ORLANDO, Fla. — The laws of supply and demand have become more complicated at Orlando’s big theme parks as they make shifts in pricing strategies.
Walt Disney World has pursued an approach that will discourage some people from visiting during the most crowded times. SeaWorld Entertainment, which has been crushed by controversy and competition, wants to boost attendance with lower prices.
Despite their different situations, Disney and SeaWorld reported fewer people visited their Florida parks early this year, and both cited prices to analysts as a factor affecting attendance.
Universal Parks and Resorts said its first-quarter attendance overall was stable. Its Orlando parks have not made big changes in how they charge guests, and the company said it doesn’t discuss pricing issues.
The Walt Disney Co. says its approach will grow revenue but sometimes at the expense of attendance gains. SeaWorld said it underestimated how much its customers have come to demand discounts.
“SeaWorld has very price-sensitive customers and Disney’s customers are less price-sensitive,” said Robert Niles, editor of ThemeParkInsider.com. “But Disney’s getting cut a little bit, too. There’s some people who say, ‘We’ve got to cut the entire Orlando vacation,’ not just cut some things out of the Orlando vacation.”
Disney has aggressively raised prices. In October, it revamped its annual-pass system to make it much more expensive for people to visit during Christmas and spring break. In February, Disney announced tiered one-day ticket prices. The Magic Kingdom costs up to $124 on the busiest days.
Fiscal second-quarter Disney World attendance declined, but revenue rose because per-guest spending did. Walt Disney Co. Chief Executive Officer Bob Iger told analysts moderating attendance can create a better visitor experience.
“The right pricing strategy can benefit both the company and the customer — that idea of … managing demand so you don’t have these crazy crowds that can’t be served well,” said Matt Busch, a partner with consulting company Revenue Analytics.
The approach may have worked a little too well recently. In mid-March, “blackout dates” were lifted for employees and on special Florida-resident tickets. Analysts say that could have been a way to boost attendance that wasn’t meeting projections.
Before opening its new Harry Potter land in April, Universal Studios Hollywood started charging online prices that vary by day. SeaWorld recently stopped charging separate weekend and weekday prices for tickets bought online. Those tickets — now $79 — will vary by season, a spokeswoman said.
