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
Jan 22, 2025 - Revenue Down, Employment Up
- Total revenue for amusement parks and arcades fell 0.4% in Q3 2024 year over year and was up 7.3% from the previous quarter, according to the latest data from the US Census Bureau. Producer inflation for amusement and theme parks fell 0.8% in November 2024 year over year, according to the US Bureau of Labor Statistics. Employment and wages were up in October 2024 year over year, increasing 1.2% and 3.5%, respectively. Economic activity in the services sector expanded in December 2024 for the sixth consecutive month, according to the Services ISM Report on Business. The Services PMI registered 54.1% in December, up 2 percentage points from November. Nine of the 18 services industries reported growth in December, including the Arts, Entertainment & Recreation; Retail Trade; and Wholesale Trade industries.
- Dave & Busters is making several changes to align for future growth, with Latin American stores planned for 2025, according to Chain Store Age. The company plans to open its first location in Mexico planned for Mexico City by the end of 2025 through a partnership with Winclub Mexico. The company plans 10 locations across cities in Mexico. In other company news, Dave & Busters announced its CEO Chris Morris stepped down in December 2024, replaced by company Chairman Kevin Sheehan who will serve as interim CEO. The company’s third quarter earnings report, released in December, showed a 7.7% decrease in same-store sales due in part to lower demand from low-income consumers as well as stores closed for remodeling.
- Consumer confidence levels declined in December 2024, falling by 8.1 points from the previous month, according to The Conference Board. The Consumer Confidence Index was 104.7 in December 2024 from 112.8 in November 2024. Dana Peterson, chief economist at The Conference Board, noted that those remaining most confident on a six-month moving average basis confidence were those aged under 35 and those in the income category of over $100,000. Per Peterson, “The recent rebound in consumer confidence was not sustained in December as the Index dropped back to the middle of the range that has prevailed over the past two years.” Purchasing plans for homes decreased while plans to buy new cars and big-ticket items rose in December 2024 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.”
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