Tuesday, June 4, 2013

Disney has just (this week) increased the admission price to its theme parks. Here is the rest of the story not reported by the media (yet).

For Disney Fans this is important.  Admission prices to DisneyLand and DisneyWorld have just increased AND they have disaggregated a ONE-DAY ticket to Magic Kingdom from the rest of the parks.  Previously admission prices to ALL of the theme parks were the same.  If you buy a multi-day ticket it includes Magic Kingdom as one of the parks you can visit.

Below I pasted the new price list from the Disney website. The new prices are in BLACK and the previous prices are in RED (I inserted those).  I also put a circle around the Magic Kingdom ticket to highlight that it IS different from the rest of the parks now.

I also calculated the percentage change in price for Adult tickets (age 10 and over) and a child's ticket (3-9). You will see those numbers to the left.


Source: Disney Website

I have read (and just saw on the news) only about the 6.7%  change in price for the single ticket price for Magic Kingdom.  The price single ticket price for the other parks increased too, but only by $1.00 (+1.12%).  That is positive, right?

What I have NOT seen is an analysis of the how the Multi-Day ticket prices are impacted.  After all, who REALLY only goes to DisneyWorld for just one day!!

Look at those change in prices and percentage changes as you buy additional days.

I think Disney believes the 3 and 4 day purchaser of tickets are not going to significantly reduce their quantity demanded for days at the theme parks.  Demand for those tickets isrelatively Inelastic.

They are probably right. If you can afford to visit the parks for that many days then an 8%+ price increase is not going to discourage consumption by more than that percentage change in price.

FYI: Here is the photo of admission prices in January 2013 when I last visited Disney Orlando.  This is where I got the price data in RED above.
Photo


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