A visit to a Disney (DIS) theme park will now come at a higher cost, as the company announced several changes affecting Florida’s Walt Disney World and California’s Disneyland in an early Wednesday announcement. The modifications include immediate price increases on select tickets and passes.
Annual passes for Walt Disney World will see price hikes ranging from $30 to $50, contingent on the type of pass, with the priciest option, the Incredi-Pass, now set at $1,449, following a $50 increase. Parking at the parks will also incur a $5 raise.
The company clarified that it will not raise prices for its date-based theme park tickets, commonly referred to as the standard ticket option, which will remain at $109.
As for Disneyland, most ticket options will see increases, with single and multiday tickets going up by $5 to $65. Annual passes will see a 3.1% to 21.5% increase, with the highest-tier annual pass, the Inspire pass, now priced at $1,649, up from its prior cost of $1,599. Park hopper add-ons will see increases between $5 and $10, while the Genie+ add-on will rise by $5.
These announcements come on the heels of Disney’s commitment to invest $60 billion in its theme parks business over the next decade. Early trading of Disney’s shares displayed minimal changes.
In the midst of these price adjustments, the company is introducing new offerings aimed at enhancing the overall guest experience. Notably, Walt Disney World will reinstate all-day park hopper access beginning on January 9. Previously, attendees had to wait until 2 p.m. to switch between parks, a significant inconvenience for guests seeking more flexibility.
The reintroduction of all-day park hopper access complements previously announced updates, such as the removal of park reservations for standard theme park tickets and the forthcoming return of the Disney dining plan in January.
Disneyland will also incorporate two rides into the Disney Genie+ bundle and extend the theme park reservation booking window to 120 days, according to the company’s statement.
A spokesperson for Disney commented on the developments, stating, “We are constantly adding new, innovative attractions and entertainment to our parks, and, with our broad array of pricing options, the value of a theme park visit is reflected in the unique experiences that only Disney can offer.”
Disney’s theme park division remains a crucial component of the company’s financial performance, underscoring the importance of maintaining customer satisfaction. The parks segment’s revenue exceeded expectations, reaching $8.33 billion, while operating income surpassed estimates at $2.43 billion, surpassing the $2.39 billion projection and the $2.19 billion total from Q3 2022.
Despite these positive figures, analysts have maintained a cautious outlook for the future of the parks segment due to signs of reduced demand and elevated margin risks in the face of inflation.
Earlier this year, Disney addressed prolonged wait times and elevated ticket prices by introducing long-awaited updates to its parks reservation system and annual passholder program, in response to strong consumer backlash.
Recently, Disney has faced renewed scrutiny, particularly from activist investor Nelson Peltz, who initiated a fresh attack on the media conglomerate. According to sources familiar with the matter, Peltz and his hedge fund, Trian Fund Management, have increased their stake in Disney, which is now valued at around $2.5 billion for more than 30 million shares. Peltz is reportedly seeking multiple board seats, including one for himself.
This latest offensive comes as Disney contends with challenges in its TV business, a potential asset sale, and questions about succession, causing the company’s stock to reach a new nine-year low.
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