Disney Parks 'addicted to price hikes,' becoming more unaffordable: report

Disney execs worried about high cost of parks: Report

A Disney vacation is expensive. So expensive that even Disney's own executives are worried about how expensive their parks are, according to a report from the Wall Street Journal.

LOS ANGELES - Disney Parks is responding to a report criticizing the company's skyrocketing prices that are making theme park visits even more unattainable for middle-class families.

This comes after the Wall Street Journal published a report claiming that officials at the Walt Disney Company who work in park pricing admit that the theme park experience has become unaffordable for the average American as executives have grown "addicted to price hikes."

The publication reported the price tag for a two-day Walt Disney World adventure for a Delaware mom, her husband, and two kids topped $3,000 - not including airfare and lodging, which her parents covered.

"The whole time, I was thinking about how much we were spending," Yvonne Kindell told the WSJ.

PREVIOUS COVERAGE: Disneyland raises ticket prices again

For the second year in a row, Disneyland has raised ticket prices yet again, this time by about 6%.

Two days of park tickets totaled $1,123, line-skipping passes an additional $208, a meal with costumed characters another $219 and two Mickey Mouse bubble wands added $60.68 to the bill.

Internal discussions over whether Disney parks may be losing their grip on families with young kids, many of whom have been loyal customers, have become more common, the publication reported.

While attendance at Disney's domestic parks increased 1% in the fiscal year ending in September, that is down from 6% the year before, according to the WSJ. Additionally, per-person spending on tickets, food and merchandise increased 3% in each of Disney's past two fiscal years.

Disney price hikes

Disney began increasing prices when demand for theme park visits soared following the COVID-19 pandemic.

Disney parks use demand-based pricing, which means prices are higher during peak holiday dates or school vacations.

Park passes became more expensive, as well as a series of add-ons designed to make vacations easier and more enjoyable for Americans.

The once-free FastPass system has been replaced by Lightning Lane tiers, with the priciest version costing $449 per person per day.

In October, a one-day adult pass to Disneyland broke the $200 mark for the first time. The cheapest tickets which are valued at $104 a day for low-demand days remained unchanged, while park-hopper tickets will still be an additional $65.

Prices for multi-day tickets and Magic Key passes also increased.

Breaking down the numbers

Theme parks accounted for 70% of Disney’s operating income in 2023, a sharp rise from 41% in 2019.

For a family of four, a typical four-day visit with a stay at a budget Disney hotel cost $4,266 in 2024 — up from $3,230 five years earlier, according to the WSJ.

Disney, however, insists that more affordable options exist, arguing that a similar trip could cost as little as $3,026.

A recent survey conducted by Harris Poll found that 74% of respondents believe experiences like cruises, amusement parks and Disney vacations have become financially out of reach.

The issue was reportedly raised with CEO Bob Iger in 2023, according to people familiar with the matter, but the Experiences division had become the company's primary profit engine, overtaking the declining cable TV business.

By the summer of last year, Disney began warning investors that attendance at parks was decreasing and revenue slowing.

Disney responds

Disney said that its theme parks are within financial reach for middle-class families, and that it offers a range of price offerings, as well as promotions throughout the year. It added that it adjusts prices throughout the year to manage attendance.

"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," Josh D’Amaro, Chairman of Disney Experiences, said. "We also know that, in inflationary times, it’s especially important to give families ways to save on their visits. We haven’t increased the lowest-priced ticket to Disneyland since 2019, and we recently introduced a kids’ ticket for as little as $50, just to name a couple of examples."

Among those who reported cutting back on Disney vacations, the biggest reason was cost — 59% said Disney had simply become too expensive.

Disney, however, remains confident that its parks still provide value.

"We understand the financial pressures that families face across every part of their spending, including how they travel. We listen to our guests and use that feedback to introduce new offers and promotional deals, which provide significant savings," a statement on the Disney website read.

For example, promotions at Disneyland include a Kids' Special Ticket Offer, a SoCal Resident Ticket Offer, and a special offer for Disney+ susbcribers.

The Anaheim theme park is also offering free tickets to first responders who battled the LA wildfires.

The Source: Information for this story is from The Wall Street Journal and The Walt Disney Company.

Disney Disneyland Consumer Money Economy Theme Parks Lifestyle Instastories