Feel like you’re spending MORE during each and every Disney trip? Well, you’re probably not wrong.
Bob Chapek
During the Q3 earnings call for 2022, Disney revealed that it increased revenue for the Parks, Experiences, and Products division by $4.3 BILLION compared to the same quarter in 2021. What led to the increase? A number of things, including higher guest spending. That higher guest spending in Q3 was due to higher average daily hotel room rates and Genie+ and Lightning Lanes. We’ve also seen increased prices for food and sneaky ticket price increases too. But could things in the parks be getting even MORE expensive soon?
In a CNBC-exclusive interview, Chapek discussed a variety of things following the results of the Q3 earnings report/call for fiscal year 2022.
During the interview, Chapek was asked about “flexibility in pricing” and whether more park price increases could be on their way. Chapek said that they always watch their demand. According to Chapek, because they have the flexibility with their reservation system, they can “move on a dime.”
Hollywood Studios Crowds
“If demand goes up, then we have the opportunity to do that. We’ve got no plans right now to announce in terms of what we’re going to do. But again, we operate with a surgical knife here,” Chapek shared.
The interviewer also noted how the company can get complaints from some individuals online about just how expensive Disney is getting. The interviewer shared that despite these frustrations, it sounds like another pricing move could be in the works.
EPCOT
In response, Chapek said “it’s all up to the consumer. If consumer demand keeps up then we act accordingly. And if we see a softening, which we don’t think we’re gonna see, then we can act accordingly as well. We’re very flexible.”
If, as Chapek says, it truly is all up to consumer demand, then, as the interviewer indicated, more price increases could be on the horizon.
Hollywood Studios entrance crowds
Chapek noted that “for all visibility we have into the future, we’re not seeing any softening of our demand.”
Chapek also said that they haven’t really seen a true rebound of the international audience. Instead, it’s been mainly domestic numbers. So once the international audience does fully come back, Chapek said that would put even more demand into their pipeline.
Crowds
What if the domestic demand is just due to pent-up demand, though? Chapek was asked about whether he thinks something will change once that “pent-up demand” has been satisfied. He noted that he doesn’t think the demand will go away. Instead, he said that their data reflects that the demand is more resilient. This is a comment similar to one made in the earnings call.
During the Q3 earnings call, Disney executives commented on the Park Pass system and park demand. Disney executives shared that the demand they’re seeing isn’t just pent-up demand from the pandemic, but is “more resilient and long-lasting.”
Magic Kingdom Crowds
Disney’s Chief Financial Offier, Christine McCarthy, shared that Disney “has not yet seen demand abate at all.” Instead, McCarthy noted that Disney is seeing demand in excess of the available reservations.
The Q3 earnings report also cited to increases in attendance as part of the reason behind the increase in revenue at the parks, as well as more occupied room nights.
Christine McCarthy ©The Walt Disney Company
So if demand is the key, then price increases could be on the horizon when it comes to the parks.
Our friends over at AllEars track historical price increases in Disney World. According to their numbers, since 1971, price increases have been made in August 5 times, 4 in September, 7 in October, 3 in November, and 5 in December. Those are the remaining months in this year, so it’s possible that we could see increases then.
But months where increases have more often been made include February (11 times) and June (12 times), so only time will tell.
Guardians of the Galaxy: Cosmic Rewind
If you’re heading to Disney World and concerned about how much your trip will cost, click here to see our list of the biggest Disney World costs and how to save. You can also click here to see our full list of discounts and deals currently available for Disney World.
We’ll continue to keep an eye out for more money-saving tips and we’ll let you know if we see anything about potential price increases. Stay tuned for the latest details.
Click here to learn about the hidden price increases on 2023 tickets
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Prices are INSANE. We’re going once and that’s it. We can take our kids on 2 or 3 great vacations for the price of 1 Disney trip.
International demand isn’t returning because we are voting with our feet. We promised to take our kids back after our 2020 trip but we have told them that unless the prices return to normalcy then we aren’t going anywhere near a Disney park any time soon and I know sooooooooo many other people doing the same thing. We nearly bought into DVC while we were there last, I am thankful that we didn’t
We used to go 2+3 times a year. That became once a year and now we are not planning a trip to either US park until 2023 (DL) and 2025 (WDW). In 2025 we’re going to be focusing on Universal and less at WDW. Disney has become too crowded, to expensive and too cheap in the quality department to justify the prices and the headaches of going.
That’s Chapek for you. Come for the inflated prices, stay for the ridiculously culled perks.
Bobbo says, “so many folks want to come to our parks we have to raise the price”.
Attendance drops, Bobbo says, “we’re not seeing the projected attendance numbers, we have to raise the price”.
The arrogant and inconsiderate way Chapek talks about customers. Wo thought or care of how these increases affect them or to whom he is pricing out. As long as *someone* is willing to pay $$$$$, he’s happy. Hardly Walt’s vision.
I predict a bubble burst for Disney attendance in the next few years to come. I know he doesn’t think it’s pent up demand but there is definitely some of that. So when ppl sacrifice and finally make that trip…that costs them more than ever…more than most any other vacation in America….will they come back? I guess we will ultimately find out.
As long as people keep going, they will continue with the price increases. Disney answers to the shareholders, no one else. Go once if you really want to, and then take that money and enjoy 2 or 3 wonderful vacations somewhere else.
I have a Disney Chase credit card that gives me cash towards vacations and purchases. Planning on one last trip to use my rewards then I’m done. Too expensive and too many restrictions to actually enjoy a vacation.
I get it, inflation’s hitting everybody and all businesses, so I expect price increases just like everything else we buy. Luckily I am able to afford the price increases because I receive a cost of living raise every year the keeps up with inflation, so it hasn’t hit me as hard. But what gets to me is that Disney is also taking away so much from the guests. What was once free and/or included, you now have to pay for it or it simply no longer exist. So guest are paying more for much less.
Again, I understand and accept inflation and price increases, but it is a fine line before they price out and eliminate even more guests as they have already done. There is a limit Bob, start thinking about the guests and less on the shareholders.
Bob Paycheck, must need a few new cars to go along with his multi million dollar mansion.
Unfortunately, until the Disney Elites quit catering to him and the board and the the rest of the crowd backs off, prices will never come down. Especially as long as he is at the helm.
What else does chapek want my first born. Take a cue from universal on pricing for a pass they are almost less and they can handle the crowd
Shame on you Mr. Chapek! Using the park reservation system, which was supposed to enhance the “consumer”experience, to increase prices. You do operate like a “knife” and stab your loyal fans in the back with each and every perk you remove while raising prices. So glad you have so much “flexibility”. It’s just too sad that your “consumers” who used to be your guests aren’t on the receiving end of ANYTHING! You take and take and take while charging more and more and more: no wonder your earnings are skyrocketing. You should be ashamed to say all this out loud! Maybe you should try going to Disney World on an average American family’s budget and see what a terrible job you have done!
Until Chapek goes I’m done. I bet Walts rolling over in his grave. Profit is all he sees I can’t afford to line his pockets. I’, going some were else.
Pretty soon only those who have the same income as Bob Chapek ($32 million) will be able to visit Disney Parks!! ☹️☹️☹️
It does seem that is Disneys new business model, to take you once for all they can get.
I am going to the D23 convention in September and planning on spending a couple days at Disneyland and California Adventure. Prices have skyrocketed since my last visit before the pandemic. I expect this to be my last visit to Disney. Spending more money does not mean more enjoyment in the parks.
Wont be going to Disney again there’s price increases and there is rip off prices. I have been travelling from the UK and staying at Disney properties since 2001, next years trip to Orlando will not now include Disney. Will be going Universal instead. its a pity but there you are and reading the comments from CEO Bob Chapek only fuels me with more anger and determination not to go to Disney again.
I am not surprised by the Disney company’s increases. What Bob Chapek and the rest of the leadership has done with Disney is Utterly disappointing. I feat it will only get even harder for families to experience what Walt’s dream was. It. is abundantly clear where the focus leaders of the Disney company is…☹️
What planet is he on. Fair enough the demand is there where it hasn’t been for us international guests. Now that we have been, seen the difference from pre covid less value for more bucks we have realised there are more better things to spend our hard earned cash on.
We will not be going back to Disney anymore. It is just too expensive and takes too much time to plan every minute of every day to be able to see and do what you want. I don’t find that to be much of a well deserved vacation.
Never ever going back
If you ask me this is all BS. These price increases are allowing all the top executives to get ye as rly raises. Think about it. If park reservations limit the amount of people in the parks how can they say demand warrants the increases? Prices have gone too high and too much magic has been lost for this girl to ever return. I’m not going to make the rich richer or disrespect Mr. Disney’s legacy.
It could be that people are glad to get out from the pandemic quarantine. Only time will tell about that. I think as time goes by, as prices continue to rise, attendance will eventually drop as families are spending so much money on food and other necessities
We recently went, paid for a waterview room at the Caribbean Beach, and couldn’t even see a drop of water in the distance (so we actually got a standard view room which is considerably cheaper), and they wouldn’t give us a refund for the lower tiered room. Basically, we paid for a more expensive room, they gave us the lowest end room, and their excuse was that they over booked. We booked over a year in advance… least you could do is give us back the difference between what we paid for and what we actually got. I’ve contacted them and they just say that that’s too bad for you, literally…. So annoyed! If we can’t even expect to get what we are paying for at this high price, then they can keep it. There are far better places we can go for far cheaper, like a family trip to Europe for 2 weeks instead of only 1 week in Disney World….
Lynn…I’m so sorry about how you were treated. It’s disgraceful! ☹️
Take all the money we give you and build us another park in the US !!! Stop cramming us in like sardines and making us wait in long lines. We need another park.
Chapek and McCarthy both need to go. As soon as the pandemic crowds get the travel out of their system and the 50th is over, so will be the park attendance.
This money, money, money grab has got to end. Disney is in self-destruct mode. Yet Disney Executives don’t seem to care.
It is obvious that Disney is not reviewing these blogs, although I have been assured by a cooperate executive that they do indeed watch the blogs including this one.
That leave us to believe that Disney could care less about guest relations and only want the money, and all the money they can squeeze out of you for the least amount of service they can provide.
Lynn, Write a review on trip advisor, I can assure you as soon as you do, Disney will contact you to see how they can make it better and get you to change your review.
It that dose not work, call Disney Marketing Executive at 407 934-7666 and tell them what happened.
Chapek and McCarthy always talk about DEMAND and THE ABILITY TO RAISE PRICES. How much Disney profit is enough when the quality of the product is deteriorating. With all this profit and no change in site, how do you justify NOT CLEANING HOTEL ROOMS EVERY DAY?
We are going to UNIVERSAL 2023 and by passing Disney, attractions are still continually down, overly crowded, food is not worth the money, hours spent waiting for a ride unless u pay for it, just not a happy place.
If you have to write a bad review for Disney to care whether or not guests have a good experience then that speaks volumes about the current Disney…and it’s not a place I want to be.
AGAIN, AGAIN when will this stop! I can’t say what I feel they would delete it. Chapek and McCarthy both need to go. After they destroy Disney, we will take their Millions and run! They don’t care about the you and Me. They are in it to make their millions.
Since Eisner Disney has become more of a cash cow for the upper management and the board of directors. These prices are crushing the average Joe. Not to mention the increase in cost for merchandise they face once in the park. There use to be more creativity and a better value. With Bob Iger and Bob Chapek prices have skyrocketed and the overall value has diminished. DCL is another prime example. Prices on the cruise line are close double since 2012 to now. In 2012 my family(5)went on the third sailing of the Fantasy in a balcony for $5500. Today we’d pay 11000 for the same trip. The increase started with the introduction of Star Wars on DCL going for as much as 2k more than none Star Wars weeks.