Walt Disney Co. (DIS) raised admission prices between 2.5% and 5.3% at its largest theme park in Orlando, Fla., over the weekend, even as it offers other deals to spur demand from consumers cutting back spending on vacations amid the recession.
The uptick in admissions prices at Walt Disney World was smaller than similar increases the company has made in recent years, but the move still reflects confidence that Americans will continue to come to Florida in search of Disney magic even as job losses mount.
Disney has less exposure to the slump in ad spending than some of its big media counterparts, but its theme-parks business has been a source of worry on Wall Street during this economic downturn as consumer spending has proven to be a particular weak spot.
The company reported last week that revenue from its parks division was down 9% in its fiscal third quarter ended in late June, while operating profits dropped 19%. Disney Chief Executive Robert Iger acknowledged that the economy was taking a toll on the business, even as various price promotions the company began rolling out last year boosted domestic attendance by 3%.
