This comes from the how did they think of that department. A new study by Pali Research shows that Disney World’s recent 5.7% price increase for daily admission was designed to increase revenue for the park. To that I say, and they pay you to come up with these things? How do I get that job?
The real story is that the study reveals Disney is expecting lighter than usual attendance next year and hopes to make it up with increased ticket prices. Of course, there is only so much revenue a ticket increase will get you. Plus you have to make up for the increase in price with an increase in value or those guests won’t be coming back as frequently, if at all. On the other hand this means you might be able to find some deals when booking a vacation with Disney next year.
That actually crosses the line into the category of ‘scary’. ;-)
Chris
http://amateureconblog.blogspot.com/
I have to wonder if an increased ticket price really tanslates into more revenue. Let’s assume that nobody cancels or delays their trips to WDW, and that they do not decide never to come back or come back less frequently because of the ticket prices. But my question is – do they spend less at WDW on other things? Do they switch to a lower-priced hotel room? Do they buy fewer or less expensive merchandise items? Fewer snacks? Less expensive meals? Fewer drinks?
So many people in the world (or at least America) don’t bother to really set up a hard budget, so they probably do not think that way. On the other hand, a lot of people do recognize when their bank accounts are getting too small or when their credit card bills are getting to high, and cut back on spending.
I would expect that Disney has studied this themselves and take an estimate on how much they can rise ticket prices without ending up losing money.
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