Despite Disney parks being the Happiest and Most Magical Places on Earth, even they aren’t immune to the recent inflation and rising costs facing the United States.
Disney even shared in the company’s Q2 Earnings Call that inflation can affect everything in the parks from how much you pay for your souvenirs to the cost of your meals. Disney isn’t the only one feeling the squeeze, as more and more Americans are putting off booking flights and even dining out — and consumer spending is starting to slow down.
Although “revenge travel” has been in the news quite a bit recently due to many people finally taking vacations they had put off because of the pandemic, it appears as though that may start to slow down — at least for Americans.
According to The Washington Post, households have started cutting back on large purchases like travel and home repairs over the past several weeks thanks to skyrocketing prices. But, now it looks like consumers are also pulling back on just about everything from dining out to getting manicures and even home cleaning services.
Consumer spending makes up two-thirds of the United States’ economy, and held steady in April despite inflation being at historic highs. That might be starting to change, however, for the first time this year, retail sales have slowed down — mainly due to a 4% dip in car sales. Not only that, but U.S. flight bookings were down 2.3% in May, per data from Adobe Analytics.
And according to data from Barclays, the spending slowdown is coming from both low- and high-income Americans and has now slowed to about 15% on services like travel and restaurants — half of what it was at the beginning of 2022. In addition, spending is down in both the goods and services categories, meaning that what might have been thought to originally just be a shift in spending is ultimately a decrease in consumer spending altogether.
During The Walt Disney Company’s Q2 earnings call, Disney’s Chief Financial Officer Christine M. McCarthy responded to a question about how inflation has impacted Disney World. She shared that even Disney is not immune to rising costs, and they’ve had to alter their fuel hedging program due to increased gas prices.
Overall, people are hesitant to spend money right now due to inflation being at 40-year highs and that is causing stress to both the consumer and the economy. Disney World is still crowded from what we’ve seen lately, and with increased prices perhaps that could potentially change.
So, can you save money and still have an epic Disney World vacation? Sure! It just takes a little bit of planning. Luckily, that’s where we come in. We’re always keeping an eye out for the latest Disney discounts, and you can check out all the current and upcoming Disney World deals here. For more info on the types of discounts available in Disney World, click here.
As prices continue to rise, spending may continue to slow down, and we’ll be sure to keep you updated on this evolving situation.
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Interested in more travel news? Check out the major factors impacting summer travel. Not only that, but a pilot shortage could keep you from getting to your destination — even Disney World!
It looks like international travel isn’t getting any easier, either — we’re sharing everything you need to know about the HUGE surge. Despite Americans cutting down on spending overall, international travel is experiencing an incredible boom — pack your patience if you’re on your way abroad this summer!
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Have you cut back on spending due to inflation? Let us know in the comments!
I don’t foresee Disney getting any less crowded through the end of summer. Most people plan their Disney trip dates months in advance. What I do see happening is guests spending less on souvenirs and food inside the parks and eating more cheaply outside Disney property.
After the summer, Disney does need to be concerned if the economy doesn’t get better. Even the upscale clientele Disney has been pursuing in recent years will either cut back on travel or travel elsewhere.
Canceled my five day $9000 total cost for package and incidentals (rental car, meals, parking at WL, airport flight and parking, kennel for dog, souvenirs, and tips).Was not so much for the cost of the CL room at WL, but the loss of things such as everyday housekeeping, transportation to MCO, less magic hours, paring down entertainment, price of reduced meal sizes, long waits for rides, and woke culture for indoctrinating kids. Will see how spring trip might improve. My wife and I can afford to go but don’t want to throw money at Chapek just for the privilege of being able to go to a park that has to be reserved months in advcance.