Thursday, May 11, 2017

Disney World

Madison Dominiak
Mr. Reuter
Economics-B2

Disney World
There is a place you can visit, any time of the year, that is sure to make you feel like a kid again. With the variety of rides, food, different attractions, and characters; it is sure to make you forget about the outside world. It is known as the most magical place on earth, and what is this place? Disney World.
To visit Disney World for one day, for anyone older than 10, it costs $105.00. For anyone under the age of 9 it costs $99.00 for a one day pass. On top of that you need to consider sales tax. On average for a family of 4 it would cost approximately $500.00 for a single day in the park. After buying tickets you need to budget in transportation, lodging, food, and shopping as well (because we all know you’re going to want a souvenir). Although some may argue that this is quite a lot of money for a single day, there is opportunity cost. While you will be paying a large amount of money they have available 3 free fast passes, which you can find online, which will put you in the front of the line for 3 rides saving you a lot more time to see and do other things. Another opportunity cost, is that; again while you are paying a lot of money, there memories can last a lifetime, and it is a completely different experience from other amusement parks.
When Walt Disney originally opened the park, in 1971, a ticket to get in cost $3.50 for an adult. In 2015, due to inflation, the cost of a ticket rose to $20.48. Inflation of Disney tickets has risen frequently and fast. Although the price of a one-day pass is quite steep, people are willing to pay the high amount for what they will be receiving. Other than single day passes, the park does offer deals. A deal such as a 5-day pass is available which totals to $315, averaging about $63.00 a day. Again this does have faults; 5-days at disney can be tiring. It all comes down to opportunity cost.
Disney world brings in a lot of revenue each year. Between all the parks, rides, food, and other opportunities they bring in large amounts of money. Magic Kingdom, pictured below, is the most popular park at Disney World. In 2014 this park alone had 19 million visitors, bringing in $5 million dollars in admission, that’s not even including food and extra spending! From 2014-2015 the Walt Disney co. reported 10% growth in revenue over that year. Walt Disney World contributes approximately 2.5% of Florida’s GDP annually.
In 2009, it was reported that 1 in every 50 Florida residents have a job that contributes to Disney. The park even offers a program to college students allowing them to work there and receive a steady salary as well as receive a college credit for working at the park. Disney creates a lot of jobs for Florida’s economy as well as provides a lot of employee opportunities.
Disney has become a key contributor to Florida’s economy. With the amount of money the parks bring in and the jobs it creates Disney is a success. The key to this success has been the creativity and the magic you feel as you walk through the gates, as well as the multiple attractions.





Works Cited:

"Disney says it generates $18.2 billion annual ripple effect in Florida." Tribunedigital-orlandosentinel. N.p., 13 Apr. 2011. Web. 26 Apr. 2017.

Josephson, Amelia. "The Economics of Disney World." SmartAsset. N.p., 19 Feb. 2016. Web. 26 Apr. 2017.

"Holidays at Walt Disney World Resort." Walt Disney World. N.p., n.d. Web. 26 Apr. 2017.

37 comments:

  1. I'm surprised that ticket prices have rose that much over the years, but at the same time the park rises the prices because they can and they know people will still attend. Although, I feel bad for the families and kids that can't afford to have that experience, because including travel from out of state, tickets, lodging, and food it has to be very expensive. I didn't know that there were opportunities for college kids which is pretty cool for people looking to make money while attending school at the same time.

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  2. Disney World contributes a lot to the economy in the US. In order for the many children of the US who dream of going to this place where dreams come true to actually get to Disney World, they have to either fly or drive there. This adds to the cost of the trip along with the cost of the hotel and food. Besides these costs, there is the cost of actually getting into Disney World. Although this trip is expensive, it creates memories that last a lifetime and is worth the opportunity cost.

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  3. I agree that there are many opportunity costs when it comes to Disney World, but you forgot one of the biggest ones. People have to decide which park they want to go to. They could go to Epcot, Animal Kingdom, Hollywood Studios, Magic Kingdom, or one of the water parks. At each different park people could ride different rides, see different things, and create different kinds of memories. At any of the parks they would be spending a larger chunk of cash in the end. Overall, it is worth it to go to Disney World at least once in your life.

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  4. Just by looking at those numbers you gave and the fact that Magic Kingdom alone made $5 million just on admissions in one year, we can see how much Disney World contributes to the economy of not only Florida, but the US. People around the world will come to Orlando to experience this “magic,” bringing in great revenue for the company and for other businesses located in Florida. Visitors would need lodging and food and other shopping and necessities, therefore Orlando or nearby cities are making great profit off of them. People hear about this hyped up park, and they automatically will want to spend the hundreds of dollars to go their for the five days. Because of the opportunity costs and benefits that you mentioned, you can see why people from all over want to come and spend their entire days at the parks, bringing in great positive externalities.

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  5. It is crazy how much the cost of the tickets for the park have raised. When living further away from the park the cost for a hotel also adds to the price of the vacation. The opportunity cost is to stay home or go to Disney and spend a lot of money. Since many families think it is worth their money they choose to go to Disney. It is a special thing to do so it is worth all the money. I did not know that Disney world has such an big impact on our economy.

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  7. I have never been to Disney, however I have heard a lot about the costs. I'm shocked at how expensive the tickets have been (and how they are on an increase). This situation includes both a positive externality and negative externality. It is positive for the people who are going to the park to have fun, but then again it is negative because of the amount of money they have to spend to get there. By the end of the trip and all the costs that were included, I feel as if more families would decide to go to a beach or somewhere that is worthwhile. Then again, Disney World is an experience a lot of people feel they can't miss.

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  8. It's crazy how much Disney World actually does for the economy. Roughly 2% of working residents in Florida have a job connected to Disney. Tickets are very expensive, but people will still go because there is nothing like disney world. Therefore, disney can raise the prices of their tickets to maximize income. Disney is a huge part of our countries economy as well as entertainment

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  9. I'm just curious where you found the information regarding inflation of ticket prices? I remember when I went to Disney World in either 2012 or 2013, tickets were far more expensive than $20.48... I think they were around $80 or $90. Maybe I'm just stupid but I feel like there would not be that dramatic of a price drop, especially if prices continue to inflate each year as the parks grow more and more popular.

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  10. It's pretty insane how much day passes to the park have risen, especially within just the last 5 years! Disney is one of very few companies/places that can raise the price so high, and still have the same demand. I think this is because they've done such a good job marketing the park through commercials and especially just through their consumers. For young families, Disney is always on the bucket list for vacations because of its popularity. When people say, "You can't go to Paris without seeing the Eiffel Tower", the same applies, "You can't grow up without going to Disney at least once when you're a kid". Therefore, I think Disney will continue to see lots of success in the future, despite the constant rise in admission price.

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  11. I have been to disney a couple times, and everytime I go it is clear why it is so successful. There is a whole aroua about Disneyworld (or Disneyland) and being the happiest place on earth. The characters never break character, everyone is happy, and the parks are well kept and maintained. The reason Disney can charge so much and still be so successful is because there is nothing else like it around. Disney is an experience, and the opportunity cost of not going and spending the day there for a lot of families is too much. As you mentioned, the influx of jobs created by Disney is great for the economy of wherever it is, either California or Florida. Also, it brings lots of people to the state, and they may spend one day at Disney and one day in the town.

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  12. I've been to Disney a few times when I was younger and I definitely never realized how expensive it has become over the years. Although it makes sense that ticket prices need to rise with inflation, they aren't creating new rides or attractions that often, so prices could be rising at a slower rate. There are a lot of ups to visiting Disney like the memories and the things you can buy, but it does come at an extremely high opportunity cost.Personally as I would rather spend the day the beach or doing more local tourist things where there are smaller crowds and less money spent. However I think that Disney world is something most people are willing to splurge on at least once in their life.

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  13. I have been to Disney a couple of times and I always hear stories about how expensive admission is, but I never knew the prices were so steep. And although this may seem like too much to some people, there are a lot of expenses that the company has to cover such as running the rides, air conditioning on those humid Florida days, and running light and fireworks shows at the end of every night. There's a lot that's included in the price of ticket so perhaps the price isn't as extreme as some may see originally. However, I do think that there are many other vacations that people could take that could 1.) be more in there budget and 2.) still be very inclusive and fun for the whole family.

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  14. I never realized how expensive disney was. My mom always paid for it. this article puts in perspective on why she doesn't let me go every year. Just one day would be a good chunk of my dad's salary. The cost of it is worth the experience as long a it's not a thing your normally do.

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  15. Disney World is super expensive! However, no one can ever argue with going to Disney World. It’s a place that attracts people of all ages from around the world. Three years ago, I went to Disney World. I still have super awesome memories from being there with my family. Although expensive, everything was well worth it. Disney has a monopoly for their brand, so no one can argue that Disney World isn’t one of the best places to visit. Disney has a huge amount of land, filled with their parks and hotels. Also considering the other buses, boats, food, shopping, etc., it’s no wonder that Disney comprises 2.5% of Florida’s GDP.

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  16. I like this topic because it is a topic of interest to most students since I am sure that most have visited Disney World. There is more to Disney than just the theme park, though. Disney is a worldwide organization that makes movies and has it's own television channel. I would like to see how these aspects affect the economy.

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  17. Disney World is a magical place, although I may be basis because I have been there three times and loved every moment. Even if you are not a fan of the themed roller coasters, silly snacks, and cute characters Disney World benefits the economy and has a positive impact. It may seem like a single ticket into the park is expensive but if you look at how expensive it is to do other vacation activities such as swim with dolphins or visit national parks it is all relative. Plus a lot of time children are young when they visit so they eat less and overall cost less. I think that when it comes to spending a lot of money on a trip to Disney the opportunity benefits outweigh the opportunity costs.

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  18. It shocks me that people are willing to pay that much for tickets when there are so many other fun, cheaper alternatives. Unless you're a big Disney fan, the main goal is to spend time with your family and make memories. You can do that on a road trip to the Grand Canyon or Yosemite Park for much cheaper. To me, the most magical place on Earth just doesn't seem worth it.

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  19. This is an interesting topic to talk about because all the times I've been there, I have no idea of how much money to bring because towards the end of the trip, I run out of money. During the holidays, Disney makes a lot more money because a lot more people are looking to relieve stress from work and look to have fun.

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  20. I am not surprised with the prices that people are willing to pay a lot for tickets. There is a big hype surrounding Disney, especially if you are a fan. When it comes to deciding whether to spend the money or not. I recommend spending it because the opportunity benefits outweigh the opportunity costs.

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  21. Not only the Disney Park itself, but Disney as a whole brings in a bunch of revenue. This revenue comes from the parks as well as merchandise and movies and even people employed to dress up at parties. Disney World brings in a high amount of people but this number skyrockets during the months of spring break especially. For children who go on spring break with their families, they often go to Disney World if they are young, have not gone there, or want to go again. As a child, I used to go every year. Now, the prices have increased greatly- and it isn't only because of inflation (although this is a big contributor) but they also raise the prices because they can- people are willing to pay. Since Disney is a once in a lifetime experience and is filled with memorable fun, people like to experience it at least once. This way, they fork out money for the day to spend there because they decide the opportunity cost makes the price worth it.

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  22. The only thing magical is how they are convincing families to spend so much money at the park. There's no way that inflation brought ticket prices from $3.50 to over $100 per ticket. That would be some crazy inflation. They can charge that much because they know as a business people will spend it. I personally think its a great experience, but you need to be ready to grab your wallet. I think the opportunity costs to enter into the park could be used for something more beneficial than a 1 day pass.

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  23. Personally, I never been to Disney, but I didn't know that it made up 2.5% of Florida's GDP and in 2009 it offered a benefit for college students which is really nice for them and with them being happy and actually liking and working hard for their job.

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  24. The price of the ticket and parking fee is not the only thing that brings in all the revenue. There are so many things to spend money on when you are actually at Disney. People probably end up spending over $100 on food and gifts for their family. The prices for food at Disney are probably more expensive than a normal place, because they know the demand for food will be high so the prices go up.

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  25. I think that Disney is such an awesome opportunity for our economy. It is a win win because it provides jobs and helps the economy and is an amazing attraction to everyone that visits it. You could say that Wisconsin Dells is a smaller version of Disney in Wisconsin because of how many people that the dells hire. IN the Dells, I am guessing that a lot of the revenue from that city is generated by food, lodging, or water parks that all relate to the attractions in the dells. However, when reading your article, it seems that Disney is a lot more generous than anything in Wisconsin. Overall, if there were more Disney's in the world, our economies would thrive.

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  26. Although I have never been to Disney, it is commonly stated to be "worth the money". I think that no matter what the price is, people will continue to visit the destination. The benefits of visiting this magical place out ways the cost for millions. As long as the demand is high, the prices will continue to grow.

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  27. It's really surprising that Walt Disney World accounts for 2.5% of Florida's GDP. During Spring Break we went to Universal Studios, and it was very expensive, for a family of 4 to go for 2 days, it cost a little over $2,000. For Disney World, it would be even more expensive. Families who can't afford it, can't take their kids to the most magical place on Earth. Even though Disney World is expensive, it employs a lot of people, and brings in a lot of revenue. Seeing that Disney World brings in a lot of good things, so it's worth the opportunity cost.

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  28. I think no matter what the price people would still be willing to pay to go into the park because the way most people see it (especially with little kids) is the memories that are made while they are there. It's just like how six flags is to Illinois and the dells is to Wisconsin. Those two things create great opportunity costs because they give great memories as well. But I do agree that Disney world is a really big money maker in Florida's economy.

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  29. Disney World is and has been deemed the most magical place on earth and there are many people who will fork over a small fortune just to go there and have the experience. With many opportunities is to spend more money. There is the chance to stay on the Disney properties and also there are many pieces of merchandise and there will be more money for Disney.

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  30. I never realized how much money it is to go to Disney World, but since this place is so "magical" people are willing to take their families their because they know they won't be let down. And with people willing to spend money to go to Disney this helps out our economy a lot. But on the other hand this place is more targeted for younger kids so once kids get older they become uninterested which can also affect the revenue that they are making.

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  31. It's really surprising that only back in 2015 tickets were only $20. 48. That seems really cheap for a ticket into Disney World. I'm surprised on how much the price of tickets went up since just 2 years ago. I haven't been to Disney World since I was 8 and it was a great experience and it was so much fun. I believe that all children should have the chance to go to Disney at least once in their life even though the prices are so steep.

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  32. I can't believe that people would pay almost $500 just to spend one day at Disney World. I also immagine that during the holidays and spring break they would be just as high just for a weekend. The opportunity cost are way to high but some people are different. Yes, you do get a pass but all that money particularly would depend on how long the park is opened for and stay there for the full day. It's just amazing that even though that it's high in price but I haven't noticed a huge decrease in ticket sales that is very tremendous.

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