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Credit: Shanghai DisneylandDisney Adults should brace themselves for November 17, as it could shape how things will be moving forward.
There’s a reason the Disney empire is as popular as it is. With a media legacy stretching back a century, timeless classic movies, and a theme park and experiential footprint that attracts millions of visitors annually, the House of Mouse is a remarkable phenomenon.
When it comes to the theme park business, Disney is focused on expansion, with new lands and attractions coming to the resorts across the world, and an entire resort planned for the United Arab Emirates with Disneyland Abu Dhabi. With Josh D’Amaro, former Disney Experiences Chairman, now in charge of the company as a whole, there has been a laser focus on what Disney is offering with its parks–and at what cost those experiences come.
Pricing has been a hot topic ever since the parks reopened after the COVID-19 shutdowns. Taking a look at the domestic parks, Walt Disney World Resort and Disneyland Resort, it’s clear that vacation costs have skyrocketed, with the price of admission, accommodation, food, beverage, merchandise, and add-ons quickly increasing the base trip cost multi-fold.
In fact, just last week, Disney confirmed a wave of new price increases hitting many areas that set the Disney Adult community alight with discussion. But there is a reason behind all of this: Disney guests will continue to pay. On the last earnings call, which covered the fiscal third quarter, Disney Experiences posted record revenue of almost $10 billion, up 10% year-over-year.
This increase was driven by a slight uptick in domestic park attendance and higher per-capita spending; that is, while attendance remained softer, even with a small increase, guests were spending more.
Whether that came from things like tickets and hotel stays, or premium add-ons like the Lightning Lane Premier Pass (which can reach $449 per person per day for Lightning Lane access in Magic Kingdom) doesn’t matter — the guest continues to prove they will pay.
So, that leads us to November 17. Here, The Walt Disney Company, likely led by CEO Josh D’Amaro and CFO Hugh Johnston, will reveal its results for the most recent fiscal fourth quarter, with its earnings webcast. Not only will the executives share Q4 results, but they will also reflect on the year as a whole.
This yearly reflection will likely dig into some of those guest spending behaviors and potentially include hints of what is coming down the pipeline for Disney park vacations. It’s clear that there is a lot of progress happening across the domestic and international parks, but will those business-wide updates create an even bigger dent in a guest’s wallet?
The Lightning Lane Drives Guests’ Spending
Disney World recently confirmed new record prices for the Lightning Lane Single Pass. TRON Lightcycle / Run and Seven Dwarfs Mine Train at Magic Kingdom saw an increase for the November 1 pass, while Guardians of the Galaxy: Cosmic Rewind at EPCOT, and Avatar: Flight of Passage at Animal Kingdom also posted new updated pricing.
With that in mind, and looking ahead, does that mean Disney will continue to make these increases more often? Magic Kingdom will eventually welcome at least four new attractions to the park with the Piston Peak National Park and Villains Land openings, so, taking this pricing trend into account, it is more than likely that the Lightning Lane passes will cost more in the years to come. The Premier Pass? That may hit $500 per person by decade-end.
How do you feel about the continued price increases at Disney Parks? Let Inside the Magic know in the comments down below!
