Walt Disney Co. (DIS) has announced that it is raising prices for tickets and passes to its theme parks in the U.S.
Disneyland in California and other theme parks have been a bright spot for the company, earning $28.7 billion U.S. in revenue during 2022, up from pre-pandemic revenue of $26.8 billion U.S. in 2019.
Now, the Mouse House is raising prices for some park tickets and passes, effective immediately. The price of the most expensive ticket for high demand days has been increased by 8.4% to $194 U.S, while a five-day pass now costs $480 U.S., a 16% increase.
Despite these increases, the lowest ticket price of $104 U.S. for a one-day theme park ticket has remained the same for four years.
Parks aren’t the only area where Disney is lifting prices. The company is also raising the price of its Disney+ streaming service to $13.99 U.S. per month for the premium tier starting on Oct. 13.
The price increases come at a time when Disney is grappling with an expensive streaming business and high operating costs in other areas of its business.
While Disney is trying to boost its revenue, some analysts warn that the plan could backfire and attendance at its parks may decline, especially as consumers struggle with inflation and high interest rates.
Disney’s stock has declined 9% over the last 12 months and is down 25% over five years. The shares currently trade at $84.85 U.S. each.
