The Battle of the Theme Parks: How Smaller Players Can Compete with Giants
The theme park industry continues to evolve, with various players vying for a share of the market. As we anticipate the release of the Themed Entertainment Association’s annual attendance report for 2024, one thing remains clear: Disney and Universal dominate the landscape, holding the top nine spots in annual attendance. Parks like Disneyland and Universal Studios have consistently outperformed rivals, with Disney’s Animal Kingdom attracting double the visitors of Knott’s Berry Farm in 2023. This substantial gap poses significant challenges for smaller companies, notably Six Flags and United Parks (which owns SeaWorld and Busch Gardens). To close this gap, these companies need to adopt innovative strategies and focus on product enhancement, loyalty, and storytelling.
Investing for Long-Term Success
One significant tactic for Six Flags and United Parks would be to reevaluate their spending priorities. Many corporations, including those in entertainment, have turned to stock buybacks as a quick solution to boost share prices. However, this focus on immediate financial results often comes at the expense of long-term growth and product development. As demonstrated by United’s recent authorization of a $500 million stock repurchase, the money could instead be reallocated towards creating new attractions that draw in visitors and enhance the overall park experience. By investing in their core offerings instead of prioritizing short-term stock prices, these companies can appeal to a broader audience and forge a more significant market presence.
Reassessing Discounting Strategies
Another area for improvement lies in pricing strategies. While variable pricing helps optimize ticket sales during peak times, excessive discounting can undermine the perceived value of the experience. This summer, Six Flags promoted a "Most Valuable Pass" that allowed extensive access for a low price, essentially equating theme park visits with bargain-bin deals. While immediate revenue gains may seem appealing, consistently low ticket prices can devalue the experience and limit overall profitability. By enhancing the quality of experiences offered instead of relying on discounts, theme parks can foster a more sustainable revenue model, encouraging higher spend per visit from engaged customers.
Emphasizing Creative Storytelling
In an industry characterized by immersive experiences, strong storytelling is crucial. Surprisingly, smaller parks don’t need to spend exorbitantly on licensing popular intellectual property (IP). Instead, they can invest in creative talent that brings unique stories to life. By hiring imaginative writers and creative directors, Six Flags and United Parks can develop compelling narratives that resonate with visitors. Even modest investments in skilled labor can yield substantial returns in terms of creating captivating attractions that differentiate smaller parks from the massive ones. The key lies in setting realistic expectations for investors and customers alike, prioritizing creative storytelling over quick financial fixes.
Building a Unique Experience
To effectively compete with powerhouses like Disney and Universal, smaller theme parks must focus on cultivating unique experiences that draw visitors back year after year. Relying on cookie-cutter attractions will only deter audiences, while innovative, customized experiences will foster loyalty. Understanding guest demographics and tailoring attractions accordingly can make a significant difference. Parks should create niche experiences, perhaps targeting family-friendly or thrill-seeker markets, to carve out a space in the competitive landscape. A dedicated focus on quality can gradually reshape consumer perceptions and elevate what smaller parks offer.
Training for Long-Term Gains
Overall, the long-term approach is vital for cultivating sustained growth. Theme parks must set customer expectations for unique experiences while preparing investors for a gradual increase in value. This strategy contrasts sharply with the short-term fixes favored by many companies, which only result in stagnation. Adopting practices seen in successful corporations, such as Disney and Universal, will require a paradigm shift for smaller entities. This could involve redefining what success looks like in terms of customer experience and shareholder returns, moving away from quick profits toward genuine, lasting value.
Looking Ahead
As the theme park industry continues to grow, the path to success will not be a straightforward replication of existing models. Instead, Six Flags and United Parks need to reimagine their strategies, encouraging sustainable growth through improved experiences and innovative storytelling. Successful theme parks understand that investing in long-term projects reaps greater rewards than quick wins through stock buybacks or discount campaigns. With a renewed focus on creativity and quality, they can begin to close the gap with industry leaders and secure their position within this competitive marketplace.
Kick off your next adventure! Book theme parks, hotels, or flights now on Expedia—easy, affordable, and fun. Your unforgettable trip awaits! Expedia
