Industry

Theme parks today compete with countless alternatives and a diverse range of attractions.  Visitors have typically visited world-class parks and expect the same level of quality, facilities, and entertainment at their regional parks. As societies age, visitors want to
“live young”, but expect theme parks to entertain multiple generations of family members.
Huge rollercoasters and interactive technology are quickly outdated and cannot always return their investment. In most of the wealthier northern hemisphere, theme parks are greatly influenced by seasons and weather.

  
Revenue within any theme park is driven by the number of visitors, average admission price, and secondary spending on hospitality, merchandise, and additionally charged in park items. Costs are driven by compliance requirements (typically labor and safety), cost of goods sold, man-hours, capital and land costs. While costs related to compliancy are typically rigid, efficiencies and capital costs are within the realm of an operators’ control. 

Many solid, regional parks can no longer compete alone in this environment, which has resulted in significant consolidation within the theme park market since the late nineties.  Regional operators have been driven by perceived market efficiencies from shared marketing and personnel resources, as well as cumulative buying power and a trend towards multiple park resort destinations. However, the sheer capital costs required to keep attractions competitive create significant barriers to entry for any potential new operators.

The global theme park market is currently valued at €12.5 billion, and visitors numbers have been growing steadily. At a forecasted sustained rate of growth of 3-5% annually, the market shows tremendous opportunity for growth. As the foundation of most theme park audiences, families offer ample opportunity for repeat visitation. Their loyalty is typically stronger than other target groups, and, with increasing disposable incomes, their per cap spending is growing.