Disney Beats Theme Park Slump with Targeted Price Cuts
Disney's domestic parks saw a 3% increase in attendance during the quarter ending June 27, with per-capita guest spending rising 4%. The company's average ticket revenue per guest increased by 5%, according to its fiscal third-quarter report. This growth was attributed to summer promotions and new guest offerings.
Disney's competitors, Universal and SeaWorld, did not fare as well. Universal reported a 2.7% increase in theme parks revenue, but segment earnings decreased by 5.1%. SeaWorld saw a 2.9% decline in attendance, with revenue slipping 1.4% to $483 million.
Disney's success can be attributed to its strategy of offering discounts to specific groups of people on specific dates, while maintaining prices for full-price guests. This approach, known as price discrimination, allows Disney to fill slots that would otherwise remain empty and increase revenue per guest.