Disney is Purposely Pricing People Out of its Parks – Should Your Business Follow the Same Strategy?

Disney has a strategy to increase its bottom line and squeeze more revenue out of its most iconic assets – price people out of its theme parks. This definitely seems counterintuitive, but it actually makes a lot of sense when explained. On its face, this sounds ridiculous, except it does seem to have a lot of potential and that’s why the executives are making some very bold moves.

Why Disney is Purposely Pricing People Out of its Parks

Disney has a serious problem with its parks – they are just too popular and that means they’re overcrowded. Anyone who’s been to its theme parks, particularly over the last several years, has most definitely noticed this. The predicament is most pervasive in Orlando, where ride wait times have gone up to as much as 420 minutes or 7 hours. You read that correctly. Just last week, its newest and most anticipated attraction, Rise of the Resistance, recorded a wait time of seven hours. This, despite the fact the experience opened in December 2019, nearly three years ago.
Be mindful of competitors. If they are raising prices, it’s easier for you to do so too. Don’t forget to evaluate how your customers will react (fully accept the increase, stop, or lower purchases) as well as the possibility of maintaining price to generate higher volume (stealing customers from rivals). If the competition holds steady on prices, there is less opportunity for a hike. —Harvard Business Review
And, it’s not just the latest and greatest rides and attractions either. Some of its oldest staples routinely experience wait times in excess of an hour, even two or more. What’s more, wait times for sit-down restaurants can easily be two or more hours for anyone without reservations. (By the way, those reservations must be made three to six months in advance.) Just these anecdotal figures should tell you something – the parks have way too many people visiting. In fact, exiting Main Street in the Magic Kingdom after the fireworks show can take up to two hours to get from the park exit to the parking lot on busy days (a twenty-minute trek when crowds are super light). Of course, anyone who looks at these figures would think that Disney would be very happy with its premium capacity. But, as executives have explained on various earning calls, their per capita spending in the parks is somewhat paltry – particularly among annual passholders. Annual passholders are a problem for Disney because they present a conundrum. While they pay a premium for their privileges, they spend relatively little money in the parks. Conversely, families and couples traveling from out of state or from international destinations spend quite a bit of money in the parks on top of the pricey admission. In other words, annual passholders come in through the gate, spend a few hours enjoying rides and attractions, and then leave. Meanwhile, couples and families making dedicated trips plunk down a lot of money on things like hotels, souvenirs, snacks and dining, and Genie Plus (a paid skip-the-line service), as well as special experiences.

Should Your Small Business Raise its Prices Too?

For the foreseeable future, Disney will continue to raise its prices on everything: admission, food, merchandise, and services and experiences. The company plans to earn more money from fewer visitors. This brings up an interesting question – should your small business follow the same strategy? If you haven’t raised prices in quite some time and/or offer discounted rates to be out pricier competition, it’s probably a good idea to consider. Plus, if your business needs substantially more customers than your competitors to turn the same profit, it’s definitely worth exploring. To answer these questions and more, speak with an experienced business consultant who can assess your situation and help you determine a new pricing strategy. You just may be losing out on revenue that could be going to your bottom line. Interested in learning more about business? Then just visit Waters Business Consulting Group.

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest

Related Posts

Creative Environments photo

From $7.5 Million to $42 Million: The Turnaround Story Behind Creative Environments

From Family Landscape Company to Regional Powerhouse Creative Environments has been shaping outdoor living spaces in Tempe, Arizona since 1950, growing into one of the region’s premier design/build landscape and pool companies. But its most dramatic chapter began in April 1999, when John Waters joined the business at a point when it was generating roughly $7.5 million in annual revenue. What followed was one of the more remarkable growth stories in the company’s history — and a case study in how strategic leadership can transform a solid regional business into a diversified industry leader. Operationally Trapped, Ready to Scale Before this transformation, Creative Environments was dealing with a challenge many growing companies face: ownership felt overwhelmed and operationally trapped in the day-to-day, without a clear vision or leadership alignment on where the company was headed. Systems weren’t integrated across departments, the brand lacked a clear distinction from competitors, and the company was growing quickly without the scalable infrastructure to support it. Financial visibility and discipline were limited, and the business was heavily dependent on the housing market and a handful of major national builders — a dependency that would prove costly during the recession years ahead. A Complete Operational and Strategic Overhaul John’s instrumental strategic guidance led to his appointment as CEO in 2005, and from there the company underwent a full operational and strategic overhaul. That meant taking ownership of all major business functions and implementing coordinated growth, cost-control, lead management with a CRM, and profitability strategies. The team developed a proprietary ERP system for estimating that gave the company real control over margins for the first time, and built a recognizable brand through creative design and strategic marketing — including a new website, vehicle wraps, and updated collateral materials that helped Creative Environments stand out in a crowded market. Structurally, the company introduced new systems, standards, and accountability across the organization, launched a dedicated Maintenance Services division, and expanded into pool and spa services in 2008 to diversify beyond its core landscape offering. Leadership also initiated Buy/Sell Agreements to protect the business and its partners in the event of death or other major ownership changes — a decision that would later prove critical. Growth, Then a Stress Test The results of this overhaul were dramatic: revenue grew from $7.5 million to approximately $42 million in about seven years, with the new maintenance division alone reaching nearly $3 million by 2007. Creative Environments became a recognized premium brand for landscape and pool design across Arizona, with meaningfully improved operational efficiency and profitability. Then came the 2008–2010 economic downturn, which drove roughly a 50% drop in revenue and brought serious customer financing and payment challenges that strained cash flow across the industry. The financial discipline built into the company during the growth years paid off. Creative Environments successfully navigated the downturn, and the Buy/Sell Agreements put in place years earlier helped the partners successfully manage the death of a key partner — a moment that could have destabilized the company but instead demonstrated the value of planning ahead. The company emerged from the recession positioned for long-term, continued success as a multi-division industry leader. Building a Business That Can Survive Anything Creative Environments’ story is a reminder that rapid growth and resilience aren’t opposites — they’re both products of the same disciplined planning. If your business needs a clearer vision, stronger systems, or a plan that can hold up under real-world pressure, Waters Business Consulting Group can help you build it. Contact Waters Business Consulting Group to schedule a free consultation

Read More »
Website photo

How Sun Country Landscape Turned Red Ink Into a $7–8M Business

A 30-Year-Old Business Facing New Pressure Founded in 1991, Sun Country Landscape had spent three decades building a loyal commercial client base across Arizona. But after a change in ownership, the new owner faced a familiar small-business trap: strong reputation, thin margins. Rising labor costs, inconsistent client retention, and underperforming account managers were quietly eating into what should have been a profitable operation — and the numbers showed it. Overhead was outpacing revenue, and the company was operating at negative profitability despite steady top-line sales. Referral Leads to a Turnaround Plan In early 2021, the owner was referred to Waters Business Consulting Group by another commercial landscape client who had been through a similar transformation. The mandate was ambitious: turn Sun Country into a scalable, financially stable, and genuinely profitable company — not just a busy one. Getting there meant confronting some uncomfortable truths. Average monthly maintenance accounts were priced well under $1,000 per property, nowhere near enough to sustain healthy margins. Client and employee turnover were both high, and there was little accountability tying account managers to actual performance. Several key roles were underperforming, and nobody was tracking labor hours against budget closely enough to catch the leaks before they became a crisis. Rebuilding the Business From the Numbers Up WBCG started with the financial model — not marketing, not sales, the numbers. Together they built a pricing strategy that mapped a clear path to profitability, then layered in weekly labor-hour tracking against budgeted hours so cost overruns could be caught in real time instead of at year-end. Accountability systems tied compensation and expectations directly to labor efficiency, account retention, and enhancement sales, giving managers a reason to perform and a way to measure it. Where personnel weren’t delivering, WBCG helped the owner make the hard calls: replacing underperforming account managers with people who could execute. On the client side, the focus shifted to strengthening communication and property manager relationships to reduce the churn that had been quietly draining recurring revenue. And behind the scenes, the team worked to strengthen banking relationships, giving the business more financial flexibility and access to capital as it grew. From Negative Margins to a Multi-Million-Dollar Valuation The turnaround shows up clearly in the numbers. Revenue climbed from approximately $3.48 million in 2021 to $4.15 million in 2022, $5.06 million in 2023, and $6.44 million in 2024 — reaching $6.73 million in 2025, with $7.6 million projected for 2026. Gross profit margins improved from below 30% to a consistent 37–38%, and net operating income moved from below negative -2% to 12% or better. Just as significant: Sun Country eliminated its outstanding credit line balances and now maintains access to more than $200,000 in available credit. The company’s estimated valuation grew from under $1 million to somewhere in the $6–7 million range, with continued growth expected. And for the owner personally, the operational discipline translated into something harder to put a number on — reduced stress, more time flexibility, and real financial freedom and more fun! Is Your Growth Outpacing Your Profitability? Plenty of businesses generate strong revenue while quietly losing money on overhead, labor, and account churn. If that sounds familiar, a structured financial and operational reset — not just more sales — may be exactly what your business needs. Contact Waters Business Consulting Group to schedule a free consultation.

Read More »

Imagine Selling Your Business…

How Would Your Life Change?

You didn’t start your business just to stay busy—you built it to create freedom, security, and options for yourself and your family. Selling your business can be life-changing, but the real question is whether you’re intentionally building toward that outcome or simply leaving it to chance.

Sign up below for a free consultative session to learn what your business could be worth today and in the future! 

Thank you for your interest in learning what your business is worth. We will be in touch shortly.