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.