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https://www.wsj.com/business/americans-are-skipping-theme-parks-this-summer-0dfbffbc?siteid=yhoof2
Americans Are Skipping Theme Parks This Summer
Disney, Six Flags, Universal’s owner reported softer results as consumers pull back—or travel abroad
By Nicholas G. Miller and Jacob Passy
Aug. 9, 2024 - 5:30 am EDT
In the battle for American travelers, Mickey Mouse is losing out to Italy and inflation.
Disney, Six Flags and the owner of the Universal theme parks each reported softer results from their amusement parks in their most recent quarters. The slowdown signals the travel surge that fueled high attendance in theme parks after the pandemic may be waning following steep price increases and greater interest by travelers in other destinations.
“The lower-income consumer is feeling a little bit of stress. The high-income consumer is traveling internationally a bit more,” Disney Chief Financial Officer Hugh Johnston said in the company’s earnings call Wednesday.
In its most recent quarter, Comcast—which owns Universal Destinations & Experiences—reported a 10.6% decline in revenue in its parks division from the previous year.
Six Flags said its attendance declined 2%, which was partly due to fewer operating days than the year-ago quarter. Disney said its attendance was stable, though operating income in its domestic park division declined 6%.
The results come as a range of businesses from McDonald’s to Airbnb have reported softening demand, putting investors on high alert for signs of an economic slowdown.
Attendance at theme parks has been on a roller-coaster ride. Amusement parks were among the first businesses to benefit from the surge in travel in the wake of Covid-19. Orlando’s theme parks only remained closed for part of 2020 and were able to welcome visitors en masse far sooner than other major tourism destinations. Disney’s and Comcast’s parks divisions both posted record results at points during 2022 and 2023.
But evidence suggests that the post-Covid ride may be coming to an end, said Martin Lewison, a professor at Farmingdale State College in New York who studies the theme-park business.
According to data from Touring Plans, which tracks wait times at major amusement parks, crowds at Walt Disney World have been relatively sparse this summer, a continuation of thin crowds from a year ago.
Disney Chief Executive Bob Iger attributed lower attendance during the July 4 holiday in 2023 to record-breaking heat in Florida, and industry observers have suggested that warmer temperatures are causing people to re-evaluate when they plan theme-park visits.
In addition, Americans have begun to prioritize international trips over parks.
“Other travel options, including cruises and international tourism given the strength of the dollar, have experienced their own surge in demand, which cause visitation rates at our parks to normalize,” Comcast President Mike Cavanagh said on the company’s earnings call last month.
Travelers also may be looking elsewhere partly because of higher prices at domestic amusement parks.
For a family of four, single-day park admission to the theme parks at Walt Disney World in Florida could cost upward of $430. At the end of 2023, Disneyland raised the price of a five-day ticket 16% to $480, while add-ons such as Genie+, which allows attendees to skip the lines on some attractions, and parking passes have also become more expensive.
Discounts are out there, but many families are likely experiencing sticker shock, Lewison said.
Comcast and Six Flags also have raised prices at their parks.
Eva Ash, who works in healthcare in Long Island, N.Y., usually visits Walt Disney World once or twice a year with her husband, but this summer, traded the waterslides and roller coasters of Orlando for the canals of Venice and the Tuscan countryside.
“Disney has gotten ridiculously expensive,” Ash said. “And I ate much, much better in Italy, for much cheaper.”
Increasingly, price-conscious consumers have turned to lower-cost theme park options such as United Parks & Resorts. The owner of SeaWorld and Busch Gardens, increased attendance 0.8% last quarter, but it did so partially through discounts and promotions, the company said in its earnings report Wednesday. Its admission revenue per customer declined 2.9%.
“We may use offers at times, and in this current environment, we did use some in the quarter,” said Marc Swanson, the company’s CEO.
This summer was relatively quiet in terms of new attractions making their debut at parks across the country. Some would-be visitors may be holding off in anticipation of something new.
Comcast next year is set to open Epic Universe, the new theme park at its Universal Orlando Resort that will feature attractions connected with franchises such as Harry Potter, Donkey Kong and How to Train Your Dragon.
“The excitement for Epic Universe is unprecedented,” said Greg Antonelle, co-owner of Florida-based travel agencies ************* and Let’s Adventure Travel. “Casual tourists are willingly waiting until next year.”
Robbie Whelan contributed to this article.
Write to Nicholas G. Miller at Nicholas.Miller@wsj.com and Jacob Passy at jacob.passy@wsj.com
Americans Are Skipping Theme Parks This Summer
Disney, Six Flags, Universal’s owner reported softer results as consumers pull back—or travel abroad
By Nicholas G. Miller and Jacob Passy
Aug. 9, 2024 - 5:30 am EDT
In the battle for American travelers, Mickey Mouse is losing out to Italy and inflation.
Disney, Six Flags and the owner of the Universal theme parks each reported softer results from their amusement parks in their most recent quarters. The slowdown signals the travel surge that fueled high attendance in theme parks after the pandemic may be waning following steep price increases and greater interest by travelers in other destinations.
“The lower-income consumer is feeling a little bit of stress. The high-income consumer is traveling internationally a bit more,” Disney Chief Financial Officer Hugh Johnston said in the company’s earnings call Wednesday.
In its most recent quarter, Comcast—which owns Universal Destinations & Experiences—reported a 10.6% decline in revenue in its parks division from the previous year.
Six Flags said its attendance declined 2%, which was partly due to fewer operating days than the year-ago quarter. Disney said its attendance was stable, though operating income in its domestic park division declined 6%.
The results come as a range of businesses from McDonald’s to Airbnb have reported softening demand, putting investors on high alert for signs of an economic slowdown.
Attendance at theme parks has been on a roller-coaster ride. Amusement parks were among the first businesses to benefit from the surge in travel in the wake of Covid-19. Orlando’s theme parks only remained closed for part of 2020 and were able to welcome visitors en masse far sooner than other major tourism destinations. Disney’s and Comcast’s parks divisions both posted record results at points during 2022 and 2023.
But evidence suggests that the post-Covid ride may be coming to an end, said Martin Lewison, a professor at Farmingdale State College in New York who studies the theme-park business.
According to data from Touring Plans, which tracks wait times at major amusement parks, crowds at Walt Disney World have been relatively sparse this summer, a continuation of thin crowds from a year ago.
Disney Chief Executive Bob Iger attributed lower attendance during the July 4 holiday in 2023 to record-breaking heat in Florida, and industry observers have suggested that warmer temperatures are causing people to re-evaluate when they plan theme-park visits.
In addition, Americans have begun to prioritize international trips over parks.
“Other travel options, including cruises and international tourism given the strength of the dollar, have experienced their own surge in demand, which cause visitation rates at our parks to normalize,” Comcast President Mike Cavanagh said on the company’s earnings call last month.
Travelers also may be looking elsewhere partly because of higher prices at domestic amusement parks.
For a family of four, single-day park admission to the theme parks at Walt Disney World in Florida could cost upward of $430. At the end of 2023, Disneyland raised the price of a five-day ticket 16% to $480, while add-ons such as Genie+, which allows attendees to skip the lines on some attractions, and parking passes have also become more expensive.
Discounts are out there, but many families are likely experiencing sticker shock, Lewison said.
Comcast and Six Flags also have raised prices at their parks.
Eva Ash, who works in healthcare in Long Island, N.Y., usually visits Walt Disney World once or twice a year with her husband, but this summer, traded the waterslides and roller coasters of Orlando for the canals of Venice and the Tuscan countryside.
“Disney has gotten ridiculously expensive,” Ash said. “And I ate much, much better in Italy, for much cheaper.”
Increasingly, price-conscious consumers have turned to lower-cost theme park options such as United Parks & Resorts. The owner of SeaWorld and Busch Gardens, increased attendance 0.8% last quarter, but it did so partially through discounts and promotions, the company said in its earnings report Wednesday. Its admission revenue per customer declined 2.9%.
“We may use offers at times, and in this current environment, we did use some in the quarter,” said Marc Swanson, the company’s CEO.
This summer was relatively quiet in terms of new attractions making their debut at parks across the country. Some would-be visitors may be holding off in anticipation of something new.
Comcast next year is set to open Epic Universe, the new theme park at its Universal Orlando Resort that will feature attractions connected with franchises such as Harry Potter, Donkey Kong and How to Train Your Dragon.
“The excitement for Epic Universe is unprecedented,” said Greg Antonelle, co-owner of Florida-based travel agencies ************* and Let’s Adventure Travel. “Casual tourists are willingly waiting until next year.”
Robbie Whelan contributed to this article.
Write to Nicholas G. Miller at Nicholas.Miller@wsj.com and Jacob Passy at jacob.passy@wsj.com
