Theme Parks - US - April 2009

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Data sources
• Sales data
• Consumer survey data
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Growth of theme park revenues slows with economy
• Disney parks dominate in number of visitors drawn
• Attendance growth challenged by pullback in tourism
• Theme parks face competition from at-home entertainment and cheaper alternatives
• Most parks find unique point of differentiation in television advertising
• Families with children drive the theme park business
• Visitors strongly drawn by new rides and features
• The internet is a critical channel for price promotions
• Empty nesters are a growing segment worth targeting
• Asian Americans and the late teen female demographic are also notable
• Market Size and Forecast
• Market size
  • Figure 1: Total U.S. revenues for amusement and theme parks, at current prices, 2003-13
  • Figure 2: Total U.S. revenues for amusement and theme parks, at inflation-adjusted prices, 2003-13
• Attendance
  • Figure 3: Total U.S. admissions for amusement and theme parks, 2003-13
• Competitive Context
• At-home entertainment increases in time consumption
  • Figure 4: Hours of filmed entertainment change in consumption per person per year, 2003-07
• Internet
• Video games
• Camping out as a more economical family alternative
• Zoos and aquariums are another lower-cost substitute
• Live entertainment has exploded nationally
• Segment Performance
• Introduction
• Admissions revenue strong, ancillary revenues weaker
  • Figure 5: U.S. revenues and forecast for amusement and theme parks, at current prices, by segment, 2003-13
  • Figure 6: U.S. revenues for amusement and theme parks, by segment, 2006-08
• Admissions
• Operators grow per capita revenue faster than attendance
  • Figure 7: U.S. revenues and forecast for amusement and theme park admissions, at current prices, 2003-13
• Merchandise and Dining
• Ancillary revenues suffer directly from lower attendance
  • Figure 8: U.S. revenues and forecast for amusement and theme park merchandise & dining, at current prices, 2003-13
• Other Revenues (Amusement Machines, Advertising, etc.)
• Ad revenue falls in the wake of recession, flat attendance
  • Figure 9: U.S. revenues and forecast for other revenues*, at current prices, 2003-13
• Market Drivers
• Recession reduces discretionary spending on travel
• States with destination theme parks see decline in tourist traffic
• Currency shifts may reverse admissions growth
  • Figure 10: Visitors to the U.S. from Western Europe and the dollar/euro exchange rate, 1999-2009
• Theme park consumer base growth to lag behind general population
  • Figure 11: U.S. population theme park visitation, by age group, 2008-13
• Leading Theme Parks
• Disney parks lead in attendance and growth
  • Figure 12: Top 20 theme parks by attendance in North America, 2007
• Disney
• New offerings
• Other
• Six Flags
• New rides
• New attractions
• Other
• Universal Studios
• New offerings
• Other
• Busch Entertainment Corporation
• New offerings
• Other
• Television Advertising
• Overview
  • Figure 13: Media expenditures of destination theme parks, 2006-07
• Disney
  • Figure 14: Disney Parks TV ad -- Celebratory Moments, December 2008
  • Figure 15: Disneyland Resort TV ad -- Halloween, October 2008
• Six Flags
  • Figure 16: Six Flags -- Resolve TV ad, December 2008
  • Figure 17: Six Flags -- Fright Fest TV ad, September 2008
• Universal Studios
  • Figure 18: Universal Orlando Resort -- Inner Super Hero TV ad, February 2009
  • Figure 19: Universal Studios Hollywood -- Simpsons Ride TV ad, June 2008
• Sea World/Busch Gardens
  • Figure 20: Sea World -- Discover the World TV ad, January 2008
  • Figure 21: Sea World -- Fun Card TV ad, January 2009
  • Figure 22: Busch Gardens -- Fun Card TV ad, January 2009
  • Figure 23: Busch Gardens -- Summer Nights Concerts TV ad, July 2008
• Other regional parks
  • Figure 24: Cedar Point -- Family Road Trip TV ad, July 2008
  • Figure 25: Knott' s Berry Farm -- Walking Dead TV ad, October 2008
• Pricing Promotions
• Overview
• Disney
• Six Flags
• Universal Studios
• Sea World/Busch Gardens
• Incidence of Theme Park Attendance, and Parks Visited
• Domestic visitor base shows large decline, possible rebound
  • Figure 26: Attendance of theme parks, by year, 2000-08
• Age and presence of children determine attendance rates
  • Figure 27: Attendance of theme parks, by various demographics, July 2007-Sept 2008
• Variety offered by Disney World is a powerful draw
  • Figure 28: Theme parks visited, July 2007-Sept 2008
• Six Flags is the leader among 18-24-year-olds
  • Figure 29: Theme parks visited, by age, July 2007-Sept 2008
• Change in Spending
• Higher income means less cutbacks but not more spending
  • Figure 30: Change in spending on theme parks, by HH income, January 2009
• Children drive spending despite recession
  • Figure 31: Change in spending on theme parks, by presence of children, January 2009
• Attitudes Towards Theme Parks and Ticketing
• Visitors want new rides, grown-up attractions, and shorter lines
  • Figure 32: Attitudes towards theme parks, January 2009
• Internet an important channel for ticket distribution
  • Figure 33: Attitudes towards theme park ticketing, January 2009
• Under-35s like new rides and more grown-up entertainment
  • Figure 34: Attitudes towards theme parks, by age, January 2009
• Parks can cater to higher-earners with grown-up entertainment and line-bypass
  • Figure 35: Attitudes towards theme parks, by HH income, January 2009
• Respondents with children look to save money but may pay for convenience
  • Figure 36: Attitudes towards theme parks, by presence of children, January 2009
• Purchase of Discounted Admissions
• Respondents with children most likely to seek out discounted admissions
  • Figure 37: Purchase of discounted tickets, by various demographic factors, January 2009
• Internet is the most popular source of discount tickets
  • Figure 38: Source of discounted tickets and coupons, by presence of children, January 2009
• The Draw of Thrills and Attractions
• Physical thrill rides are the top draw
  • Figure 39: Interest in thrills & attractions, by gender, January 2009
• Live entertainment most likely to draw over-55s
  • Figure 40: Interest in thrills & attractions, by age, January 2009
• Respondents with children are more active
  • Figure 41: Interest in thrills and attractions, by presence of children, January 2009
• Duration of Trip Involving Theme Parks
• Back-to-school families and empty nesters most likely to take overnight trips
  • Figure 42: Duration of trip involving theme parks, by age, January 2009
• Higher-income respondents more able to spend on vacations
  • Figure 43: Duration of trip involving theme parks, by HH income, January 2009
• Respondents with children less likely to visit on day trips
  • Figure 44: Duration of trip involving theme parks by presence of children, January 2009
• Ancillary Purchases
• Merchandise purchased by at least half of respondents who visit
  • Figure 45: Purchase of food and merchandise at amusement park, by age, January 2009
• Sales of most merchandise not strongly determined by income
  • Figure 46: Purchase of food and merchandise at amusement park, by HH income, January 2009
• Family visits more likely to be memorialized
  • Figure 47: Purchase of food and merchandise at amusement park, by presence of children, January 2009
• Impact of Race/Hispanic Origin
• Asians more likely to visit theme parks
  • Figure 48: Theme parks visited, by race/Hispanic origin, July 2007-Sept 2008
• Hispanics more likely to spend on theme parks
  • Figure 49: Change in spending on theme parks, by race/Hispanic origin, January 2009
  • Figure 50: Duration of trip involving theme parks, by race/Hispanic origin, January 2009
  • Figure 51: Purchase of food and merchandise at amusement park, by race/Hispanic origin, January 2009
• Teenage Visits to Theme Parks
• Teens are largest component of visitor base, older female teens in particular
  • Figure 52: Theme parks visitation by teens, by age and gender, April 2007-June 2008
• Other Useful Consumer Tables
  • Figure 67: Theme parks visited, by gender, July 2007-Sept 2008
  • Figure 68: Theme parks visited, by HH income, July 2007-Sept 2008
  • Figure 69: Change in spending on theme parks, by age, January 2009
  • Figure 70: Attitudes towards theme parks, by gender, January 2009
  • Figure 71: Source of discounted tickets and coupons, by gender, January 2009
  • Figure 72: Source of discounted tickets and coupons, by age, January 2009
  • Figure 73: Purchase of food and merchandise at amusement park, by gender, January 2009
• Appendix: Trade Associations