Former Walt Disney (DIS) CEO Bob Chapek seemed to have a fairly simple plan to make the company's California and Florida theme parks more profitable -- raising prices.
Call it death by a thousand paper cuts, but the former Disney boss found ways both obvious and sneaky to get more money out of its customers.
Those price rises were needed when covid forced the company to limit attendance, but they've continued even as more normal crowds have returned.
Yes, Disney World's four theme parks have kept their maximum attendance numbers a little lower than they were before covid -- ostensibly to offer visitors a better experience -- but that's not the full story.
The reality is that Chapek realized that the company could make more money by charging more but accommodating fewer visitors. Not all those increases were reflected in ticket prices (although those were raised as well).
Disney inched up its food prices, reduced some portions, and dropped perks like sending hotel guests and annual passholders free Magic Bands. The theme-park operator also ramped up its added-fee after-hours events, shortening the day at one (or more) of Disney World's four theme parks in order to sell a second ticket for a more premium, less crowded event.
The most egregious change, however, was clearly Disney dropping its free FastPass+ and replacing it with two paid products, Genie+ and Lightning Lanes.
You essentially need to buy Genie+ to have a pleasant day at Disney World -- you certainly do during the holiday season -- and Lightning Lane is an essential purchase if you want to ride the hottest rides without giving up half your day.
Now, with the holiday crowds descending on Disney World, the company has some bad news for its visitors, who are more or less forced to buy these formerly free add-ons.
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Disney Genie+ Price Hits All-Time High
The Christmas and New Year's season has become the busiest time of year at Disney World. Hotel prices are high, park reservations (which are required) are hard to come by, and the company's flexible admission prices are at their highest point ever.
Crowds are everywhere and demand is very high, which allows the company to pretty much charge whatever it wants for Genie+. That service enables park visitors to wait in shorter lines for many popular attractions. Genie+ prices vary, but they're currently equal to all-time highs, BlogMickey.com reported.
"After starting the holidays at a $25 price, Disney Genie+ surge pricing has reached the all-time high of $29 again today as Disney takes advantage of holiday crowds and higher wait times. Disney Genie+ was previously set at $29 during Thanksgiving Week," the website reported.
Disney's Theme Parks Are Thriving
After their covid closures, Disney's theme parks have bounced back. Chapek talked about the park during his final earnings call before he was surprisingly pushed aside in favor of his predecessor, Bob Iger.
"Our parks team is laser-focused on enhancing the guest experience and creating those magical memories I mentioned at the outset," he said.
"This focus, along with the investments we made to bringing new attractions and experiences to our domestic parks, is generating consistently strong demand, which, on many days, exceeds our current capacity."
Chapek also highlighted the success of added-fee events.
"One of the things that guests loved most is the opportunity to celebrate at our parks, as evidenced by the post-pandemic return and sell-out of special ticketed events like Oogie Boogie Bash and Mickey's Not-So-Scary Halloween Party," he said.
"I visited Disneyland with my family just before Halloween, and the celebration was phenomenal. Tickets for Mickey's Very Merry Christmas Party at Walt Disney World have now officially gone on sale, and over half of all dates have already sold out."
