Disney CFO Hugh Johnston says the company is preparing to bring dynamic pricing to the domestic parks, following early results from a test underway at Disneyland Paris.
Speaking at the Wells Fargo Technology, Media, and Telecom Summit, Johnston outlined how the company is approaching pricing strategy across tickets, food and beverage, merchandise, and paid add-ons.
Johnston said the parks team is increasingly focused on yield in years without new capacity. You see this already in areas like Lightning Lane, VIP Tours, and other paid services. He described the effort as a broader push to drive incremental revenue across every part of the operation.
During the session, he confirmed the company is investing in dynamic pricing, with Paris serving as the test case. The system has been running there for about a year. Johnston said early results look strong, but the company is taking time to optimize it before introducing it in the U.S.
“We are actually investing in creating dynamic pricing. We are doing it in Paris right now. We’ve been doing it for about a year. It’s off to a very good start,” Johnston said.
He also made clear that guests should not expect the domestic launch in the near term.
“That’s probably something that you won’t see this year, but you may see in the subsequent years.”
When asked if the strategy resembles an airline-style model, Johnston tried to distance the company from the comparison, though he acknowledged some similarities.
“I would like to not think about it that way, to be honest with you. But, yeah, similar.”
Disney already uses variable pricing in its hotels and date-based tickets. Johnston said the plan is to extend that approach inside the parks in a way that avoids negative reactions.
“This is basically just bringing it in the park. But done in a way that obviously, it doesn’t create guest experience issues or consumer negative feedback… and frankly so far in Paris, we haven’t seen any.”
A History of Variable Pricing at Disney Parks
Disney has gradually implemented variable pricing over the past several years:
- October 16, 2018: Walt Disney World introduced date-based ticket pricing for both single- and multi-day tickets, meaning prices varied based on the expected demand for a given day.
- December 2022: Walt Disney World refined the model by adding park-specific pricing to date-based tickets, allowing each park (Magic Kingdom, EPCOT, Hollywood Studios, and Animal Kingdom) to have different price points on the same day.
With dynamic pricing, ticket costs would no longer be locked in months in advance but instead fluctuate based on real-time demand. This system is similar to how airline tickets and hotel rates change based on availability and consumer interest.
What This Could Mean for Guests
- Prices Could Change Frequently: Guests booking tickets closer to their visit date may see prices rise or fall based on real-time demand.
- Potential for Lower Prices on Slow Days: Those visiting on traditionally less crowded days may benefit from lower ticket costs.
- Less Predictability: Unlike the current date-based pricing model, which provides a fixed cost calendar in advance, guests may have to monitor ticket prices more closely when planning their trips.
Get Walt Disney World News Delivered to Your Inbox
link