Bob Iger says Disney's 'aggressive pricing' for theme park was driven by profit at cost of customers
ANAHEIM, CALIFORNIA: Disney CEO Bob Iger agreed that the theme park had been too "aggressive" in many of its recent increased costs after cutting rates on its $20,000 two-night stay at a Star Wars hotel when reservations stopped flowing. Speaking at the Morgan Stanley Technology, Media and Telecom Conference on Thursday, March 9, Iger claimed that Disney recently made the major error of prioritizing profits, which has caused even its most ardent supporters to lose faith in it.
"I always believed that Disney was a brand that needs to be accessible," said Iger who owns the happiest place on earth. "I think that in our zeal to grow profits, we may have been a little bit too aggressive about some of our pricing. And I think there is a way to continue to grow our business but be smarter about how we price so that we maintain that brand value of accessibility." Some of these rip-offs included raising the price of the park's top access passes from $124 in 2017 to $244 for a single day.
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What is Bob Iger's plan?
Iger, who had previously stepped down as Disney's CEO in 2021, took over again as the company's chief executive in November after Bob Chapek was fired amid falling stock prices and disgruntled clients. On Thursday, he announced a plan to restructure the business and find $5 billion in savings. He stated that his emphasis would be on cost-cutting measures at Disney to make it more affordable for customers. That strategy includes 7,000 employment cuts.
'He promised to continue to listen to consumers'
Iger claimed that Disney was so preoccupied with making money that it was eroding the reputation of a company that had attracted a large following. "I think there's a way to continue to grow that business, but be smarter about how we price so that we maintain that brand value of accessibility." He promised to "continue to listen to consumers [and] we're going to continue to adjust" when announcing those plans, reports Daily Mail.
What costs have been lowered?
The parks have already started lowering some of their prices, such as bringing back free overnight parking for hotel guests and expanding the number of days Disneyland is open to visitors who purchase an adult pass for the lowest price of $104. The free downloads of guest ride photos at Disneyland were reinstated to all ticket admissions after customers were previously required to pay an additional charge. Genie+ passes at Disney World will once more include no-cost downloads.
'To reduce crowding but maintain profitability'
Iger stated that in order to maintain the standard of the experience, the parks will also concentrate on controlling the number of visitors they permit. "One of the things that we had to do was we had to improve the guest experience by reducing crowding," he stated. "It's tempting to let more and more people in, but if the guest satisfaction levels are going down because of crowding then that doesn't work. We have to figure out how we reduce crowding but maintain our profitability. And we did that well."
What happened to Star Wars hotel?
Iger's remarks comes after Disney's decision to adjust the opening hours of its $1 billion Star Wars hotel due to poor demand. The hotel, which opened in March 2022 to great fanfare and sold out "voyages," charges visitors anywhere between $5,000 and $20,000 for an intense two-night experience. The Star Wars: Galactic Starcruiser booking portal indicates reduced days in October, November, and December. The hotel will only accept reservations three or four times a week beginning in the fall.
The resort's high costs and lack of windows have long drawn criticism from many ardent Disney and Star Wars fans. The New York Times reported at the time the park opened that prices inside the hotel ranged from $99 for an official Star Wars-themed picture to $13 for beers and $23 for cocktails.