Disney’s New CEO Josh D’Amaro Discusses Theme Park Pricing and Affordable Kids Tickets
Josh D’Amaro, who recently assumed the role of CEO at Disney, addressed the contentious issue of theme park pricing during the company’s annual shareholder meeting.
When an unidentified shareholder inquired how Disney’s Experiences division, which D’Amaro previously led, strives to balance revenue growth with guest satisfaction, he provided an in-depth response.
“That is an important question,” he acknowledged. “I guess I’d start with the fact that I know that a Disney park visit is a meaningful investment for families that visit us, and our goal is for every single guest to feel that their experience is worth it. Basically, we want this experience to be the best day of a guest’s life. And we’re always measuring our success here. So, for example, we look at things like guest experience ratings and a guest’s intent to return after they’ve visited us. And these metrics are both very high across all of our parks.”
Disney has faced backlash over increasing park prices, particularly in recent years as consumers grapple with rising costs for essential goods such as groceries and gas. While the annual price hikes instituted last fall were more modest than in previous years, many of these increases still surpassed the rate of inflation.
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D’Amaro emphasized that the company’s pricing strategy revolves around offering a diverse range of options and price points to accommodate varying family budgets. He highlighted a promotional ticket offer for children aged 3 to 9 at Disneyland, allowing entry for just $50. “The promotion is pretty good,” D’Amaro remarked. “We also have kids’ free dining promotion with some packages of Walt Disney World.”
Despite these promotions, Disney reported a 1% dip in U.S. park attendance in the fiscal fourth quarter compared to the previous year. However, revenue saw a 6% increase.
Expenses within the parks division are also on the rise. In 2023, Disney announced plans to double its spending across parks, resorts, and cruise ship operations, committing $60 billion over a decade. During the shareholder meeting, D’Amaro mentioned a new park project in Abu Dhabi, which was unveiled last year.
Ultimately, D’Amaro stated that the company aims to “provide a fair amount of choice and flexibility for our guests while at the same time making sure that we’re managing daily attendance and overall experience.”
