It may be a small, small world but it will cost a lot, lot more.
Disney (NYSE: DIS) raised admission prices at its four Florida theme parks last week. Buyers of one-day tickets began paying a mind-boggling $82 on Thursday, a 4% uptick from its previous king's ransom.
It's a gutsy step for the family entertainment giant.
The theme park industry has always argued that it provides a compelling value compared to other leisure outings. On an hourly basis, a day at the park isn't outlandish when it's pitted against sporting events, live theatrical performances, or traveling rock shows.
Concert promoter Live Nation (NYSE: LYV) reported $69.74 in revenue per attendee this past quarter. That includes merchandise sales and other concessions, but it's a stiff sticker for a couple of hours of amped-up escapism.
Unfortunately for Disney, the rest of the industry isn't exactly on the same page. Season passes at many Six Flags (NYSE: SIX) parks will set thrill seekers back less than a single day at Disney World. Per-capita spending for a day guest at a Cedar Fair (NYSE: FUN) park is less than half of Disney's single-day admission -- and that's before we get to the costly snacks and character paraphernalia at Disney World.
Disney's timing is also poor. The big buzz in central Florida this summer is June's opening of The Wizarding World of Harry Potter in Universal Orlando's Islands of Adventure. The park is jointly owned by Blackstone Group (NYSE: BX) and what is, for now, General Electric's (NYSE: GE) NBC Universal.
Central Florida tourists will then turn their attention to next year's opening of Legoland Florida.
Disney's admissions get cheaper on a daily basis once a traveler buys a discounted multiday ticket, and that's by design. The theme park titan prefers to sell weeklong stays to keep visitors close and on its various property resorts. However, now that tourists have Potter and eventually Lego bricks on their "to do" lists, Disney may be pricing itself out of both multiday and single-day getaways.
After all, $82 is a whole lot to pay for a company that has been slow-footed in adding premium "E Ticket" attractions. Good luck justifying that kind of sticker price on a stormy day in Animal Kingdom. We're still a couple of years away from the Fantasyland expansion at its flagship Magic Kingdom park.
Investors may cheer price hikes in theory, but they'll be hissing if this particular act slows the turnstile clicks.
Is $82 too much for admission into a Disney theme park? Share your thoughts in the comment box below.
