Disney (DIS) has hiked prices on Disneyland tickets ahead of the forthcoming opening of a new "Star Wars"-themed area later this year, sending Disney stock higher.
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The latest increases mean the cheapest daily ticket now costs more than $100, while parking costs have also gone up, rising by 25% per day to $25.
A one-day ticket that only gives access to either Disneyland or adjacent the California Adventure park jumps from $97 to $104 for low-demand days, a 7.2% increase. The same ticket for regular-demand days jumps 10.3% to $129, while it is up 10.4% to $149 for peak-demand days.
It comes just 12 months after Disney raised prices for California Adventure and Disneyland tickets by up to 18%.
Disney stock was up 0.9% at 110.60 on the stock market today. Rival media giant Comcast (CMCSA), which owns the Universal Studios resorts, was down 1.1%. Six Flags Entertainment (SIX) was up 1.3%, and SeaWorld Entertainment (SEAS) added 1.4%.
Big Demand Benefits Disney Stock
Both Disneyland and Disney World are getting their own "Star Wars: Galaxy's Edge" areas. Disneyland will see its attraction open in June, while the Disney World equivalent is expected to open late fall.
Disneyland's new feature takes up 14 acres, and features a Millennium Falcon ride and a cantina with alcoholic beverages.
While there have been complaints from customers over the continued price increases in Disneyland tickets, demand remains strong and requires continued management.
"We continue to provide our guests with a variety of ticket offerings to meet their needs, while helping us to spread visitation, better manage demand and deliver a great experience," Disneyland Resort spokeswoman Liz Jaeger told the Los Angeles Times.
Disney adopted "demand" pricing for Disneyland tickets in 2016, making them cheaper on less busy days and more expensive on weekends and holidays.
Last year RBC Capital Markets analyst Steven Cahall said Disney's theme park segment is "underappreciated by the Street." He said the unit makes up a third of the operating income of Disney, but "rarely gets one-third of the credit, in our view, and it arguably has the most scope for driving more upward consensus revisions."
For now, more expensive Disneyland tickets are boosting the bottom line and Disney stock. In fiscal Q4 results announced Nov. 8, theme parks revenue was up 9% to $5.07 billion, helping over revenue and earnings beat estimates and lifting Disney stock the next day.
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The post The Empire Strikes Again: Disney Hikes Park Prices Ahead Of "Star Wars" Expansion appeared first on Investor's Business Daily.
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