The U.S. travel industry has shown surprising resilience when it comes to travel.
Domestic travel number Air travel has returned to pre-pandemic levels and air travel has surged, although more than a third of travelers plan to take on debt for summer travel. When it comes to theme parks, however, inflation-weary consumers may spend their money elsewhere.
In the third quarter 2024 results, disney The company blamed a “weak consumer environment” for the decline in demand for its theme parks. The company said operating profits at domestic parks, including Walt Disney World and Disneyland, fell 6% despite revenue rising 3% from a year earlier.
parent company of universal studios Comcast reported nearly Theme park revenue fell 11% That was driven by lower attendance during the same fiscal second quarter.
“I think what we’re seeing is that consumers have a lot of choices and they’re making thoughtful decisions about where they want to go,” said Ken Potrock, president of Disneyland Resort. It’s a competitive environment, which means we need to be smart and thoughtful about making sure we’re listening to their needs and how we meet them.
While Disneyland remains the most visited theme park in the world, The number of global tourists will reach 142 million in 2023ticket prices and the cost burden of visiting Disneyland have been rising.
Over the past 10 years, single-park one-day tickets to Walt Disney World have increased by an average of 5% per year. Average cost of a single-day ticket to Walt Disney World between 2014 and 2024 Expansion 56%That’s well above the national inflation rate of 32%, according to Wolfe Research.
On the other hand, the cheapest tickets at Disney World and Disneyland have remained stable since 2019. But according to Wolfe Research, the average price of a one-day ticket to Walt Disney World is $154, and during peak travel times, tickets to the Magic Kingdom cost as much as $189.
“Given that linear TV has been disappointing Disney and everyone else in the industry over the past decade, Disney will likely respond to this by pricing its parks more aggressively to shore up its financial results,” he said. Peter Supino is managing director of Wolff Research. “It’s still a premium experience, which puts pressure on a customer base that’s more price-sensitive and wants to be there but is struggling with the cost.”
So, are Disney vacations too expensive for the average American? Watch the video above for the full story.
Revealed: Comcast owns NBCUniversal, the parent company of CNBC.
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