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Revenue is rising again as the economic recovery gains momentum. For this reason, industry research firm IBISWorld has updated a report on the Amusement Parks industry in its growing industry report collection.
New York, NY (PRWEB) February 05, 2014
After a roller-coaster ride during the recession, the Amusement Parks industry has rebounded strongly, driven by a rise in international and domestic visitor numbers and rising consumer spending. The industry is dominated by five major players: The Walt Disney Company, Universal Parks & Resorts, SeaWorld Entertainment, Six Flags and Cedar Fair, all of which have performed strongly since 2009. Although the industry is highly competitive, the major amusement parks have the ability to raise ticket prices when demand increases. In the years since the recession, many of the major amusement parks have employed this tactic to propel revenue and increase profit margins. Over the five years to 2014, IBISWorld expects revenue to grow at an annualized rate of 4.0% to $15.4 billion. This includes a growth rate of 2.2% in 2013.
The state of the economy and travel-related trends are the main factors driving the Amusement Parks industry. In 2009, the decline of the domestic economy and increase in unemployment forced consumers to be more selective about how they spent their disposable income. According to IBISWorld Industry Analyst Andy Brennan, In 2009, consumer spending declined and people were less likely to spend money on recreational activities and luxuries like visiting amusement parks. However, since 2010 there has been a marked turnaround in travel rates, income levels and consumer spending. As people have returned to amusement parks in earnest, operators have ramped up their capital investment in an attempt to remain at the forefront of the industry with the most thrilling and technologically advanced rides. Amusement parks have also become savvier at garnering even more funds from their guests through purchases of food, merchandise and games, which has helped push industry revenue up.
The industry operates in a low-growth market with high market saturation. As a result, operators must continually invest in rides and displays to maintain consumer interest and attract repeat visitors. To combat diminishing domestic opportunities, major operators are expanding internationally into fast-growing economies such as China and the Middle East, says Brennan. Domestic opportunities still exist, especially for the industry's largest players; however, growth over the next five years is expected to be subdued compared with the previous period. Over the five years to 2019, industry revenue is anticipated to rise.
For more information, visit IBISWorlds Amusement Parks in the US industry report page.
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IBISWorld industry Report Key Topics
Amusement and theme park companies operate mechanical rides, water rides, games, shows, themed exhibits, refreshment stands and other attractions. Establishments may also lease space on a contract basis.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
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