Does Disney Have A Price Problem?
As any long-time Walt Disney World visitor knows, a trip to the Vacation Kingdom costs more than it ever has before.
While many Disney fans still believe that the juice is worth the squeeze, Disney is constantly walking a fine line between what customers are willing to pay and ostracizing their core fanbase.
Walt Disney World’s Attendance Has Declined
After a record-breaking 2022, visits to Walt Disney World are down by as much as 15% this year, according to Bloomberg.
The factors in Disney World’s drop-off are many. The resort is coming off its 50th anniversary celebration which certainly boosted attendance. Additionally, with the post-COVID pent-up demand fading and inflation rising, travelers are tightening their budgets.
According to travel planners, families are often cutting their trips short to offset the increased price of visiting the parks. For reference, the price of a peak-season park ticket has nearly doubled in the last ten years.
Adding to guest’s frustration is the increasingly complex system that now includes the Genie+ system. From park reservations to planning your Lightning Lane usage, a ton of planning must go into any Walt Disney World vacation.
Spending By Visitors Is Up
Despite lower attendance, Disney officials have stated that visitors spend 40% more time per day in the US parks than they did before the pandemic.
Although the company’s operating income from parks and experiences fell 13% last quarter, it was still up 24% from 2019.
“Disney has done a lot to increase pricing and per-cap spending,” helping to blunt the effects of lower attendance, said Laura Martin, a media analyst at Needham & Co. who rates Disney stock hold. “It’s a premium product, and it’s basically for rich people.”
Will Disney Change Course?
As Disney plans to invest $60 billion over the next 10 years at Walt Disney World, the company acknowledges that pricing remains an issue.
“Everyone vacations differently, so we offer a wide range of options, including ways to save and find great value, all while continuing to roll out updates that make planning simpler and easier,” Avery Maehrer, Disney World’s communications director, said.
Even with the increased cost and the complex nature of a Disney World vacation, however, Disney’s fans are still showing up.
Disney may test fans’ patience from time to time, but for now, at least, they are standing by the company.