Has Disney Finally Made Theme Park Prices Too High?
Walt Disney (NYSE: DIS) has steadily increased prices at its U.S. theme parks. That's led to revenue increases, but overall attendance has dropped. That drop may be intentional: Pricing is a lever Disney can use to control crowds, delivering a better experience for those who can afford it while maximizing revenue for the company.
Still, while Disney may use pricing to keep crowds manageable, it probably doesn't want attendance to drop. And that's what happened in the third quarter when attendance at domestic theme parks fell by 3% (though overall spending increased by 10% due to higher admissions and increased food, beverage, and merchandise spending).
Attendance dropped at Walt Disney's U.S. theme parks. Image source: Walt Disney.
Source Fool.com
