Tiered ticket pricing is working for Disney parks, Disney CEO Bob Iger said during the company's fiscal Q2 earnings call Wednesday.

"We have been very strategic at our approach to pricing over the last number of years, and it's really paying off," Iger said. "The results this quarter certainly are evidence of that. And what we're trying to do basically is two things: to price according to demand, and in managing demand, try and spread out attendance so that we can preserve or improve the guest experience. It's that simple."

Disney introduced tiered pricing in 2016, with different rates for different days of the year. Days are deemed as either "value," "regular" or "peak," with the most expensive tickets coming on peak days. A single-day ticket at Disney World's Magic Kingdom ranges from $109 to $159.

Iger mentioned that tiered pricing will help Disney spread out attendance at Hollywood Studios and Disneyland when the Star Wars: Galaxy's Edge lands open later this year.

"It's not just about raising prices, it's about being really smart about it," he said.

CFO Christine McCarthy said domestic park attendance was up 1% in the quarter despite the entirety of the Easter holiday falling in fiscal Q3. Last year, one week during the holiday was in Q2.

Revenue for Parks, Experiences and Products in the quarter increased 5% to $6.2 billion. Operating income increased 15% to $1.5 billion. Disney said park attendance, guest spending (food, beverages and merchandise) and hotel occupancy increased. Average ticket prices were up.

Companywide, Disney reported a 3% increase in revenue to $14.92 billion, and an 85% increase in net income to $5.43 billion.


From Our Partners

2020 NTG Webinar Series
Travel, Our Future and Yours A Series of Conversations with Industry Leaders
Watch Now
Happy Tours
Happy Tours
Read More
2020 Happy Tours Webinar
Why sLOVEenia is a destination your clients will LOVE
Watch Now

JDS Travel News JDS Viewpoints JDS Africa/MI