The willingness to spend money at theme parks seems to have increased in the post-pandemic years. Disney’s theme park performance has shown an upward trajectory, despite a decrease in turnstile numbers at some of its parks. It appears guests are now spending much more during their visits compared to pre-pandemic times. In 2022, Disney reported that the average guest expenditure at its domestic parks had surged by a 40% in comparison to 2019. This increase in spending can be attributed to Disney’s strategic implementation of varied premium experiences throughout its parks.
Disney has managed to enticed visitors to enhance their park experiences by paying for upgrade options. These premium experiences include quicker access to new rides, VIP tours, meet-and-greets with beloved characters, or premium seating for special events. The offerings are designed to provide additional value and create memorable moments for guests, encouraging them to spend more during their visits.
Disney has tapped into one prevalent attitude in the post-pandemic era: guests are seeking a higher quality experience. It may be that there is a sense of having been unfairly restricted when it comes to enjoyable life experiences during the period of pandemic restrictions. It may be that guest are simply coming to terms with the sense that time is short.
Disney determined how to capitalize on these feelings with the concept of “experiential spending.” Guests are increasingly seeking unique and personalized experiences rather than just the traditional theme park attractions. Disney has tapped into a lucrative revenue stream that has significantly contributed to the financial success of their parks.
At the same time, with the exception of the parks in Paris, the number of Disney park visitors is fewer than in 2019. This suggests that the more expensive Disney experience is pricing some guest out of the parks. There are advantages and disadvantages for Disney in this regard.
Consider, for example, that most guests are repeat guests. Disney counts on tapping into people’s hearts and keeping them as long-term customers. Guests who come as children on a tight budget may later in life become affluent park visitors making repeat visits.
Disney’s approach may be viewed as reducing demand for their parks by increasing prices and providing premium services which still generates significant revenue and in fact, more revenue. In the long term there may be cost associated with this approach, however, if this approach alienates guests who are of modest means.