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Will Disney raise prices to force capacity constraints?

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  • Will Disney raise prices to force capacity constraints?

    Disney wants to maintain a certain revenue point. They've introduced significant additional costs to deal with social distancing and sterilization. If they are forced to keep capacity low while still running higher expenses, will they just adjust the price of attendance/food/merch to address the revenue shortfall to meet the increased expenses?
    Matt's 40th Birthday Disneyland Trip. Club 33, Napa Rose, and Adventureland Suite!!! ~~|~~ Katherine's 11th Birthday Dapper Day trip with Club 33 ~~|~~ Matt's Review of the Art of the Craft Tour at Disney's Grand Californian Hotel ~~|~~ My Spring, 2017 Dapper Day Trip Report ~~|~~ My Fall, 2016 Dapper Day and Club33 Trip Report ~~|~~ My Summer, 2016 Walt's LA tour with Bob Gurr and Marty Skylar ~~|~~ My Summer, 2016 Family Firsts Trip Report ~~|~~ Matt's September, 2015 Solo after the Safari Sunrise Trip Report ~~|~~ World Famous Jungle Cruise Safari Sunrise Premium Experience Trip Report ~~|~~ My February, 2015 Dapper Day Trip Report ~~|~~ My October, 2014 Family Vacation with Mickey's Halloween Party ~~|~~ My September, 2014 Dapper Day Trip Report ~~|~~ My August, 2014 Solo Trip Report - 1901/C33 Jazz Club ~~|~~ My June, 2014 Solo Trip Report ~~|~~ My February, 2014 Dapper Day Trip Report ~~|~~ My Epic May, 2013 Trip Report ~~|~~ My October, 2011 Trip Report ~~|~~ My October, 2010 Trip Report

  • #2
    When has disney ever not raised prices? They are more predictable than property tax.
    My wife is the rebel spy.

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    • #3
      Capacity will be regulated by reservations, not price. Even with a price hike demand would far outpace available reservations...but the PR blowback of price gouging during the pandemic would not be attention that Disney would want.

      They are all about the all might dollar but would hope even they would not be that stupid.

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      • #4
        I feel like such a move would further harm their image. They're not exactly looking great at the moment...

        On the offhand that they do, a bunch of those AP extensions are going to more or less be viewed as golden tickets.

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        • #5
          Originally posted by DisneyPilot View Post
          Capacity will be regulated by reservations, not price. Even with a price hike demand would far outpace available reservations...but the PR blowback of price gouging during the pandemic would not be attention that Disney would want.
          Not sure the street would appreciate the reduced earnings however given expenses will remain higher than normal park operations with severely curtailed revenue. As far as price gouging ( a term I vehemently disagree with regardless of circumstances) doesn't apply to a luxury leisure activity such as Disney parks.

          They are all about the all might dollar but would hope even they would not be that stupid.
          As you said though, demand far outstrips capacity, so the Supply/Demand curve dictates price.

          Matt's 40th Birthday Disneyland Trip. Club 33, Napa Rose, and Adventureland Suite!!! ~~|~~ Katherine's 11th Birthday Dapper Day trip with Club 33 ~~|~~ Matt's Review of the Art of the Craft Tour at Disney's Grand Californian Hotel ~~|~~ My Spring, 2017 Dapper Day Trip Report ~~|~~ My Fall, 2016 Dapper Day and Club33 Trip Report ~~|~~ My Summer, 2016 Walt's LA tour with Bob Gurr and Marty Skylar ~~|~~ My Summer, 2016 Family Firsts Trip Report ~~|~~ Matt's September, 2015 Solo after the Safari Sunrise Trip Report ~~|~~ World Famous Jungle Cruise Safari Sunrise Premium Experience Trip Report ~~|~~ My February, 2015 Dapper Day Trip Report ~~|~~ My October, 2014 Family Vacation with Mickey's Halloween Party ~~|~~ My September, 2014 Dapper Day Trip Report ~~|~~ My August, 2014 Solo Trip Report - 1901/C33 Jazz Club ~~|~~ My June, 2014 Solo Trip Report ~~|~~ My February, 2014 Dapper Day Trip Report ~~|~~ My Epic May, 2013 Trip Report ~~|~~ My October, 2011 Trip Report ~~|~~ My October, 2010 Trip Report

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          • #6
            Didn’t Disney already say that when the park reopens they will be suspending single day ticket and new AP purchases and also suspending AP renewals? But I wouldn’t be surprised if they raised parking, food, and merch.

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            • #7
              I would pay more for a less crowded park. Of course assuming I still have a job at the end of this.

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              • #8
                Disney is pretty shameless about raising prices, it would surprise me if they didn't.

                Before the pandemic, when they raised prices there was all sorts of talk about damaging their reputation yet the parks continued to be horribly crowded. I doubt if it'll be any different now.

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                • #9
                  It would be a really bad look for Disney to raise prices now under the guise that it reduces crowding which we know is false. I'm sure Chapek would love to do it, but I don't think it will happen now with the state's ever changing virus response. But if this new Pfizer vaccine makes it past phase three and gets approved, I think they will then increase prices significantly but I think crowds will be down quite a bit for the next few years. We have had too many job losses to not have an adverse effect on travel and tourism. But Disneyland will still have the locals and they will likely offer the reduced three day ticket specials.

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                  • #10
                    Originally posted by whoever View Post

                    Not sure the street would appreciate the reduced earnings however given expenses will remain higher than normal park operations with severely curtailed revenue. As far as price gouging ( a term I vehemently disagree with regardless of circumstances) doesn't apply to a luxury leisure activity such as Disney parks.



                    As you said though, demand far outstrips capacity, so the Supply/Demand curve dictates price.
                    The street is going to hate what happens no matter what Disney does.

                    I am not so sure about demand outstripping capacity either. While they are different parks Disney just opened a ton of reservation spots that were unused through the summer to WDW APs, if there was incredible demand those reservation spots would have been far closer to fully filled and not released to APs. Again, different parks, but probably pretty indicative of what the greater public feels about travelling to a theme park right now. Though I am sure whenever the park opens lots of California APs will flock.

                    At this point in time who knows when the parks even open, America dropped the ball. Period. Done. There are countries with similar demographics, population density, and other characteristics that are in far far better shape than the states.

                    Disney has always seemed to be somewhat recession proof, even during 2008 their numbers stayed pretty steady as tons of people lost their jobs, could likely stay the same this time. A significant price increase though? I think that remains to be seen. Even if you increased margins SIGNIFICANTLY across the park, the increased take in dollars from the very limited capacity would still come nowhere near close to the take from a full capacity park, it would barely budge the bottom line at 25-30% capacity. Would definitely be a balancing act against the negative PR. We already saw with the incredibly poorly received opening of WDW and its video and now somewhat muted excitement and response that Disney is already facing an uphill battle.

                    I'll add too that Disney will need to recognize the greater economic pattern too. I'm sure they could jack prices up short term, but the optics of lowering them if we enter a prolonged recession or even a depression would likely put downward pressure on the stock beyond the limited push a price increase would net.

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                    • #11
                      The ecomomy is in recession from the virus, meaning raising ticket prices would be a bad look and would not bring crowds back.

                      In parks merch and dining prices could be raised, however I'm more likely to think cutbacks are coming(shows permanently canceled, less popular attractions demoted to seasonal, massive layoffs).

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                      • #12
                        I'm not sure, but I'd imagine disney got a very nice stimulus check in the mail recently...and they are certainly imagining ways to raise prices of all things...
                        I am old. But still love Disneyland.

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                        • #13
                          They didn't change any prices (higher or lower) at WDW, right?

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                          • #14
                            Right Now....... IMO
                            Disney be happy just get any business going-again
                            Soaring like an EAGLE !

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                            • #15
                              Raising prices has never really affected crowd levels before, has it? At least not noticeably IMHO. But we're in 'uncharted territory' here so who really knows what might or might not affect crowd levels.

                              I certainly think it'd be bad PR to jack prices up right away upon reopening. But will we see an increase later on once things have died down and the spotlight is off? You betcha. And I think it'll be a hefty one, too. But it'll be based on profits, not crowd levels.
                              "Life is not about waiting for the storm to pass, it's about learning to dance in the rain.​"

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                              • #16
                                I was just wondering this myself. Sadly I do think Disney will raise prices across the board (with the possible exception of admission) because they will need to recoup lost revenue. I do agree that they will get some blowback, but they get it any time they raise prices, and people still turn up. Whether it's bad PR or a good spin opportunity depends on how much they raise prices, and how that compares to other companies who have had to take on similar measures to stay afloat.

                                I remember during the last recession, Disney's attendance was still high because the APs were able to afford monthly payments. What will that mean now for APs who can still afford those payments but can't use their admissions as often as they think is reasonable for what they pay?

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