Disneyland's Magic Key program, the replacement for its popular annual pass, is about to get more expensive.

Ticker Security Last Change Change % DIS THE WALT DISNEY CO. 122.80 -2.16 -1.73%

According to the California theme park's website, prices for the Magic Key program will now range between $449 and $1,599, up from last year's range of $399 to $1,399. 

The four tiers include the $449 Imagine Key, the $699 Enchant Key, the $1,099 Believe Key and the new $1,599 Inspire Key. The Inspire Key replaces the Dream Key, which is no longer available for purchase or renewal. 

DISNEY RESPONDS TO LETTER FROM ACTIVIST INVESTOR DAN LOEB

All four tiers will have blockout dates, discounts on select merchandise and dining and 20% off on Disney Genie+ service, the replacement for its FastPass program that allows guests to skip the long lines on popular rides for an extra fee. 

The Inspire Key will be the only one to include standard theme park parking, while the rest will offer parking discounts. In addition, both the Inspire Key and Believe Key will offer unlimited digital photo downloads through Disney's PhotoPass service. The Imagine Key will only be available to Southern California residents living in zip codes 90000 to 93599.

A Disneyland spokesperson confirmed to FOX Business that pass renewals for current Magic Key holders will open no earlier than 9 a.m. on Thursday morning. However, sales of new Magic Key passes remain paused, according to the company's website. 

Disneyland Magic Key

ANAHEIM, CA – AUGUST 14: General views of Sleeping Beauty Castle at Disneyland on August 14, 2022 in Anaheim, California. (Photo by AaronP/Bauer-Griffin/GC Images) ((Photo by AaronP/Bauer-Griffin/GC Images) / Getty Images)

The Magic Key renewal announcement comes as the program is the subject of an ongoing $5 million lawsuit that accuses Disneyland of artificially limiting theme park capacity and blocking Magic Key holders with no blockout dates from making reservations, according to the Orange County Register. 

Disney has denied the allegations, arguing that it has been "clear about the terms of the Magic Key product." Though the company tried to dismiss the case, a judge is allowing it to move forward, ruling in May that the plaintiff "adequately pled facts supporting how a reasonable consumer may be deceived by the advertisement, which states ‘no blockout dates.’"

CLICK HERE TO READ MORE ON FOX BUSINESS

Disney recently beat Wall Street expectations for its fiscal third quarter with adjusted earnings per share of $1.09, up 36% compared with the same period a year ago. Revenue climbed 26% from the year-ago period to $21.5 billion. The Disney Parks, Experiences and Products segment posted revenue of $7.4 billion, up 70% compared with $4.3 billion a year ago. 

During its third-quarter earnings call, Chief Financial Officer Christine McCarthy said that demand at its domestic theme parks continued to exceed expectations with attendance on many days tracking ahead of 2019 levels. However, the company's earnings release noted that an increase in average per capita ticket revenue due to Genie+ and Lightning Lane and a reduced impact from promotions at Walt Disney World Resort was "partially offset by an unfavorable attendance mix at Disneyland Resort."

"Looking ahead, domestic demand at our theme parks continues to look robust with current forward-looking hotel bookings and intent to visit roughly in line with pre-pandemic trends," McCarthy added. 

Disney shares have fallen approximately 20% year to date. 

Source Link:
https://www.foxbusiness.com/lifestyle/disneyland-raising-prices-magic-key-passes

Comments

comments

Advertisement