It’s likely this is the first time in six years that Disney World had its slowest month come in September, according to Disney Tourist Blog. This downturn in attendance has prompted the company to revise its pricing strategy, balancing aggressive discounts with moderate price increases at its US theme parks. These strategic changes are a response to the difficult economic circumstances we all find ourselves in right now. Soaring building material prices and increased competition to lure tourists spurred these shifts.
Moreover, in the U.S., construction material costs have increased over 41% in just the last five years. This unprecedented boom is changing the fabric of the construction industry. This surge has affected not just operational expenses for Disney, but it has influenced the company’s overall investment plan. Disney has recently started implementing a “two-track” pricing model. This method balances base prices and saves money through discounted attendance discounts where audiences heavily require it the most.
Pricing Adjustments and Discounts
Well, Disney has created a wonderful opportunity to do just that! Children 3-9 eat free with the purchase of an adult dining plan with this offer running all of 2026. This plan is designed to get families in before the you-know-what hits the fan, during less-busy hours. Most importantly, it improves their bottom line.
Disney has put in a lot of effort into smoothing crowd flows. In some sense, it’s a good move—we’re glad they’re not increasing the cost of their lowest-level ticket. A three-day, whenever adult ticket that lets visitors jump back and forth between Disneyland Resort’s two parks will now be $249. At the same time, the peak ticket price at Disneyland Resort in California will be increasing by a whopping 8.7%, to $224.
“Disney Parks offer a full day of experiences, with ticket, hotel, and dining options designed to suit a wide range of needs and budgets for all who visit,” – A Disney spokesperson
This strategic pricing approach underscores the fact that Disney is trying to push demand away from busier periods of the year. For instance, over Christmastime and New Year’s weeks at Disney World, the most expensive single-day, single-park ticket will go up in price. It will increase by 5% each year to $209, not including tax.
Employee Compensation and Investment Plans
While Disney’s move may be more than just a price shift, it includes addressing employee pay. In fact, almost 40% of Disneyland Resort workers got raises of 25% or more in the last year. This decision is a testament to the City’s understanding that prioritizing employee happiness is critical when faced with ongoing economic uncertainty.
Disney doesn’t just make matters right with employee raises, but further readies itself for massive 2024 growth in the process. This decision represents the first phase of a larger ten-year plan to invest $60 billion in parks and cruise-related infrastructures worldwide. This ambitious plan is expected to improve experiences for guests and deepen Disney’s competitive advantage in the cut-throat theme park business.
“I don’t think you’ll see them take growth down to pay for some of these costs, unless they really had to,” – Gavin Doyle
Just with that kind of money headed Disney’s way, expect annual price hikes to start rolling in across all of Disney’s US theme parks. Though there are a number of increases in price, two of the four annual pass tiers at Disneyland Resort will hold steady. This decision reflects the court’s thoughtful consideration of guest experiences and operational imperatives.
Navigating Market Challenges
This persistent economic headwind has impacted consumer behavior, making guests more conscious of their dining spend. Munsil noted, “Whenever there’s more volatility in the world, people want to hang on to their money a little bit more.” In light of this, Disney’s pricing strategy reflects an awareness of market conditions while aiming to maintain attendance levels.
Disney has had a long history of being heavily criticized for its pricing practices, especially the raising of ticket prices. Munsil recognized this movement and highlighted its importance. It’s been fantastically unusual for them not to raise ticket prices at least once a year. To them, a modest increase that just keeps up with inflation seems like a zero raise. It’s not really helping them out. These types of comments highlight the innovative approaches this company is taking to find that balance between financial sustainability and guest accessibility.
Gavin Doyle further elaborated on Disney’s approach: “We’re in a period between huge announcements they’ve made and nothing dramatic (new attractions) opening in 2026.” This sentiment highlights the importance of strategic timing in pricing adjustments and promotions as the company prepares for future developments.
