Disney World and Disneyland customers could soon be hit by another round of price hikes, according to Disney CEO Bob Chapek.
After raising prices on Disney’s streaming services, including Disney+, Hulu, and ESPN+, Chapek told CNBC that the price hikes are likely to hit popular Mouse House theme parks next.
“We read the demand. We don’t have any plans at the moment as to what we’re going to do, but we’re operating with a surgical knife here,” Chapek said Thursday. “Everything depends on the consumer. If consumer demand continues, we will act accordingly. If we see a softening that we don’t think we will see, then we can act accordingly.”
Price increases at times of high demand are a matter of course for Disney.
The cost of theme park tickets has skyrocketed over the years, with data-tracking company SJ Data Visualizations estimating that the price of Disney World and Disneyland theme park tickets has risen by more than 3,871% over the past 50 years — one in the Shadowed increase in attendance. wages and the cost of rent and gas.
Disney CEO Bob Chapek said if demand at theme parks continues to rise, price hikes are likely to follow. Bloomberg via Getty Images
Earlier in the year, Disney increased prices at Disneyland and Disney California Adventure in Anaheim, California. The popular admission price for a one-day ticket increased by 6.5% to $164 for entry into a park, while a two-day park hopper pass costs $319. almost 9% up.
The price of tickets to Florida’s theme parks — which include Disney World and the Epcot Center — remained unchanged, staying at $109 for a day pass. For a park hopper option that includes entry to more than one park, the price increases to $169 for entry after 2:00 p.m. The Park Hopper option costs $194 per ticket if guests wish to board before 2:00 p.m
Ticket prices at both Florida parks can go even higher if booked on a high-volume day — just like airline tickets.
Disney has also slowly increased the prices of groceries and merchandise at its parks. For example, at Disney World, the iconic Mickey Ears headbands are up $10 to $39.99, while the popular Mickey’s Premium Ice Cream Sandwich and Premium Chocolate Covered Bar are up from $5.69 to $5.99 , Disney fan blogs Inside the Magic and Walt Disney World News Today reported earlier this year.
The mouse house benefits from the price increases. During its most recent quarter, the Burbank, Calif.-based company reported a 72% increase in revenue from its parks, experiences and products division to $7.4 billion. According to Disney, per capita spending rose 10% at Disney World and Disneyland and is up more than 40% compared to fiscal 2019.
During the earnings call, Chapek revealed a series of price hikes at the company’s streaming services, Disney+, Hulu, and ESPN+, which continue to lose money as the company aggressively spends on content to keep up with competitors like Netflix, Amazon, and HBO Max.
The streaming division’s losses topped $1 billion, compared to a $300 million loss a year earlier. Streaming revenue, however, grew 19% to $5.1 billion.
Chapek said a new Disney+ with ads, now called Disney+ Basic, will launch on December 8 at a price of $7.99 per month.
The price of Disney+’s ad-free service will increase by $3 to $10.99 per month and will be known as Disney+ Premium when the basic version launches.
Meanwhile, Hulu will also get a price increase. Beginning October 10, Hulu with ads will increase by a dollar to $7.99 per month, while the ad-free version will increase from $12.99 to $14.99 per month.
The Disney bundle, which includes Hulu with ads, Disney+ without ads, and ESPN+, will increase by a dollar to $14.99 per month. The premium version of the package with no ads on all services stays at $19.99 per month.
Disneyland and Disney World could soon get another round of price increases. GC Images
As previously announced, ESPN+’s price will increase by a whopping 43% to $9.99 per month on August 23.
Overall, the streaming unit added a total of 221 million subscribers, beating out Netflix, which reported 220.7 million subscribers last month. However, through the division, Disney is still chasing the steamy giant.
During the quarter, Hulu added 46.2 million subscribers, up 8% year over year. About 23 million people paid to access ESPN+, a 53% increase, as Disney+ subscribers totaled 152.1 million subscribers, a 31% increase.