Walt Disney (NYSE:DIS) plans to raise the price of single-day, single-park tickets to all four of its Florida theme parks beginning next month. The exact price, varying anywhere between $109 to $189, depends on the park and the day that people choose to visit. The news was reported by the Wall Street Journal.
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It’s clear that the company is strategically charging higher during the holidays, with assurances of providing new attractions and offerings.
The “Park Hopper” option, i.e., an add-on that allows visitors to switch parks in a single day, will also give an extra pinch to families visiting these parks. Further, the annual pass program is also going to be expensive.
This is not the first time Disney has increased prices in 2022. In October, the company raised the price of its Genie+ service, which allows users to skip long queues, at Disney World and California’s Disneyland. Also, the costs of some Disneyland tickets were hiked as well.
While these price increases come as a bane for thrill lovers, it is likely to boost Disney’s Parks, Experiences, and Products segment revenues going forward. Notably, the segment delivered a strong performance in the last reported quarter as its operating profit jumped from $640 million to $1.51 billion on a year-over-year basis.
Nevertheless, results for the fourth quarter of Fiscal Year 2022 failed to meet analysts’ estimates as its performance was marred by significant losses witnessed in Disney+.
Is Disney a Buy or a Sell?
The average Disney stock price target of $126.06 implies upside potential of 34.18%. The stock has a Strong Buy consensus rating based on 16 Buys and three Holds.
