Amusement Parks and Arcades
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 3,300 amusement parks and arcades in the US offer a variety of rides, games, or other attractions for entertainment purposes. Amusement parks include theme parks, water parks, boardwalks, and piers, which offer a variety of rides, shows, restaurants, and retail shops. Arcade operators include electronic game arcades, family fun centers, indoor play areas, pinball arcades, and video game arcades.
Seasonality and the Weather
The amusement park industry is highly seasonal and subject to uneven cash flow.
Capital Intensity of Development
Amusement park operations are highly capital-intensive, with firms investing millions to develop, upgrade, and expand facilities.
Industry size & Structure
The average amusement park establishment employs 270 workers, and generates $51 million annually, while the average arcade establishment employs about 15 workers, and generates $1.9 million annually.
- The amusement park industry includes about 500 firms that employ about 136,000 workers and generate about $25.7 billion annually. The arcade industry includes about 2,800 firms that employ over 42,760 workers and generate $5.3 billion annually.
- The amusement park industry is concentrated; the top 50 companies account for 97% of industry revenue. The arcade industry is more fragmented; the top 50 companies account for 56% of industry revenue.
- Large domestic amusement park operators include Walt Disney Co., United Parks & Resorts (SeaWorld, Busch Gardens), Universal Destinations & Experiences, and Six Flags Entertainment (Six Flags, Cedar Point). Large firms may have operations in foreign countries. The arcade industry consists mainly of independent operators. Dave & Busters is a large firm with arcade operations.
- The most-visited theme parks in the US include the Magic Kingdom, Disneyland, Disney’s Animal Kingdom, EPCOT, Disney’s Hollywood Studios, and Universal Studios.
Industry Forecast
Amusement Parks and Arcades Industry Growth
Recent Developments
Nov 14, 2024 - Services Sector, Employment Growth
- Economic activity in the services sector expanded for the fourth consecutive month in October 2024, according to the Services ISM Report on Business. The Services PMI registered 56% in October, up 1.1 percentage points from September. Fifteen of the 18 services industries reported an increase in prices paid during the month of October, including the Arts, Entertainment & Recreation; Retail Trade; and Wholesale Trade industries. Producer inflation for amusement and theme parks was 3.2% higher in September 2024 compared to a year ago, according to producer price data released by the US Bureau of Labor Statistics (BLS). Employment rose 3.1% in September 2024 compared to a year ago. Average wages for nonsupervisory employees at amusement, gambling, and recreation firms grew almost 6% in September 2024 year over year, reaching $20.60 per hour, per the BLS.
- Consumer confidence levels increased in October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose on a six-month average basis.
- Theme parks are moving to Halloween themes earlier than ever as the spooky fare has been popular with customers, according to Blooloop.com. According to Jakob Wahl, chief executive of International Association of Amusement Parks and Attractions (IAAPA), “We actually see a growth every year in terms of Halloween events, not only North America, but across the world.” Walt Disney World in Florida, for example, started its “Mickey’s Not-So-Scary Halloween Party” at its earliest date ever on Aug. 9. The Halloween “Oogie Boogie Bash” festivities at Disneyland in California have sold out, and the opening date moved from September 5 to August 25. Six Flags executives say they saw attendance gains and increases in guest spending during Halloween events in 2023 with attractions based on “The Conjuring” and “Saw.” Six Flags is expanding its branded content in 2024 with attractions themed to “Stranger Things,” “Army of the Dead,” and “Annabelle.”
- Six Flags and Cedar Fair completed their $8 billion merger in July 2024, creating the largest amusement park operator in the US, according to CNN. The newly formed company, known as Six Flags Entertainment Corporation, will operate 42 amusement and water parks across 17 states. Cedar Fair owns 51% and Six Flags owns 49% of the new company, which will be led by Cedar Fair CEO Richard Zimmerman. The merger is expected to help the company be less dependent on any one park or region if weather forces them to shut down. Flagship properties owned by the company include Cedar Fair’s Knott’s Berry Farm in Anaheim, California, and Cedar Point in Ohio, as well as Six Flags’ Six Flags Over Texas, Six Flags Great Adventure in New Jersey, and Six Flags Magic Mountain in Valencia, California.
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