Disney Price Discrimination Essay

Decent Essays
There was once a saying that you cannot put a price on happiness, however Disneyland, the happiest place on earth, is one of the most expensive theme parks in America. Many claim that the company, Disney had encourage surge pricing to its theme parks causing a huge rise in pricing for its tickets as in effect to its high demand. In the article, Disney Discovers Peak Pricing published on February 29th, 2016 by author S.K. elucidate that it was not surge pricing that Disney have been carrying out, but Disney have been following with what other business have been doing as well; price discrimination.“Price discrimination is practice of selling identical goods or services at different prices from the same provider.” (…show more content…
For example, in the article it states that, “ In summertime, when the living is easy and children need entertaining, demand is high, and relatively insensitive to price” (S.K., 2016) This can be further proven with Disney display of their demand-based pricing. Demand-based pricing also known as customer-based pricing, is any pricing method that uses consumer demand - based on perceived value - as the central element. ( As a result, the demands can be reflected upon the pricing. Referring to figure one, when the calendar dates are highlighted in bronze, that indicate that demands are below-average which unveiled the cheaper pricing that Disney theme parks offer at $105 per day. However, when the dates on the calendar are highlighted in silver that represent the average crowd days which the pricing is at $115 per day. And during Disney parks crowded day are when the demands are above average, the price increase to $125 per
Get Access