Disney Cushions the Blow for Once
While Bob Iger stewed in retirement, he commented to anyone who would listen that his replacement, Bob Chapek, was ruining everything.
Iger has always felt strongly that Disney theme parks should remain affordable and accessible to everyone.
Photo:visitorlando.com
Once Iger returned last November, he faced an awkward dilemma. The Walt Disney Company still needed strong revenue performances in the parks.
However, Iger had criticized Chapek for raising prices so often during the former Disney CEO’s tenure.
Photo: Wikimedia
As the end of 2023 approached, Iger faced a challenging circumstance that his own comments had caused.
Thankfully, Iger and his team planned ahead on this one.
Here’s how Disney cushioned the blow on the latest batch of park increases and how it helps you.
Iger’s Park Philosophy
Okay, let’s quickly review what happened last year.
During Iger’s retirement phase, he never shied away from the media.
In fact, Iger performed several interviews, most notably one with his former employee, Chris Wallace.
(Charley Gallay / Getty Images for Disney)
During these conversations, Iger lamented one aspect of his successor’s behavior.
Whenever Chapek needed new revenue to make Disney’s numbers look better, he employed the same trick.
Chapek repeatedly, almost compulsively, raised the prices of Disney theme park experiences.
Before Chapek had departed Disney, he could brag, much to the chagrin of Disney fans, that he’d increased park spending by 40 percent.
In stating this proudly, Chapek confessed that he’d raised prices so often that guests were paying $14 in 2022 for something that had cost $10 in 2019.
Iger sat on his luxury yacht, gritted his teeth, and stewed over Chapek’s actions.
Obviously, nobody who can afford a luxury yacht should claim that they’re in touch with the common person.
Photo: DIsney+
However, Iger had persuaded himself over the years that he was the people’s champion when it came to theme park pricing.
In his mind, Iger’s actions kept Disney prices in check when greedier CEOs might have turned a Disney vacation into a luxury experience.
Photo: Walt Disney Company
I’ll leave it up to you to decide whether you agree, but Iger 100 percent believes that.
The problem occurred when Chapek expressed that perspective while sitting on the sidelines. Then, he got his old job back.
Photo: CNBC
At that point, Iger faced the same financial challenges that Chapek had. In truth, they were actually worse.
As a reminder, Iger got out while the getting was good, only a couple of weeks before the pandemic shut down society.
Photo: WHO
Chapek faced the brunt of the problem. Then, when Iger returned, he recognized how bad the money situation had gotten.
Iger’s First Test and Solution
Photos: istock
Almost overnight, Iger switched from retired to Disney’s bookkeeper. And those books were covered in red ink.
Before Iger had retired, he’d paid over $70 billion for Fox’s assets. That strategy would have worked well if not for the pandemic.
Photo: skillastics.com
Then, Disney suddenly lost several of its primary revenue streams like movie box office, theme park sales, and Disney cruises. It was a financial wipeout.
Once the parks reopened, Chapek saw a path to viability, at least in the short term. That’s when the price increases started in earnest.
Mandatory Credit: Photo by JUSTIN LANE/EPA-EFE/Shutterstock
In November 2022, Iger found himself in charge of a Parks division that he deemed overly expensive. Even worse, he’d said as much publicly.
To his credit, Iger backed up his words with several actions. He moved to solve lingering customer complaints about Disney parks during the pandemic.
Journey of Water preview
We now have annual pass sales, the impending return of the Disney Dining Plan, and the virtual elimination of the unpopular Park Passes.
Disney also restored one other park service that we’ll discuss in the next section.
Photo: DIsney+
In short, Iger has practiced what he preached for the most part.
While Disney has increased the prices of some theme park-related products over the past year, they’ve seemed modest at best.
Photo: Disney
However, Disney has generally increased prices annually, and October is often the month when it happens.
So, Iger faced a unique challenge of his own creation here. He had to find a way to raise prices without facing hypocrisy charges.
Weather in Disney World on October 12th
Ever the politician, Iger came up with a unique solution. Remember last week when Disney announced vacation discounts for children?
Disney revealed this offer precisely one week before it announced new price increases. Iger gave us the carrot before using the stick.
The Cleverness of the Price Increases
Mickey’s Not-So-Scary Halloween Party
Walt Disney World didn’t raise the cost of admission tickets this time, which is a pleasant surprise. However, Disneyland did.
Some analysts have quickly noted that this decision could hint at the lingering strength of Disneyland ticket sales and a softening in Florida.
Photo: Travel and Leisure
While I rule nothing out, I believe something simpler is at play here.
Iger and his team implemented a plan to raise the price of a Disney theme park visit without facing the headline of “Disney increases ticket prices again.”
Photo: Disney
You haven’t seen that headline about Walt Disney World, right?
Southern California publications have definitely mentioned Disneyland’s price hike, but the national media fixates more on Disney’s Florida concerns.
Bpb Oger
Yes, there’s a political undertone that explains why. Iger anticipated this and uncovered a way to increase park revenue differently.
Virtually all of the price increases that Disney just announced share a commonality. They’re not things you HAVE to buy during a Disney vacation.
Photo: touring plans.com
You can live without Memory Maker, and you can explore alternative travel methods rather than driving yourself to the park. So, you can skip parking fees, too.
Disney methodically picked a bunch of disposable income-related options like Mini Golf, annual passes, and fixed-cost restaurants.
Photo: Disney
Park officials can honestly say that you don’t have to pay for any of the items that just experienced price increases. It’s a very clever tactic.
Sure, some of them like coffee and Dole Whips feel like necessities, but you could skip them a couple of times to shave your park budget.
Photo: Disney
In totality, all of these fractional price increases add up to a significant amount of revenue, easily more than enough to cover the cost of a year’s worth of inflation.
How This Helps You
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Information is key to avoiding the added expenses.
MickeyBlog posts a slew of park tips on a daily basis, and you can use them in totality to save money on your trip.
Photo: Center Watch
Disney’s subtle price increase tactic this time works in your favor because we’ve chronicled all the new expenses.
My co-workers here have done a remarkable job in assembling all the price changes, no matter how insignificant the changes are.
In some cases, we’re talking about 30 cents. With annual passes, the difference could be as much as $150.
So, now you must decide how to value your trip. Do you need Starbucks or Joffrey’s beverages to make it through the morning at Disney?
Photo: Playbuzz.com
Is Memory Maker worth its ~$200 cost to you? Many of my favorite photographs in my life happened thanks to this service, but it’s getting pricey.
Overall, Disney has left the ball in your court this time. We didn’t experience the unavoidable costs like higher admission tickets.
Instead, the parks will ask you for a few more nickels and dimes during your next visit.
This piecemeal approach works better for savvy park guests like yourself.
You’re already reading our site to know how to maximize your vacation budget.
Photo: Getty Images
To Iger’s credit, he worked hard to stay true to his word here. Yes, Disney has raised prices again, but that’s the nature of commerce.
Iger found a clever way to cushion the blow by offering discounts ahead of time.
Then, the price increases generally included avoidable purchases, at least at Walt Disney World.
Let’s be honest. Under Chapek, this wave of price increases would have been soooo much worse.
Photo: MickeyBlog
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