Disney spending: Nearly 50% of parents with young children take on debt for theme park trip
Parents with young children took on an average of $1,983 in debt stemming from the trip
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Nearly 50% of parents with young children are going into debt after taking a trip to one of Disney's theme parks, according to a recent LendingTree report.
LendingTree surveyed more than 2,000 consumers, 24% of which have gone into debt for the trip, a 33% increase from its 2022 findings. However, that figure jumped to 45% among parents with children younger than 18, according to the data.
FOX Business reached out to Disney for comment.
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Of the parents with young children who have taken on debt, almost all of them, 83%, did so in the past five years. Parents, faced with tighter budgets and persistent inflation, "are more likely to take on debt than before," according to LendingTree.
On average, parents with young children took on $1,983 in debt stemming from the trip. For all consumers surveyed, that figure sat at about $1,690, according to LendingTree data.
People ride on the Walt Disney World Railroad at the Magic Kingdom Park in Orlando, Florida, on May 31. (Gary Hershorn/Getty Images / Getty Images)
Disney World ticket costs vary depending on the day and park. However, according to Disney World's website, a standard date-based ticket for Disney World guests 10 and older starts at $109 per day.
That will allow a guest to be admitted to one of its four theme parks, such as Magic Kingdom, EPCOT, Disney’s Hollywood Studios and Disney's Animal Kingdom theme park, but it does not include accommodations, travel and food.
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Nasdaq estimated that the average Disney World ticket cost for a family of four for one day is just over $700. For five days, that number jumps to $2,572.
Hundreds of tourists wait in line to get on Kilimanjaro Safaris at Animal Kingdom Park at Walt Disney World in Orlando, Florida, on May 30, 2022. (Joseph Prezioso/Anadolu Agency via Getty Images / Getty Images)
Meanwhile, last fall, ticket prices at Disneyland in California increased nearly across the board, with the cost for a five-day ticket climbing nearly 16% to $480, FOX Business previously reported.
The biggest factor in what broke the bank for so many consumers during their trip was the concessions, according to the data. Over 60% of those who are carrying debt from the trip said in-park food or beverages cost significantly more than expected.
About 48% of respondents blamed transportation fees, but 47% said accommodations were the biggest surprise fee.
People walk in front of Cinderella's Castle at the Magic Kingdom Park at Walt Disney World in Orlando, Florida, on May 31. (Gary Hershorn/Getty Images / Getty Images)
The data also showed that nearly 60% of parents with young children who have taken on debt don't regret it. About 90% of parents who have taken their children to Disney say it was a treat.
"Taking on a little bit of debt to experience the "Happiest Place on Earth" might be worth it for some, just so long as they're responsible and diligent about paying what ever they borrow back," LendingTree's senior economist Jacob Channel said.
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On the flip side, "those thinking about going into debt to finance their Disney vacation should tread carefully" given the fact that today's high interest rates on things like credit cards can be a nightmare for borrowers.
Additionally, "splurging on a vacation can make it difficult for you to keep up with necessary expenses like groceries, housing and child care costs," he said, adding that "temporary fun isn't worth long-term financial distress."
The Walt Disney Co.
Channel said given that consumers are willing to splurge to go to Disney and that both Disney park revenues and attendance increased during the second fiscal quarter, it "indicates that the broader economy probably isn't as awful as some people would like to believe."
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While inflation remains elevated, rising 3.3% in May, Channel noted that unemployment is low. Wages are also rising faster than inflation.
"Theme park attendance obviously doesn't tell the whole story regarding what's going on in today's economic climate, but I think that if most people were truly being broken by today's economy then we'd probably see fewer people splurging on things like Disney vacations," he added.