US theme parks now report a rebound

While other companies were retrenching and cutting back investment during the recession, Disney made improvements to its global theme park empire. Just last year the company poured $3 billion in its theme parks, investments that are now paying off even better than Cinderella’s wish upon a star.

Now, Disney parks are busting at the seams with visitors for what’s expected to be one of the busiest summers for theme parks in years. Attendance is soaring even as Disney is raising ticket prices and dropping any semblance of discounting.

On Saturday, Disney announced ticket price increases for both its Disneyland Resort in California and Walt Disney World Resort in Florida. The price for a singleday, single-park ticket at Disneyland Resort hit $92 for guests aged 10 and above, a 5.7 percent increase from last year. Even the traditional discounts the company gave to Southern California residents for Disneyland were abandoned this year for the first time in years.

“That’s Disney’s story. They have a lot of pricing power,” says Michael Corty, analyst at Morningstar. “There’s enough demand they must feel they don’t have to (discount).”

Disney is just leading the way in what’s been a powerful rebound in the fortunes of theme parks.

During the recession, attendance waned as consumers opted for cheaper putt-putt courses.

But now, with consumer confidence on the upswing, visitors to theme parks are picking up as well.

“If this continues, some of these parks will exceed alltime attendance levels this year,” says Tuna Amobi of S&P Capital IQ. During the company’s conference call announcing first-quarter results, Disney CEO Bob Iger said: “Walt Disney World and Disneyland Resort both set new attendance records for the quarter.”

That’s not been missed by investors. Shares of all the major theme park operators — Disney, Six Flags, Cedar Fair and Comcast — are climbing.