There's a new way to achieve expedited access to your favorite attractions at Walt Disney's (NYSE: DIS) domestic theme parks. Disneyland in California and Disney World in Florida began offering Lightning Lane Multi Pass on Wednesday. It's merely a rebrand of the Genie+ platform at Disneyland, but it's rolling out as an enhanced offering at Disney World.
Instead of paying between $15 and $39 a day for the ability to secure faster-moving Lightning Lane queues on the app during the day at set intervals, guests can now secure their first three experiences before deciding to purchase the premium offering. It's a clear upgrade, even if some theme park enthusiasts are grumbling about the change online.
Turning Grumpy into Happy
It's been several years since Disney World offered FastPass+, a platform that allowed visitors to secure reservations for three attractions with shorter wait times than the longer standby queue. It was included in a guest's park admission, and now, they have to pay. No one is going to celebrate paying for something that used to be free, but it's the new normal.
All major theme parks and most regional amusement park operators offer premium add-ons to help those paying more than day guests to save time with access to expedited queues. It's just good business. In a climate of rising operating costs and the pressure to crank out big-ticket attractions, these premium offerings help subsidize cheaper admissions for those who can't afford or choose not to pay up for the add-ons.
It's working. Even Six Flags (NYSE: FUN) has said that guests are spending 40% more at its parks now than back in 2019.
This doesn't mean that folks knocking Lightning Lane Multi Pass or the individual Lightning Lanes that can be purchased for each park's top ride or two are being entirely unreasonable. A day at Disney World can be more laborious than it has to be, with folks waking up early to secure virtual queues and then navigating the day on their apps to perpetually optimize their Lightning Lane reservations.
The refreshed offering makes it easier to line up initial Lightning Lane reservations ahead of time. But there's still work to be done during the day to make sure you can play optimally on vacation.
Image source: Disney.
Every turnstile is a toll booth
The process requires a lot less advanced planning and in-park management at rival theme parks, but it does come at a price. Top rival Comcast's (NASDAQ: CMCSA) Universal Orlando has Universal Express. Buyers of the pass can just hop into the faster-moving queues on most attractions without having to worry about return windows or waiting between rides. It's an ideal experience, but it's not cheap.
Universal Express for the Orlando resort this Wednesday costs $230 per guest for access through both parks or $260 if you want to repeat rides through the Express lines. This doesn't include park admission. Can you imagine how much more Disney World would have to charge with twice as many theme parks and its longer combined operating hours?
On its first day of availability, Lightning Lane Multi Pass costs between $18 and $29 for each of the four parks. It's a product priced for the masses. Disney has said in the past that as many as many as 50% of its park guests have paid for the add-on in the past. Annual pass holders with year-round access may not be drawn to the upgrade, but it's essential for less frequent visitors paying far more than that for daily admissions and lodging.
The Lightning Lane Multi Pass update does make things easier than before. Securing three reservations before committing to the actual purchase sets a baseline for expectations that Genie+ wasn't always able to deliver. As a bonus to folks staying at a Disney World resort, they also get to square away their reservations earlier, another incentive for a tourist to stay on-site instead of at one of the growing number of lodging options outside of Disney World. It's just another smart business move for the entertainment stock bellwether.
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Rick Munarriz has positions in Comcast and Walt Disney. The Motley Fool has positions in and recommends Cedar Fair and Walt Disney. The Motley Fool recommends Comcast and Six Flags Entertainment. The Motley Fool has a disclosure policy.
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