Disney Responds to Pricing Criticism Following Report on Rising Theme Park Costs

Feb 10, 2025 in "The Walt Disney Company"

Posted: Monday February 10, 2025 10:00am ET by WDWMAGIC Staff

A recent Wall Street Journal report highlights growing internal concerns at Disney about the long-term effects of rising prices at its theme parks.

While ticket increases and add-ons like Lightning Lane have driven record revenue, some executives are reportedly questioning whether Disney is reaching the limit of what families are willing to pay. Internal surveys reportedly indicate a decline in guests planning return visits, raising questions about whether the company is sacrificing future loyalty for short-term profits.

In what appears to be a response to the article, Disney issued a statement today defending its pricing strategy. Disney Parks Chairman Josh D’Amaro and CFO Hugh Johnston emphasized that the company offers a range of pricing options to keep visits accessible, citing ongoing promotions and discount programs. "The number-one thing we hear from the millions of guests who visit our parks each year is how much a Disney vacation means to them, and we intentionally offer a wide variety of ticket, hotel, and dining options to welcome as many families as possible, whatever their budget," D'Amaro said.

The Shift Toward Premium Pricing

During the pandemic, former Disney CEO Bob Chapek and Parks Chairman Josh D'Amaro implemented a strategy to maximize per-guest spending. As demand for the parks surged after reopening, Disney introduced several key changes:

  • An online reservation system limited the number of days annual passholders could visit, prioritizing guests who spent more on daily tickets and merchandise.
  • Free perks, such as the Magical Express airport shuttle and the FastPass ride-scheduling system, were eliminated.
  • Paid add-ons were introduced, including Genie+, which later became Lightning Lane Multi Pass.

These changes resulted in a significant boost in revenue. A Disney spreadsheet, leaked during a hack of its internal Slack system, revealed that Genie+ alone generated over $724 million in pretax revenue between October 2021 and June 2024 at Walt Disney World.

Since then, Disney has added the Lighting Lane Premier, costing as much as $449 for a one-day, one-person pass.

While these strategies have been financially successful, they have also fueled guest frustration. Services that were once included in the cost of a vacation now require additional spending, driving up the total price of a trip.

Concerns Over Guest Return Rates

According to the WSJ, Disney's own surveys show a decline in guests planning return visits to Walt Disney World and Disneyland. While attendance at Disney's U.S. parks grew just 1% in the last fiscal year—down from 6% the year before—per-person spending has continued to rise, driven largely by add-ons like paid line-skipping.

This trend has some inside the company questioning whether Disney's strategy of maximizing guest spending is sustainable. There is growing concern that the company has become too dependent on price hikes, and executives are debating whether they've reached the limit of what families are willing to pay.

The Cost of a Disney Vacation Has Changed Drastically

A WSJ analysis found that the cost of a typical four-day visit to Walt Disney World, including a stay at a Disney-owned value resort, rose from $3,230 in 2019 (adjusted for inflation) to $4,266 in 2024. Nearly 80% of that increase came from new charges for services that were once free, such as line-skipping access.

Some Disney executives are concerned that the company is relying too heavily on price hikes, potentially alienating middle-class families who have long been a core audience. Internally, there have been discussions about whether Disney is damaging its brand by shifting too much toward premium pricing.

Disney's Response to Pricing Backlash

Since returning as CEO in late 2022, Bob Iger has publicly acknowledged pricing concerns and worked with parks boss Josh D'Amaro on strategies to regain guest goodwill. The Disney CEO said in February 2023, "It is clear that some of our pricing initiatives were alienated to consumers. I have always believed that accessibility is a core value of the Disney brand. We were not perceived to be as accessible or as affordable to many segments, as we probably should have been. After basically paying heed to what we are hearing, we started to address it and the steps that we took were actually were very, very positive. We got really, great reactions to it. "

Some of the actions taken include:

  • The return of free overnight parking at Disney World resort hotels.
  • More discount promotions, such as $50 kids' tickets and hotel savings.
  • The reinstatement of some lower-priced ticket options during the off-season.

Despite these adjustments, Disney has not reversed its broader strategy of premium pricing. CFO Hugh Johnston has defended the company's approach, stating that while higher-priced experiences have gone up, Disney has worked to keep lower-tier options stable.

Disney Responds to the WSJ Report

Following the publication of the WSJ article, Disney released a statement today pushing back on concerns about affordability. Josh D'Amaro, Chairman of Disney Experiences, emphasized that the company offers a range of pricing options to accommodate different budgets.

"The number-one thing we hear from the millions of guests who visit our parks each year is how much a Disney vacation means to them, and we intentionally offer a wide variety of ticket, hotel, and dining options to welcome as many families as possible, whatever their budget," D'Amaro said.

"We also know that, in inflationary times, it's especially important to give families ways to save on their visits. We haven't increased the lowest-priced ticket to Disneyland since 2019, and we recently introduced a kids' ticket for as little as $50, just to name a couple of examples."

Disney CFO Hugh Johnston echoed these sentiments, stating:
"We know our parks create lifelong memories for families, and we've worked hard to make a Disney vacation accessible to guests of all income levels. With strong guest satisfaction scores and intent-to-visit ratings, our parks remain the most popular offering in the industry."

Disney also pointed to several ongoing promotions aimed at making visits more affordable, including:

  • The Discover Disney Ticket, which offers Florida residents four-day access to Walt Disney World for $60 per day (plus tax).
  • Free water park admission for guests staying at a Disney World resort hotel, starting in 2025.
  • A limited-time free dining plan offer for eligible guests staying at Disney resorts.
  • Hotel discounts of up to $200 per night or up to 25% off select rooms.

Disney also cited a recent survey it commissioned through Morning Consult, which polled 3,531 U.S. adults. According to the results, a strong majority of families with children under five felt that “nothing compares to a Disney vacation” and that the experience creates “memories that last a lifetime.” The company also pointed to data showing that guests who had recently visited Disneyland or Walt Disney World believed the trip was worth the expense.

What's Next?

With major expansion projects on the horizon, including the Tropical Americas land at Animal Kingdom and the new Cars and Villains lands at Magic Kingdom, Disney will likely continue pushing premium pricing for new experiences. However, the company also faces pressure to ensure that loyal guests still see value in their visits.

If internal concerns prove correct, the company will have to decide whether to continue pushing premium pricing—or make adjustments to bring back more middle-class families who once saw Disney World as an essential family vacation.

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    Jrb197920 days ago

    IMO they did to themselves. Chasing ithe quarterly profit increases, they have pushed a good amount of those who actually enjoy their product. Now they are stuck going after a demographic that for the most either will try it out once or just not interested.

    DisneyHead12320 days ago

    Really interesting video. I still think that "who Disney is targeting" vs. "price increases" are separate factors that should be teased apart. Price increases can happen no matter who your target demographic is. If you charge a penny per product and then you charge 2 cents per product, it's not likely that you're targeting the top 1%, despite doubling prices. I think Disney's marketing, proposed new offerings, and PR give us more of a hint about who they are targeting. To be fair, I am not in the top 1% and I have no idea what kind of advertising aesthetic appeals to people in the 1%, so I'd probably miss it even if I saw it. But overall, I would say Disney has put more focus on marketing to: - Males, with the acquisition of Star Wars, part of Marvel, Fortnite and the insistence on bulldozing RoA for the Cars mini-land. (They have made some headway there but it seems to me that their strongest impacts on the pop culture scene still trend female. Star Wars and Marvel were properties that they bought, and people have complained a lot about Star Wars since that acquisition. Something like Descendents, on the other hand, went positively viral with the tween girl set last Halloween. It seems to me that Disney leans heavily on older properties or the acquisition of new ones for their male audience, and have a harder time with original content - but I'm willing to stand corrected on that one.) - Teh Young People, although they did such an amazing job of this with Millennials that I think they almost became victims of their own success. Millennials are a bit older now and are themselves moms and dads with rebellious kids who want to feel cool by defining themselves in opposition to their parents. Disney's deep association with the current generation of 'rents, in my opinion, led to the smirkiness you see when (some) Gen Zers and Alphas bemoan "Disney adults". - Politically, they have made forays in both directions over the years. Leaving it at that because it's a banned topic. - Social media users in general. I'm not clear on what they did to make people excited about waiting 3 hours in line for a popcorn bucket or paying close to a hundred bucks for a tiny backpack, but whatever they did, it worked. - Maintaining their current base. For families, there a still a zillion Disney toys on shelves, new kiddie prisons... er... "kid's clubs"... on cruise ships with fabulous lounges for moms and dads, new kids shows, etc. Disney fandom still gets Easter eggs and D23 announcements and such. Grandmas and grandpas still get Frozen jewelry boxes for their grandkids featured on QVC, and so on. I've said before, there have been a very few things that seem directly marketed to the top, say 3%. The 6 figure private jet trip to all the Disney parks, the $1,000 jeweled ears, the inclusion of funnel suites taking up hefty amounts of real estate on the cruise ships. For those things, yeah, I don't know who else the market could possibly be. For everything else, seems like the same approach, just more expensive.

    Vegas Disney Fan20 days ago

    This may explain a lot of Disneys current strategy, credit card debt is piling up, the poor and middle class are starting to spend less, and the rich are spending more… it may not make sense to target a smaller demographic but if they’re the only growing market they may have no choice.

    Laketravis22 days ago

    Aria used to have THE BEST buffet in Vegas. Sadly no more.

    flynnibus22 days ago

    Touching back on the topic of premium vs luxury etc. Just got back from a few days in Vegas for the AMOA show and was staying at Aria in their upgraded rooms. The room itself was pretty basic… besides the nice floor to ceiling strip view and upgraded shower… but checkout the notes on amenities in the room. Read the list of things included… now think was even ‘club” level is at wdw. (Yes there was a lounge with free snacks and drinks).

    LaketravisMar 12, 2025

    LOL! Maybe, but I guess you didn't notice the article wasn't written for Yahoo News - it was written by Kevin Williams of Quartz. https://qz.com/disney-shares-continue-slide-1851769136 Yahoo is often just an aggregator. Heck, they sometimes even redistribute fluff from CNN.

    MisterPenguinMar 12, 2025

    Well, then, you know a lot more than a person writing an article for Yahoo News.

    TheMaxReboMar 11, 2025

    And I think it impact the group for which a Disney trip is a stretch financially the most

    LaketravisMar 11, 2025

    I'm fully aware of what is occuring in the markets. DIS is especially vulnerable and this is a WDW forum, thus the post. Unbookmark Cramer.

    LSLSMar 11, 2025

    Eh, I don't think the article was earth shattering honestly. Basically that the economy dropping like it is will ripple down to Disney even moreso do to the nature of tourism. Basically the stocks market going down is going to hurt companies like Disney much more than some. The issue is the headline doesn't really match the rest of the article.

    MisterPenguinMar 11, 2025

    Sure... single out just DIS stock as if nothing else is happening in the world or to the stock market in general. https://www.cnbc.com/2025/03/10/stock-market-today-live-updates.html Unbookmark Yahoo Finance.

    LaketravisMar 11, 2025

    Ouch.................... “It does appear that the current selloff is due to concerns about future consumer spending,” Kasssens says, adding that consumer worries over prices are showing up in reduced consumer sentiment." https://finance.yahoo.com/news/disney-stock-sinks-under-sagging-170727861.html

    TrainsOfDisneyMar 10, 2025

    Oh! I didn’t know they were adults only. Good to know!

    AylaMar 10, 2025

    Viking is too, which we have done.