A vacation to Disney’s theme parks has become so expensive that even some within the company fear it’s out of reach for middle-class families.
For a two-parent family with two young children, the typical four-day visit to Walt Disney World in Orlando, Florida, now costs $4,266.
That includes a stay at a budget-friendly Disney hotel, but does not include food or transportation.
This is up almost $1,000 from five years ago, according to Touring Plans, a company that helps Americans book theme park visits.
Disney said these figures were exaggerated by almost $1,000, and did not take into account the range of value options available, The Wall Street Journal reported.
But some inside the company who have worked on park pricing told the outlet they are worried that it has become addicted to increasing costs.
What was once ‘the happiest place on Earth’ for many middle-class Americans, has simply become out of reach.
Internal discussions over whether Disney parks may be losing their grip on families with young kids, many of whom have been loyal customers, have become more frequent, the outlet reported.
Starting in late 2023, the company’s own surveys of guests at Disney World and Disneyland in Anaheim, California, found that the number of them planning return trips had ticked down sharply.
Disney World vacations have increased so much in price that some inside the company are worried that they have become unaffordable for middle-class families
Attendance at Disney’s domestic parks increased 1 percent in the fiscal year ending in September, according to The Wall Street Journal. That is down from 6 percent the year prior.
Per-person spending on tickets, food and merchandise, meanwhile, increased 3 percent in each of Disney’s past two fiscal years.
Following the Covid-19 pandemic, Disney began hiking prices as demand for park trips soared.
Park passes became more expensive, as well as a series of add-ons designed to make vacations easier and more enjoyable for Americans.
Five years ago, for example, the skip-the-line feature FastPass was free.
Now, visitors can choose from three different price tiers for Lightning Lane passes, the most expensive coming in at $449 a day per person.
In October, a one-day adult pass to Disneyland broke the $200 mark for the first time.
Disney parks use demand-based pricing, which means prices are higher during peak holiday dates or school vacations.
A study by Touring Plans estimated annual vacation budgets – excluding transportation – for families in each of the five income tiers in the US, based on 2023 Labor Department data.
It then calculated the cost of park admission based on the lowest-price two-day tickets for a family of three during the last week of August.
On top of this it added the cost of hotels, parking, food, and skip-the-line privileges.
It found that the total cost was over budget for the lowest 40 percent of earners, but close to budget for middle and upper-middle-income families.
Park passes have become more expensive, as well as a series of add-ons designed to make vacations easier and more enjoyable for Americans
Per-person spending on tickets, food and merchandise has increased 3 percent in each of Disney’s past two fiscal years
The issue of price hikes was reportedly raised with CEO Bob Iger (pictured) in 2023
Disney said that its theme parks are within financial reach for middle-class families, and that it offers a range of price offerings, as well as promotions throughout the year.
It added that it adjusts prices throughout the year to manage attendance.
‘The number-one thing we hear from the millions of guests who visit our parks each year is how much a Disney vacation means to them, and we intentionally offer a wide variety of ticket, hotel and dining options to welcome as many families as possible, whatever their budget,’ Josh D’Amaro, chairman of Disney’s Experiences division, which includes the parks, told The Wall Street Journal.
Insider fears about price increases have been growing since late 2022, according to the outlet.
The issue was reportedly raised with CEO Bob Iger in 2023, according to people familiar with the matter, but the Experiences division had become the company’s primary profit engine, overtaking the declining cable TV business.
By the summer of last year, Disney began warning investors that attendance at parks was softening and revenue was slowing, sending the company’s share price plummeting.
In recent months, the company has announced various offers, including limited-time $50 kids tickets and hotel room promotions.
