Ticket prices vs. inflation

[Wilt Dasney]

I was curious to know how much ticket prices have increased relative to other prices over the years. Here's* what I found:

On Opening Day, 1971, an adult could gain admission to the Magic Kingdom for $3.50. Attractions required a ticket to ride in those days, so you could buy a "7 Adventure" book to kill an afternoon for an additional $4.50. If you wanted a fuller day of attractions, you could buy the "11 Adventure" book for $5.75.

Assuming the larger book filled your attraction needs for the day, a full day's admission to Magic Kingdom cost $9.25.

Today, a one-day base Magic Your Way ticket is $75.

So how does that stack up with inflation?

Between October 1971 and October 2008, the Consumer Price Index average rose 430%. Meanwhile, the jump between the cost of one day at the Magic Kingdom represents a 711% increase.

If prices are indexed to inflation from 1971, a full day at the Magic Kingdom today should cost $49.03.

Oh, but wait...I hear the protests already. You can't compare today's general admission tickets to the old ticket system, which required you to buy more attraction tickets if your original book didn't hold you over through the day. It's apples and oranges to compare a system that limited you to 11 attractions of varying quality to a ticket that lets you ride whatever you want throughout the day.

Fair enough. Let's compare prices starting in 1981, when the old system was washed away in favor of the one-day "Passport" ticket that let you have your pick of attractions.

In 1981, an adult could buy one of those Passports for $11.50, compared to the one-day price of $75 today.

Average prices have risen 132% in 27 years, while one day at the Magic Kingdom costs 552% more. It's even more drastic than the increase compared to opening day!

If we index the cost of a one-day ticket to inflation since 1981, using the $11.50 Passport price as a base, today's ticket price should be $26.45...almost half the price we come up with indexing from 1971!

So what can we conclude? Were those 1981 tickets ridiculously under-priced, even back then? Or has the subsequent increase been what's really ridiculous?

Is it unfair to use one-day, single-park ticket prices as a base, since park hopping wasn't an option before 1982?

And is it even reasonable to expect the price of a luxury, like theme park admission, to increase at the same rate as average prices, which include everyday necessities?

What say you?


*(Information related to ticket pricing pulled from http://allears.net/tix/tickethistory.htm; inflation data pulled from http://inflationdata.com/Inflation/Inflation_Calculators/Inflation_Rate_Calculator.asp)

 

[Monty]

Meh...

I'll pay what they charge.

 

[GenerationX]

Interesting research, Wilt. You could argue that the MK has a fixed Supply, and its supply curve is relatively vertical. You could also argue that the increase in attractions since 1981 has been offset by the reduction in park hours. Thus, the MK has had a somewhat constant supply. Put those factors together, and any increase in Demand will raise the equilibrium price point dramatically.

People are paying more for less nowadays, but there are many more people willing to pay.

 

[CAPTAIN HOOK]

Meh...

I'll pay what they charge.

Disney love people like you :ROFLOL:

 

[Jeff456]

I think it is important to remember multi-day tickets though which in my opinion offer excellent value for money, I am not sure if these were offered in the past but for example a 14 day ultimate pass you can get in the UK costs £216 or at the current poor exchange rate, $315.49. Which comes to $22.54 per day or £15.43, which I would say represents excellent value for money. Although I do see your point about the huge increase in 1 day magic your way tickets.

 

[Timmay]

I wonder if other forms of entertainment or products show a similar increase as WDW compared to the CPI?

Might be interesting to see what the average MLB, NFL or movie ticket was as well as the average price of a vehicle or house.

 

[Wilt Dasney]

I think it is important to remember multi-day tickets though which in my opinion offer excellent value for money, I am not sure if these were offered in the past but for example a 14 day ultimate pass you can get in the UK costs £216 or at the current poor exchange rate, $315.49. Which comes to $22.54 per day or £15.43, which I would say represents excellent value for money. Although I do see your point about the huge increase in 1 day magic your way tickets.

That's an important point. There's been a trend this decade to giving guests deep discounts on one day's worth of admission — even to the point of 1981-level cheap, indexed to today — provided they're willing to stay a long time.

An adult can buy a 10-day park hopper for $237 which works out to $23.70 a day, and could arguably cost about $6 per gate if you hit every theme park every day, but that's probably pushing the "value" argument a bit far.

Is this smart business practice, "encouraging" people to hang around longer and get their money's worth? Or is it a reflection of the reality that the somewhat romantic notion of piling in the car for a day with Mickey and Cinderella, with no long-term outlay involved, has gone the way of the dinosaur of its own accord?

I suspect it's the former, since Disney's current pricing structure effectively rules out the spontaneous "Disney day" option for all but the most well-off. There'd be no need to discourage one-day touring through your pricing models if it had already vanished on its own.

I remember as a kid (oh crap, here we go) when my parents used to pile me and my sister in the car and drive 3 1/2 hours south to visit the Magic Kingdom once a year....for ONE DAY. I suspect that's all we could afford, but those one-day "vacations" sure were special for us. These days, you'd need to commit to 4 days on property to get the equivalent one-day admission as back then. My guess is that if I were growing up today in a family making the equivalent of what my parents did in the '80s, my childhood wouldn't include WDW.

 

[wdwmemories]

An adult can buy a 10-day park hopper for $237 which works out to $23.70 a day

This is a really interesting discussion!

It think the quote about the cost per day with a multi-day ticket is key.

Right or wrong, Disney has changed the game. At least based on their pricing, it seems that they want you for a week - not a day - and they've buit a cost structure to encourage that.

So we can compare the cost per day now to the cost per day then, but I think the game has changed which makes such comparisons difficult.

Not to mention all the other changes: one park then vs. four parks now, a hand full of rides then vs. hundreds now, etc.

 

[prberk]

I remember as a kid (oh crap, here we go) when my parents used to pile me and my sister in the car and drive 3 1/2 hours south to visit the Magic Kingdom once a year....for ONE DAY. I suspect that's all we could afford, but those one-day "vacations" sure were special for us. These days, you'd need to commit to 4 days on property to get the equivalent one-day admission as back then. My guess is that if I were growing up today in a family making the equivalent of what my parents did in the '80s, my childhood wouldn't include WDW.

That is the saddest, and most resonant, point on this thread. Most of America actually fits that category, even though Disney sees lots of people come through the turnstiles.

I am a youth leader at my church, and have been involved in student ministry for about 17 years total. I can testify that most families I have known still think of the Magic Kingdom as "Disney World" until they have visited there, or checked it out online. Their initial interest, if at all, is as a day visitor while seeing the rest of Florida, like the beach. The price is a deterrant to someone whose other option for a vacation is the beach anyhow -- or just a day trip while staying off property because that is what they can afford.

It used to be that the day trips were affordable, but still had marketing that whetted the appetite for something more. That was the reason that the monorail went through the Contemporary and passed by the Polynesian. The day trippers were shown that it was, in fact, a resort, not just a park -- and they left wanting more. If they couldn't afford more, they could still come -- and dream of more in the future!

It used to be easy to visit "grandma" in florida, and she could "take the kids to Disney World" for the day -- where they could dream of staying longer or coming back later. But what grandma can realistically afford that today?

I just think that the marketing folks have tried so hard to get everyone to stay on property and not visit Universal, that they have really hurt less-fortunate people along the way -- and actually risked losing that set of "dreamers" who build a loyalty and are later customers.

Paul

 

[jeffk410]

nice

very interesting. Of course disney does have packages to help save some money. but what you did was extremly interesting. well done!

 

[Wilt Dasney]

That is the saddest, and most resonant, point on this thread. Most of America actually fits that category, even though Disney sees lots of people come through the turnstiles.


I just think that the marketing folks have tried so hard to get everyone to stay on property and not visit Universal, that they have really hurt less-fortunate people along the way -- and actually risked losing that set of "dreamers" who build a loyalty and are later customers.

Thanks for your thoughts.

This wasn't really the direction I intended to take the discussion in when I started the thread, but now that we're here, I have to admit it's disappointing to realize that some of my most cherished childhood memories are probably out of reach for a kid currently growing up in the same conditions I did.

I realize that the place is a lot bigger now and one day on property might not have the same appeal it once did with so much more to see, but it'd be nice to see those deep discounts at least kick in at the 2- or 3-day level, so an average family could save up for a long weekend, instead of committing to a week.

These things can be cyclical, of course. Maybe sometime in the future, Disney will decide it's worthwhile to provide an affordable experience for families who only have a day or two to spare again.

I'm curious how much business Disney has denied itself with its current approach, as folks look for cheap entertainment options during this recession (which I believe is now official).

 

[MKCP 1985]

Entertainment was a whole lot cheaper in the 1971-1990 era. Who ever thought back then that single game Yankees tickets would cost over $1,000 each or that the Eagles would charge $190 apiece for tickets?

To an extent, those Magic Kingdom day tickets were undervalued, and the Wall Street realization of that almost led to the end of the Walt Disney Company in 1984 - Saul Steinberg, corporate raider . . . Bass brothers - Texas billionaires. Colorful stuff!

But in 1985, I was a college student working a summer break for the mouse and there was an announcement that the company was going to make a serious adjustment to the price of the one day park ticket. The number that sticks in my mind is $26 when it had previously been in the teens, but I could be wrong. Anyway, rank and file permanent cast members fumed that the decision was going to cost the company business - that the moms and pops of America wouldn't pay that kind of money when movie tickets were probably still around $3 or $4. Well, we see how that worked out. :lol:

Things have certainly changed a lot . . . I sure hope it isn't true that grandparents can't afford to take their grandchildren for a day at the Disney parks.

 

[kcnole]

It's definitely sad to realize what value the Disney parks used to be. Back when they first opened, they definitely wanted to make money, but for the most part they existed to give their guests the best value that they could find and the most amazing experience that they could give. That has long since changed. Today's Disney vacation is designed to give you less and less while charging you more and more but hiding that from you.

I do remember as a kid having my grandparents take me to the parks. It was relatively affordable. They'd take us over for one day, and not cost very much at all. We'd visit around the Magic Kingdom, ride a few rides, then head home at the evening. We didn't spend a ton of money, but we were valued customers who came again and again. Today we're no longer valued because we wouldn't spend the same amount of money as a guest coming for two weeks. I can't really blame Disney, they're a publicly traded company being forced to make larger and larger profits.

That said, I think we'd also need to index some other prices for a true comparison. How much does it cost today to build new rides compared to back then, how much does it cost today to employ all the CMs they now employ (especially since many of the show cast are members of unions). How much more expensive has transportation gotten, etc.... Many of those things have risen higher than inflation as well. So I think its a bit unfair to compare the ticket price alone although it was definitely jumped up a great deal after Eisner took control.

 

[bigorangeandy]

It seems that Disney has priced and marketed itself to be the destination now instead of a one day trip while in Florida. Look at the ads it was running this past year where it showed the family of four going for 7 days and 6 nights at $1600.
The $75.00 for each single day ticket is in the neighborhood of what a lot of folks can pay for a one day ski lift ticket at a large resort, a ticket to a ballgame, or concert ticket.
It seems that the biggest cost (percentage wise) has been the parking which has gone up 50% in the past 5-6 years. Again this seems to be about what you will pay at a baseball game, and much less at an NFL game.
I know that my children have the Disney bug and will go when they get older and have families. Maybe then they will understand why we did some of the things we did.

 

[Computer Magic]

That is the saddest, and most resonant, point on this thread. Most of America actually fits that category, even though Disney sees lots of people come through the turnstiles.

I am a youth leader at my church, and have been involved in student ministry for about 17 years total. I can testify that most families I have known still think of the Magic Kingdom as "Disney World" until they have visited there, or checked it out online. Their initial interest, if at all, is as a day visitor while seeing the rest of Florida, like the beach. The price is a deterrant to someone whose other option for a vacation is the beach anyhow -- or just a day trip while staying off property because that is what they can afford.

It used to be that the day trips were affordable, but still had marketing that whetted the appetite for something more. That was the reason that the monorail went through the Contemporary and passed by the Polynesian. The day trippers were shown that it was, in fact, a resort, not just a park -- and they left wanting more. If they couldn't afford more, they could still come -- and dream of more in the future!

It used to be easy to visit "grandma" in florida, and she could "take the kids to Disney World" for the day -- where they could dream of staying longer or coming back later. But what grandma can realistically afford that today?

I just think that the marketing folks have tried so hard to get everyone to stay on property and not visit Universal, that they have really hurt less-fortunate people along the way -- and actually risked losing that set of "dreamers" who build a loyalty and are later customers.

Paul

Since the thread has taken a turn to those that has never seen WDW, I'll chime in. My BIL has never taken his 3 girls to WDW and they have been in Flordia several times. This is because of one day cost. The last time they were there for a girls softball tournement and they played at the ESPN Sports Complex within WDW. Because of money, they stayed in a time share off property and few miles away. They drove by MK several times an never took the kids into the parks. They ended up visiting the Kennedy Center because the cost was within their budget.

My wife and I even consider buying 3 1-day tickets to the parks. The cost would have been over $200 for the girls alone. We didn't know if the tickets would be used so we decided not to do it.

 

[pixel-dust]

One of my most cherished memories is my grandfather sneaking us to the Magic Kingdom in 1972 the day before our parents were to take us. It was February and there was alot of rain. I dont remember much of the park, but I remember how happy HE was to have us there.

 

[SilentWindODoom]

There is a lot more to do at Disney compared to back then.

I wonder if other forms of entertainment or products show a similar increase as WDW compared to the CPI?

Might be interesting to see what the average MLB, NFL or movie ticket was as well as the average price of a vehicle or house.

Tickets change drastically given success and popularity. I was surprised to find the ticket from my first game. I hadn't realized how much the recent dynasty had changed things. A field level ticket a bit down the right field line in Yankee Stadium cost $18 in 1995. In 2008, that ticket was $200 advance, $300 day of game. I can only imagine what the bleacher seats ($12 in 2008) were then.

 

[CAPTAIN HOOK]

a 14 day ultimate pass you can get in the UK costs £216

Try shopping around - 2008 tickets are still available for £179 :animwink:

 

[prberk]

Things have certainly changed a lot . . . I sure hope it isn't true that grandparents can't afford to take their grandchildren for a day at the Disney parks.

I think it is true, for many, many grandparents (dare I say most?). Many are on fixed incomes, even the ones who have retired many years ago to Florida. $75/day per person, plus parking, plus food = $450+ easily for a full day, for two grandparents and two kids.

Someone above also said that "a lot" of people pay this much for ski tickets and big-league sports. "A lot" is not "most". For most people, skiing (like golf) is a luxury that is just plain out of reach -- something "rich" people do. Go to any average youth group (teenagers), and ask them how many have ever gone skiing or played a real round of golf with their dad. Most would say that they haven't, but maybe a friend has who has rich relatives who invited them...

All I think is that the one-day visitor is being shoved out. And many of us started that way. It was much more magical, letting simple visits be more viable, yet also feeding a more long-term loyalty approach that still helps the marketing department in way that they just don't seem to understand today.

Paul

 

[MKCP 1985]

you have to love the internet . . . here is a step by step look at Disney prices at WDW since forever (1971)

http://allears.net/tix/tixincrease.htm edit: oops, I see Wilt had that source in his original post. :hammer:

I was mistaken about the big jump in ticket prices. They were $19.50 when I first went to work at the Magic Kingdom in the summer of 1985 and reached $26 for a one day ticket at the end of December 1986, so that WAS a pretty steep jump over a relatively short period of time, but it was done in several moves, most of them in 1986.

It was thought at the time (mid-80s) that part of the reason for the big price increases was to recoup the excess cost of Epcot Center. That park cost a whole lot more money to build than was budgeted and it wasn't wildly popular at first. But that's a story for another day and another thread! :lol: