Why is Disneyland so expensive now, when it was originally a children’s paradise?

Along with Mickey Mouse, Disneyland is also a very famous symbol of the giant corporation Disney. The park is part of the Disney World complex, considered an extremely healthy entertainment paradise suitable for all ages, a “must-visit” place where it exists.

However, that “paradise” is not for ordinary children. To set foot in Disneyland, you will have to pay a price not cheap, because in fact, admission tickets of Disney theme parks are getting more and more expensive each year.

As in 2018, Disney World experienced 2 price increases. Take for example the platinum class ticket – a standard option that allows customers to visit all 4 Disney parks in a year. In February 2018, the fare increased from 779 to 849 USD (19.5 million VND). By October, the price increased to 894 USD (over 20 million VND). In total, ticket prices increased by 15% that year. And at the moment, Disney World’s platinum ticket has reached nearly $ 1200 with taxes (27.6 million) – the most expensive price of any amusement park in the world.

The expansion of an empire

It is the fourth time in the history of Disney World to raise prices twice in the same year. The first was in 1997, before the Animal Kingdom was about to open in 1998. In 2018, the same thing happened when Disney World and Disneyland opened the “Star Wars” theme area – Galaxy’s Edge nearly 60,000m2. .

And Disney’s expansion has not yet stopped. Disneyland in Hong Kong has spent more than $ 1.4 billion on two “Avengers” and Frozen theme parks. Tokyo’s DisneySea also expanded, and so was the Epcot and Disney Studio at Disneyland Paris. It all becomes a reason for Disney to raise fares – when you get more utilities, you have to pay more, that’s all.

Despite huge investments, Disneyland still recorded huge profits of up to $ 4.5 billion in fiscal 2018 – an increase of 100% compared to 2013. But if capital is already gaining so much profit. , why do they have to raise prices to do more? Are they … greedy?

All just a game of competition

From the mid-1980s to the early 2000s, Disney parks were superior to their peers. In 2002, Disney’s Magic Kingdom alone doubled its sales compared to its strongest competitor, MGM Studios. But in 2010, things began to change sharply after Universal opened the theme area related to the magical world of JK Rowling: Wizarding World of Harry Potter.

“The marketplace is the battlefield. Naturally, Disney has new competitors, and they don’t like to lose. Not only that, Disney doesn’t even want to compete. They want to crush every opponent,” – Robert Niles, designer of themes for Insider share.

From that point on, Disney began focusing all its resources to overwhelm its rivals. In 2011, they opened the “Avatar” theme park in Animal Kingdom. Six years later, new theme parks were established in the four largest amusement parks. And by 2017, customers coming to Disney accounted for 55% of the total number of visitors on amusement parks in the world.

Disney theme areas are the thing that attracts visitors

It was a truly successful campaign. Everyone wants to go to Disney World on summer holidays and Christmas holidays (the time when kids are off school). The problem is that the amount of investment is up to billions of dollars, they are open 365 days a year and can only be fully booked in about 4-6 weeks. So to balance it, they are forced to use a price policy and incentives.

In 2018, with the second price increase, Disney World pushed its ticket prices up very high, but comes with a flexible policy. Ticket prices for the peak season (summer and winter holidays) will be higher, to ease guests for other times of the year.

“Disney understands what the US economy is like. They know about the so-called” rich-poor gap. “They see money mostly in people with high incomes – in the top 10%, even 1 %. So they created a bunch of new products to attract more money from those who are well-off and willing to spend. ” – Niles said.

Disney has launched a number of new options for customers who have money, such as dining with Disney princesses, makeup services, hairdressing, even a VIP tour. And of course, such “genuine” offers will come at a different price. As in 2014, the Orlando resort opened in Disneyland for $ 449 / night. Or Bora Bora Bungalows only cost about $ 29 when the park opened, now it costs $ 3,400 (nearly 80 million).

The “cruel” for the middle class

The only problem with this campaign is that if you are middle-class people who cannot make more money, you will have difficulty meeting the price offered by Disney.

Since the 2000s, Disney World has started to increase prices year by year, while average income has decreased by 5.4%. By 2018, their average spending on each guest increased by 5%, while accommodation revenue also increased by 8%.

“Disney has done a great job of becoming a cultural icon of the United States. They did so well that Disneyland became a familiar brand, and now followers from the beginning are feeling pressured by the growth of Most of the previous customers were from the old middle class, and it is difficult for them to pursue the modern economic system today. ” – Niles commented.

“Many customers will probably be disappointed, because they put their heart into the company, in the company and now they are really tired of trying to follow. But the truth is when Disney grows, they have to follow. profitable businesses. They have to follow the path of maximizing profits, and trying to satisfy loyal customers is only a constraint. “

 

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