In an effort to bring more visitors back into its theme parks in the Unites States, Disney has created a plan to address its cost problem, which has pushed business away considerably as prices have consistently increased over the years.
In its August 7 earnings report, Disney warned that US parks profit fell during the last quarter, between April and July. CFO Hugh Johnston said there may be still a couple of quarters with similar results.
According to Disney, domestic parks attendance was underperforming expectations as visitors have become more price-conscious.
In response to the criticism about high costs, Disney has continuously touted lower-priced ticket options and “value season” deals at its resort hotels to persuade more families to visit, even if they’re on a tight budget.
Josh D’Amaro, chairperson of Walt Disney Parks and Resorts, said in an interview with CNN that to keep its customers coming through the gates, the company will keep providing a wide range of pricing and options.
“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.
Disney parks have long been a destination for many people, families especially, looking for a mystical getaway or a sense of nostalgia, in what the company tuts as the “Happiest Place on Earth.” However, Disney’s price hikes combined with the effects of inflation, have left many unable to afford the trip.
“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.
Earlier this month, Disney introduced a wide variety of projects for parks and cruises, offering guests a chance to ride through the “Encanto” “casita,” to fight a battle in Wakanda or experience an ominous land themed to villains as part of a $60 billion investment that the company has pledged will be completed over the next decade.
While this massive investment will need to be paid for over time with consumer dollars, it doesn’t mean Disney will immediately hike ticket prices, said Tom Bricker, co-founder of DisneyTouristBlog.com. He said park visitors may see new parades, shows, and discounts in the coming year, as Disney tries to keep people coming while the new lands and rides are still under construction.
