Disneyland recently announced that it is hiking the price of its annual passes to more than $1,000. Analysts said that Disneyland parent company Walt Disney wants to cash in on the influx of demands during peak seasons, hence the price hike.
Disney spokesperson Jacquee Wahler said in a statement obtained by CNBC, "We continue to evolve the way we think about managing demand, particularly during our busiest seasons, in order to deliver world-class experience for our guests."
According to the Wall Street Journal, Disney is implementing the price hike in order to manage overcrowding during peak seasons. The company added that the introduction of "Star Wars" and "Frozen" franchises have significantly increased demands.
Disney is employing the dynamic pricing strategy which is also known as peak pricing. Employing this strategy means that a business will raise prices for its services every during peak seasons and lower its prices when demands drop down below average.
Market experts believe that using this kind of strategy will help reduce demands, effectively reducing overcrowding and reducing time spent of queues.
As part of the company's new strategy, one daily pass was cancelled and two options were introduced. Once of the newly introduced passes is almost similar to the cancelled one in offering annual park access, only this time it costs $70 more putting its price tag to $1049 and with limited extra benefits.
The other recently introduced pass costs $849 annually and entails a two week blackout date during the winter holiday period. Individual tickets still remains at $99, a price which was raised in February 2016.