Disney CFO Expects Park Attendance & Pricing to Grow With Expansions ()

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Disney Says Park Attendance and Ticket Prices Are Expected to Rise Alongside Major Expansions

Disney is making it clear that all those massive theme park expansions are not just about adding more rides. They are also expected to drive even bigger crowds and higher prices over the next several years.

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Disney CFO Expects Park Attendance & Pricing to Grow With Expansions

Speaking during the MoffettNathanson Media, Internet & Communications Conference, Disney CFO Hugh Johnston discussed the company’s long-term strategy for attendance growth, park capacity, and pricing across both Walt Disney World and Disneyland Resort.

According to Johnston, Disney believes its ongoing expansion projects will allow the company to grow attendance without overcrowding existing parks to uncomfortable levels.

“There tends to be a lot of focus on attendance as a number,” Johnston explained. “But the reality of it is, when you have a big fixed asset like we do, we tend to actually use promotional activities to make sure that we’re filling the park every day.”

He went on to say Disney does not want to simply pack more people into already crowded parks because it negatively impacts the guest experience.

“Without expansion, we don’t necessarily have the ability to grow attendance massively, because it’s already filled up,” Johnston said. “Now, we could jam more people into the park, but then the guest experience declines, and that’s actually bad for the brand.”

Instead, Disney sees major expansions as the key to increasing both guest capacity and overall demand at the same time.

At Walt Disney World, projects already announced include the massive Disney Villains land coming to Magic Kingdom along with the new Cars-inspired Piston Peak area planned beyond Big Thunder Mountain Railroad. Over at Disneyland Resort, Disney California Adventure is preparing for a major Avengers Campus expansion that will nearly double the size of the Marvel-themed land.

Johnston pointed to Disneyland Paris and its ongoing expansion featuring World of Frozen as an example of how new additions can significantly boost demand.

And if guests were hoping all this new capacity might eventually lower prices… Disney does not seem to see it that way.

Johnston acknowledged that adding more capacity naturally raises questions about whether Disney would need to lower prices or offer more discounts to fill the parks. According to him, that has not historically been the case.

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Disney CFO Expects Park Attendance & Pricing to Grow With Expansions

“When you put in a big, new attraction, you see a surge in demand for it,” Johnston said. “So we tend to fill those things up really, really quickly without having to discount.”

He added that major new attractions can actually create opportunities for Disney to charge even more because guests are paying for experiences that did not previously exist.

In other words, the future of Disney Parks appears to include both bigger lands and bigger price tags. The mouse is building more room in the kingdom… but it may still cost a royal fortune to visit.

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