Today I saw an article from CNBC, you know the outlet that constantly platforms Disney CEOs for exclusives, talking today about how Disney is “turning record parks profits — even before its big expansions.” Of course, they paint this rosy picture of how Disney is “winning” but the reality is the profits are up because they continually gouge guests.
What does CNBC say?
The article discusses how the theme parks, consumer products, and Disney Cruise Line were “the second-highest revenue driver behind Disney’s entertainment division.” Of course they were; they don’t have much else. Actually, the parks were normally the highest drivers until recent years.
In fiscal year 2024, the parks brought in $41.18 billion, with the division’s growth being the strongest. Disney expects even more growth through fiscal 2025.
How much more? Between 6% and 8%.
CNBC has to finish by claiming “— and that’s before it breaks ground on a slew of planned land expansions, new rides and rethemed attractions.”
What is the reality?
Although attendance has seemingly been down this year, Disney is squeezing the customers it has.
Where are they likely gaining these profits?
The DAS Pass disaster
Disney removed the DAS pass for most people, making it incredibly hard for those with disabilities to get the passes. Guests trying to get them have reported that one of Disney’s most popular solutions is to “buy Lighting Lane passes (previously Genie+.)
While some were abusing the system, a lot of people who genuinely need a disability pass are being denied and told to spend more money.
Which brings us to the next issue, Lightning Lane price increases and Lighting Lane Premier Pass.
Genie+, which later became Lighting Lane, is Disney’s replacement for the free FastPass+ program that they offered guests for years.
The upcharge started out relatively slight, at about $15 per guest per day, and has since grown to prices that can reach almost $40 per guest per day.
Individual ride selections can cost over $20 per guest and are separate from the Lightning Lane Multi-Pass.
Lighting Lane Premier Pass
Disney has just added the new Lightning Lane Premier Pass that will cost each guest $149-$449, depending on the theme park. This pass allows them to use all the Lighting Lane lines once.
So we went from everyone equally getting FastPass+ for free to incredible upcharges that allow guests who can afford them more perks.
Of course, this is also making the lines much worse. It’s becoming practically impossible for casual guests to visit the parks without paying for upcharges.
Disney has profited a lot from Genie+ and Lighting Lane. That information was somewhat leaked in the big Nullbulge hack they had recently.
From its start until this past summer (before price hikes and Lighting Lane Premier), Disney reportedly profited almost three-quarters of a billion from the upcharge program. That is a lot of money coming from a program that did not exist until 2021.
Disney Ticket prices continue to climb.
While Disney charges more and more for Lighting Lane, they also raise their ticket prices yearly.
Pricing at both Disneyland and Walt Disney World goes up annually, sometimes more than once. While they may keep the lowest ticket price constant, they offer far fewer days at that price and then increase the number of ticket days.
The same is happening to their after-hours events, such as Mickey’s Not So Scary Halloween Party, Mickey’s Very Merry Christmas Party, Villains, and other After-Hours events. The prices are far outpacing inflation, resulting in massive upcharges to the consumer.
Just last month, they raised their Annual Pass prices at Walt Disney World, too.
This doesn’t count increases in food, merchandise, and resort hotel pricing.
But….but…$60 Billion in Disney park expansions are coming!
CNBC’s other reason Disney is on the upswing is the $60 billion Disney is spending to bring new attractions to the parks.
Disney has to do this because the competition will destroy them if they don’t. While, yes, some new things are coming, a lot of it is re-theming or overlays of existing attractions. Plus, that money is over 10 years and for all 6 of the theme parks. Some of the funds are for upgrading current systems as well.
Disney promises a lot but will also cut a lot of corners when reality sinks in.
Tiana’s Bayou Adventure has been a widely used example of this.
CommuniCore Hall and Plaza are also examples of this.
Disney is doing this to try to stay competitive
Disney doesn’t have a choice but to spend a lot of money on upgrades. Universal is coming at them hard, especially in Orlando with their upcoming Epic Universe.
Bob Iger tried to argue that Disney has been adding lands and things because they knew about Epic Universe. Still, the reality is that Universal has some very exciting and built attractions coming in 2025, not in the next few years. Frankly, they are out-Disneying Disney with their cutting-edge tech and imaginative offerings. Disney has to ramp it up to stay relevant. They don’t have a choice.
If they could not spend more money, they wouldn’t. If they could simply take money for the honor of shopping at the parks, they would, and they did this in Disneyland during the pandemic.
The increase for 2025
During the Q4 investor call, Disney indicated that they will likely do better in 2025 because of Epic Universe.
That is likely true. If guests have been saving and waiting for the new Universal Orlando theme park, they will likely make one trip and visit both resorts. But Disney will be gaining passively, not because of anything they have done to actively attract guests.
But they will likely increase prices instead of keeping them steady or decreasing them. $60 billion has to come from somewhere right?
How long will guests continue to put up with Disney’s prices?
Disney really needs to rethink its strategy when it comes to squeezing more blood out of the rocks it has.
Customer opinion of Disney is sinking, and people don’t have the money to spend. Paying more for less isn’t attractive to consumers right now.
Not to mention the recent revelation that agreeing to Disney+ or the My Disney Experience App terms of service waives your right to trial by jury and only allows for arbitration, there are also other news stories about lawsuits against Disney for seemingly underhanded shenanigans. None of this helps their image with customers.
While Disney brags that their profits are up, it isn’t sustainable. No matter what CNBC says or how many puff pieces they put out (likely for access.) The media and reality seem far removed anymore.
What do you think? Comment and let us know!
Pirates & Princesses (TM) (Stylized as PNP) is an independent, opinionated News and Information site focused on Travel, Entertainment, Fashion, the “Geek Girl” Lifestyle, and more. We focus heavily on Walt Disney World, Disneyland, Universal Orlando Resort, and other themed entertainment and travel destinations. Our news staff includes former theme park and entertainment industry employees, journalists and dedicated pop culture and theme park enthusiasts. Opinions expressed by contributors do not necessarily reflect the views of this site, our affiliates or our sponsors.