Disney Raises Theme Park Prices Amid Struggles
On Wednesday, Disney increased ticket prices at its California and Florida theme parks by up to 10% in some cases, as the company seeks to boost revenue in one of its healthier business segments. Prices for single-day tickets at Disneyland were raised by 8.9%, bringing the cost to enter the Anaheim park to $194. Annual pass prices at Disney World in Orlando were increased by 10%, with the most expensive pass now selling for $1,449. However, the company announced that it would keep the cheapest ticket at Disneyland at $104, which has remained unchanged for four years.
While Disney’s parks business initially saw a strong rebound from the pandemic, domestic attendance has softened recently. The high cost of living is likely discouraging some people from spending on theme park visits. In response, Disney recently offered discounts on ticket prices for kids at its theme parks for a limited period.
This move to increase ticket prices comes as Disney grapples with financial challenges. The company has outlined a $60 billion spending plan for its parks and cruises over the next decade, a strategy aimed at rejuvenating this segment of the business. However, it has raised concerns among some Wall Street analysts due to the extended timeline for this investment to pay off. Disney’s stock hit a nine-year low, trading at $78.32 on October 4, but it has since stabilized.
The billionaire investor Nelson Peltz has been involved in a proxy war with Disney, seeking board seats as the company confronts these difficulties. Peltz had initially pushed for operational changes and cost cuts at Disney earlier this year. However, he stepped back when Disney’s CEO, Bob Iger, initiated a broad restructuring effort that included cutting 7,000 jobs in pursuit of $5.5 billion in cost savings.
