Is Disney World's Popularity Starting to Fade?
On the surface, everything seems to be going swimmingly for Walt Disney's (NYSE: DIS) iconic Florida resort. Disney World delivered record financial results for the media giant earlier this month. Demand is so strong that Disney remains the only major theme park operator to require advance park reservations. Disney kicked off a premium-priced Halloween event earlier this month -- yes, in August -- and it's already sold out through mid-September.
With international travel restrictions easing up earlier this year and pent-up hunger for consumer escapism on the rise, the prospects couldn't seem to be brighter for the House of Mouse. Disney World and its sister Disneyland park have limited the sale of annual passes, suggesting that they're not having a problem filling their gated attractions with folks paying retail for a day at the park.
The good times can't last forever. The wobbly economy, pesky inflation gnawing away at disposable income, and Disney's own penchant for higher prices and new premium experiences will eventually hit a breaking point. When will that be? A good indicator of Disney World finally stretching its pricing elasticity too far is when it starts wooing the annual passholders after largely neglecting its regulars. We could be there now.
Source Fool.com
