Disney Raises Park Admission Prices
Walt Disney World has raised ticket prices to $99 for a single-day pass to its Magic Kingdom, USA Today has reported.
This comes only eight months after the theme park's last admission price increase. In June 2013, daily admission rose $6 to $95 for a single ticket.
Admission for Disney's (NYSE: DIS) other parks also increased. Visitors to Epcot, Animal Kingdom and Hollywood Studios will now have to pay $94 for a day's amusement.
"Our pricing reflects the high quality and breadth of experiences we offer and our ongoing commitment to investing in our parks," Disney spokesman Bryan Malenius told the Orlando Sentinel. "We offer a variety of ticket options that provide a great value, and find that most guests select multi-day tickets that offer additional savings."
Thirty years ago, a single-day pass to Disney World was a mere $14.
Industry analyst and editor for themeparkinsider.com Robert Niles told Benzinga that the only surprise about Disney's announcement is that the increase came so early in the year.
“So long as the crowds keep growing at theme parks, the parks will keep raising prices,” Niles, also a former attractions host at the Magic Kingdom, said in an email. “Attendance is up at the Walt Disney World Resort, so yet another annual price increase was inevitable.”
Although nearing the $100-mark for only one day in the park, Niles said this won't deter people from visiting Disney World.
“None of Disney's previous price increases have reversed the long-term trend toward increased attendance at Walt Disney World, so there's no evidence to suggest that this increase will be any different."
It's important to note that very few people pay the single-day price for admission, Niles said. Disney offers multi-day ticket packages, where the per-day price is lower than $99. A four-day pass now costs $294 ($73.50 per day), while a 10-day pass is $354 ($35.40 per day). Both grant access to a single park each day.
“Even as parks raise their top-line 'rack rate' prices, they continue to offer multiple packages and discounts, giving them a wide range of price points to attract people throughout the market,” Niles said. “I wouldn't be surprised if Universal Orlando hits the $100-a-day mark with its one-day, one-park tickets when The Wizarding World of Harry Potter - Diagon Alley opens at Universal Studios Florida this summer.”
Latest Ratings for DIS
|Jan 2017||Morgan Stanley||Upgrades||Equal-Weight||Overweight|
|Jan 2017||BMO Capital||Downgrades||Market Perform||Underperform|
|Jan 2017||Goldman Sachs||Upgrades||Neutral||Buy|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.