options, including cruises out of Florida’s ports.
  • Hotel Supply Growth: The opening of Evermore Orlando (300+ rooms) and Conrad Orlando (433 rooms) in early 2024 increased the total hotel supply, temporarily diluting demand.

Despite these challenges, Orlando’s hotel occupancy rebounded in the last quarter of 2024, with October, November, and December seeing positive growth. Experts attribute this to travelers delaying vacations until the holiday season and a gradual return of group and convention travel.

Mickey mouse holding a magic box in front of Cinderella's castle at Disney World.
Credit: Inside The Magic

Epic Universe: The Game Changer for Orlando Tourism?

The biggest wildcard for Orlando’s hospitality industry in 2025 is the highly anticipated opening of Epic Universe, Universal Orlando’s third theme park, on May 22. As Universal positions itself as a serious contender against Disney World, Epic Universe is expected to shift Orlando’s tourism dynamics in several ways:

  • Increase in Hotel Demand: Universal is opening three new hotels—Stella Nova (750 rooms), Terra Luna (750 rooms), and Grand Helios (500 rooms)—bringing its total accommodations to 11,000 rooms across 11 hotels. This expansion means Universal will capture more on-site guests, increasing competition with Disney’s hotels.
  • Visitor Postponements in 2024: Many travelers may have skipped Orlando in 2024, choosing to delay their trips until Epic Universe’s grand opening. This could explain the year’s slower hotel bookings and the recent rebound.
  • Orlando’s Overall Tourism Growth: The question remains whether Epic Universe will grow Orlando’s tourism market as a whole or simply redistribute visitors between Universal and Disney.
A picturesque view of Universal's Epic Universe theme park at sunset, featuring a tranquil waterway, palm trees, colorful buildings, and the iconic Universal logo in the center. The logo reads "Universal's Epic Universe" with a starry background and decorative accents.
Credit: Inside The Magic

What This Means for Disney World

Historically, Disney World has dominated Orlando tourism, but Universal’s aggressive expansion signals a shift in power. Unlike Universal, which is significantly increasing its hotel inventory, Disney has taken a more conservative approach, focusing on expanding its Disney Vacation Club timeshare offerings rather than building new traditional hotels. Since 2012, Disney has only introduced two major hotels—Art of Animation and Gran Destino Tower at Coronado Springs.

Disney’s strategy prioritizes keeping guests within its ecosystem, with limited-time events, exclusive experiences, and new attractions like Tiana’s Bayou Adventure (set to open in 2024). However, if Universal’s Epic Universe succeeds in capturing a larger share of multi-day travelers, Disney may need to rethink its approach.

A vibrant amusement park at sunset, part of the Epic Universe, features a dome-covered carousel with colorful lights. Nearby, a roller coaster with a fiery design spirals around, emitting sparks. People enjoy fountains and lush greenery surrounds the attractions at Universal Orlando.
Credit: Universal

Will Orlando, Florida’s Hotel Market Boom in 2025?

With Epic Universe on the horizon, Orlando’s hotel market is at a crossroads. The city’s tourism industry could see one of the biggest surges in recent history, but questions remain:

  • Will Epic Universe increase Orlando’s total visitation, or will it pull visitors away from Disney and other local attractions?
  • How will economic factors like inflation and a fluctuating dollar impact travel demand?
  • Will Universal’s expanding hotel portfolio challenge Disney’s long-standing dominance in the Orlando hospitality market?

Regardless of the outcome, one thing is certain: 2025 will be a pivotal year for Orlando’s tourism industry, and all eyes will be on Universal’s Epic Universe to see if it lives up to the hype.

Stay tuned as we continue to track how these developments shape the future of Orlando’s theme park giants.

Source: Orlando Sentintel

The post Disney World on Alert: Complete Orlando Theme Park Amendment to Shift in Coming Months appeared first on Inside the Magic.

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