‘We Are in an Inflationary Environment’ Disney CFO Tries To Defend High Park Prices

A magic vacuum seems to suck money out of your pockets whenever you walk through the Walt Disney World Resort gates. You drop hundreds on your food choice, then more on souvenirs for the kids, and finally, end the day with a couple of cocktails for you. It doesn’t matter until you get that bill at the end of your trip and realize precisely how much you’ve spent on all these items. But it’s vacation, so why not?

You have probably also noticed that you are not alone whenever you head to Disney World. It has become unusually crowded, especially after the Covid shutdowns of 2020.

While speaking at a media event in New York, Disney CFO Christine McCarthy was asked if the incredible financial growth of Disney’s Parks, Experiences, and Products division was due to ticket prices or increased demand for those tickets. Her claim left a lot to be desired.

McCarthy told the audience that Disney’s ticket prices have risen to keep pace with inflation. McCarthy said:

We are in an inflationary environment. We are very aware of that, as inflation impacts everybody’s life. It’s t-shirts and hats but also build your own Lightsaber. Not cheap. But people tend to spend the money. That is consumer choice. 

While it is true that we are in an “inflationary environment,” the cost of tickets at Walt Disney World and Disneyland has far outpaced inflation. The price to get into Disneyland when it first opened in 1955 was $1, equal to $11.32 in today’s money, adjusted for inflation. Today’s average ticket cost is $104, which does not include the Park Hopper option or Disney Genie+.

As for the Magic Kingdom, the opening day cost 1971 was $3.50 or $26.22 in today’s money. Today’s average price is between $109-$189, which does not include the Park Hopper option or Disney Genie+.

Even Disney CEO Bob Iger said the price increases were “too aggressive.” However, Iger may have been taking a shot at his predecessor, CEO Bob Chapek. During Chapek’s time as CEO, he raised prices while the Park capacity was limited due to Covid restrictions.

Under Iger, Disney has taken steps to offer reduced ticket prices at certain times of the year and has also brought back several fan-favorite perks like the Disney Dining Plan.

 

Disney CFO McCarthy also addressed the decline in Disney+ subscribers, telling the audience, “We think of ourselves as a company of winners. We know this is a challenging industry, but we look at the hand we have to play and think it’s a great hand.” Disney’s streaming service lost more than four million subscribers globally in the first quarter of 2023.