Walt Disney (DIS) has struggled with profitability since the covid pandemic. Demand for its United States theme parks -- Disney World and Disneyland -- remains very high and the company has struggled with how to best monetize the parks while also delivering a decent experience to guests paying a minimum of $109 for access to a single park.
The problem is that Disney (at least at the four parks that make up Disney World) has created a system where basic admission doesn't get you very much. Yes, you can get into Magic Kingdom, Epcot, Hollywood Studios, or Animal Kingdom, but entering the parks is only part of the problem.
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On most days, Disney World's parks -- despite the company keeping capacity below where it was before the pandemic -- are so crowded that lines for any ride routinely have a wait time that's over 60 minutes. That's essentially because Disney's variable pricing, where tickets for a single-park admission now cost between $109 and $189, have smoothed out demand.
By pricing less desirable days (non-holidays, weekdays when it's not a school vacation) cheaper, the company has made those days more attractive for people on a budget. That's smart, but it has also created a situation where all four Disney World theme parks are always crowded.
That's an issue because Disney replaced its free FastPass+ system in October 2022 replacing it with the added-fee Genie+ system. The company wants people to view the new service as an add-on or a bonus that makes their trip better.
The reality is that unless you love long lines or don't really like rides, Genie+ is an absolutely essential purchase if you want to have a positive experience at Disney World.
Image source: Daniel Kline/TheStreet
Here's How Disney's Genie+ Works
Most people visit Disney rarely -- maybe even only once. That makes the trip a sort of once-in-a-lifetime spare-no-expense experience (which is something Disney is counting on). Under the old FastPass+ system, every ticketholder was able to reserve three rides (or experiences like shows and character meet and greets) before their trip.
Disney World resort guests were able to make their reservations earlier (60 days out) while regular ticket holders and annual passholders could make reservations 30 days in advance. You may not have gotten every ride you wanted or might have had to pick times that weren't your first choice, but you went to the park knowing that no matter how long the lines were, you would be able to have three rides or experiences guaranteed.
Now, to get something like that experience you have to buy Genie+ which costs anywhere from $15 to $29 per guest, per day. Disney uses variable pricing on the add-on as well because it only sells so many per day, and it wants to use higher pricing to avoid a sellout.
Genie+ allows you to make a reservation for most rides and when you finish that ride you can make another reservation. Disney also sells Lightning Lane passes, which are an added-fee cut-the-line service not included in Genie+ for the hottest and newest rides.
Over the President's Day weekend, Genie+ not only hit its top price -- $29 per person, per day -- it also sold out. That's not supposed to happen, but it did meaning that some visitors could not even opt to pay up to have a semi-decent day at the parks.
Disney Prices Should Include Genie+
It's worth noting that I'm a Florida resident who owns a condo near Disney World and has an annual pass that gets me into the parks except for some very limited holiday blackout dates, I'm a fan of Disney World who spends 10-20 days per year at the parks who has experienced all the Florida parks with friends (and their kids) visiting from out of state.
From what I have seen, visiting without Genie+ greatly limits your ability to experience the parks. Even paying for the service arguably delivers an experience that's not as good as what was offered with FastPass+, a service that all park visitors got for "free."
The reality is that nothing at a Disney theme park is free. FastPass+ was part of what you paid for when you bought an admission to the parks. Disney should do the same with Genie+ by raising admission prices but returning the reservation system to something closer what it used to offer.
Disney can even keep charging for Lightning Lane admission to its newest and most-in-demand rides, but it needs to stop pretending that Genie+ isn't something the vast majority of park visitors need to pay for. It's hard to imagine that people would cancel a Disney World visit if base ticket prices increased by $22 per day, but added Genie+-like services as part of the deal.
The old FastPass+ system guaranteed that every park visitor would get three rides, shows, or character meet-and-greets without waiting in a long line. That's at least a base line to having a decent day at Disney World and knowing you will get to do a few things that you wanted to.
Disney has shown that pricing does not really impact demand at Disney World so it should make this move to focus on making sure that all park visitors have a positive experience.
