When the Disneyland annual pass was released in 1984, it sold for just $ 65. Things were different then: Splash Mountain didn’t exist yet. Neither does Star Tours. And the park closed on most Mondays and Tuesdays, except during the summer.
In the 37 years since then, the annual pass program has been expanded, modified and adjusted repeatedly, with multiple levels and blocked days, as the public skyrocketed and Walt Disney Co. worked to continue the offering without reaching its capacity limit as well. often.
So, this week, it’s over. Ten months after Disneyland and the adjacent Disney California Adventure Park closed because of the COVID-19 pandemic, Disney shut down the program. Executives promise that there will be alternative offers in the future, but have yet to offer details.
After the pandemic has subsided enough for Anaheim parks to reopen, theme park experts predict, the pass program will somehow return, with a new revision to address the park’s stubborn stocking problem and maximize profits.
What will happen to people who have annual passes?
People who have paid for annual passes that lasted more than the parks closed in March should receive automatic reimbursement for the days the parks were closed. Active pass holders after the parks close will continue to receive food and beverage discounts at the Downtown Disney restaurant and the commercial district adjacent to Anaheim parks and California Adventure’s Buena Vista Street.
In addition, current pass holders will have a 30% discount on selected merchandise from certain stores from Monday to Thursday until February 25.
Why would Disney end the program?
Although Disney does not release audience figures, a report by engineering firm AECOM estimates that in 2019, Disneyland and Disney California Adventure Park had a combined total of 28.4 million visitors. It has long been believed that the number of people who have annual passes is around 1 million.
The annual pass program was probably profitable, but pass holders tend to be Southern California residents who visit frequently – weekly or even daily – and spend less on food and souvenirs than tourists.
Disneyland and Disney California Adventure Park appreciate visitors who spend modestly when they don’t reach maximum capacity, especially on days of low demand, such as midweek or in the fall, after the kids return to school. But now that the parks are approaching or reaching capacity on a regular basis, Disney prefers the limited space in the parks to be filled by out-of-town visitors who spend a lot, say theme park experts.
“On a per visit basis, annual pass holders do not earn much money for the park,” said John Gerner, theme park specialist and managing director at Leisure Business Advisors. “When they were over capacity, it made sense. Now they don’t have that ability. “
The end of the annual pass program now allows Disney executives to redesign the program to increase profits, he said.
For Disney, said Gerner, “this may be a blessing in disguise.”
Will replacing the annual pass program offer options for Disney fans who are budget conscious?
To reduce crowding, Disney adopted a new pricing policy at Disneyland and other U.S. theme parks in 2016, which reduced ticket prices for days of low demand and increased them for more popular times. Known as dynamic pricing, these systems were already used in places like cinemas and sports arenas.
Three years later, Disneyland Resort launched the Flex Pass, a low-cost annual pass that allowed parkgoers to visit without restriction on most Mondays to Thursdays, when demand is usually low. But on most weekends and during the high demand months of the summer, Flex Pass holders would have to make reservations before showing up at the parks.
Theme park experts predict that future Disney programs will continue to have dynamic pricing to provide an incentive for residents to visit them on low days, thus spreading the crowds more evenly throughout the year.
“Whether we like it or not, dynamic pricing is reaching the industry,” said Dennis Speigel, chief executive of International Theme Park Services.
In announcing the end of the annual pass program, Disneyland Resort President Ken Potrock hinted that the replacement would offer a variety of price levels.
“I think we’re going to look at all these different ones – I’m going to use a marketing term – consumer ‘buckets’, understanding what they want and building a program around it so that we can affectively spread the service in a way that allows us to optimize the that we have available and satisfy the greatest number of people in the way that they wish to be satisfied ”, he affirmed.
Will the replacement program be more expensive?
Disneyland’s annual pass program had six options. The highest level: a $ 2,199 pass that offered access to Disney parks in Anaheim and Orlando, Florida, without blocking any dates.
Industry experts predict that Disney will relaunch the annual pass program with even more options to try to cater to as many fans as possible, including those who are willing to pay dearly for maximum flexibility.
Martin Lewison, a professor of business administration at Farmingdale State College in New York, noted that Disney parks have raised prices regularly for several years, without decreasing the number of participants. This suggests that they can charge even higher prices without losing demand, he said.
“When you’re raising prices and demand isn’t falling, it means you’re leaving money on the table,” he said.
Once the pandemic is under control, he said, demand will be extremely high, giving Disney the green light to charge much more.
“Since people are not traveling, the vacation piggy bank is swelling and Disney wants to keep its share of it,” said Lewison.
Potrock said the form of the replacement program will be guided by suggestions from guests, holders of annual passes and fans, among others.
“This guidance will help us to create a program for the future. And this is important, ”he said. “We are counting on a current program created with our new normal in mind.”
How soon can Disney launch the replacement program?
When Disneyland and Disney California Adventure Park reopens it depends on the ability of Orange County residents to slow the spread of the coronavirus and the speed of delivery of the vaccine.
But even after the COVID-19 vaccines have been widely distributed and the number of virus cases has declined, theme parks are unlikely to launch an annual pass program immediately, industry experts hope. That’s because one-day tickets generate more revenue per visit and help parks to control how many people enter.
If demand for parks remains high after the pandemic is suppressed, Disney will likely take advantage of this increase by delaying the launch of an annual pass program as much as possible, said Gerner: “My feeling is that even next year is probably questionable. “