Disney has a pricing problem. There are ambitious plans to fix it

CNN
—

Disney recently announced a wide range of theme park and cruise projects to 12,000 of its most loyal fans, who will almost certainly return to Disney theme parks to experience the new offerings, no matter the cost.

But whether they are regular visitors or first-time visitors, Disney's price increases and the global inflation crisis mean that many families can no longer afford to travel to experience the technological advances and fantasy immersion that the “happiest place on earth” promises.

“It's nothing new that a Disney trip is expensive, but the magnitude and pace of price increases over the past five years have been shocking to many respondents, and we don't believe similar increases are possible over the next five years,” found a Raymond James survey of 20 Disney “superfans,” travel agents and business owners in the Orlando area.

Disney warned in its Aug. 7 earnings report that attendance at its domestic parks was below expectations as visitors became more price-conscious. Profits at the U.S. parks fell in the most recent quarter between April and July. Disney's chief financial officer Hugh Johnston said in the company's earnings call that there could be a few quarters with similar results.

To ensure its customers continue to come through the gates, the company will continue to offer a range of pricing and options, said Josh D'Amaro, chairman of Walt Disney Parks and Resorts, in an interview with CNN.

“We will continue to make sure we provide as much access and flexibility as possible so that as many of our fans as possible can experience these things,” D'Amaro said.

In response to criticism of the high costs, Disney has repeatedly touted cheaper ticket options and “seasonal specials” at its resort hotels to make it easier for families on a tight budget to visit.

Disney isn't the only company struggling with customers spending less. Demand in the travel industry is waning, marking the end of the “revenge trip” trend that occurred in the months after pandemic restrictions were lifted. With stimulus money in their bank accounts, people had spent more freely, making up for a year of missed vacations.

D'Amaro expressed confidence that Disney can overcome these obstacles.

“We've proven that we're incredibly adept at navigating situations where consumer behavior changes,” he said. “We're even more adept at managing those fluctuations, whether it's through precise advertising, cost management or engaging our guests.”

The new announcements promise guests the chance to ride through the Encanto “casita,” fight a battle in Wakanda or experience an ominous land centered around villains. All part of a $60 billion investment in parks and cruises that Disney has committed to over the next decade – an investment that will have to be repaid over time with consumer money.

But this massive investment does not mean that Disney will immediately raise ticket prices, says Tom Bricker, co-founder of DisneyTouristBlog.com. That's economics for beginners.

“Costs will increase with increasing demand, which can happen with new attractions. Right now, demand is flat or declining,” Bricker said, referring to the latest earnings report, suggesting the slowdown in attendance could continue into 2025. “Since 2025 also marks the opening of Universal's Epic Universe, there will likely be a negative impact on Walt Disney World's attendance as well. It won't be catastrophic — Epic Universe will attract new visitors to Orlando who will also visit Disney — but it will be damaging in the short term.”

As a result, park visitors can look forward to new parades and shows as well as discounts next year as Disney tries to keep visitors engaged, especially since construction on the new lands and rides will take some time, Bricker said.

However, today's prices for Disney tickets are too high for some families compared to previous years.

Shortly after Disneyland in California opened in 1955, visitors could buy admission tickets and 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 ticket booklet for seven rides cost a total of $8. In 2024 dollars, that would be $61.66.

Currently, the cheapest day tickets to Disneyland or Walt Disney World during the “value” season are $104 and $116.09, respectively.

But admission prices when the parks opened were for entry to a single park with far fewer attractions than what a Disney guest experiences today. Today, Disneyland Resort has two parks with a total of more than 65 attractions; Disney World has four theme parks and two water parks with more than 150 attractions.

Prices for “cheap” tickets have increased by less than one percent annually over the past decade, notes Don Munsil, operator of the travel website MouseSavers, which keeps historical records of Disney prices. But the number of dates in the calendar when these prices apply has decreased.

According to Munsil, the most expensive one-park pass during peak season at Disneyland in California ($194) has increased an average of 7 percent each year over the past decade. A similar peak season pass for Disney World in Florida ($201.29) has increased an average of 6.4 percent each year during that time.

The price increases for these tickets during peak hours exceed inflation over the same period.

According to MouseSavers, tickets for a family of four to travel between Walt Disney World parks for four days during peak season will cost about $3,098 in 2024, not including add-ons such as access to the faster “Lightning Lanes,” which were previously free.

That's about double the price 10 years ago and 3.6 times the price 20 years ago.

Paid access to Lightning Lanes, which first opened at Disney World in 2021, can cost an additional $17 to $41 per person per day, depending on the park and season.

However, certain popular rides are not included in the price. For example, using Lightning Lane specifically for Star Wars: Rise of the Resistance would cost about $25 extra per person.

However, Munsil points out that this is the cheapest “express” service of any theme park on the market. He said Universal charges $105 to $310 per person per day for its Express Pass, depending on the number of parks and options. Cedar Point charges $95 to $120 per person per day. Busch Gardens charges $60 to $150 per person per day.

The fan community complains that this service used to be free at the Disney parks. Transportation from Orlando Airport to Disney World property used to be included in the price for Disney hotel guests, but this service has been discontinued.

Food and souvenirs also cost significantly more in the parks.

According to the Disney Food Blog, a Mickey ice cream cost $2.59 15 years ago. Adjusted for inflation, it should cost $3.78 in 2024, but instead the price is $6.29.

Specialty glowing balloons cost $15 in 2015. Adjusted for inflation, this type of balloon would cost $19.60. In 2024, this balloon will cost… $20. So it's true that not everything in the parks is increasing faster than inflation.

“I always joke that three things are certain in life: death, taxes and Disney parks raising their admission prices,” said Mindy Marzec, who runs thisfairytalelife.com. “Prices will definitely go up, but when you hear about these exciting projects in development, it makes you feel like the price is more worth it.”

Prices for regular tickets have not risen nearly as much as those for annual passes, Munsil stressed. He said diehard fans often become disillusioned because they frequently go to theaters and see the prices of their tickets rise.

However, he said the main audience, especially at Disney World, are first-time visitors who are surprised and delighted by the unparalleled entertainment and detail they see. The cheapest available admission price to Disney World has remained the same as in 2019, costing $15 more than it was in 2013.

“I think the Disney parks are a real bargain,” says Munsil, pointing out that the cheapest ticket available, at about $110 per day (or less, with seasonal discounts), provides more than 10 hours of entertainment, depending on your stamina.

“The Disney parks have some of the most amazing and technologically advanced rides and experiences in the world. It's an absolutely unique, magical place,” Munsil said. “What's it worth? The only place comparable is Universal Studios, and it costs about the same there, and that's for (in my opinion) parks that are just a little less amazing (but still worthwhile).”

For regulars who aren't willing to pay more for the products and services they're used to, the question is whether the experience is still worth the money. Following D23's announcements about future developments, many followers are saying “yes,” even if it means saving up for less travel.

Content creator Victoria Wade said: “Over the last few years, it felt like fans were nothing more than dollar signs and that our feedback was no longer taken seriously since things returned to normal with the pandemic.”

Wade said the perceived instability of Disney's leadership and the addition of paid services and experiences that were once free have “led to a lack of trust between the company and the community.”

But Wade said major announcements at Disney's D23 fan convention made her feel like the company was listening to feedback, such as the introduction of a new nighttime parade at Magic Kingdom that loyal visitors have long wanted.

Munsil said the Disney parks are “expensive, yes, but there is nothing comparable in the world.”