Disney has a price problem. It has ambitious plans to fix that
CNN
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Disney recently announced a huge slate of projects for parks and cruises in front of 12,000 of its most loyal fans, who will almost certainly return to Disney's theme parks to experience those new offerings, no matter what it costs.
But whether a frequent visitor or a first-timer, Disney's price hikes combined with a global inflation crisis left many families unable to afford trips to witness the technological feats and fantasy immersion the "Happiest Place on Earth" promises.
The Magic Kingdom Park at Walt Disney World on May 31, 2024, in Orlando, Florida.
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"It is not news that a Disney trip is expensive, but the magnitude and speed of price increases over roughly the past five years was jarring to many respondents, and we do not believe similar increases over roughly the next five years are feasible," a Raymond James survey of 20 Disney "superfans," travel agents and Orlando-area business owners found.
Disney warned in its August 7 earnings report that domestic parks attendance was underperforming expectations as visitors become more price-conscious. US parks profit fell during the last quarter, between April and July. Disney CFO Hugh Johnston said on the company's earnings call that there may be a couple of quarters of similar results.
To keep its customers coming through the gates, the company will keep providing a range of pricing and options, said Josh D'Amaro, chairperson of Walt Disney Parks and Resorts, in an interview with CNN.
"What we will continue to do is make sure we provide as much access and flexibility as we possibly can, so as many of our fans can experience these things as possible," D'Amaro said.
In response to criticism about high costs, Disney has consistently touted lower-priced ticket options and "value season" deals at its resort hotels to allow families to visit, even if they're on a tight budget.
Disney isn't the only company struggling with customers who are spending less. Demand for the travel industry is softening, marking the end of the "revenge travel" fad in the months after pandemic restrictions were lifted. With stimulus money padding their bank accounts, people had been spending more freely then, making up after a year of missed vacations.
D'Amaro said he's confident Disney can navigate these bumps in the road.
"We have proven ourselves to be incredibly adept at managing through situations where there's some change in consumer behavior," he said. "We have even more sophistication in our ability to deal with any of these fluctuations, whether it's through precise promotional deployment, or management of cost or engagement with our guests."
What the new announcements mean for ticket prices
People ride on the Pixar Pal-A-Round ferris wheel in front of the Incredicoaster in the Disney California Adventure Park at Disneyland on April 11, 2023, in Anaheim, California.
Gary Hershorn/Corbis News/Getty Images
The new announcements promising guests a chance to ride through the "Encanto" "casita," to fight a battle in Wakanda or experience an ominous land themed to villains, are all part of a $60 billion investment in parks and cruises that Disney has pledged over the next decade, an investment that will need to be paid for over time with consumer dollars.
But that massive investment doesn't mean Disney will immediately hike ticket prices, said Tom Bricker, co-founder of DisneyTouristBlog.com. It's economics 101.
"Costs will rise as demand rises, which can happen as a result of new additions. Right now, demand is flat or falling," Bricker said, in reference to the latest earnings report that suggested the moderation in attendance might last into 2025. "With 2025 also being the opening of Universal's Epic Universe, there will likely also be negative impacts on Walt Disney World attendance. It won't be catastrophic—Epic Universe will draw new visitors to Orlando, who will also visit Disney—but it will be damaging in the near term."
As a result, Bricker said park visitors may see new parades and shows, and discounts in the coming year, as Disney tries to keep people coming, especially as the new lands and rides will still be under construction for some time.
Still, the price of Disney tickets today compared to past years prices out some families.
Shortly after Disneyland in California opened in 1955, guests could buy admission plus 10 rides for a total of $2.50. Adjusted for inflation, that $2.50 would be $28.74 today. When Disney World in Florida opened in 1977, admission plus a book of tickets for seven rides was $8 in total. In 2024 dollars, that would be $61.66.
Currently, the cheapest one-day tickets to Disneyland or Walt Disney World during the "value" season are $104 and $116.09, respectively.
But the admission prices when the parks first opened were for entry into a single park, with far fewer attractions than what a Disney guest experiences today. Today, Disneyland Resort has two parks with more than 65 total attractions; Disney World has four theme parks and two water parks with more than 150 attractions.
"Value" tickets have increased less than 1% annually in the last 10 years, noted Don Munsil, who runs MouseSavers, a travel website that maintains historic records of Disney prices. But the number of dates on the calendar when these prices apply has diminished.
On the high end, Munsil said the most expensive single-day ticket to only one park during peak season at Disneyland in California ($194) has increased an average of about 7% each year over the last decade. A similar peak season ticket at Disney World in Florida ($201.29) has increased an average of 6.4% each year during that time.
The increases on these peak tickets outpace inflation over the same period.
According to MouseSavers, tickets for a family of four to hop between the Walt Disney World parks for four days during peak season costs about $3,098 in 2024, without factoring in additional services like access to faster "Lightning Lanes," which used to be free.
That's about double what they cost 10 years ago, and 3.6 times the price 20 years ago.
Paid access to Lightning Lanes, which first debuted at Disney World in 2021, can cost another $17-$41 per person, per day, depending on the park and the season.
Certain popular rides aren't included, however. Using the Lightning Lane specifically for "Star Wars: Rise of the Resistance," for example, would cost about $25 extra per person.
But Munsil points out that this is the cheapest of any theme park "express" service on the market. He said Universal charges $105-$310 per person, per day, for their express pass, depending on number of parks and options. Cedar Point charges $95-$120 per person, per day. Busch Gardens charges $60-$150 per person, per day.
The grievance from the fan community is that this used to be free at Disney parks. Transportation from the Orlando airport to Disney World property also used to be included for Disney hotel guests, but that service has been discontinued.
Food and souvenirs at the parks also cost a lot more.
A Mickey ice cream bar cost $2.59 15 years ago, according to Disney Food Blog. If only adjusted for inflation, it should cost $3.78 in 2024, but instead, the price is $6.29.
Light-up specialty balloons were $15 in 2015. If adjusted for inflation, that type of balloon would cost $19.60. In 2024, that balloon costs…$20. So not everything at the parks outpaces inflation.
Is it worth it?
Fireworks light up the sky above Cinderella's Castle during the daily Happily Ever After light and fireworks show at the Magic Kingdom Park at Walt Disney World.
Gary Hershorn/Corbis News/Getty Images
"I always joke that three things in life are certain - death, taxes, and Disney parks raising ticket prices," said Mindy Marzec, who runs thisfairytalelife.com. "Prices are going to go up no matter what, so when you hear all about these exciting projects in development, it feels like the price is more worth it."
Prices of regular tickets have not increased at nearly the same pace as annual passes, Munsil points out. He said the hardcore fans are the ones who are often quoted feeling jaded, because they go frequently and see the prices of their passes go up.
But he said the primary audience, especially for Disney World, are first-time visitors who are amazed and delighted by the incomparable entertainment and detail that they see. The cheapest available ticket to Disney World has remained the same price as it was in 2019, and is $15 more than it was in 2013.
"I think the Disney parks are a huge bargain," Munsil said, noting that the cheapest available ticket at about $110 a day (or less, with seasonal discounts), gives someone more than 10 hours of entertainment, depending on one's stamina.
"The Disney parks have some of the most amazing, technologically sophisticated rides and experiences in the world. It's a totally unique, magical place," Munsil said. "What's that worth? The only comparable place is Universal Studios, and it costs about the same, and for (IMO) parks that are just a little less amazing (though still worthwhile)."
For frequent visitors who balk at paying more for the products and services they're accustomed to, the question is whether the experience is still worth the money. Following the D23 announcements of upcoming developments, many devotees are saying "yes, "even if it may mean saving up for fewer trips.
Content creator Victoria Wade, said, "In recent years, there has been a feeling that the fans have been nothing more than dollar signs and that our feedback wasn't taken seriously since the return to normality with the pandemic."
Wade said the perceived instability of Disney leadership, and adding paid services and experiences that were once free, "led to a lack of trust between the company and the community."
But Wade said that the major announcements made at the Disney fan convention, D23, gave her the feeling that the company is listening to feedback, like adding a new nighttime parade at Magic Kingdom, which loyal visitors had requested for a long time.
Munsil said the Disney parks are "expensive, yes, but there's nothing else on Earth like them."
