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Case Study: Disney Introduces Demand-Based Pricing At Theme Parks

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1. Disney Introduces Demand-Based Pricing at Theme Parks Source: Barnes, B. (2016) [Disney has decided to make seasonal changes to ticket prices. The prices are raised during holidays and weekends as there is a high demand for tickets and the company will make an increased profit. The price of the tickets will vary at different theme parks.] A type of pricing strategy [On a general note, at the Disneyland located in California, regular tickets will be sold for $105 on weekends when more people will be visiting. This applies to the most popular Disney themes and rides. Discount prices apply to weekdays where less people will be visiting and could encourage more school trips. Peak tickets are sold for $95. The highest tickets sold are on …show more content…

Attractions dip toes into airline-style pricing Source: Clarke, S. (2012) [The price of admission depends on how far in advance the ticket is bought.] Airline used the following as their type of pricing strategy The further the tickets are bought from the date of departure the lesser the prices will be and vice versa. Slowly other theme parks such as Disney’s, Mickey’s Very Merry Christmas Party and Universal’s Halloween Horror Nights started to use this technique for their special events as mentioned. Other technique pricing strategies have been used as well such as making the normal weekdays cheaper than weekends, or use seasonal pricing, as there is a high demand for tickets and this way the companies will spread out its customers across the year. Repetition of previous articles’ strategy Another technique is mentioned as well: customers buying multi-day pass tickets, which will result the customers into actually paying for less and saving money. Different theme parks use different pricing strategies, but are still slowing looking for a strategy, which is similar to the airline-style pricing. 5. Theme Park Development Costs: Initial Investment Cost Per First Year Attendee – A Historic Benchmarking

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The prices for the one-day, two-day, and season passes at the two parks differ by $5.01, $10.01 and $27.00, with Kings Island being the cheaper of the two

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Ticket prices are influenced by a variety of factors including the artist, who receive the majority of the ticket revenue; so AEG sets their fees accordingly to cover costs and earn some revenue. AEG does not generally discount tickets or “paper” the show since it can throw off sales flow and create a false impression in the market. Instead they might release “early bird” tickets and increase prices as the event gets closer, which allows them to capture as many tickets possible out of the gate (Campbell). Although this is a benefit for early purchasers, it still does not eliminate the concern with fees, which can account for roughly 40-45% of the ticket price! That is extremely high, especially considering that AEG is both the promoter and venue owner, and is receiving revenue through concessions, sponsorship, and other

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The threats of new entrants are low since they need to invest huge money to compete with Disney. For instance, the investment of Disney theme park is very high and the time of construction is quite long. Both of the two factors make it difficult for new entrants to enter this market. Another barrier is the power of the brand name. Disney has already owned loyal customers and they will prefer to visit Disneyland and watch Disney movies first instead of other places or new

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The price of tickets has also risen from $60 to $75 and a lot of students are not happy about it. Students are already upset about the place it’s held at and now there is a price increase. Students believe that since there is a increase in price there should at least be a change in scenery to compromise the new prices for tickets & having the event at a different place.

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Cost is one of the ways that concerts and music festivals differ. Taking into consideration that ticket prices will vary depending on artist(s), location, and seating options, there are still extraordinarily obvious cost differences. According to an submitted by ABC News “the average price of a concert ticket during the first six months of the year was $46.69…” (Catherine Valenti p.1). On the other hand, claims from USA Today state that “Ticket prices for Coachella this year range from about $400 for general admission to $900 for VIP tickets…”

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The expansion into the Orlando market was such a sense impression, it has caused other theme parks to make there as well hoping to receive spill over

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Participation of very few firms in this market is the cause for Disney to be an oligopoly. Some of Disney’s major competitors include News Corporation (NWS), Time Warner (TWX), DreamWorks Animation SKG (DWA), and Viacom (VIA), who directly compete with Disney in myriad business lines. As there are only a few number of firms, competitive pricing does not exist and consumers have limited choices to choose from. Walt Disney Company is large enough to affect the market. Hence, the firm is a price maker and changes prices quite frequently to maximize profits.

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Disneyland is the magical world for kids that enjoy fictional characters and images in breathtaking colors. But in my opinion, Disneyland is for more than just kids. The exhilarating rollercoaster rides, scrumptious food, and other attractions sum up what is expected there. Trust me when I say all ages will have a great time at the Magical Kingdom. When you first step through the gates of the park, instantly there is excitement everywhere.

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" Disney theme parks were built for the whole family to enjoy and they do a fine job stressing that. If you pay close attention to their advertisements you will see that they are not always aimed for children, in fact they are aimed at the parents most of the time with little phrases such as "Let the Memories Begin" and "This is Where the Magic Happens." Even the animation films are made to please the parents, with their good morals and some jokes that are meant for the child not to understand. In addition, the Disney Store has its own Home Decor department which is intended to satisfy the parents' wants as well as their children's, while the child is browsing through the toys, the parent is browsing through the Home Decor section.

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Disney theme parks feature characters and experiences from the movie and television businesses. Fantasy becomes reality at the theme parks and resorts, especially for little kids. The kids are actually meeting the characters that they have watched and played with at home. Disney has the reputation of creating magical vacations for families with small kids. This reputation pulls parents into vacationing at Disney so their kids will not be left out of this

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Product Pricing Netflix Inc. The sources of revenue for Netflix mainly includes domestic (U.S) and international streaming subscriptions and domestic DVD-by-mail subscription services. Netflix follows a differential pricing strategy based on the number of screens the content can be streamed from a single account.

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In short, lower prices are offered to consumers, who might not be able to afford a higher price, thus attracting more visitors and raising the profits. Let’s take a look at the graph below. Output is Y number of hotel rooms booked at price P. D1 is demanded by adults, D2 – by seniors. If suppliers charge price P1 for all the rooms, they are only targeting one segment and quantity sold will be Y1. However, by charging a different price P2 to different customers, suppliers now target two segments, so the total revenue will now be P1*Y1+P2*Y2, which is obviously a better option for suppliers than just

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3.3 Customers and Competitors Customers Amazon customers consist of upper & middle class social groups who have inclination towards using E-commerce portals and are comfortable with online shopping. Majority of the customers are professionals or businessmen who are busy with their business/Job & find it convenient to purchase anything online rather than visiting the physical outlet in order to save time & money. Furthermore, the customers might also be the ones who are searching for deals.

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• The adventure theme park will establish and strengthen relationships with travelling agencies Price • The company will adopt a mass market penetration which will commence with low prices to stimulate the demand. This will also assist in attracting the targeted audience as the buying power is declining in the South African market due to increase in interest rates. This will further allow the company to capture a large market share and build the image of the park.

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Weaknesses • One of the major issues of a theme park is the weather, Dubai is accustomed to dry and hot weather almost all year around, and hence this could play a major role in the amount or sum of people that visit the theme park. • Innovation and Change will require large amount of time and money. There will be a significant cost involved in construction and restoration of the theme park. Opportunities • The biggest opportunity would be the introduction of new and innovative rides.

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