Earlier this month, Disney’s Chief Financial Officer, Hugh Johnston, appeared on CNBC to boast about the company’s Parks and Experiences Division’s great quarter. After all, according to the numbers, it was an excellent quarter for Disney. Credit: Inside The MagicThe Disney Experiences Division topped $9 billion in revenue, an eight percent increase over the same period last year. The Division had $2.5 billion in operating income, and Domestic Parks saw a 22 percent increase in spending over last year.However, later in that interview, Johnston admitted that Disney saw fewer guests, but those guests were paying exponentially more in the parks. Johnston said that Disney World had its best third quarter ever, and while traffic was up “slightly,” per capita spending was driving Disney’s gains. Translation: fewer people were coming in, but those who did spent significantly more. Credit: Disney/CanvaThat’s a dangerous game for Disney’s domestic parks, as those guests will eventually dry up, especially if there is an economic downturn. If Disney wants to see what could happen, it needs to look no further than what is currently happening in Las Vegas. For decades, Vegas was “Sin City.” What happened in Vegas stayed in Vegas, but as it got more popular as a legitimate tourist destination, Vegas started building multi-billion-dollar casinos and started charging significantly more for everything. Credit: DisneyThis is similar to Disney’s current position: putting billions into its parks and overcharging the guests who come for everything. So, there’s a warning for Disney in Vegas’ current situation. According to Axios, Vegas tourism is down 11 percent this year. That decline can be attributed to many factors, but it mostly boils down to three main components: Trump’s policies are keeping international travelers away, Americans don’t have as much disposable income for trips to Vegas/gambling, and Vegas has priced out many customers. Credit: Gage Skidmore, Flickr (Donald Trump) / Inside the MagicThe World Travel & Tourism Council reported that the United States travel sector is expected to lose $12.5 billion this year due to the loss of international travelers. Many of those travelers have attributed this to Trump’s policies, including tariffs against allies like the United Kingdom and Canada and his immigration crackdown. However, Vegas or Disney can do little about the President’s policies. The other two issues should be concerning for both Disney and Las Vegas. Credit: Video Screenshot, TikTok, @millennial_mom3With inflation continuing, many Americans are struggling to make ends meet, meaning a trip to Disney or Vegas is a luxury they cannot afford. For years, both Disney and Las Vegas have cranked up prices well above inflation, and now, Americans are feeling the walls closing in from every direction, and spending on vacations doesn’t make sense to them. Credit: Video Screenshot, TikTok, @pinoystarbbqThis trend should concern Disney, especially given that attendance has been either down or stagnant at its domestic parks. While Disney Parks and Vegas are on opposite ends of the entertainment spectrum, they struggle with the same problems. Do you think Disney will suffer a similar fate as Vegas with its continual pricing increases? Let us know in the comments. The post Disney Should Be Paying Very Close Attention to Las Vegas’ Current Struggles appeared first on Inside the Magic.