Amusement Parks & Arcades

Amusement Parks & Arcades

Brief Excerpt from Industry Overview Chapter:

Companies in this industry operate amusement parks or arcades. Major amusement park companies include Six Flags, Universal Parks & Resorts, and Walt Disney World, (all based in the US); as well as Fantawild and OCT Group's Park World (both based in China); Merlin Entertainments (UK); and Parques Reunidos (Spain). Major arcade operators include US-based Andretti Indoor Karting & Games and CEC Entertainment.

COMPETITIVE LANDSCAPE

Demand is driven by 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 US industry is highly concentrated: the 50 largest companies generate about 90% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

About 65% of the industry's revenue comes from amusement park and arcade services, followed by about 15% from meals and snacks, and about 10% from retail sales of other goods. Other sources of revenue come from retail sales of other goods, alcoholic beverages, retail sales of toys, and parking services.