Walt Disney Co. (DIS) raised admission prices between 2.5% and 5.3% at its largest theme park in Orlando, Fla., over the weekend, even as it offers other deals to spur demand from consumers cutting back spending on vacations amid the recession.

The uptick in admissions prices at Walt Disney World was smaller than similar increases the company has made in recent years, but the move still reflects confidence that Americans will continue to come to Florida in search of Disney magic even as job losses mount.

Disney has less exposure to the slump in ad spending than some of its big media counterparts, but its theme-parks business has been a source of worry on Wall Street during this economic downturn as consumer spending has proven to be a particular weak spot.

The company reported last week that revenue from its parks division was down 9% in its fiscal third quarter ended in late June, while operating profits dropped 19%. Disney Chief Executive Robert Iger acknowledged that the economy was taking a toll on the business, even as various price promotions the company began rolling out last year boosted domestic attendance by 3%.

More worrisome was the 7% decline in hotel bookings it reported so far in its September quarter compared with the same period last year.

Overall, Disney's quarterly results followed a script that is being read throughout the business landscape, with bottom-line results deteriorating but managing to beat expectations on Wall Street thanks to aggressive cost-cutting measures, even as revenue declines continued to disappoint. The company reported a 26% drop in net income and a 7% slide in revenue.

"With falling attendance and lower in-park per capita spending due to the weak economy, Disney clearly needs to raise admission prices [at Walt Disney World] to mitigate the pressure on earnings," Pali Capital analyst Richard Greenfield said in a blog post Monday.

Walt Disney World accounts for over half the revenue from the company's theme-parks business. Greenfield noted that the popular adult five-day ticket price increased just under 3% compared to a 4.6% increase last year.

The price hikes come as Disney is offering deals on dining options in its parks and hotels in order to lure vacationers. It recently concluded a promotion that offered seven days of accommodations and admissions to customers for the price of four.

Disney walks a fine line on pricing in this recession between keeping its profits at acceptable levels, while driving as many vacationers to its parks as possible. Its strategies have shown some success, but they have also weighed on the company's profit margins.

"We continuously monitor the price of our tickets to ensure pricing reflects a strong entertainment value," said a spokesman for Walt Disney Parks and Resorts.

Its willingness to raise prices and whittle back some promotions suggests that Disney is expecting an economic recovery as the stock market rebounds and economists find signs of a turnaround in some economic indicators.

"If they don't raise admissions prices at all now and an economic recovery comes later this year, they could find themselves in a position next year where they would have to raise prices at a surprisingly higher rate to keep pace with overall market growth," said UBS analyst Michael Morris. "They want to avoid that."

Disney's shares closed Monday up 1.6% at $25.52.

-By Nat Worden, Dow Jones Newswires; 212-416-2472; nat.worden@dowjones.com