Need transport to your Disney resort? Get your own bus. Photo: Disney

With inflation rising—Korger Company reports, for instance, that beef prices have risen 14% this year—and with debt incurred from COVID lockdowns, businesses are struggling with balancing the cost of goods and services for consumers with their need to stay viable as a business entity. Disney is no exception. A look at recent Mouse moves, and the financial context within which those moves are happening, shows the inflationary pain that customers (guests in Disney speak) will experience.

The pre-COVID Bob Iger led Disney philosophy was one of encouraging guests to stay in Disney hotels by offering hotel-only perks. The assumption underlying those perks was that guests captured within the Disney berm would spend more and have a more engaging, enjoyable experience. The new post-lockdown Bob Chapek led experience is one of add-on fees.

Those add-on fee, as reported by ThemeParkTourist.com, include the following:

• Magical Express (free transportation from the Orlando Airport to the Disney resort) – Gone, replaced by a vendor service costing $188 for a family of four.
• Fast Pass+ (Advance reservations for attractions) – Gone, replaced by Disney Genie+, costing $300 (for a 5-day visit by a family of four).
• Free Hotel Parking – Gone. Parking now costs $15-25 per day depending on the quality of the hotel.
• Hotel Package Pickup (items purchased in the parks delivered to your hotel room) – Gone. Complimentary MagicBands for your entire party (wrist bands with all your credit and ticket information on them) – Gone, now costing $19.99 or replaced by the My Disney Experience phone app.
• Extra Magic Hours (one park open an hour or two early each day of the week for hotel guests) – Replaced by all four parks opening one half hour early each day.
• Resort Airline Check-In (Your luggage picked up and delivered to the airport for you) – Gone. Now you will carry your own luggage.

Chapek is known inside the Mouse as an aggressive cost cutter. He may, unfortunately, be the right person in the right place at the right time. COVID has cost Disney dearly. Losses have been estimated to be in the billions. Other estimates include Disney taking on debt of over six billion to weather the financial storm caused by the simultaneous shutdown of movies, television production, theme parks, and the cruise line. The cost has been staggering, and perhaps even company threatening.

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The question then becomes: Is it better to lose money, maintain tradition, and risk the existence of the company or is it necessary to aggressively stabilize the financial ship.

I am of two minds on the subject. Walt Disney did not want to squeeze his guests for every possible dollar. He wanted a place affordable to visit and even said, “We have to feed people that come here, but I don’t want to make any money on food.” On the other hand, Walt was very successful at making money and, during the difficult 1940s, demonstrated an ability to compromise his offerings to save his company.

These add-on fees are frustrating and painful. Fortunately or not depending on your viewpoint, people love Disney so much they will pay the extra fees and the Mouse House will eventually be financially whole again. What will have been lost is a little more of the innocence that was Walt’s company. Ultimately though, my guess is that Walt would want his company to remain intact and would, very reluctantly, be on board Chapek’s cost cutting bus.