Don't expect higher prices to lead to lower attendance at Disneyland

That's why Disneyland has increased its ticket prices again. This 12 months's increase saw most multi-day passes and single-day passes increase by about 6.5%.

This increase last week triggered the expected flood of latest media and online complaints that Disneyland had change into too expensive — identical to every increase within the last decade or so. I asked the readers ThemeParkInsider.com over the weekend whether or not they thought Disney was too expensive, and 90% of respondents answered yes.

But each time I visit Disneyland and Disney California Adventure, the parks are full. Attendance increased 2.2% at Disneyland and 10% at Disney California Adventure last 12 months, in accordance with the industry's TEA/AECOM Theme Index report. If Disneyland is “too expensive,” it doesn’t seem to be those high prices are stopping Disney fans from visiting the theme parks.

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Yes, these same fans are drained and frustrated because they’re pressured all over the place they spend money. Top concert and sports tickets typically cost as much, if no more, as a day at Disneyland, although they don't provide as many hours of entertainment. Restaurants have increased their prices a lot that eating out at Disneyland sometimes appears like a bargain. But simply because other things are too expensive doesn't excuse Disneyland from charging exorbitant amounts of cash for its tickets.

How do Disneyland fans make it work? From what I've seen on the parks, lots of them don't pay regular Disney admission prices. Casual fans will benefit from the numerous discounts Disneyland offers year-round, akin to the upcoming $50 children's ticket. Disney's most loyal fans pay far lower than $100 per visit with the resort's Magic Key annual passes.

Disneyland is just not currently selling Magic Key passes to latest customers. These passes are only available for renewal. However, Magic Key holders can move to other tiers upon renewal, and the regressive nature of Disney's recent price hikes seems designed to discourage people from downgrading.

There are two ways to get value out of something: pay less or get more. If Disneyland fans resolve to not pay less by downgrading their Magic Key passes, I think the upper prices could encourage lots of them to search for more value by utilizing the park visit more often and spend less on entertainment elsewhere. The higher list prices also serve to make seasonal discounts appear more attractive to casual fans.

In this fashion, a price increase at Disneyland can actually increase attendance on the park. We'll see what happens, but I think this 12 months's price increase won't reduce crowds within the park any greater than previous ones.

Originally published:

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