Figment!
06-18-2018, 08:58 PM
Industry Analysts (and journalists) have begun to extrapolate that the recent Sneak Peek Hard Ticket event for Disney California Adventure could be another sign to a new age of Disney Ticket Pricing:
Disney Tests Pricing Power at Theme Parks
Issuing pricey tickets for ‘sneak peek’ events is the latest move by Disney to use fares to control crowds
By Erich Schwartzel
The Wall Street Journal
June 18, 2018
LOS ANGELES—After raising some ticket prices for its theme parks by more than 20% over the past five years, Walt Disney Co. DIS -1.64% will set a new benchmark this week when it offers die-hard fans the chance to attend a six-hour preview of a new attraction at Disneyland—for $299.
Even for fans used to high prices, the $50-an-hour sneak peek at Pixar Pier on Friday, a day before the attraction officially opens, breaks new ground.
...
The steep price stems in part from a perennial tension Disney faces at its theme parks, where public demand is so strong that its two domestic locations, in particular, can fill to capacity during certain times of year. In response, Disney is considering new approaches to pricing amid upgrades at Disneyland in Southern California and Walt Disney World in Orlando, Fla., that are expected to attract even more people.
Raising prices—currently around $100 on average days and more than $120 during “peak” times around holidays—could mitigate tourist appetite and increase Disney’s profits. The company, however, is wary of appearing to gouge customers, according to theme-park executives and analysts, and going against founder Walt Disney’s vision of affordable family entertainment.
...
Disney already has introduced a limited version of dynamic pricing to its parks, charging a range of prices based on three categories of dates: “value,” “regular” and “peak.” Prices range from $97 to $135 for Disneyland and between $102 and $122 for Walt Disney World.
Under the changes being considered in recent months, a ticket to Disneyland for Christmas Day, for example, may cost less if purchased on July 1 than on Dec. 24, this person said. Such a system would encourage visitors to commit to a day to visit the park farther in advance than they currently do, this person added, which allows parks to plan better.
Through one-off events like the Pixar Pier preview, Disney is branching out beyond “one-size-fits-all experiences” offered at “a variety of price points” at its parks, said Catherine Powell, president of Disney Parks Western Region.
“We’re pursuing a number of strategies, including pricing and increased capacity, to better spread demand throughout the year so that we can fulfill our mission of exceeding guest expectations every day,” Ms. Powell said.
Disney doesn’t release annual attendance figures for its parks, but more than 38.8 million people visited its domestic locations in 2017, an annual increase of about 1.3%, according to the Themed Entertainment Association trade group.
Rising prices and attendance at the parks have contributed to strong growth in the company’s parks and resorts division in recent years. Annual income for the segment has grown more than 70% since 2013, hitting $3.8 billion in 2017.
Disney Tests Pricing Power at Theme Parks
Issuing pricey tickets for ‘sneak peek’ events is the latest move by Disney to use fares to control crowds
By Erich Schwartzel
The Wall Street Journal
June 18, 2018
LOS ANGELES—After raising some ticket prices for its theme parks by more than 20% over the past five years, Walt Disney Co. DIS -1.64% will set a new benchmark this week when it offers die-hard fans the chance to attend a six-hour preview of a new attraction at Disneyland—for $299.
Even for fans used to high prices, the $50-an-hour sneak peek at Pixar Pier on Friday, a day before the attraction officially opens, breaks new ground.
...
The steep price stems in part from a perennial tension Disney faces at its theme parks, where public demand is so strong that its two domestic locations, in particular, can fill to capacity during certain times of year. In response, Disney is considering new approaches to pricing amid upgrades at Disneyland in Southern California and Walt Disney World in Orlando, Fla., that are expected to attract even more people.
Raising prices—currently around $100 on average days and more than $120 during “peak” times around holidays—could mitigate tourist appetite and increase Disney’s profits. The company, however, is wary of appearing to gouge customers, according to theme-park executives and analysts, and going against founder Walt Disney’s vision of affordable family entertainment.
...
Disney already has introduced a limited version of dynamic pricing to its parks, charging a range of prices based on three categories of dates: “value,” “regular” and “peak.” Prices range from $97 to $135 for Disneyland and between $102 and $122 for Walt Disney World.
Under the changes being considered in recent months, a ticket to Disneyland for Christmas Day, for example, may cost less if purchased on July 1 than on Dec. 24, this person said. Such a system would encourage visitors to commit to a day to visit the park farther in advance than they currently do, this person added, which allows parks to plan better.
Through one-off events like the Pixar Pier preview, Disney is branching out beyond “one-size-fits-all experiences” offered at “a variety of price points” at its parks, said Catherine Powell, president of Disney Parks Western Region.
“We’re pursuing a number of strategies, including pricing and increased capacity, to better spread demand throughout the year so that we can fulfill our mission of exceeding guest expectations every day,” Ms. Powell said.
Disney doesn’t release annual attendance figures for its parks, but more than 38.8 million people visited its domestic locations in 2017, an annual increase of about 1.3%, according to the Themed Entertainment Association trade group.
Rising prices and attendance at the parks have contributed to strong growth in the company’s parks and resorts division in recent years. Annual income for the segment has grown more than 70% since 2013, hitting $3.8 billion in 2017.