MILKING THE MOUSE
Disney World prices hiked 2nd time in 9 months
The Princesses want more cash.
Disney hiked prices to its Walt Disney World park in Orlando, Fla., on Sunday — its second increase in less than a year.
The increase means some tickets will cost visitors nearly 15 percent more than last spring.
The Feb. 23 increase — which increased the price of a fourday pass 15 percent from last May, to $294,and a singleday admission to $99, up 21 percent from 2011 — surprised both Wall Street and park visitors alike.
Disney’s customary annual price increase comes in early June as school years end.
The February jackup in prices, analysts said, could be sparked by:
l Snowworn East Coast residents clamoring for reservations;
l The success of the November Disney release, “Frozen,” which has kept Disney on the minds of parents and children;
l Themepark CEO Thomas Staggs hoping to hit quarterly revenue targets and seeing that Easter, when many schoolchildren visit during their week off from school, falls on April 20, in the second quarter, versus last year, when it was in the first quarter.
“It’s a sign demand is pretty good, and Easter is in the second quarter this year,” said Michael Nathanson, an entertainment analyst with MoffettNathanson.
The extraordinary Disney price hike could be good news for rival Orlando parks like Comcast’s Universal Studios, which may decide to move up its usual June price hike as well, Nathanson said.
Duncan Dickson, associate professor at Florida’s Rosen College of Hospitality Management, said Disney may simply be making a smart decision based on the large number of new attractions opening in the Orlando area this summer.
With the added attractions, Orlando traffic is likely to grow, Dickson said, decreasing the likelihood of an attendance slump and increasing the odds of increased revenue.
Among the attractions coming on line this summer are: The Orlando Eye Ferris wheel; a new Madame Tus sauds; an interactive aquarium at Sea Quest; Disney’s Seven Dwarfs Mine Train; and Universal’s new “Harry Potter” attraction, Diagon Alley.
Orlando’s LegoLand is also seeing increased interest because of the success of “The Lego Movie.”
Walt Disney World and California’s Disneyland reported attendance was flat in the three months ended Dec. 28 compared with the year earlier period.
But despite the flat attendance numbers, Disney reported that revenue was up 7 percent as visitors spent more on their tickets, food and lodging.
Disney Parks and Resorts in the US reeled in $11.4 billion in revenue in 2013, a 10 percent increase from 2012. Revenue in 2012 grew 11 percent from 2011.
Disney thinks that even with the price increases, the theme park is worth it.
“We offer a variety of ticket options that provide a great value, and find that most guests select multiday tickets that offer additional savings,” spokeswoman Kim Prunty said.
Speaking in early February, Chairman and CEO Bob Iger told CNBC, “We had record attendance at three of our parks — at Disney World in Orlando, which is our biggest, at Tokyo Disneyland and Hong Kong Disneyland — in the quarter.”