Can surge pricing make Disney parks happier places?
Walt Disney Co. (DIS) is wondering if a simple business trick can bring back some of the magic to its theme parks: surge pricing.
The company is eyeing a pricing model based on demand at its U.S. theme parks, where busier days would come with added ticket costs or more restrictions, while slower days would cost visitors less, according to The Wall Street Journal. Disney didn't immediately return a request for comment.
That might bring back some of the joy to visitors at the theme parks including Disneyland, which may not qualify as "the happiest place on Earth" on Saturdays, school holidays and other high-traffic days. Some of the biggest complaints about Disneyland and Disney World are their long lines to get on rides and crowded streets.
"We have to look at ways to spread out our attendance throughout the year so we can accommodate demand and avoid bursting at the seams," Walt Disney Parks and Resorts chairman Bob Chapek told The Journal.
The waits are enough of a headache for some visitors that entrepreneurs have jumped in to to help solve the problem, with sites and apps that help track the lines at various attractions.
Turning to surge pricing may help Disney become even more of an aspirational brand, said Tushar Parashar, engagement manager at brand consultancy Vivaldi Partners Group.
"The move is a very smart one," he said. "The surge pricing won't be detrimental to the brand itself, because what Disney is doing over time is becoming more aspirational and premium than its competitors. It reinforces that idea that attending Disney during the rush time will become more of a premium experience."
Turning to demand-based pricing might help spread out the crowds more evenly across the week, or else discourage visitors from buying tickets to the parks' busiest days. Demand-based ticketing is commonly used in the travel industry, with hotels and airlines charging less for off-peak service, for instance.
But at Disney's parks, a ticket costs the same whether one buys a pass for a mid-week visit in January or a holiday weekend. Even though prices are already expensive (a one-day entry to Disney World costs $105 for people over 10 years old), that hasn't kept visitors from lining up. Disney World and Disneyland have both posted record attendance in recent years.
Disney will be surveying previous park visitors about different price options, the company told The Journal. Chapek said the company doesn't have an existing plan for how it will price tickets or when it might change its fee schedule.
One thing is as certain as a Stormtrooper wearing white: Visitor demand will only increase as Disney plans to add 14-acre "Star Wars" areas at Disneyland and Disney World, including a ride based on the Millennium Falcon. Construction is slated to start next year.
"It's a problem that is going to grow over time as we expand the size of our parks," Chapek told the publication.