A trip to Disneyland or Disney World is getting more expensive, but it’s part of Walt Disney Co.’s strategy to increase visitor spending and reduce annual pass holders. reports Wall St. Journal.
The strategy helps a company’s stock price and financial results at a time when other companies’ fortunes are in dire straits, the report adds. The changes come two years after the coronavirus pandemic disappeared and have generated record sales and profits for theme parks, even as participation remains below pre-pandemic totals.
The key to the strategy is to increase the amount each visitor spends, the WSJ reported. One help with this is the introduction of a smartphone app, Genie +, which costs $ 15 per person each day in addition to admission. It allows users to skip the lines for some attractions, but not all. Star Wars and Guardians of the Galaxy excluded.
Totals are added to the bottom of gifts such as parking and rates for items that were given away. Disney has also raised prices for hotel rooms, food, and merchandise over the past year.
The price of Disney theme parks is determined by “pure supply and demand,” a company spokesperson told the WSJ. “It is no different from airplanes, hotels or cruise ships.”
The strategy was very successful. In the quarter ended January 1, Disney’s indoor parks set records for both quarterly revenue and operating income, only to beat both six months later, according to the WSJ. In the quarter ended July 2, the theme parks business unit also posted record revenue of $ 5.42 billion and record operating income of $ 1.65 billion.
Source: Deadline
Elizabeth Cabrera is an author and journalist who writes for The Fashion Vibes. With a talent for staying up-to-date on the latest news and trends, Elizabeth is dedicated to delivering informative and engaging articles that keep readers informed on the latest developments.
