According to reports, Disneyland has decided to raise its price of annual pass and daytime ticket prices. One of the reasons is probably the busiest seasons – Christmas and New Year are coming. The price increase has apparently caused discontent from potential customers of Disney. However, in my opinion, the increase in price is somehow logical and efficient in balancing the demand and supply of Disneyland.

The demand for Disneyland has been insatiable in recent years. According to statistic.com, the revenue of Walt Disney Company has been increasing, even though the prices of Disney products and services, such as Disneyland tickets, toys, usage of hotel facilities etc. are increasing. The demand is seemed to be inelastic in the market – the percentage increase in the products and services are expected to create a smaller percentage change in quantity demanded. The price increase acts as an efficient tactic to balance demand and supply.

On top of that, it is meanwhile suggested Disney should increase the frequency of social services to accommodate the price increase, since the less well-off people in society may not afford the increased price of Disneyland tickets. In terms of business ethics, Disney can provide discount and benefits for relatively poor families, in order to improve company’s image even there is price increase and to fulfill social responsibility.

Reference:

Jean Byun’s Blogpost “Disney, Excessive pricing for the excessive demand” https://blogs.ubc.ca/jaeeunbyun/2015/11/19/disney-excessive-pricing-for-the-excessive-demand/

Walt Disney Quarter Revenue in 2015 http://www.statista.com/statistics/224397/quarterly-revenue-of-the-walt-disney-company/