Credit: DisneyDisney fans have many complaints about what has been happening at the parks recently. Whether it be the removal of Rivers of America and Tom Sawyer Island or the underwhelming new rides and attractions that have come to Disney World and Disneyland, fans have not been happy with Disney’s recent moves.
However, the one thing that unites the Disney fanbase like none other is the constant price increases at Disney World and Disneyland. Whether it be ticket prices, hotel rooms, or food prices, the only true constant at a Disney Park is that the prices are always going up.
But why does Disney keep raising prices, especially with the recent economic downturn? There are several explanations, but Forbes found why Disney Parks gouge guests for every nickel and dime.
Parks Are the Driving Engine
Until recently, Disney’s Parks were the only profitable division of the company. Until 2024, Disney’s film division struggled with movies losing hundreds of millions.
Disney’s television division is hemorrhaging basic cable viewers, and its streaming services are struggling to make a profit. That leaves Disney Parks.
In 2024, Disney had $91.4 billion in revenue, a third of which came from the parks and experiences division. The company had $15.6 billion in operating income, 60 percent of which came from the parks.
With parks carrying the other parts of the company, it’s no wonder prices keep going up. But how do the parks make their money?
The Money From the Parks
One of the things Forbes noticed in its deep dive into The Walt Disney Company was that the parks are, to a certain extent, money losers. The price that guests pay to enter the parks does not cover the operating costs.
Forbes estimated that it costs around $1 billion in operating costs to keep the doors open at a major theme park. Disney World has four of them, and Disneyland has two. Combined, that’s $6 billion a year just to keep the lights on and pay the staff.
So, where does the money come from? The easy answer is everything else.
A fountain soda costs Disney pennies, but guests pay $4-$5 for one. It’s those huge markups on food, souvenirs, and merchandise that keep the parks humming.
This helps to explain why Disney World has discounted so many tickets for this summer. It doesn’t matter that much how much guests pay to get into the parks; what matters more is how much they spend once they’re in the parks.
This breakdown of Disney’s finances explains much about the current layout of the parks. It also helps to explain why there is so much alcohol in the parks. Besides soda, alcohol has Disney’s second-highest profit margin.
As long as guests continue to pay astronomical prices for food and merchandise, Disney will continue to take their money.
So, the next time you’re in the parks, think about how much you’re contributing to Disney’s price increases. It’s not like people will stop going.
What have you had to cut back on because of Disney’s price increases? Let us know in the comments.