Has Disney World gone too far this time?

Fans Walt Disney‘s (DIS 0.52%) domestic theme parks know there will be more tricks than treats for their pocketbooks come October. California Disneyland has raised admission prices two weeks ago This week, it’s time for Disney World in Florida to follow suit.

On Wednesday, Disney’s biggest resort raised prices for annual passes. A year-round ticket to a collection of four Disney World theme parks and the expansion of the number of experiences will cost you 3-7% more. As far as price increases go, the increases are not as large as those of Disney and its competitors relegated to the past. That’s not to say the $30 to $100 increase for the resort’s four tiers of annual passes isn’t causing a stir online.

Travel ticket

Disney World will keep daily ticket prices unchanged until next October. It there are prices are 3-11% higher for popular food, buffet and family meals. Prices are rising because labor and operating costs are rising in all industries. There’s no pixie dust to help Disney roll on that front.

The timing of the promotion is interesting. Last October, Disney announced hikes at two of its resorts in the state at the same time, but that didn’t work out this time. As Disneyland raised ticket prices earlier this month, Hurricane Milton tore through Florida and temporarily shut down Disney World attractions.

The announcement of higher annual season ticket and meal prices this week might also be a bad look. It just so happens to be a week ComcastUniversal Orlando ticket sales have started to the next-generation Epic Universe theme park, which will open this spring. It helps that Epic Universe doesn’t currently offer annual passes. If it can fill a flashy new park with people paying north of $150 for a day pass, why undercut the turnstiles per capita revenue with an annual pass? Disney is still an odd choice to make the hiking headlines this week.

Image credit: Disney.

Happily

Disney’s domestic theme parks have seen a turnaround in recent quarters, but refreshingly, it’s also the business segment that’s prompting one Wall Street analyst to raise his price target for media stock giant. Goldman Sachs raises its target on Disney shares from $120 to $125, encouraged in part by the launch of a new Lightning Lane Premier Pass.

The new premium price offer gives visitors the opportunity to significantly reduce wait times at most attractions – one at a time – for $129-$449 per person. Disneyland began offering the Lightning Lane Premier Pass on Wednesday. Disney World is coming next week.

Recently, Disney’s financials have been dominated by a profitable turnaround at Disney+ and the studio’s resurgence at the box office this summer. However, theme parks are still the driving force. With visitor revenue up roughly 40% since the pre-pandemic, much depends on the success of Disney’s world-leading theme parks.

With Disney shares still trading less than half off their 2021 all-time high, there could be upside if it can follow through on this month’s raise and new pass offers. Mouse-ear-wearing regulars won’t be happy with the sticker shock, but Disney has armed itself with promotional and discount tools it can use to help fill its resorts and attractions if demand starts to falter.