The Walt Disney Company has announced a new series of limited-time discounts for its domestic theme parks, in an effort to boost attendance following a slowdown in visitor numbers. From October 24, families can purchase children’s tickets for Disneyland, based in California, for as little as $50 each. The discounted tickets are valid for use between January 8 and March 10 next year.
Meanwhile, Walt Disney World in Orlando, Florida is halving the cost of children’s tickets and dining plans for guests who purchase a four-day, four-night vacation package at one of its resorts. This discount will be available from November 14 and is valid between March 3 and June 30, 2024.
Disney’s efforts to attract more visitors come amidst a decline in attendance and hotel room occupancy at their U.S.-based parks due to inflation. This trend is not unique to Disney; Universal’s domestic parks and regional players such as Six Flags and Sea World have also reported lower visitor numbers this year. Travel agents attribute these dwindling figures to higher ticket prices and a surge in trips to Europe.
Despite these challenges, Disney’s parks division has seen a revenue increase of 13% during the third quarter, reaching $8.3 billion. Over the last four years, this segment has expanded at a combined annual growth rate of 6%, generating $32.3 billion in operating income over the past year alone.
Looking ahead, Disney plans to allocate around $60 billion over the next decade towards enhancing its parks division – nearly doubling its current investment level. Projects include refurbishing Splash Mountain with a “Princess and the Frog” theme at both domestic resorts and expanding the capacity of its cruise line by adding three new ships by 2026.
In addition to these confirmed plans, Disney is exploring several ‘blue sky’ ideas for its parks. These include transforming Dino Land at Animal Kingdom into a “Zootopia” or “Moana” themed area and introducing a new area to the Magic Kingdom based on “Coco” or “Encanto”.
It remains to be seen how these potential projects, along with the recent additions of two Star Wars: Galaxy Edge lands estimated to have cost $1 billion each, will impact the company’s pricing structure.