The Walt Disney Company announced new discounts on children's tickets at its U.S. theme parks in an effort to boost attendance, according to a company blog post. The temporary price reductions come as Disney parks grapple with signs of slowing foot traffic.
Beginning October 24, Disneyland Resort in California will offer $50 per day tickets for children ages 3-9 valid for use between January 8 and March 10, 2023.
Meanwhile, Florida's Walt Disney World will roll out a vacation package deal on November 14 including reduced kids' tickets and dining plans. That offer can be used for travel from March 3 through June 30, 2023. Both promotions are limited to children between ages 3-9.
The discounted tickets arrive as Disney parks face early indications of lagging attendance growth after a robust pandemic recovery. During an August earnings call, Disney CEO Bob Iger acknowledged "softer performance" recently at Walt Disney World compared to pre-pandemic levels.
Iger stressed that Disney World continued generating strong revenues far surpassing 2019. But the admissions slowdown coupled with rising costs has put pressure on Disney to sustain profit momentum at its parks division.
Last month, Disney revealed plans to invest nearly $60 billion into its theme parks segment over the next decade. The capital expenditures will fund ongoing expansion efforts as well as attractions tied to new franchises like Star Wars.
Disney parks closed for extended periods during 2020 due to the COVID-19 pandemic. The division incurred an estimated $6.9 billion hit to operating income that year while furloughing over 100,000 workers.
But business came roaring back in 2021 as restrictions eased and pent-up travel demand was unleashed. Disney parks posted record revenue for the year, raking in $7.2 billion in operating income.
The parks’ quick turnaround provided a much-needed boost as losses mounted in Disney's streaming segment. Some analysts speculated the rapid recovery also reflected price hikes and reduced promotions implemented during the pandemic.
Now as consumer budgets tighten, Disney is tactically tapping discounts to sustain family attendance and unlock future revenue via food, merchandise, and upgrades. The latest kids' tickets represent discounts between 8-20% off standard daily admission.
“We are always looking for new ways to add value to a Disneyland Resort visit, and this latest offer helps families experience all there is to see and do at the Happiest Place on Earth during the coming season,” Disneyland Resort's vice president said in announcing the promotion.
The ticket discounts target parents looking to visit Disney parks with their children outside of peak holiday periods when prices usually surge. The offers come on the heels of Disney announcing new animatronic characters based on "Coco," "Toy Story" and other franchises to boost attraction lineups.
As it pursues ambitious expansion plans, Disney is aiming to sustain family attendance through strategic deals, improved park experiences, and classic characters. While the kids' promotions won't single-handedly offset inflationary pressures, analysts say every bit helps Disney's bottom line.
The ticket price cuts also allow Disney to build customer data and cultivate brand loyalty among price-sensitive parents. As their children grow up, upgrading them to full-price tickets at a loyalist's premium could pay dividends for years to come.
“We are always looking for new ways to add value to a Disneyland Resort visit, and this latest offer helps families experience all there is to see and do at the Happiest Place on Earth during the coming season,” said a Disneyland executive.
With consumers hunting for bargains, Disney hopes creatively packaged discounts will conjure some stuck-at-home magic for parents and kids
