Monday, February 24, 2014

Disney has raised its theme park prices AGAIN! See here by how much and how it compares to inflation. Pricing Power, indeed!

Disney has increased the price of admissions to its Theme Parks (Orlando Fla and in California) effective, well, immediately.

The old prices (since last June when they were raised then) are on the LEFT and the new prices are on the RIGHT (See their website HERE for all the changes)

I calculated the percentage change in prices. You can see those in black (ages 10 and above) and red (ages 3 to 9) on the right side.

The Bureaus of Labor Statistics reports in the Price index for the sub category of "Amusement and Theme Parks" that the admissions prices to Amusement and Theme parks in general rose 1.2% since last June.  (see the Price Indexes below for where I got the data)

Disney has increase its admission price to The Magic Kingdom 3.6 times the rate of inflation in that sector in the past year  (4.3%/1.2%).  A 4 Day ticket is 4.5 times inflation.

As we discuss in Microeconomics the Pricing Power that Monopolies (or near Monopolies)  keep this in mind!

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