South Florida Sun-Sentinel (Sunday)
Disney World pass raises give fans pause
Some holders shrug, others reconsider
Rey Fernandez is such a Disney fan that he booked his hotel about 21 months in advance for Star Wars: Galaxy’s Edge even though no official opening date has been announced next year at Walt Disney World. He didn’t even make reservations this far in advance for his wedding.
But when it comes to his annual pass, the 37-year-old bank IT worker from Naples is having doubts.
“It gets pretty expensive,” said Fernandez, who is considering downgrading his pass to save money when it’s time to renew again.
Walt Disney World last week raised some annual pass prices by as much as 10 percent, following earlier price increases in February. Another pass option stayed the same in price while several others jumped about 3 percent.
Under the new prices, a platinum plus pass costs
$849 a year while on the lower end, the pass to get into Epcot after 4 p.m. runs
$289.
“We use pricing to manage the extraordinary demand for our parks with the goal of providing great experiences for our guests no matter when they visit. This includes a variety of annual pass options,” said Jacquee Wahler, vice president of communications, in a statement.
The price increases cost pass holders $4 or less extra a month, a Disney spokeswoman said, as the theme parks are adding more events and build new rides.
Historically, it’s only the fourth time Disney has raised the cost of annual passes twice in the same year, said Rick Munarriz, a senior analyst for Motley Fool, who recently penned an article: “Is Disney World Trying to Price Out Its Annual Passholders?”
“People love Disney World as an icon, as a place that stirs up nostalgia. At the end of the day, it’s a business,”
said Munarriz, who lives in Miami and holds passes for all the major theme parks in Orlando. “If they can charge more, why
wouldn’t they?
Munarriz believes Disney’s strategy is phasing in price increases quietly as the Star Wars opening looms closer next year instead of doing it all at once with one massive bump, he said. A Disney spokeswoman declined to say if passes will go up again before Star Wars is scheduled to open in late fall 2019.
If the new prices wean off some pass holders, the demand among other visitors will certainly still exist, Munarriz said, looking at Disney’s upcoming lineup that also includes the popular Tron roller coaster coming to Magic Kingdom and the first-ever Mickey Mouse-themed dark ride at Hollywood Studios. Epcot is also getting a rehaul with new rides and a fireworks show.
From Disney’s point of view, the out-of-towners hold more value anyway than pass holders since they stay longer at Disney resorts, buy dining passes and pick up souvenirs, Munarriz said.
“Pass holders like me, we are the seat-fillers in the Academy Awards,” he said.
A Disney spokeswoman said the company is not trying to phase out pass holders, adding that it creates special perks for them, such as complimentary parking and discounts on merchandise and food.
But higher prices can also help Disney filter out the crowds so visitors have a better time, said Scott Smith, an Orlando native who is now an associate professor at the University of South Carolina
When Star Wars opens, “It’s going to be so crowded, it’s going to make Harry Potter look like nothing,” Smith said.
At least higher prices may help alleviate the masses for the first Star Wars land-goers.
“Disney may seem like they are cold and callous for raising prices for Star Wars, but they’re ensuring they get pleased guests,” Smith said. “They’re making sure there is not a mob.”
Dozens of Disney fans shared a range of opinions with the Sentinel on whether daily ticket and pass price changes will affect their spending.
For some, Disney is their happy place and they shrugged off price increases saying it was worth it and would not affect them. Others planned to cut back whether that meant traveling to Disney less often or bringing their own food into the parks to save money.
Some expressed frustration with the price jumps but acknowledged the parks are already intensely crowded today so the move made sense.
Before her 60th birthday, Lori Mauer meet with her financial adviser, who encouraged her to save more for retirement. “Or I could go to Disney,” Mauer told her because life is short.
“To me, there is no choice,” said Mauer, a writer who plans to move to Orlando from Coral Springs to be closer to the parks next year. “Disney is my passion.”
It bothers her that her annual pass prices have crept up over the years, but Mauer, whose had her pass for the majority of the past 20 years, pays it anyway. She cuts back on other things, like skipping a work conference she wanted to attend.
“I know what I have to give up in order to go to Disney,” Mauer said.