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Galaxy's Edge Crowded: "Inelastic Demand"
Economists would offer an easy solution to too much demand: Raise prices. But borrowing the language of economists, demand appears to be inelastic for Disneyland. The price of an adult, single-park admission ticket increased more than 40 times since 1981. Just this decade, Disney raised the price of a single-park ticket every year. The price went from $76 in 2010 to a three-tiered price that starts at $104 for less busy days and doubled to $149 on the busiest days. Starting this year, every Disneyland ticket is $100 or more. Yet, the number of visitors only grows.
Pricing is just one of the ways Disney is dealing with the expected influx of visitors. "There's no one answer," D'Amaro said. "Pricing can give consumers choice and smooth demand."
Just raising prices is a blunt instrument. Disney is being more measured. "But it's not just about raising prices, it's about being really smart about it, and it's showing," Disney CEO Bob Iger said on the company's most recent earnings call.<<
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Raising Prices Alone Doesn't Work
Specifically, Disney already implemented a number of pricing changes, other than just raising prices in early January. Most are designed to shift visitors to less busy parts of the year, such as after the holidays. Four years ago, when Galaxy's Edge was still in development, the company created three tiers of ticket prices. Less busy days cost less than more expensive days. This helped to even out when visitors came to the park.
Reservations are another method to handle demand. Simply buying a ticket to Disneyland won't get you into Galaxy's Edge. You'll need a reservation for a four-hour block until June 23. After that, Disneyland Park will operate a virtual queue to enter Star Wars: Galaxy's Edge, as needed. Guests will enter the virtual queue to receive a boarding pass to return to the land within a window of time.
But Disney continues to make pricing changes, especially with its annual passholders, to monitor demand. Annual passholders are among Disneyland's most die-hard fans but also the heaviest visitors. So, the company this month added a $599 "Flex Passport." The Flex Passport allows visitors to go to the park for sure on less busy days. For busier days, Flex Passport holders can try to make a reservation. If there's room, they will be allowed to visit. Doing this helps Disney control how busy it is and plan accordingly, D'Amaro says. "It was a bold move," since reservations were never a Disneyland prerequisite and a bit of a departure from the open-to-everyone tradition. "But it's been a big hit."<<