Get all your news in one place.
100’s of premium titles.
One app.
Start reading
The Street
The Street
Daniel Kline

Disney World Faces a Major Value Challenge

Walt Disney saw his theme parks as a place for working-class families, where everyone would be welcome.

Florida Gov. Ron DeSantis wants to paint the company as decadent, immoral, and out-of-touch with American values.

DON'T MISS: Universal Studios Has New Offering Disney World Can't Match

Reality sits somewhere in the middle. Walt Disney's (DIS) largest theme park hasn't lost touch with America because the company's former CEO took a stand against DeSantis' so-called "don't say gay" legislation nor can you blame its support of LGBTQ+ issues.

Many Americans support those stands while others disagree. Americans shop at both Walmart and Target -- two companies perceived to have differing political values -- even though both sell Pride merchandise.

Where Disney has gone wrong is that it lost touch with the idea of being for all Americans. Pricing has made Disney World a dream that's beyond the reach of many Americans and that's something that Disney Parks Chairman Josh D'Amaro wants to fix.

Disney World has capacity issues.

Image source: Matt Stroshane/Walt Disney World Resort via Getty Images

Disney Understands Its Value Problem

Disney used demand-based pricing that's designed to get the company the most revenue per ticket sold based on demand that day. That system maximizes revenues while also capping crowds.

“This is a place for everyone,” D’Amaro said to The Points Guy while walking around Disneyland. “When you go walk around, you'll see people from everywhere, from all walks of life.”

The same logic applies to Disney World, but the problem is that pricing is driven by Disney's parks having limited capacities. If you lower prices while demand remains high, you're leaving money on the table.

D'Amaro told the website that Disney World does have the most days it has ever had priced at the lowest end of its pricing options. But, he acknowledged that the company has made its mistakes.

“I'll repeat the same thing I said before: We don't always get it right,” he shared.

ALSO READ:

How Is Disney Addressing Pricing?

For many families, Disney World will remain something aspirational -- a vacation you plan for over years.

"It’s a balancing act, D’Amaro told The Points Guy. "If the price is too low, lines will be unbearable, souring the experience for all. But if it is too high, the parks become inaccessible for a large share of the population."

To address that, the Parks Chairman pointed to the company offering a lot of choices when it comes to accommodations.

"I want to make sure there are as many choices presented to you as simply as they can be. You could stay at a value resort if you choose to, or you could stay at the Grand Floridian or the Grand Californian if you'd like to,” he shared,

D'Amaro did address Disney's recent expensive failure, its "Star Wars: Galactic Starcruiser" hotel. That property, which started at $6,000 for a two-night experience, simply could not attract enough customers and will close in the fall.

D'Amaro, however, does not see the Star Wars hotel as a failure. He views it more as added experience and a lesson learned.

“Raise the bar. Try things that the guests aren't even asking for because they don't know to ask for that,” he said. “I know not everything's going to work. What did work, though, is we took creativity and storytelling to a completely new level, to a level that had never existed before. ... It didn't work commercially. And so, when we realized that, you just make a call and move on.”

 

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.