Disney raises ticket price in U.S. and hopes in Europe
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Disney raises ticket price in U.S. and hopes in Europe

The Walt Disney Company has raised ticket prices for its American theme parks by up to $5 for a single-day ticket. This is an annual event, and the bitter-pill of higher ticket prices is usually offset by cuts to other types of tickets or discount deals, meaning that Disney enthusiasts on a budget still get their fair share of the fun. However, across the ocean, Disney has been dealing with another financial affair: buying back a controlling stake in its troubled overseas franchise, Euro Disney.

In America, single day tickets at Walt Disney World in Orlando, Florida will change by as much as 4.9%, depending when you want to visit. Altering ticket price by timing is the rolling out of last year’s bright idea. In 2016, Disney started using a three-tier structure whereby visitors would pay more for entry during peak periods. This means Disney either gets more revenue from the same visitors at the same time, or they spread out their visitors over a longer period, improving access to attractions. For Disney, this is a win-win scenario.

Meanwhile, other shifts in ticket prices will see customers better off. A two-day ticket to Walt Disney World, for example, has declined by $3. We can expect the company to provide its usual barrage of compelling discounts and deals too.

Theme parks are Disney’s second-largest division, bringing in almost $17 billion revenue last year. But their overseas equivalent – Euro Disney – is struggling. The Walt Disney Company recently made a restoration offer to its European franchise, buying 90% of Kingdom Holding Co.’s shares. This means Disney now controls 85.7% of Euro Disney.

A statement from Disney, which is looking to increase its stake in Euro Disney further, said:

"The (Euro Disney group's) financial condition has been significantly and negatively impacted by the November 2015 events in Paris and the challenging business conditions that continued through 2016 in France and throughout Europe. The comprehensive proposal announced by Disney affords maximum flexibility to shareholders, addresses the Group’s financial needs and reflects its ongoing support for the long-term success of Disneyland Paris."

Disclosure
Dominion holds The Walt Disney Company in its Global Trends Luxury Fund.


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