Disney CEO Bob Iger has admitted that Disney’s theme park pricing strategies were “too aggressive” in the company’s “zeal to grow profits”.
“I always believed that Disney was a brand that needs to be accessible,” he told a Morgan Stanley media conference on Thursday (9 March).
“And I think that in our zeal to grow profits, we may have been a little bit too aggressive about some of our pricing.
“I think there’s a way to continue to grow our business but be smarter about how we price so that we maintain that brand value of accessibility.”
In November, Iger returned to his role Disney’s CEO, replacing Bob Chapek. By January, Disney had changed some of the most unpopular policies at its US theme parks.
These were related to ticket prices, hotel parking, attraction photos and annual passes. The move came after a series of price hikes made during Chapek’s tenure.
Disneyland increased the number of days on which the lower-priced tickets could be offered, and restored free Disney PhotoPass digital downloads.
At Disney World, free self-parking is once again being offered to hotel guests, and Disney PhotoPass digital downloads are being provided at no additional charge to guests buying the Disney Genie+ service.
Disney reverses unpopular policies
Iger said these changes “have resonated extremely well with consumers, and we will not only continue to listen to consumers, but we will continue to adjust”.
Josh D’Amaro, the chairman of Disney parks, experiences and products, said the company is “listening, adapting, and staying relentlessly focused on making the guest experience at our Disney parks even better”.
Last month, the Walt Disney Company announced plans to cut 7,000 jobs in a bid to save $5.5 billion in costs and make its Disney+ streaming business profitable.
Despite the layoffs, revenue for Disney’s theme parks segment in the first quarter of this year increased by 21 percent to $8.7 billion.
Images: Disney
