The CEO of Disney, Bob Iger, admitted that Disney went too far with price increases in the theme parks, something that greatly disturbed its customers last year.
One of the first steps Iger took when he returned to the position of CEO of Disney last November was to cancel the price increases implemented under his predecessor, Bob Chapek.
“I’ve always believed that Disney is a brand that should be accessible,” Iger said during an appearance at a Morgan Stanley press conference on Thursday.
“And I think in our eagerness to increase profits, we may have been a little too aggressive with our pricing.”
“I think there is a way to continue to grow the business but be smarter about how we price so that we maintain the value of the brand and accessibility,” added Iger.
In January, Disney brought back friendly perks the company had previously eliminated, including free self-parking at resort hotels and free photo downloads for its theme park facilities.
The entertainment giant also “significantly” increased the number of days on which Disneyland tickets are sold at the lowest price of $104.
Iger said that the company’s price drop “resonated well with consumers”.
The Disney boss also said that the company has taken steps to “enhance the guest experience by reducing overcrowding” in the parks.
“It’s tempting to bring in more and more people, but if the guest satisfaction levels drop because of overcrowding, then it doesn’t work,” Iger said.
“We need to understand how we reduce the density but maintain our profitability. And we did it well.”
A series of price increases has sparked outrage among Disney’s park islanders, who resent the price shock as well as long lines and poor service they encountered on the site.
Last November, the Wall Street Journal reported that Iger was “frightened” by price increases that CEO Chapek implemented during his time as head of the organization.
“He is killing the soul of the company,” Iger reportedly told his confidants about the price increases.
Disney’s theme parks continue to be the main driver of its overall business.
In fiscal year 2022, the parks will generate $28.7 billion in revenue and $7.9 billion in profit, breaking pre-pandemic performance records.