01 Day Magic Kingdom $99.00 01 Day Non-Magic Kingdom $94.00 02 Day $188.00 03 Da

Question

01 Day Magic Kingdom $99.00

01 Day Non-Magic Kingdom $94.00
02 Day $188.00
03 Day                                               $274.00
04 Day                                               $294.00
05 Day                                               $304.00
06 Day                                               $314.00
07 Day                                               $324.00

Using the data provided above do the following:

1) Calculate the average daily ticket price for each ticket tier, e.g., 7 day ticket $324/7=$46.29 per day.

2) Calculate the marginal ticket price for each additional day at Disney for each ticket tier, i.e., the change in ticket prices divided by the change in the number of days. Don't use the average prices you calculated.

3) Look up on the internet:

a) What Universal Orlando charges for a first day at its theme parks.

b) What SeaWorld charges for a first day at its theme park.

4) How does Disney use its ticket pricing scheme to endeavor to get its customers to spend their entire vacation (and all their vacation budget) on their property rather than leaving and visiting their competitors?

5) Based on the chapter reading, and in detail and technically, how would you describe Disney's ticket pricing scheme and Why?

Explanation / Answer

For parts 1 and 2:

3) Look up on the internet:

a) What Universal Orlando charges for a first day at its theme parks.

$96.00

b) What SeaWorld charges for a first day at its theme park.

Prices vary depending on which sea world.

For Sea World Orlando it is $65 on the week day and $75 on Weekend.

4) How does Disney use its ticket pricing scheme to endeavor to get its customers to spend their entire vacation (and all their vacation budget) on their property rather than leaving and visiting their competitors?

Disney charges a lower average and marginal price as people stay longer at the Kingdom. This is how Disney differentiates itself from competitors because it is so huge. The lower ticket prices are intended to get people to spend their entire vacation and all money at their park. Disney recognizes that the ticket prices is just part of it. With the vacationers they also get income from additional nights at disney hotel as well as concessions, food cost and soveniors.

5) Based on the chapter reading, and in detail and technically, how would you describe Disney's ticket pricing scheme and Why?

I think Disney's Ticket pricing Scheme is a combination of Psycholoical pricing, Time based pricing and value based pricing. Psychological becuase customers realize the more days at the park, the less per day. This also ties into time based pricing (number of days) and value based pricing because the cost per day is lower for more days.

Days at Disney Cost Average Cost Per Day Marginal Ticket Price 1 $    99.00 $                              99.00 $                             99.00 2 $ 188.00 $                              94.00 $                             89.00 3 $ 274.00 $                              91.33 $                             86.00 4 $ 294.00 $                              73.50 $                             20.00 5 $ 304.00 $                              60.80 $                             10.00 6 $ 314.00 $                              52.33 $                             10.00 7 $ 324.00 $                              46.29 $                             10.00

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