Disney Theme Park Prices

http://www.nasdaq.com/article/did-disney-world-go-too-far-cm746747

The age-old saying, "money can't buy happiness," was taught to me at a young age. I to this day, still hold that saying has one of my highest values; however, Disney doesn't... at all. As a matter of fact, Disney is taking the stance that the only way you can get into the "happiest place of earth" is by paying an outlandish amount.

 

Disney just recently raised their prices again, and its not looking pretty for most. On a peak day it costs up to $124 per person. I have a little brother and sister; so if my parents ever wanted to take my family of five to Disney World, it would cost $620. Now I live in Baltimore, so then you have to add the travel costs. When its all said and done, it would cost way too much money and its not fair for those disney fanatics who don't have that much money to spend on a single day in a theme park.

I, personally, have only been to Disney World once and my memories were drastically different than my father's. I remember the tall rollercoasters, the abundance of sugary drinks, candy and food, and all my childhood movies coming to life. My dad remembers walking in on a 102 degree day and buying a $30 mini fan that could only keep one person cool at a time. My dad also remembers spending excessive amounts of money on everything from clothes to food to souvenirs. Suffice it to say, my dad didn't have nearly as much fun as me.

This was pretty much my dad and I's dynamic

In order for Disney to truly be the happiest place on earth, they have to make the experience less stressful for those financing the operation. The article listed above goes on to talk about how the ticket prices have been increasing steadily for quite some time now.

There is one merit mentioned in the article that I hadn't given much thought to. The lines on busy days get up to two hours long or maybe even more. By increasing the prices at peak times, it keeps the number of people in the park limited. As a relatively impatient person, I can see why this might be nice.

Now to incorporate a little economics; there are two kinds of goods, elastic and inelastic. With elastic goods, if the vendor raises the price of its good, the total revenue it receives actually will go down because of the decrease in demand. As far as inelastic goods go, if the price goes up, the demand barely falls and total revenue will increase. While most people assume Disney to be inelastic because of its unparalleled draw, this article predicts that Disney’s stock will not be on the upward trend that it has been for the past months.

In conclusion, I think instead of raiding the pockets of its consumers, Disney should relax the prices slightly to make the happiest place on earth just a little more happy.