If you’ve been hit by a Disney World vacation bill that nearly made you cry or ever priced out a dream trip and thought “I can’t afford that!”, you’re probably not alone.
Magic Kingdom
Disney World vacations can be incredibly expensive. Now, that doesn’t mean you can’t have a great Disney trip on a budget — we’ve shared a number of resources and posts that can help you plan a magical vacation for MUCH less. But, given recent ticket price increases, the surge pricing associated with Genie+, and ever-increasing snack costs, you may still feel a bit of Disney sticker shock. So how does Disney’s current CEO, Bob Iger, feel about the increasing prices in the parks? We just got an answer.
Disney’s earnings call for the first quarter of fiscal year 2023 was held on February 8th, 2023. During that call we got some HUGE updates about the financial standing of the Walt Disney Company, just how well the parks are doing, news about a slight DROP in Disney+ subscriber numbers (and high streaming losses), and more.
But we also got some more insight into Iger’s view on pricing in the parks. Now, to be clear, we had seen some comments from Iger on this in the past. Some reports had indicated that Iger felt Chapek had “given priority” to Disney’s streaming business “at the expense of other parts of Disney, like cable television and the theme parks.” And Iger was reportedly “alarmed by increases in prices at Disney theme parks,” which Chapek felt would “boost revenue and limit overcrowding.”
Tower of Terror
So what did Iger himself say during the earnings call on February 8th? Well, he addressed the issue had on by saying, “It’s clear that some of our pricing initiatives were alienating to consumers.” (Quotes obtained thanks to the transcript from The Motley Fool)
Iger shared, “I’ve always believed…that accessibility is a core value of the Disney brand.” But he shared that Disney was “not perceived to be as accessible or as affordable to many segments as we probably should have been. So, after basically paying heed to what we were hearing, we started to address it.”
Slinky Dog Dash
Iger noted that they’ve taken some steps to correct the issue already and the steps have been “very, very positive.” He noted that one thing they’re working to do is provide “more flexibility for the consumer in terms of how much it cost them to go.” He specifically used Disneyland as an example, noting that how their core ticket price has not increased that much, “maybe slightly ahead of inflation over the last few years.”
But he said that he examined pricing and noticed that the lowest pricing was only available for a very limited number of days each year. So, he said, Disney’s new pricing strategy makes those cheaper tickets available during substantially more days in the year. He said, “we greatly increased accessibility to our lowest price, and it is really well received. So, we’re going to manage capacity very, very carefully.”
Sleeping Beauty Castle in Disneyland
While Iger’s comments may come as a positive note to those who are worried about price increases, it does contrast some other things done in the past few months. Ticket price increases and changes hit Disney World in December 2022, at which point Iger had already returned to the CEO position. Iger had only just returned to the role, however, so it’s possible these were planned during Chapek’s term and simply could not be reversed.
Genie+ has also continued to utilize surge pricing and hit its peak $29 price since Iger’s return. So it’s not as though he has stopped that from taking place. In fact, the earnings report for Q1 of FY 2023 pointed out that the operating income growth at the parks was partly due to increased guest spending, which was “due to an increase in average per capita ticket revenue driven by Genie+ and Lightning Lane.” In other words, Genie+ is making Disney lots of money, so that doesn’t seem to be changing anytime soon.
Pandora
And it’s not as though price increases didn’t take place under Iger’s “reign” during his first time as CEO. Still, his comments about pricing and making things more accessible could point to more steady/subtle increases as opposed to sudden spikes. Only time will tell.
We’ll continue to watch for more Disney news and let you know what we find.
Click here to learn more about when Disney could raise prices in 2023
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Genie + is the biggest scam Disney has ever created. Fast pass was free and easy to use. So sad what Disney has become.
Seems like a lot of deflection here. Preaching to the shareholders and not the consumers. I don’t foresee any changes anytime soon.
When I first became a passholder I felt important to Disney. They rewarded my loyalty with ‘Passholder only Perks’ . And in return I rewarded Disney with long weekends that included hotel stays food and always a souvenir. Now 6 years in I feel like I am viewed as a nuisance, perks have all but disappeared and now there will be fewer days to even go. As prices rise Disney will be able to limit crowds for a better experience, but at which cost to it its most loyal customers?
Disney says that they raise prices because demand is high and the parks are full. Does anyone know the definition of full. Disney has never told us the number of guests in any park that constitutes FULL. My family and I went to Disney World in June 2019. We had, Free Fast Pass with three rides per day in all parks, well in advance of our stay, The Magical Express and no Genie Plus or Individual Attraction.My family and I went to Disney World in June 2022 also and the crowds were THE SAME as 2019. The only difference was that everything we had in 2019 was eliminated, all because of DISNEY GREED. Can any Disney Executive or Disney Guest explain to me how these actions by Disney can be justified. PLEASE
The nickel and diming, especially at Disney world has gotten so bad in the last 20 years. Not JUST at WDW, but pretty much ALL of the Orlando area. Things like the Magical Express, FastPass(+), the $10/day gift card for declining housekeeping service, just to name a few things. Now, I get inflation and the fact that pricing has to change, but just the things I mentioned set Disney apart from the other parks in the area. It’s what made the “Disney Difference”.
I was a life long supporter and previous stock holder and do not like the way Igor or the board has turned away from Walt’s dreams and away from the family who built this business’s concept. Its become all about money and sorry Igor nor any of the top paid at Disney deserve that kind of money. If those people did not get those salaries. Prices at the park could be lowered drastically. Its about money now and hell with the people.
I haven’t seen any meaningful limit to the steady increase of prices for everything from tickets to resorts to food and merchandise. I’m optimistic about what Iger will bring as Disneys leader but think he is just trying to look better by focusing attention about problems with the parks on his predecessor.
If Iger is so upset at the ever increasing cost in the parks should do one of two things
1.eliminate the Genie plus and Individual Attraction. Bring back Free Fast Pass
2. Keep the Genie Plus as is but give us Three Rides in advance of our arrival. Just like the old Fast Pass
Since the day Mr. Iger said that price increases in the park are alienating customers, he has done NOTHING TO CHANGE IT. Disney has made enough profit with Genie Plus and Individual Attraction. It’s time now to bring back the Fast Pass with 3 rides well in advance of arrival and the Magical Express. I would be willing to pay for the Fast Pass and The Magical Express. PLEASE MAKE THESE CHANGES