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Disney has a price problem. It has ambitious plans to fix that

Disney has a price problem. It has ambitious plans to fix that

CNN
Friday, August 16, 2024 9:28 AM GMT

Disney recently announced a huge slate of projects for parks and cruises in front of 12,000 of its most loyal fans, who will almost certainly return to Disney’s theme parks to experience those new offerings, no matter what it costs.

Disney recently announced a huge slate of projects for parks and cruises in front of 12,000 of its most loyal fans, who will almost certainly return to Disney’s theme parks to experience those new offerings, no matter what it costs. But whether a frequent visitor or a first-timer, Disney’s price hikes combined with a global inflation crisis left many families unable to afford trips to witness the technological feats and fantasy immersion the “Happiest Place on Earth” promises. “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. Disney warned in its August 7 earnings report that domestic parks attendance was underperforming expectations as visitors become more price-conscious. US parks profit fell during the last quarter, between April and July. Disney CFO Hugh Johnston said on the company’s earnings call that there may be a couple of quarters of similar results. To keep its customers coming through the gates, the company will keep providing a range of pricing and options, said Josh D’Amaro, chairperson of Walt Disney Parks and Resorts, in an interview with CNN. “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.

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