Bob Iger admits that Disney has been “very aggressive” with theme park prices

a job

by Thomas Baraby

March 10, 2023 | 11:18 a.m

Disney CEO Bob Iger has admitted that the Mouse House has gone too far on park price hikes that upset its customers last year.

One of Iger’s first steps when he returned as CEO of Disney last November was to undo the price increases implemented under his predecessor, Bob Chapek.

“I’ve always believed that Disney was a brand that should be accessible to everyone,” Iger said during an appearance at a Morgan Stanley press conference Thursday. “And I think in our enthusiasm to increase earnings, we may have been a little aggressive about some of our pricing.”

“I think there is a way to continue to grow our business, but we have to be smarter about how we price so that we maintain the brand value of accessibility,” Iger added.

In January, Disney brought back several price-friendly perks the company had previously canceled, including free parking at resort hotels and free picture downloads for its theme park rides.

The entertainment giant has also “significantly” boosted the number of days Disneyland tickets sell out for their lowest price of $104.

The company’s price decline “resonated very well with consumers,” Iger said.

The Disney chief also said the company has taken steps to “improve the guest experience by reducing crowding” at the parks.

“It’s tempting to let more and more people in, but if guest satisfaction levels are dropping because of crowding, it won’t work,” Egger said. We have to understand how to reduce congestion while maintaining our profitability. And we did it really well.”

A series of price increases sparked outrage among Disney park-goers who grumbled about sticker shock as well as the long lines and substandard service they encountered at the site.

last november, The Wall Street Journal reported that Egger had been “disturbed” by the price hikes ordered by Šapek during his tenure as CEO.

Egger reportedly told confidants about the price hike: “It kills the soul of the company.”

Disney’s theme parks remain a major driver of its overall business. In fiscal 2022, this segment generated $28.7 billion in revenue and $7.9 billion in profits, outperforming pre-pandemic performance.