It seems that something a little troubling is happening at Disney, the world’s happy land. Disney has been raising prices frequently at its six parks in the United States. Since the end of the COVID-19 pandemic, Disney has begun to raise admission fees and introduce expensive priority boarding passes one after another. A VIP tour with a guide and priority boarding for about $450 to $900 per hour has been introduced. Not only priority boarding, but the tickets to the park themselves have also been increasing in price. The icing on the cake is the “Lightning Lane Premier Pass.” For up to $449 (about 69,000 yen), a pass has been introduced that allows you to ride attractions without waiting. The Premier Pass does not incur operating costs. This means that the revenue from the Premier Pass is almost entirely the net profit for the park.
This Premier Pass can only be purchased by people staying at certain Disney hotels. This is creating a situation that people cannot enjoy the “happiest place in the world” equally depending on how much money they have. Disney’s sales strategy seems to be behind this trend. It was said that Disney was pricing and marketing to the top 40% of American households in terms of income. But in reality, it is said that they are focusing on the top 20%. The amount of money that the top 20% of people spend on travel each year is almost the same as the bottom 80% combined. It is calculated that it is more profitable for business to target the top 20% of people than the bottom 80% who are saving money. This is a strategy that prioritizes revenue over the number of visitors. But there is also a risk that Disney fans will leave. There are concerns that Walt Disney’s theme parks in the United States are becoming distant places for average households.
The story is about Tokyo Disneyland (TDR) in Japan. TDR’s sales per unit for the fiscal year ending March 2024 increased by 40% compared to the fiscal year ending March 2020. In 2024, sales per guest, which corresponds to the average customer price, will be 16,644 yen, a 40% increase compared to 2020. Even after last year’s ticket price hike, TDR’s attendance had been increasing. However, it has now suddenly started to decline. This is due to the decline in travel demand and the effects of the extreme heat this year. For the April-September 2024 period, the attendance was 12.2 million, about 1 million below the company’s initial forecast. Therefore, the number of visitors for the full year was revised from the previous forecast of 29 million to 28 million, taking into account the decline in the first half of the year. While price hikes are important, it seems that a strategy that takes into account the “wallets” of guests is also necessary.
