Disney discovers peak pricing

Disney has recently begun to utilize price discrimination. During the summer, when children are out of schools, Disney ticket sales are at its peak. However, during the regular school year, ticket sales are much lower. Without price discrimination, the ticket price stayed constant throughout the year. This caused the park to be very busy during its peak and very quiet otherwise. Now that Disney has decided to utilize price discrimination, the price will be higher for a ticket during its peak and lower during the school year. People who had originally avoided going during the peak due to the long periods of time waiting in line are now affected. The lower price during the off-season will attract more customers than before and therefore increase the amount of wait time which customers will experience. The overall effect would create a more even amount of customers during the peak and the off-season. Discouraging customers to come during the peak of the season will lower wait time, and encouraging customers to come during off season will bring in more revenue.

http://www.economist.com/blogs/freeexchange/2016/02/price-discrimination-land

1 Comment »

  1. messersn Said,

    December 12, 2016 @ 10:14 pm

    This seems like a relatively intelligent business strategy. The Disney Corporation sees that the demand to visit their parks is much lower during the off season, so in order to increase their profits they will raise the prices when it is high season, and lower the prices for when its low season. When the industry lowers its prices, more people will have a greater incentive to visit the park due to the lower price, despite the fact that they may be in school etc.

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