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Credit: Inside the MagicRecent news from the Washington Examiner suggests that Disney is overpricing tickets to reduce attendance and control user habits at Disney Parks. Its streaming service, Disney Plus, is following the same trajectory.
As Disney Is Overpricing Tickets, Attendance Drops
The popular news outlet noted the extreme costs of vacationing at Walt Disney World. Per Harvard University, telling customers the reason for raising prices is essential. Bob Iger did precisely that, saying that Disney overpriced tickets to improve profits.
There are many reasons Disney is overpricing tickets for the Annual Pass or just a one-day trip to Magic Kingdom or Walt Disney World. These cost hikes date back to Bob Chapek but continue with the current Disney CEO. Bob Chapek was the face of the Walt Disney Company at the start of Disney’s overpricing of tickets.
Controlling the Walt Disney Population at Parks
Disneyland Resort is part of a massive Magic Kingdom that Guests make reservations for years in advance. But it is not immune to economic or social constraints. Supply and demand, the laws governing economics in a free society, mean the market drops when a price hike occurs.
When the Walt Disney Company chose to increase costs, it was to grow profits. It was also concurrent with exceptionally long wait times for Guests at almost every Disney Theme Park. Disney World is just one of the many symptoms of the post-COVID boom.
High Wait Times, Increase in Guest Incidents Lead to Price Hikes
Even the most patient fan can’t wait forever, so to reduce the number of Guests and make the Disney theme Park rides and attractions more appealing, it increased costs. The purpose of a Disney Theme Park is to offer an escape from the mundane and into the magic.
A Disney vacation is a dream for countless people, and while price increases mean more time saving for that Disney vacation, there are other implications. The money that Disney World makes from that visit is higher, but that money reportedly goes toward improvements in the Disney World Resort and regaining the investment that many lost in Disney stock.
Guests Experience a Different Walt Disney World
There is some discouraging talk about shutdowns at Walt Disney World, Disneyland Resort, Magic Kingdom, and other theme parks. Many believe that Disney CEO Bob Iger deceived visitors by making Disney World appear more active than it was. Yet there is another reason for Disney World to adjust its ticket prices; to maintain brand quality.
Keeping Things Running
Rides need maintenance, and the cost of the old Annual Pass simply didn’t cover what Disney World needs. Yes, Walt Disney World earns a great deal, but its operational costs are more astronomical than Star Wars. Rides require constant maintenance, as does every attraction that Walt Disney World puts forth.
Method to the Madness
Disney is overpricing tickets, but this is a long-standing gate-keeping tradition. It manages the flow of people in and out of the Park, ensuring that the Walt Disney World experience true to its mission statement. To keep its brand integrity intact, Disney needs to continue creating content in its parks and on the big or small screen.
Disney Streaming Service Impacted By Price Increases
Disney World might have encountered some legal troubles, but the Florida issues are separate from this lawsuit. The price hikes to streaming come amidst a Class Action lawsuit related to the Walt Disney Company, specifically Disney Plus.
The Walt Disney Company projected high profits for its streaming attraction. These did not align with the results. After Walt Disney, via CEO Bob Iger, announced that subscriber increases didn’t happen, many investors lost money on this significant failure. Now, Disney is overpricing tickets for its other properties in a bid to improve profits.
Disney is Overpricing Tickets By Choice
In an ideal economic situation, this would result in Disney seeing steady profits, Guests getting short wait times for rides and attractions, and an overall better Park experience. As for the small screen, Disney CEO Bob Iger has focused more on removing content, renegotiating contracts, and regaining the stability and profitability of Disney.
Do you think that these plans will work out? Make your mark in the comments down below!