The U.S. travel sector has been surprisingly resilient in relation to travel.
Domestic travel numbers have returned to pre-pandemic levels and air travel has surged whilst greater than a 3rd of travelers planned to tackle debt for summer trips. Nevertheless, inflation-weary consumers is perhaps taking their money elsewhere in relation to theme parks.
In its 2024 third-quarter results, Disney blamed a “softening consumer environment” for sliding demand in its theme parks. Domestic parks, which include Walt Disney World and Disneyland, saw a 6% drop in operating profits, despite revenue climbing 3% compared with the yr prior, the corporate said.
Universal Studios’ parent company Comcast reported a virtually 11% drop in theme park revenue driven by lower attendance in that very same period, its fiscal second quarter.
“I believe what we’re seeing is consumers have a number of selections, they usually’re making thoughtful decisions as to where they need to go,” said Disneyland Resort President Ken Potrock, “which implies it is a competitive environment, which implies that we should be smart and thoughtful about ensuring we’re listening to what their needs are and the way can we appeal to their needs.”
While Disney parks are still the most-visited theme parks on the planet, with 142 million visitors globally in 2023, ticket prices and the price burden of visiting a Disney park have been rising.
A one-day, single-park ticket for Walt Disney World has climbed on average 5% per yr over the past 10 years. Between 2014 and 2024, the common cost for a single day Walt Disney World ticket inflated 56%, in keeping with Wolfe Research, well above the national rate of inflation at 32%.
Alternatively, the value of Disney World and Disneyland’s most cost-effective ticket has remained regular since 2019. A Disney World one-day, one-park, off-peak ticket will cost a park-goer $109, and its equivalent at Disneyland is $104. But on average, a one-day ticket at Walt Disney World costs $154, in keeping with Wolfe Research, and a Magic Kingdom ticket costs as much as $189 during peak travel times.
“On condition that linear television has been disappointing Disney and everybody else in that business for the last decade, it stands to reason that Disney might need responded to that by pricing its parks just a little more aggressively with the intention to prop up its financial results,” said Peter Supino, the managing director at Wolfe Research. “It continues to be a premium experience that puts pressure on the more price-sensitive cohort of shoppers that need to go there and struggle with the price.”
So is a Disney vacation getting too expensive for the common American? Watch the video above for the complete story.
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.
