If you double your prices and lose half your customers, you’re still coming out ahead – still making the same amount of money, while only needing to serve half as many customers, which lowers your expenses.
That’s what Disney has done over the past couple of years. Clearly they’ve decided that they aren’t the vacation for all Americans, it’s the vacation for rich Americans. So they’ve cranked up the prices, knowing the rich will pay it without a word, and spend lots more on luxury hotels and restaurants, while the poors will stop taking up space.
Eh, they might still be benefiting here.
If you double your prices and lose half your customers, you’re still coming out ahead – still making the same amount of money, while only needing to serve half as many customers, which lowers your expenses.
They raised the price 50%, not 100%. I’d agree with you if they didn’t quickly walk most of the hike back.
That’s what Disney has done over the past couple of years. Clearly they’ve decided that they aren’t the vacation for all Americans, it’s the vacation for rich Americans. So they’ve cranked up the prices, knowing the rich will pay it without a word, and spend lots more on luxury hotels and restaurants, while the poors will stop taking up space.