Walt Disney World s Theme Parks Have Changed Their...

Walt Disney World’s theme parks have recently changed their pricing strategy to demand-based pricing (Barnes, 2016). Demand-based pricing is when consumer demand or perceived value is used to set the price of the service or good (Boundless, 2017). Demand-based pricing is well-known for being used in the hotel and airline industry. It was not until early 2016 when Disney decided to make the switch to this as well (Sampson, 2016). Ticket prices now cost up to 20% more during holidays and weekends (Barnes, 2016). Seasonal changes were also included, where â€Å"peak† tickets for visits during December, Spring break, and July weekends come at a higher price (Barnes, 2016). A three-tiered system based on the date of the visit was†¦show more content†¦Direct and indirect competitive brands for pricing strategy The anticipation of heightened demand dynamically affects admission price for theme parks. Walt Disney World and Disneyland recently introduced variable pricing in 2016 so that park tickets will cost more during holidays and peak period weekends. This only applies to one-day tickets, and not multi-day packages. Disney’s major competitor, Comcast’s Universal Studios, has also adopted demand-based pricing. One difference though, is that their system provides incentives for visiting on off-peak days, and/or booking tickets online in advance. Guests can get $5 to $20 off the walk-up price, with the bigger discounts saved for midweek, low-demand periods. A variety of other discounts, packages, and promotions are available to guests that are all designed to bring down the per-day admissions cost for visitors, while simultaneously ensuring a longer stay for guests. A longer stay is a win-win situation because it means more money spent overall at theme parks, restaurants, hotels, and gift shops. SeaWorld has still struggled to bounce back after the loss of visitors from its killer whale controversy, and the boom of expansions with its competitors. â€Å"SeaWorld has very price-sensitive customers. Disney s customers are less price-sensitive†, said Robert Niles, editor of ThemeParkInsider.com (Pedicini, 2016). SeaWorld said it moved away from discounting tooShow MoreRelatedCase2 the Not-so-Wonderful World of Eurodisney1743 Words   |  7 Pagesstudy: The Not-So-Wonderful World of EuroDisney Summary Euro Disney SCA formally launched its theme park to Europeans in April 1992 near river Marne, 20 miles East of Paris. It was the biggest and most lavish theme park that Walt Disney had built bigger than any of its Disney parks around the world. The location was chosen over 200 potential sites in Europe from Portugal through Spain, France, Italy and Greece. 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