A new report from Robbie Whelan of the Wall Street Journal paints an updated picture of price hikes at the Disney theme parks, the strain it puts on guests, and internal discussions at Disney on how to mitigate losing guests over pricing. Whelan worked in concert with Touring Plans to collect and present data on how much pricing is playing a role in the decisions of Americans to visit Walt Disney World.
UPDATE (Feb. 10): The Walt Disney Company has issued a new press release, very likely in response to the criticisms of the WSJ article and the resulting backlash against Disney’s pricing on social media. Here’s the response, followed by our article below as originally written.
Post-COVID Price Hikes
As Disney fans know, a Disney vacation has become more expensive and complicated after Disney Experiences Chairman Josh D’Amaro, then-CEO Bob Chapek, and other execs put in place new rules, pricing, and restrictions following the COVID-19 shutdowns. Some restrictions have been lifted for some guests, but Disney’s most loyal fans, Annual Passholders, still have to deal with a park reservation system that aims to restrict access above and beyond blockout dates already baked into Annual Pass tiers.
A big area where a cash grab has been undeniable is the billion-dollar skip-the-line service now called Lightning Lane (previously, Genie+). Pre-COVID, FastPass+ was a free offering, allowing guests to skip-the-line at some attractions throughout the day. Now, the Lightning Lane Multi Pass is essentially the exact same service, but with a price tag. A Lightning Lane Premier Pass, the most expensive tier of skip-the-line service, maxes out at $449 per person, per day.
Other offerings such as the removal of the Magical Express airport to hotel service was a huge loss for Disney fans. The removal of previously-free offerings, along with the continued introduction of price hikes has made a Disney vacation significantly more expensive in a post-COVID world.
Concern Within Disney
The report from the WSJ says that “some inside Disney worry that the company has become addicted to price hikes and has reached the limits of what middle-class Americans can afford”. The report says that internal discussions have become more frequent on if Disney is going too far with its pricing strategy.
The report says that when Iger returned in November 2022, he was concerned that Disney was getting a reputation as being too expensive. He asked D’Amaro to come up with a list of things that the company could do to win back fans. D’Amaro reportedly offered up suggestions such as removing the parking fee at hotels, adding more dates to the lowest tier of ticket prices, and that it could freeze the annual price increases for tickets. Iger liked two out of the three suggestions, keeping annual price increases in place.
Guest Intent to Return Plummets
The report says that Disney’s own internal surveys of guests visiting Walt Disney World and Disneyland saw a sharp downward trend starting in late 2023 for intent to return. Indeed, Disney’s financial filings show that attendance at Disney’s theme parks was flat in 2024, compared to 6% growth in 2023.
Still, Disney Experiences posted record revenue and profits in 2024 thanks to an aggressive pricing strategy. Additional color such as hotel bookings were flat in 2024 domestically at 85% occupancy – the same occupancy figure as 2023. In terms of guest spending, domestic parks saw a 3% uptick in 2024, and international parks were up 4%.
Theme park admissions revenue was up 7% year-over-year, up to $11.1 billion in 2024 from $10.4 billion in 2023. The increase in revenue was 5% attributable to an increase in average ticket prices, and a 2% increase in attendance. Theme park admissions are the largest sub-segment of the Experiences line of business, followed by hotels & cruises ($8.3 billion) and theme park food & merchandise ($8 billion).
The Cost of Visiting Disney
In terms of the cost of a Walt Disney World vacation, data from Touring Plans says that a typical four-day visit to Walt Disney World has jumped $1,000 in five years, adjusted for inflation. The data collected by Touring Plans tallies the cost of a Walt Disney World vacation at $4,266.
The report says that almost 80% of that jump in price is for things that were previously free, while 20% of the cost came from Disney rising prices faster than the rate of inflation.
Disney disagrees. The report says that Disney argues that the same family of four could enjoy a four-day vacation for as little as $3,026 before food and transportation costs, noting that guests don’t need to purchase the Lightning Lane passes to have a good time.
In a poll for the WSJ, Harris Poll asked more than 2,000 households about experiential vacations, and 74% said that experiences like cruises and theme parks are financially out of reach.
For respondents who said that they’re cutting back on Disney vacations, 59% cited cost. 27% said that they were no longer interested in visiting Disney theme parks, while 14% said that they didn’t have the time.
Disney said that the poll was “flawed and misleading”.
In June 2024, a LendingTree survey of 2,000 families found that 45% of families visiting Disney with children went into debt to pay for the vacation.
A rather stunning part of the WSJ report said that a Disney Vacation Club survey this Fall asked guests how likely they were to be “receiving/managing an inheritance” or to experience the “loss of a family member or loved one” over the next five years.
Risk of Losing Repeat Visitors
While a Disney theme park vacation is still a rite of passage for many American families, the risk of losing repeat visitors starts the minute guests add up their expenses.
Back in December, Disney CFO Hugh Johnston spoke about the importance of ensuring that a Disney Parks vacation is part of the habit of families, and not a one-time splurge.
“We want to be able to tap in to those families and build the habit of coming to Disneyland or Disney World, not one time, but multiple times”, Johnston said.
In a written statement to the WSJ, D’Amaro talked about the importance of creating not only a memorable vacation but an affordable one too.
The number-one thing we hear from the millions of guests who visit our parks each year is how much a Disney vacation means to them, and we intentionally offer a wide variety of ticket, hotel and dining options to welcome as many families as possible, whatever their budget.
We also know that in inflationary times it’s especially important to give families ways to save on their visits.
Further, Disney said that its theme parks are within financial reach for middle-class families and that it offers a range of pricing and products to ensure that it stays that way. Year-round promotions also play a big part in Disney’s pricing strategy (check out the current discounts).
Disney says that the majority of respondents to its own internal guest surveys say that it offers good to great value for the price paid.
That said, Disney says that it is also dealing with the growing cost of operating the theme parks due to inflation. Disney also uses pricing to manage attendance, making it more expensive to visit during high-demand periods.
As always, keep checking back with us here at BlogMickey.com as we continue to bring you the latest news, photos, and info from around the Disney Parks!
