Whether it's a short stay or a week-long escape, a trip to the Walt Disney World Resort can cost even a single guest thousands of dollars. However, the resorts have ushered in a new era of "Dynamic Pricing" in which ticket prices would fluctuate according to seasons and crowds.
Talks of this plan began earlier this year, and as Blog Mickey puts it, "ticket prices can change at any time during the period that they are initially released (usually a year or more in advance), and when you finally purchase them." This kind of inconsistent prices might help Disney's bottom line, but how does it affect experiences for Disney Park consumers?
What do the experts say about Disney's Dynamic Pricing Plan?
Any time Disney changes their pricing plans, it affects fans across the board. Recently, I had a chance to communicate with Dr. Alan Fyall, the associate dean of Academic Affairs and the Visit Orlando Endowed Chair of Tourism Marketing at Rosen College of Hospitality Management, who was kind enough to share some insight on what this could mean for future guests.
Along Main Street: How much has park pricing changed between now and previous years, and how has "dynamic pricing" contributed to that?
Dr. Alan Fyall: As with any business, prices set depend on many factors with pricing strategies varying over time. The ability to develop demand-based analytics and AI-driven pricing models opens many opportunities for dynamic “demand-based” pricing, although just because it is possible does not necessarily mean such strategies will be implemented. In the context of theme parks and attractions, dynamic pricing can be based on demand, seasonality, time of booking, and market behavior, among others. The assumption is that dynamic pricing always means higher prices, which is far from the truth. In the off-season, prices will frequently be lower, as they will be if tickets are purchased in advance."
Could Disney be doing this as a form of crowd control or as a way to cultivate a particular kind of guest?
In periods of peak demand, dynamic pricing enables the park operator to maximize revenue and at the same time control crowd numbers and ensure the visit experience is maintained. For understandable reasons, the focus is often on the price set, especially if prices are rising. However, prices need to be viewed, and managed, in conjunction with the visit experience.
How do you think families will be affected?
Families can be affected positively or negatively depending on when they visit and the duration of their visit. Parks increasingly offer a range of variable ticket offers such as single-day, multi-day, premium passes, etc., with different pricing structures in place to accommodate the different markets. Prices can also vary due to various memberships visitors may be part of or due to price 'bundling,' where prices may be dynamically packaged when combined with hotels, dining options, or unique experiences. Families tend to respond positively to 'bundled' offers, especially when booking online.
What does this mean for potential Disney guests?
As with many other aspects of the travel and tourism industry, guests to Disney can benefit from highly cost-effective dynamic pricing strategies in the off-season while paying higher premiums in the peak season or when visiting special events. In all cases, whether pricing is lower or higher, it is how the price correlates to the visitor experience that really matters. If the visit experience is maximized, then dynamic pricing will just be the next in a long list of variable pricing strategies over the years.
No matter how Disney decides to swing its prices, any change in this measure will affect thousands of current and potential guests. Since vacation planning is such a key component in any visit, Disney fans old and new might want to keep their ears up as prices rise and fall with this plan of action. It just might determine whether they visit or not.