Disney’s Florida resort increases annual pass and fixed-priced dining experience prices.
Fans of Walt Disney‘s (DIS 0.51%) domestic theme parks know that there are more tricks than treats for their pocketbooks when October rolls around. California’s Disneyland raised admission prices two weeks ago. This week it was time for Disney World in Florida to follow suit.
Disney’s largest resort increased prices for its annual passes on Wednesday. It will cost you 3% to 7% more now for a year-round pass to Disney World’s collection of four theme parks and expanding number of experiences. As far as price hikes go, the boost is not as large as Disney and its rivals have pushed out in the past. It doesn’t mean that the $30 to $100 increase across the resort’s four tiers of annual passes isn’t causing some rumbling online.
Ticket to ride
Disney World is keeping its daily ticket prices the same for visits through October of next year. It is bumping prices 3% to 11% higher for its popular character meal, buffet, and family style dining experiences. Prices go up as labor and operating costs rise across all industries. There is no pixie dust to help Disney skate on that front.
The timing of the increases is interesting. Disney announced hikes across its two stateside resorts at the same time last October, but it wasn’t going to work this time around. When Disneyland was tweaking its ticket prices higher earlier this month, Hurricane Milton was slicing through Florida and temporarily shutting down Disney World’s gated attractions.
Announcing higher annual pass and dining prices this week could also be a bad look. This happens to be the week that Comcast‘s Universal Orlando began selling tickets to the next-gen Epic Universe theme park that it will open in the springtime of this year. It does help that Epic Universe is not offering annual passes at this time. If it can fill up the flashy new park with folks paying north of $150 for a one-day ticket, why bring down the per-capita turnstile revenue with an annual pass? It’s still an odd choice for Disney to make hiking headlines this week.
Image source: Disney.
Happily ever after
Disney’s domestic theme parks have meandered in recent quarters, but in a refreshing twist it’s also the business segment inspiring one Wall Street analyst to boost its price target for the media stock giant. Goldman Sachs is lifting its goal on Disney shares from $120 to $125, encouraged in part by the launch of the new Lightning Lane Premier Pass.
The new premium-priced offering gives visitors the ability to substantially cut wait times across most attractions — once apiece — for $129 to $449 per person. Disneyland began offering the Lightning Lane Premier Pass on Wednesday. Disney World jumps in next week.
Disney’s financials lately have been dominated by the profitable turn at Disney+ and the resurgence of the studio at the box office this summer. However, theme parks are still a driving force. With revenue per visitor up roughly 40% since its pre-pandemic operations, there’s a lot riding on the success of Disney’s world-leading theme parks.
With Disney shares still trading for less than half of their 2021 all-time high, there is upside to be gained if it can execute on this month’s increases and new pass offerings. Mouse-ear-donning regulars won’t be happy with the sticker shock, but Disney is armed with promotional and discounting tools it can use to help fill up its resort hotels and attractions if demand starts to wane.
Rick Munarriz has positions in Comcast and Walt Disney. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy.