Business
Disney Has A Price Problem. It Has Ambitious Plans To Fix That
Disney just revealed a massive slate of projects for parks and cruises in front of 12,000 of its most devoted fans, who will most likely return to Disney’s theme parks to experience those new offers, regardless of the cost.
However, whether a frequent visitor or a first-timer, Disney’s price increases and a global inflation issue have left many families unable to afford journeys to witness the technological feats and fantasy immersion that the “Happiest Place on Earth” promises.
Disney Has A Price Problem. It Has Ambitious Plans To Fix That
“It is not news that a Disney trip is expensive, but the magnitude and speed of price increases over roughly the past five years was jarring to many respondents, and we do not believe similar increases over roughly the next five years are feasible,” a Raymond James survey of 20 Disney “superfans,” travel agents, and Orlando-area business owners found.
In its August 7 earnings report, Disney cautioned that domestic park attendance was falling behind projections as customers become more price-conscious. Profits at US parks decreased in the last quarter, from April to July. On the company’s earnings call, Hugh Johnston, Disney’s CFO, stated that similar results may be expected in the coming quarters.
In an interview with CNN, Josh D’Amaro, chairperson of Walt Disney Parks and Resorts, stated that the firm will continue to offer a variety of pricing and alternatives to retain visitors.
“What we will continue to do is make sure we provide as much access and flexibility as we possibly can, so as many of our fans can experience these things as possible,” D’Amaro told reporters.
In response to criticism about excessive prices, Disney has continuously promoted lower-cost ticket alternatives and “value season” bargains at its resort hotels to encourage families to visit, even with a limited budget.
Disney is one of many corporations facing declining client spending. The travel industry’s demand is cooling, signaling the end of the “revenge travel” fad that emerged in the months following the lifting of pandemic restrictions. Consumers spent more freely with stimulus money in their bank accounts, making up for a year of missed vacations.
D’Amaro expressed confidence that Disney will be able to overcome these challenges.
“We have proven ourselves to be incredibly adept at managing through situations where there’s some change in consumer behaviour,” he told me. “We have even more sophistication in our ability to deal with any of these fluctuations, whether it’s through precise promotional deployment, or management of cost or engagement with our guests.”
The new announcements, promising guests the opportunity to ride through the “Encanto” casita, fight a battle in Wakanda, or experience an ominous villain-themed land, are all part of Disney’s $60 billion investment in parks and cruises over the next decade—an investment that will need to be paid for overtime with consumer dollars.
However, according to Tom Bricker, co-founder of DisneyTouristBlog.com, Disney’s big investment does not guarantee that ticket prices will be raised immediately. This is basic economics.
“Costs will rise as demand increases, which may occur as a result of new additions. Right now, demand is flat or dropping,” Bricker added, referring to the most recent earnings report, which projected the decrease in attendance may endure until 2025. “The opening of Universal’s Epic Universe in 2025 will most likely have a detrimental influence on Walt Disney World attendance. It will not be catastrophic—Epic Universe will attract more visitors to Orlando, who will also visit Disney—but it will be detrimental in the short run.”
As a result, Bricker said park guests should expect more parades events and discounts in the coming year as Disney strives to keep people visiting, especially since the new regions and rides will be under development for some time.
Even with this, the current price of Disney tickets compared to previous years is prohibitively expensive for some families.
Shortly after Disneyland in California opened in 1955, visitors could pay $2.50 for entry plus ten rides. Adjusted for inflation, the $2.50 would be worth $28.74 today. When Disney World in Florida opened in 1977, entry and a book of tickets for seven rides cost $8. In 2024 dollars, that would be $61.66.
The cheapest one-day tickets to Disneyland and Walt Disney World during the “value” season cost $104 and $116.09, respectively.
However, when the parks opened, admission rates were just a single park with significantly fewer attractions than a Disney guest may enjoy today. Disneyland Resort now includes two parks with over 65 attractions, while Disney World has four theme parks and two water parks, totaling over 150 attractions.
Don Munsil, who runs MouseSavers, a travel website that keeps historical data of Disney rates, highlighted that “value” tickets have climbed by less than 1% each year over the last ten years. However, the number of dates on the calendar when these prices apply has decreased.
On the high end, Munsil said that the most costly single-day ticket to only one park during peak season at Disneyland in California ($194) had climbed by an average of 7% each year over the last decade. A similar peak season ticket at Disney World in Florida ($201.29) has risen by an average of 6.4% yearly.
The hikes in these peak tickets have outpaced inflation during the same period.
According to MouseSavers, tickets for a family of four to hop between the Walt Disney World parks for four days during peak season would cost around $3,098 in 2024, excluding additional services such as access to speedier “Lightning Lanes,” which were formerly free.
That is around double what they cost ten years ago and 3.6 times the amount twenty years ago.
Paid entry to Lightning Lanes, launched at Disney World in 2021, can cost between $17 and $41 per person per day, depending on the park and season.
Certain popular rides are excluded, however. For example, using the Lightening Lane for “Star Wars: Rise of the Resistance” would cost an additional $25 per person.
However, Munsil points out this is the cheapest theme park “express” service available. He stated that Universal’s express pass costs between $105 and $310 per person per day, depending on the number of parks and selections. Cedar Point charges $95 to $120 per guest each day, and Busch Gardens charges $60 to $150 per person, per day.
The fan community complains that this used to be free at Disney parks. Transportation from the Orlando airport to Disney World property was previously free for Disney hotel guests, but this service has been discontinued.
Disney Has A Price Problem. It Has Ambitious Plans To Fix That
Food and souvenirs in the parks are likewise significantly more expensive.
According to the Disney Food Blog, a Mickey ice cream bar cost $2.59 15 years ago. Adjusted for inflation, it should cost $3.78 in 2024, yet the price is $6.29.
Light-up speciality balloons cost $15 in 2015. Adjusting for inflation, that style of balloon would cost $19.60. In 2024, the balloon costs $20. So not everything in the parks is outpacing inflation.
Victoria Wade, the author of the content, said: “In recent years, there has been a feeling that the fans have been nothing more than dollar signs and that our feedback wasn’t taken seriously since the return to normality with the pandemic.”
Wade stated that the perceived volatility of Disney leadership and the addition of previously free paid items and experiences “led to a lack of trust between the company and the community.”
However, Wade stated that the main announcements made at the Disney fan convention, D23, gave her the impression that the corporation is listening to input, such as the addition of a new nighttime parade at Magic Kingdom, which faithful visitors had asked for a long time.
Munsil stated that Disney parks are “expensive, yes, but there’s nothing else on Earth like them.”
SOURCE | CNN
Business
Sonic the Hedgehog Dominates Christmas Wish Lists
Sonic the Hedgehog is dominating Christmas wish lists this year. The lovable blue hedgehog is back in the spotlight, from sonic the hedgehog toys and games to sonic the hedgehog coloring pages and movie hype.
Sonic-themed holiday merchandise is on fire, from quirky sweaters to action figures flying off shelves. Sonic the Hedgehog Christmas outfits for kids are selling out fast, making them a go-to gift option for festive fun.
Retailers have been quick to recognize Sonic’s holiday appeal. Special promotions and exclusive items, like the Sonic holiday t-shirts, are everywhere.
Everyone’s stocking up on Sonic merchandise, from big-box stores to boutique retailers.
Online shopping platforms are seeing a surge in searches for Sonic items. Whether it’s Sonic Christmas-themed tops or Sonic the Hedgehog coloring pages, Sonic the Hedgehog toys or Sonic and the Hedgehog 3, the demand is skyrocketing.
Retailers who tap into this trend are sure to see strong holiday sales.
Sonic has been around since the early 90s, but his popularity never wanes. With the release of Sonic 3, fans are more excited than ever.
Sonic the Hedgehog 4
Meanwhile, Paramount Pictures is preparing “Sonic the Hedgehog 4,” with the newest addition in the family-friendly genre set for a spring 2027 release.
The announcement comes as “Sonic 3” opens in theatres on Friday, estimated to gross $55 million to $60 million from 3,800 North American locations.
The sequel is shaping up to be a good holiday season blockbuster for Paramount, which explains the desire in future “Sonic” adventures. On the international front, the film will be released on Christmas Day in 52 markets.
On Rotten Tomatoes, critics gave “Sonic 3” an outstanding 87% fresh score.
The first two films grossed a total of $725.2 million at the global box office and generated over $180 million in global consumer expenditure through home entertainment rentals and digital purchases.
They also inspired a spinoff Paramount+ series, “Knuckles,” which premiered earlier this year.
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Business
Amazon Strike Called By Teamsters Union 10,000 Walkout
An Amazon strike has hit facilities in the United States in an effort by the Teamsters union to pressure the corporation for a labour agreement during a peak shopping season.
The Teamsters union told the Associated Press that Amazon delivery drivers at seven facilities in the United States walked off the job on Thursday after the firm failed to discuss a labour contract.
According to the union, Amazon employees in Teamsters union jackets were protesting at “hundreds” of additional Amazon facilities, which the union billed as the “largest strike” in US history involving the company.
The corporation, which employs over 800,000 people in its US delivery network, stated that its services will be unaffected.
It was unclear how many people, including members of Germany’s United Services Union, participated in Thursday’s demonstration. The Teamsters union reported that thousands of Amazon employees were implicated in the United States.
Amazon Strike at 10 Locations
Overall, the group claims to represent “nearly 10,000” Amazon strikers, having signed up thousands of people at roughly ten locations across the country, many of whom have joined in recent months.
The organization has claimed recognition from Amazon going on strike, claiming the firm illegally neglected its obligation to bargain collectively over salary and working conditions.
The Teamsters is a long-standing US union with nearly one million members. It is well-known for securing lucrative contracts for its members at companies like delivery behemoth UPS.
Most of the Teamsters’ Amazon campaigns have concerned drivers working for third-party delivery companies that partner with the tech behemoth.
Amazon denies that it is liable as an employer in those circumstances, which is a point of legal contention. In at least one case, labour officials have taken a preliminary stance in favour of the union.
Stalled Contract Negotiations
Amazon employees at a major warehouse on Staten Island in New York have also chosen to join the Teamsters. Their warehouse is the only Amazon facility in the United States where labour officials have formally recognized a union win.
However, the Amazon strike is because contract negotiations have not progressed since the 2022 vote. It was not one of the areas scheduled to go on strike on Thursday.
Amazon, one of the largest employers in the United States, has long received criticism for its working conditions and has been the target of activists seeking to gain traction among its employees.
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Business
Amazon Encounters Numerous Strikes As Unions Aim At The Holiday Shopping Surge.
(VOR News) – Thousands of Amazon employees at various sites across the country were scheduled to go on strike on Thursday in an effort by the Teamsters union to pressure the retail behemoth to acknowledge its unionised workers in the United States.
The walkout is expected to concentrate on seven Amazon locations across the country during the holiday purchasing surge and may be the most significant union action against Amazon in the nation’s history.
The business announced on Thursday morning that there had been no effect on operations. It also stated that it is “continuing to concentrate on fulfilling customers’ holiday orders.”
The International Brotherhood of Teamsters maintains that it represents more than 10,000 Amazon employees and contractors in aviation centres, warehouses, and delivery centres.
Amazon has refused to acknowledge the union for many years.
The retail giant, which employs approximately 1.5 million individuals, excludes contractors and part-timers. A strike has been initiated by delivery couriers and warehouse employees at seven distinct locations in order to exert pressure on the company to negotiate a collective bargaining agreement that would encompass modifications to compensation, amenities, and working conditions.
Picketing was intended for New York, Atlanta, Los Angeles, San Francisco, and Skokie, Illinois.
Also, the Teamsters assert that they are establishing picket lines at “hundreds” of additional warehouses and delivery centres by encouraging non-unionized workers to picket under U.S. labour law, which protects workers’ ability to take collective action to further their interests.
“Amazon workers are exercising their power,” Randy Korgan stated to NPR.
“They now realise there is a pathway to take on a corporate giant like this – and that they hold the power.” Amazon responds by accusing the Teamsters of fabricating information regarding the strikes, asserting that the participants are “entirely” outsiders rather than employees or subcontractors of the corporation.
Amazon spokesperson Kelly Nantel stated that “the reality is that they were unable to secure sufficient support from our employees and partners and have invited external parties to harass and intimidate our team.” For more than a year, the Teamsters have been intentionally misleading the public by claiming to represent “thousands of employees and drivers.” They do not.
The Teamsters did not provide a specific duration for the strike; however, they informed NPR that it would extend beyond one day. Workers would receive $1,000 per week in strike money, as per the union.
Teamsters President Sean O’Brien issued a statement in which he stated, “If your package is delayed during the holidays, you can attribute it to Amazon’s insatiable greed.” We established a firm deadline for Amazon to attend the meeting and treat our members equitably. They disregarded it.
The Teamsters granted until December 15 to convene with its unionised employees and develop a collective bargaining agreement.
Amazon has opposed all unionisation efforts in court, asserting that unions were not advantageous to its employees and emphasising the compensation and benefits that the organisation currently provides.
Amazon has been accused of discriminatory labour practices on numerous occasions, including the termination of labour organisers. Furthermore, it has disputed its official status as a contract employer.
Teamsters organize Amazon delivery couriers and other employees.
In June, Amazon established its first unionised warehouse in Staten Island, New York, two years after making history by voting to join the fledgling Amazon Labour Union, which is also affiliated with the Teamsters.
The union is one of the most influential in the United States and Canada, with 1.3 million members. On Thursday, the German United Services Union declared that Amazon employees in Germany would participate in a strike in conjunction with their American counterparts.
In the past, Amazon has experienced demonstrations in Germany and Spain that were related to the holiday season in order to advocate for improved wages and working conditions.
“The holiday season has arrived.” Delivery is anticipated. Patricia Campos-Medina, the executive director of Cornell University’s Worker Institute, asserts that “this is the moment in which workers have control over the supply chain.”
The Teamsters have reported that Amazon’s profits have increased both during and after the pandemic. The corporation is currently valued at over $2.3 trillion, with net income of $15 billion in the most recent quarter alone. It is the second-largest private employer in the United States, following Walmart.
SOURCE: NPR
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