Disney Slashes Children's Ticket Prices Amid Attendance Slump

The Walt Disney Company DIS has unveiled a new series of discounts for children visiting its iconic Disneyland and Disney World parks. 

This strategic move comes amidst a noticeable decline in attendance and hotel occupancy, a trend exacerbated by the inflationary pressures that have made vacations more expensive for families.

Also Read: There is Long Term Potential in Disney's Parks with Aggressive Content Monetization: Morgan Stanley

Beginning October 24, Disneyland, located in California, will offer tickets for children aged three to nine at a starting price of $50. 

These special tickets will be valid from January 8 to March 10, 2024. Similarly, Disney World in Orlando, Florida, offers a 50% discount on children's tickets and dining plans by purchasing a four-day, four-night vacation package at one of its resorts, available from March 3 to June 30, 2024, CNBC reports.

These price reductions come as U.S.-based parks, including those of competitors like Universal, Six Flags Entertainment Corp SIX, and SeaWorld Entertainment, Inc SEAS, experience lower attendance due to inflation and increased travel to Europe. 

Disney has adjusted its pricing and ticketing policies in response to guest complaints about rising costs and longer wait times. Despite these challenges, Disney's parks division has remained financially robust, with a 13% increase in revenue during the third quarter, reaching $8.3 billion.

The company plans to nearly double its investment in this successful division, allocating around $60 billion over the next ten years. Current projects include redesigning attractions and expanding the cruise line capacity. 

Disney is also exploring innovative "blue sky" ideas to revamp areas of their parks with themes from popular movies like "Zootopia" and "Moana." These strategic moves underscore Disney's commitment to enhancing the visitor experience, balancing financial objectives, and maintaining its iconic status in the theme park industry grappling with evolving challenges.

Price Actions: DIS shares traded lower by 0.34% at $79.04 premarket on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.