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Why Companies Are Pushing Premium Products With Higher Prices



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Six Flags, the theme park operator, recently shifted to a more premium model by raising prices and limiting discounts, which Selim Bassoul, the chief executive, described as “bold changes to our business model in order to elevate the guest experience.” It has had mixed results so far. In the nine months through September, attendance at its parks fell by 25 percent from the year before, spending per guest rose 22 percent and, in the end, profits fell by nearly 10 percent.Understand Inflation and How It Affects YouIn January, the Walt Disney Company acknowledged that it might have pushed too hard on prices at its theme parks, angering loyal customers. It revised its policies on ticketing, hotel parking, ride photos and annual passes.But the shift toward premium products could signal the start of a more lasting change, as businesses settle into a routine of selling lower volumes for higher prices in a divided economy — a strategy that could leave poorer consumers worse …

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