Disney ADMITS to Upcharging Guests: What This New Strategy Means for the Future

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Credit: CNBC and Disney

Today marked a significant day for the Walt Disney Company; the second quarterly earning call of the year. 

After the market closed this afternoon, the world learned more about the reality of what is going on with the finances of the Walt Disney Company. 2023 has been the year of an ambitious return for CEO Bob Iger, and the Q2 results are an important signifier of if he is truly capable of turning things around for the company.

The Q2 earning report revealed many important things about the company’s financial status. One of the most significant things the report revealed was that the quarterly revenue for Disney Parks, Experiences, and Products was up by an impressive 17%. What is even more shocking is that Disney admitted the shocking price-gouging measures they took to attain this number.

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Park Revenue is Up at the Expense of Guests

The Walt Disney Company Q2 2023 earnings report shows a massive increase in park revenue, which is great news for the company, but perhaps bad news for their consumers. The Q2 2023 earnings report shows that the Disney Park segment performed very well, with a significant increase in park revenue. In the current quarter, the segment’s Q2 stats was $7.78 billion. Wall Street analysts had expected the segment’s results to be around $7.67 billion, so the actual result was better than expected.

Part of the reason why the Disney Park segment’s operating income increased so much is because of higher volumes and guest spending growth. According to the report, the domestic parks saw an increase in guest spending and attendance, while the international parks benefited from higher volumes, particularly at the Hong Kong Disneyland Resort.

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Credit: Disney and The New York Post

Disney is Up 17%, and Guests Are to Thank

The dramatic 17% increase from the last quarter has many fans wondering how this could happen in such a short time. Unfortunately, the reason for the large profit is due to Disney increasing the prices for their average consumers. In the earnings report, Disney said;

“Higher guest spending was due to increases in average ticket prices and average daily hotel room rates. The increase in costs was primarily due to higher operations support costs and increased costs associated with new guest offerings.”

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Credit: Spectrum News 13

While no seasoned fan is shocked by this news, it is still a sobering reminder that Disney prices will likely continue to rise for the foreseeable future.

About Eva Miller

Eva was born and raised in the beautiful state of Oregon but has since relocated and lives in New York City. Since she was young, Eva has loved to perform in musicals, especially Disney ones! Through performing, Disney’s music became the soundtrack of her childhood. Today, Eva loves to write about all the exciting happenings for the Walt Disney Company. In her free time, Eva loves to travel, spend time in nature, and go to Broadway shows. Her favorite Disney movie is 'Lilo and Stitch,' and her favorite Park is Disney's Animal Kingdom.