Disney World is getting so expensive that it's pricing out the middle class
Steve Cameron
Jan. 2, 2019, 5:43 PM
- Disney World raised its prices twice in 2018 and switched to a dynamic pricing model that charges higher prices during peak summer months and winter holidays.
- This is the fourth time in park history that annual pass prices were raised twice in the same year.
- The new model prices out many of its pass holders in the middle class — the old model doesn't work in the modern US economy anymore.
- According to Robert Niles, the editor of Theme Park Insider, Disney Parks wants to use pricing and promotions to equalize crowds throughout the year.
In 2018, Disney World raised its ticket prices, twice. Take the park's platinum pass for example, it's the standard option that grants access to all four parks with no blackout dates. In February, the price went from $779 to $849, then in October its price jumped from $849 to $894, as Disney unveiled its dynamic pricing model. That's a 15% increase in just one year.
This is the fourth time in park history that annual pass prices were raised twice in the same year. The first time was 1997 in anticipation of Animal Kingdom's 1998 opening. Similarly, the price markups in 2018 are in advance of Disney World and Disneyland's 14-acre "Star Wars" theme lands, called Galaxy's Edge. And Disney parks expansion doesn't stop there. Hong Kong Disneyland is spending $1.4 billion on "Avengers"- and "Frozen"-themed attractions. On top of that, it's adding capacity to Tokyo DisneySea and updating Epcot and Disney Studio park at Disneyland Paris.
Despite all the costly expansions, Disney Parks and Resorts reported a $4.5 billion operating profit for the 2018 fiscal year. That's over 100% increase from 2013. So, if it is steadily profiting, why are Disney Parks becoming so expensive?
From the mid-'80s into the early 2000s, Disney Parks pulled way ahead of its competition. In 2002, Magic Kingdom's attendance alone nearly doubled its closest non-Disney competitor, MGM Studios. But in 2010, that changed when Universal opened the Wizarding World of Harry Potter.