Understanding Disney’s Domestic Hotel Strategy
Photo Credit: Disney's Contemporary Resort at Walt Disney World Resort in Florida. A significant part of Disney's travel business comes from their hotels. Flickr / QuesterMark
Skift Take
Disney's unique theme park experience gives the company strong pricing power in the U.S., allowing Disney to consistently raise ticket prices above the inflation rate while growing attendance at the same time. By owning hotels on its properties, Disney is able to maintain an immersive experience, leading to high occupancy rates and steady growth in spending per room. The theme parks feed the hotels with guests and the hotels reinforce the park experience. This has, and will continue to be, a lucrative cycle for Disney.