Disney World is EXPENSIVE and apparently, guests are spending more than they ever have before.
Magic Kingdom
According to the 2022 Second Quarter Earnings Report from the Walt Disney Company, Disney World and Disneyland visitors are spending 40% more today than they did ahead of the pandemic in 2019. But WHY are Disney guests spending so much more?
External Causes
In some ways, the current environment means more spending in general — and that does apply to Disney World.
Inflation
The first external cause that has had an effect on YOUR Disney costs is inflation! Earlier this year, we took a look at the current situation with inflation and what it would mean for Disney World guests, and recently, Disney executives weighed in on what it means for the company.
Haunted Mansion
As of now, inflation hasn’t had a specific effect on Disney World ticket prices and historically, Disney World tickets have been demand-driven — outpacing inflation. Disney may be able to escape raising ticket prices in response to inflation because tickets are already priced higher due to high demand.
Still, inflation may be part of the reason that we see higher prices on food in the theme parks this year (not to mention the amount you’re paying for airfare, YIKES!). While the food increases were small individually, they can add up across the length of a trip. Disney has even posed other solutions like adjusting suppliers, substituting products, cutting portion sizes, and more.
EPCOT
Disney’s CFO Christine McCarthy has noted publicly that the company is doing what it needs to adjust for inflation, though she hasn’t shared too many other specifics. It’s possible that Disney could be more expensive due to this factor — just like your latest tank of gas.
Click here to learn more about the Walt Disney Company’s approach to inflation.
Supply Chain Shortages
Inflation plays together with supply chain shortages to make things more expensive for Disney, and potentially Disney guests by extension. In the wake of the pandemic, the country has seen a LOT of supply shortages in recent months.
Creations Shop
There have been shortages of noodles, cream cheese, lightsabers, and now even bubble wands. Most recently, a shortage of palm oil could have an effect on hundreds of Disney World products.
Additional Legacy Lightsabers back in stock at Dok-Ondar’s
These shortages might also have contributed to the higher prices of food in the theme parks this year and certainly add to the problem that could lead to portion-size changes.
Want to learn more about the palm oil shortage? Click here!
Internal Causes
But it’s not all external causes, many of the reasons behind you spending MORE in the parks have to do with Disney’s management of costs and demand.
Supply and Demand
In an interview with CNBC, Disney CEO Bob Chapek shared the reason behind the rising prices, “This is a supply and demand business. Unfortunately, unlike say Disney+, we have a fixed supply.”
Disney’s Hollywood Studios
To reflect this, the recent earnings report noted that Disney saw higher average per-capita ticket revenue due to the attendance mix and increased attendance. This isn’t all that different from typical increases at Disney. Demand has remained at a relatively reliable increase for years (that’s why we see ticket prices increase every year).
Pandora — the World of Avatar
Still, as demand rises in relation to external factors, we are certainly seeing new costs (like the ones we’ll talk about momentarily!) and rising ones (like higher hotel rates).
Click here to learn more about demand in the Disney parks!
New Costs
Another reason Disney cited for the increase in per capita ticket revenue — and therefore the increase in guest spending — is the addition of Disney Genie+ and Lightning Lanes. Disney Genie+ and the use of Lightning Lanes (including through Individual Attraction Selection) are Disney’s paid replacements for the formerly free FastPass+ service.
Disney Genie
Disney Genie+ costs $15 per day in Disney World and $20 per day in Disneyland, per person. With Disney Genie+, guests make Lightning Lane selections for certain Disney Parks rides. Guests book a return window for a ride’s Lightning Lane, then when the time arrives, they can then skip the standby line at that ride and instead enter through the Lightning Lane (a.k.a. the old FastPass+ lane). Guests can then continue making one Genie+ selection at a time throughout the day.
Some rides are not available with Genie+ and instead are individually purchased. If a guest wants to skip the line at those popular rides (like Star Wars: Rise of the Resistance) they’ll pay a la carte for those rides as an Individual Attraction Selection. A maximum of two of these selections can be purchased per day. Prices range on these rides depending on the date, ride, and park — but they generally fall between about $7 and $15 per ride.
Lightning Lane sign at Princess Fairytale Hall
With more than one-third of domestic guests opting to purchase Genie+, a completely NEW COST, we can see how that might contribute to a significant increase in guest spending.
Want to see more about who’s purchasing Genie+? Click here.
Increased Spending
According to the Walt Disney Company, revenue also grew due to an increase in guest spending on food, drinks, and merchandise, as well as higher average daily hotel room rates.
All Star Sports
We’ve seen all kinds of price increases (like those mentioned above) that factored into this situation. Tickets and parking rates increased in Disneyland in 2021. At Disney World, prices went up on annual passes. For 2022, ticket price ranges have remained the same, but some days now fall into higher price brackets, making them more expensive (that’s an impact we could see play out in future quarters).
Disney’s Animal Kingdom
Plus, as we mentioned, Disney World also recently enacted hundreds of price increases on food and beverages, and we’ve noted the increase in hotel rates as well. Couple these rising costs with new ones and the pressing external factors and we have a recipe for increased guest spending.
Click here to learn more about the internal reasons you’re spending more at Disney!
As you can see, there is a whole slew of reasons why guest spending is up in Disney World and those higher spending levels could CERTAINLY be reflected during your vacation. If you’re nervous about spending, we’ve got a bunch of tips for saving BIG at Disney World. And follow along with DFB so you don’t end up surprised by any sudden price increases.
Want to save BIG in Disney World? Click here!
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According to the most recent government figures inflation is running at 8.1% over the past 12 months. Yet so many things people buy have gone up by 20%-50% or more and wages have gone up about only 5% in the past year.
This may be the last year that many people will be able to go to Disney World, as the domino’s of people priced out of everything but the bare necessities (no pun intended) continue to fall
Funny, no mention of shareholders demanding larger profit margins every year. Inflation and COVID-19 fallout have nothing to do with that.
Well said J.R. I keep wondering when ppl will show Disney that enough is enough. I love them but how much are we going to allow them to rip us off in the name of nostalgia?
“According to the Walt Disney Company, revenue also grew due to an increase in guest spending on food, drinks, and merchandise…”
*LOL* Yes, Disney, because you raised the prices on everything!
Inflation is affecting all companies and individuals everywhere. The problem most of the long time loyal regular guest have with Disney is that while prices are increasing, but they have taken away so much and given nothing back. What they are giving back is now being charged for. Meanwhile Chapek made 32.5 million last year, so I think we are paying more partly because it is needed to cover his and all the other executives’ salaries.
As more and more people purchase genie plus it becomes less and less valuable. If everyone pays for it then it’s of no real advantage to anyone except Disney. They are making a killing.
The huge increase in prices is really just a greedy money grab by Disney. With all the controversies and additional costs besides a ticket is disheartening. They have ruined the experience and taken the fun out of the Disney experience.
Just got back from Disneyworld and now I’m in debt up to my eyeballs and we didn’t even do things we ordinarily do because of the expense. Not the Disney from the past. Menus extremely pared down, food just ok, crowds everywhere, HOT and humid, little shade, transportation slow, rides kept breaking down while on them, really sad.
Going to Disney is my favorite vacation & I have been doing it for over 55 years. That being said, the cost is making it less & less appealing. I’m planning on a trip in last week of September with 6 other adults. The cost to stay 7 nights at a value resort was over $6000 for 7 nights with a 30% military discount! We found an off-site 3-bedroom suite that would accommodate all of us for $1500 with better amenities. Doing the math, that’s a $4500 difference. We’ll need a rental car, but DTS isn’t that great from what I’ve been reading. I would’ve loved to stay at least once in a Disney resort but not at the outrageous cost. Disney’s perks for staying on-site are drying up like a miser’s heart.
What nonsense.
We’re paying ridiculously more because Disney has been CHARGING ridiculously more.
This is not the case with Universal, is it!?
Cancelled our family’s 10 day Disney trip. This year. Too expensive for what you are now getting. What a disappointment. We have always loved Disney! It really was our happy place. But not anymore. It’s just one big hassle after another and too much time TRYING to set things up on the phone. Shame on you Disney executives for letting this happen. You have destroyed the magic and thrown away all the pixie dust.
We just got back from Disney World and I’m sure it will be our last for quite a while. We took our son, wife and our 2 granddaughters and I’m glad we could do it this year. We only went to 3 parks because that is what we could afford. We purchased genie+ for one day and I do believe it saved us at least 3-4 hours of standing in line,
So, the fact that Bob Iger took money from the coffers to give out dividends to shareholders during the pandemic despite no incoming revenue to pay for them and now that money has to be paid back to the company has nothing to do with it?