Amusement Parks & Arcades
First Research, April 2013, Pages: 10
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Brief Excerpt from Industry Overview Chapter:
Companies in this industry operate amusement parks or arcades. Major amusement park companies include Walt Disney, Six Flags, and Universal Parks & Resorts (all based in the US), as well as Compagnie des Alpes (France), Merlin Entertainments (UK), and Parques Reunidos (Spain); major arcade operators (all based in the US) include Namco Cybertainment, Dave & Buster's, and CEC Entertainment (Chuck E Cheese's).
Amusement parks generate about $25 billion in sales worldwide. Besides the US, the countries with the most popular attractions as measured by attendance include Japan, France, Hong Kong, and South Korea.
The US amusement parks and arcades industry includes about 3,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $16 billion. Low growth is forecast for the next two years. Key growth challenges include dependence on consumer spending and intense competition.
COMPETITIVE LANDSCAPE
Demand is closely linked to the health of the economy, especially consumer income. The profitability of individual companies depends on good marketing. Large companies can more easily build expensive rides and have economies of scale in operations and advertising. Smaller companies can compete by serving smaller markets or offering special rides. The industry is highly concentrated: the 50 largest companies generate about 85 percent of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Amusement parks get about 55 percent of their revenue from admissions and about 30 percent from food and merchandise sales. The remainder is made from a mix of parking fees,...
1. Industry Overview
2. Quarterly Industry Update
3. Business Challenges
4. Business Trends
5. Industry Opportunities
6. Call Preparation Questions
7. Financial Information
8. Industry Forecast
9. Web Links and Acronyms
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