Attendance in free fall
Universal theme parks rely on stage shows, kids' attractions to reel in more visitors
Universal Orlando's hopes for improved attendance may lie in the summer dreams of young children.
The theme park -- which recently reported its paid attendance at Universal Studios and Islands of Adventure dropped by 15 percent in the first quarter of the year -- is opening several attractions aimed at children.
"I would have to say they're making a special emphasis with attractions aimed at younger children, such as the Dr. Seuss attraction they've revitalized," said Jerry Aldrich, president of Amusement Industry Consulting of Orlando. "They're investing in that area for a reason."
For the summer, the theme park is debuting High in the Sky Seuss Trolley Train Ride at Islands of Adventure, the Beetlejuice Graveyard Revue, and The Lucy and Ricky Show, a street performance. In addition, two new restaurants are opening: Red Coconut Club and Bubba Gump Shrimp Co., both at Universal CityWalk.
Universal's push to boost attendance comes at a difficult time. Travel-industry experts say theme parks and vacation destinations may suffer this summer because of the high cost of fuel and inflation fears. Vacationers could take fewer days, and when they do take their vacations, they're going on a budget.
"I think some of them do travel on a budget, but, to keep the children happy, families will still go to the theme parks," said Marie Cecil, director of sales and marketing for Harbor City Travel in Melbourne. "This summer may be up in the air, but every summer, people hit the theme parks. Universal is great for all ages, and a lot of the theme parks are focusing on the younger kids and their families. I think some people won't hop in the car like they did before, but they will definitely go to the theme parks."
But Aldrich said continual reinvestment -- no matter how big or small the amount -- is the way to bring people into the parks and get them to stay longer, too.
"Disney's doing well, but they have a new attraction there, with Expedition Everest, and they're marketing it heavily," Aldrich said. "SeaWorld's attendance is flat, but it's rolled out the new 'Believe' show. And Universal is adding more entertainment, like shows, because, with entertainment, you're trying to affect the length of stay."
"All the parks are working on the evening thing, to give people a reason to stay," Aldrich said. "I think you can draw attendance with entertainment, especially in the evening, to keep people in the park. People are spending more time, and maybe they'll buy an extra meal or extra merchandise or maybe see more of the product and tell their friends and family. That word-of-mouth is also important."
Rob Varley, executive director of the Space Coast Office of Tourism, said he thinks Universal Orlando needs to pump up its marketing.
"There has to be major investment over there in two ways," Varley said. "They need a major attraction and they need to invest the dollars in marketing. That's my opinion. 'Beetlejuice' is old. I think they'd be better off with Beetle Bailey."
"We have to balance our entertainment properties," said Jim Timon, senior vice president of entertainment for Universal Orlando. "They run the gamut from Dr. Seuss to Dueling Dragons or Incredible Hulk. The equation of rides versus shows is always important. In 2006, we've tried to create opportunities to bring in families. Especially in the school holiday period, we want people to visit us, and have a palette to have things to do day and night."
During the first three months of 2006, Universal's attendance dropped 15 percent, compared with the first three months of 2005. But the company indicated that said the year-to-year comparison was hurt because the Easter holiday came earlier last year, in the first quarter, but was it was later this year, in the second quarter.
Still, The Walt Disney Co. said its Orlando-area theme-park attendance was up 3 percent during the first quarter.
Universal said attendance for the first four months of the year, from January through April, showed that, when including Easter, its Orlando park attendance was down 4 percent, compared with the first four months of 2005.
Varley said the key to keeping customers coming is keeping potential patrons aware with advertising and marketing efforts.
"Disney is introducing new stuff, laying the money on the table," Varley said. "They're the marketing kings. But Universal hasn't reinvested like they should. SeaWorld is another example of somebody who gets it. They're introducing new stuff. They've been getting a lot of buzz on the new show."
For hoteliers in the region, though, any new promotion or new attraction can help bring more occupancy.
"Theme parks are certainly part of the appeal for Brevard County," said Rick Hutcherson, director of sales and marketing for Holiday Inn Cocoa Beach Oceanfront Resort. "We need to support the positioning of the Beachline, so that we're building on the fact that Brevard County is home to 'Orlando's closest beaches.' The theme parks are important to us. We always say there's a bump in occupancy when a theme park opens a new attraction. If a theme park is running a promotion, that will also help us because they need a place to stay."