Top U.S. theme park operators are reporting a drop in revenue as families face stretched budgets due to high inflation and rising costs. Major players like Disney, Universal, and Six Flags have all seen lower second-quarter earnings this year.
This decline follows a surge in visitor numbers after the pandemic, which has now moderated. Additionally, with the strong U.S. dollar, Americans are increasingly favoring international trips and cruises over domestic theme parks.
Disney reported a 2% increase in theme park revenue to $8.4 billion for the latest quarter compared to the same period last year. However, overall operating profit fell by 3% to $2.2 billion. Disney is investing approximately $60 billion over the next decade to expand its parks and cruise lines, nearly doubling its past decade’s spending on this segment.
The Magic Kingdom in Florida is set for its largest expansion in 53 years, with new attractions focused on Disney villains and Pixar’s “Cars” movies. Disneyland Resort in California will add a water-based “Avatar” ride and a “Coco” attraction.
Comcast, owner of Universal Destinations & Experiences, reported a 10.6% revenue drop in the second quarter compared to the same period in 2023. The decline was attributed to lower attendance at domestic parks and the impact of foreign currency on international locations. Comcast President Mike Cavanagh noted that increased demand for cruises and international travel, driven by the strong dollar, has affected park visitation rates.
Six Flags reported a 1% drop in total revenue and a 2% decline in guest attendance for the second quarter. Weather-related disruptions, including Hurricane Beryl and excessive heat and rain, impacted several parks. Despite these challenges, Six Flags remains optimistic, citing strong season pass sales and group bookings.
Six Flags also recently merged with Cedar Fair Entertainment Company, creating North America’s largest amusement park operator with a combined portfolio of 42 parks across the U.S., Canada, and Mexico.
According to Len Testa, president of the trip planning site Touring Plans, the average cost of a Walt Disney World vacation for a family of four has increased by nearly $1,000 since 2019. Testa also attributed the decline in visitor numbers to the lack of new rides at theme parks.
