Disney World in Orlando, Florida is once again restricting sales of its annual passes, but this time, it’s targeting a different group.
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Disney Has Gone After Pocketbooks in 2021
For fans of Disney, it has been a rough time to visit the Happiest Place on Earth since the start of the pandemic. Following the reopening of the parks in July of 2020, restrictions from the state of Florida, the federal government, and from Disney corporate included a variety of changes to entry, lines, social distancing, capacity, and permissions.
Many of the included features of Disney World Annual Passes were discontinued to comply with these shifting standards. Of those, a reservation system went into place removing free access for pass holders to multiple parks at will, some forms of park transportation, hours of operation, photo pass inclusion, and fast pass access to avoid lines at attractions.
As guests returned to the theme parks, Disney operates four plus two water parks in the Orlando area, many of these features did not return to the annual passes. Open-air trams that bring guests from the parking lot to the park gates as well as inter-park buses have gone away and not yet returned. The Genie+ pass ($15/person/day) was added for access to prior included fast passes with some popular rides requiring additional payment for “Lightning Lane” rides.
Management has not been shy about its desire to rid itself of low-margin guests (local Disney annual pass holders) in favor of out-of-town guests that stay in its resorts and return more revenue on a per-day basis.
The resort has added an immersive Star Wars “cruise” experience whereby guests are transported to a new resort hotel within the Star Wars universe with a price tag that approaches $4,000-6,000 for a typical family two-night stay.
Disney Has Restricted Annual Pass Sales
After announcing its new Annual Pass options for both global and Florida residents that no longer included the aforementioned features, passes went back on sale with new names and new (higher) prices. Park ticket sales have flourished as pent-up travel demand brings visitors to Disney World resorts to the extent that Walt Disney World website has once again restricted annual pass sales.
All of them except one.
The “Pixie Dust” pass remains on sale and has unique restrictions. It is, shockingly, the least expensive pass available, only open to Florida residents and restricted to weekday off-peak visits. From both the targeted market (Florida locals) and the limited access (weekdays only) coupled with the low price point, this is the lowest margin guest possible.
Pixie Dust Passes are offered to Florida residents only for $399/annually or $205 down and $18.33/month for 12 months.
What This Shift Means
The move to Pixie Dust-only passes suggests that the resort is very busy on weekends. Not all annual pass holders are Floridian, and guests outside of the sunshine state spend money on resorts when they visit as well as in restaurants and on merchandise in and around the resort. Given that this pass is only available to locals on weekdays, they are looking for a specific type of audience, primarily retirees to fill parks when out-of-town families aren’t able to visit as often. This has been confirmed anecdotally both by members that have suggested they would not be able to buy and use passes given the restrictions and by those who can. It’s entirely possible that there are other local Floridians the parks are targeting who can only access the parks during the week.
It also means that response to the new passes has sold well enough that the parks don’t need more regular visitors, and park sales generally are strong. Day park tickets are the highest margin ticket Disney sells and fluctuates slightly based on demand. Oddly, park revenue was lower than expected in the last quarter, sending DIS down on the news.
The park business unit may be shifting to a new revenue model whereby they pick customers more strategically, targeting a particular set of customers to fill a need rather than making passes generally available. It also may not be possible to sell passes and park tickets without limitations due to the higher than normal demand.
One other interesting note is that with any price increase, some amount of customers will abandon the product and move on. Of all the groups, weekday Florida resident visitors may have opted not to renew, canceled, or just haven’t bought annual passes with the seem vigor as returning guests from other market segments. It could be as simple as a quota, much like airlines and hotels want to fill their planes and properties with a certain amount of last-minute business, a certain amount of corporate customers, and another segment of leisure travelers. It could be hitting that quota more than anything else.
Conclusion
Releasing four new pass levels, a new park-only revenue product, and a discouraging recent quarter from the Parks unit should have made for a very interesting approach to the resort business. It seems there is one very clear market they have not yet sold through and by process of elimination, the Parks group will fill that sector or die trying. In truth, it appeals to me and my family though we aren’t yet sold on the fewer benefits for the same money.
What do you think? Who is Disney targeting? Is the restriction of the other annual passes related to something else?
Kyle,
Yet again another good post from you. Keep it up brother 🙂
Just a quick typo for you top correct in the post
“Of all the groups, weekday Florida resident visitors may have opted not to renew, canceled, or just haven’t bought annual passes with the SEEM vigor”
It is very disappointing. I enjoy these parks but will not pay for an annual pass that asks for more but delivers less. That’s a shame.
We have had the week day pass for years. The black out days are of little consequence to us since we live relatively close. However I am annoyed at Disney for their cavalier attitude towards people like us who have supported WDW for years.
It’s Disney brah, who cares?
Stop. Families care. A for effort on the post, Kyle. I do think we need to keep the humanity at Disney, though. perhaps a few of us deplorables can be let in per night? $4k-6k for two nights?? is it Fontainebleau?
If you don’t care, brah, why’d you bother to click the link and take the time comment, brah?
This doesn’t bother me one bit if it will lead to the discontinuation of all the annual passes and Florida resident discount. The problem with Disney is that it is a special experience but that experience means too many people are jammed in the parks. It’s miserable having to waste the day waiting in line to go on such few rides. We don’t need extra people in the parks who pay less with the Florida discount or with the annual passes because it is already too crowded. It’s at a point where I wish Disney instituted a 1 trip per year policy. Going to the parks once a year is enough.
If Disney had the lightning access for all rides, I would pay it. We spend 2 extra days in the park because of having to wait in line; it would be cheaper if we had to pay for lightning for each ride so we don’t need a second day going back to a park.
“It’s too crowded so no one goes there anymore.”
To paraphraseYogi Berra…..
Pay less? I paid $1000 for an annual pass and went to the parks for dinner and to get my steps in. Not everyone was a bottom tier AP holder. I do not disagree about the number of people and the wait times. Most people with annual passes,hiwever, are subject to blackout dates and times.
So guess who kept Disney in business when other states were shut down, us cheap bottom feeder Florida residents. How does it be feel to be as snooty and gross like you?
Typical tourist comment. Who are you to tell us Florida residents that we shouldn’t be allowed to go so out of towners can have less crowds?? Stay home then.
Adult Disney Women will continue to buy and pay for access. You know, the ones who are in their 40s+, no kids and likely no spouse and knows all the Alan Menken song lyrics.
Pontential cougars?
Is Disney the new swingers paradise?
People that live here near the parks have to deal with ridiculous traffic 24/7 and dangerous drivers who are lost and trying to find their way to Disney and never hesitate to cut across 5 lanes of traffic cuz need to turn left but were in right turn only lane…run red lights …merge into you..etc…its dangerous and insurance rates high thanks to you all…plus most residents work in the way underpaid theme park and hotel industry and for all we put up with here..which gets worse every year…think its ok that theme parks offer a slightly affordable pass so locals can go relax in Parks…on a weekday..once in a while. And guess what…we buy merchandise and meal and snacks there too. Get over your greedy selves.Unbelievable.
Exactly. Thank you. My family is one of those hyper-local residents who can watch MK’s fireworks from our front porch. Just because we live here doesn’t mean we’re adding to the crowds at a park every day (but I’m looking at the dozens of bloggers who do). We enjoy going to a park once a week for a few hours each time because it’s our local entertainment and where some of our friends and neighbors are employed. Sure, we don’t drop thousands of dollars in a single week like a resort guest (though we do occasionally book long weekend stays!), but between meals, snacks, merchandise (yes, our kids still get “souvenirs”), preferred parking, and my kid’s obsession with ears and my obsession with EPCOT festival foods, I guarantee we spend much more than the average tourist over the course of a year.
So you have made a list Schindler?
I totally agree…I get they need to maintain but the restrictions and price hikes are just too much..I was a passholder..had to stop because of high risk health. Then when I try to get my passes back they took me through a bunch of mess….I live in Jacksonville Fl. told me I had to come down to get my pass back in person, the week I decide to go my mother took ill and ended up passing the following month. Then they say it’s too late, have to buy the stupid new pass…with less benefits…My daughter and I used to go almost every other month and we stayed at the resort which cost me OVER a grand alone not all Fl passholders are day trippers..and my sister and her family WERE also passholders, live down there and endure that horrible traffic DAILY…I don’t think Walt would be ok with this treatment…I honestly don’t wven want to know how much money I have paid this business with rides older than I am…smh…but hell look at how they treat their employees that have worked there for years….
That Amy is quite the little park fascist.. Just the kind of guest a bean counter who doesn’t believe in the Disney magic like Bob Chapek is after.
I think it’s a terrible idea and Disney should go back to the old annual passes, they’re going to cut their own throats by releasing these new ridiculous annual passes and restrictions. Myself and a huge group used to go all the time, but now with these new annual passes and $15 a day for Speed passes, we are not renewing. Very stupid move on Disney’s part !!!
Pay less? I paid $1000 for an annual pass and went to the parks for dinner and to get my steps in. Not everyone was a bottom tier AP holder. I do not disagree about the number of people and the wait times. Most people with annual passes,hiwever, are subject to blackout dates and times.
We live in Clearwater and have the weekday year passes. We homeschool, even pre pandemic. So heading over for a day trip or random few night trip is the disney hotel rate is low enough is great for us. I do agree though as a whole, disney is becoming even less attainable for middle class.
That’s mouse has turned into the GRINCH. So disappointing. This is not what Walt intended for disney. Greed was not in his heart. Remember who is WALT DISNEY.
As someone who went to Disney World a lot as a kid, I’ve been seriously disappointed with Disney’s ongoing approach of making it substantially more expensive to visit every year. Like Vegas, the price keeps jumping but what you get stays about the same. How do you justify multiple thousands of dollars for a 10 day Disney (and Universal) trip when you could spend the same for a trip to Bali or Greece or Thailand?
Fire Bob Cheap (Chapek)! Cancel your Disney+ subscription and hit Bob where it hurts. He only cares about big subscriber numbers for Disney+ trying to beat Netflix. Drop Disney+ and maybe Disney will drop Bob Cheap (Chapek).
I’m a Florida Resident (we live 90 minutes away) and a former Passholder. We elected not to renew because it seems much of the “magic” was taken away from us. The fact is that Disney will be able to get away with ignoring most local customers while they are doing the 1 1/2 year long 50th Anniversary celebration that includes several new rides (some of which should have opened when we were still AP’s). Right now you have all the people who wanted to come from out of state in 2020 plus those that might have waited until 2023-2024 to come but want to be part of the 50th anniversary— they will ALL come here in the next 15 months. But then Disney will see a lull in attendance, and then they will remember us Floridians and offer deals again to us. They better watch out though because there are other parks available to us—We are currently passholders at Seaworld and Legoland, and we are considering getting AP’s for Universal when there new theme park opens.
I have been on both sides of this issue. My family used to live in the Midwest and took numerous family trips to Disney World. The last one cost over $20k. Now we have moved to the Orlando area and my wife and I bought annual passes. We would go there a couple times a month. With the new restrictions, we have not renewed our passes. Now we have annual passes to Universal Studios and SeaWorld. Don’t miss the mouse ears at all. Disney thinks they are the only game in town, they are not!!
Maybe Disney should go back to their disability passes keeping the disabled people in mind instead of money. Stop looking at dollar signs and trying to be politically correct. Think about families.
I think it would be time to replace your CEO.
Seaworld is the best value in Central Florida (and Universal is still a better value than Disney). I’m hesitant to say that because the risk is the crowds there will grow. However, we are poor, and other poor people deserve to know there is still a place for them. You can get a SeaWorld Silver Pass for $130 (blue Friday and Black Friday) that includes a guest ticket, free parking, rotating monthly/seasonal membership perks that includes things like free beer every visit, free merchandise, additional free guest tickets, and free “SeaWorld bucks” ($20 so far this year). Yes, there are less rides, but they have quality shows and their coasters put Disney’s to shame. Have two or three beers, use your bucks, and take a free guest or two, and the pass is basically free… If Disney ever remembers the little people, we’d visit again. Until then, as the other person stated, they aren’t the only game in town.
Hello. It’s been 20 years since going to Seaworld. Due to dropping Killer Whales and Dolphins, has the park adapted to become more of a theme park overall instead of “animal acts?” This would be a great alternative for our family to Disney.
Sorry, replied to wrong person. Look under “Rosita Tebb” below for answer.
The magic is gone 25 yr pass holder (6) no more
Disney is broken
It’s woke and $$$$$ is all they care about
It’s a shame
Never thought I would see it
Walt would be disgusted
Some areas dirty / outdated
Rides always broke
Now pay for genie
Sad
The Mouse has always been very good at squeezing out every last penny from a dollar.
As long as there are enough people paying what they ask, they will keep raising prices.
Thank God for capitalism.
So…..my question would be best, what’s tbe best way to establish florida residency? I’ll be there a month, what do I need to bring? I have family who are live there.
They still have dolphin and orca shows. There’s also a sea lion show. There’s basically three roller coasters (but we’re talking quality B&M types), with a 4th currently under construction (wait times under 20 minutes most of the time). There’s also a hybrid water ride/coaster, and a rapids-type water ride. They built a sesame Street area with some smaller rides I would guess our designed for the 10 and under crowd. There’s a bunch of aquariums, several outdoor pools for the show animals, a bunch of bird enclosures, they had a virtual ride with a flight over Antarctica, but it’s currently closed and their plans are unclear. The penguin ride is also now just a viewing exhibit. They do a couple festivals a year with food and drink offerings. The park also has good atmosphere during the holiday season, but most of the holiday shows are limited to the weekends until the middle of December when they start running every day. We like that we can drop in for a few hours and have fun because of the wait times, or make an entire day of it if we want to revisit all the animal exhibits. It can be pretty flexible in that regard.
So Disney has made it clear that all it wants is money. The role of a business is of course to make money but you don’t make it obvious to your customers that this is what you’re after. You need to focus on the experience and treat customers with respect but when you only cater to a customers “who pays more” it sends out a very clear message. You are desperate for money.
Hi. There is a little bit of misinformation at the start of your article. “inter-park buses have gone away and not yet returned.” This is not entirely true. Before two pm, there are no busses that go between parks, and park-hopping does not start until two pm. After park-hopping has started for the day however, you most certainly can find inter-park busses. I myself have taken a bus from Animal Kingdom to the Magic Kingdom quite recently.
I think Disney had turned into a disgrace. Reservations, pay more for less, no trams, contempt for locals, etc etc. Universal is back to business as usual. Me and all my friends decided to Diego Disney and get high end Universal passes and couldn’t be happier. I also have Busch Gardens and Fun Spot passes. Who needs Disney??? Open your mind and go somewhere else!
Disney sucks. They are greedy and woke.
I don’t support anything they do including the Disney channel. Walt Disney would be devastated to see it’s now all about money
WDW, like Disneyland, is pricing me out to less visits. Im 400 miles north of Disneyland. Its been forever since a visit to wdw due to cost…now even Disneyland is squeezing more where they aint much more to give…so not only do i take less trips, i spend less money and gave up my annual pass….after having had it 20 plus years