Earlier this morning, the Six Flags Entertainment Corporation reported its third-quarter financial results and gave us some interesting data on the health of the Theme Park Industry.
Six Flag’s Theme Park attendance fell 33% during the last quarter compared to the same period in 2021. In addition to the decline in attendance, the company also had a 21% decline in revenue for the quarter, which decreased $133 million from $638 million in 2021 to $505 million in 2022.
On a positive note, visitors of Six Flags saw spending increase 17% annually to an average of $60.96 per person. The increase in spending per person was mainly driven by a 22% price increase for admission tickets.
Earlier this year, Six Flags raised gate prices to focus on “premium Guests” who are “willing to pay more” rather than on filling their theme parks in a strategic pivot set out by company Chief Executive Officer Selim Bassoul. Throughout the quarter, the company had more visitors attending the parks using single-day keys.
In response to the poor attendance figures, Mr. Bassoul said on the company earnings call with analysts that “this was a year of transition for Six Flags, as we made bold changes to our business model to elevate the Guest experience and to position the company for sustainable, long-term earnings growth.”
He also stated, “while it will take time to achieve our ambitious goals, we are encouraged by our recent progress, with Guest spending per capita up nearly 50 percent year-to-date relative to 2019, and attendance trends and season pass sales significantly accelerating in October and early November. We have an exciting lineup of new rides and immersive festivals planned for 2023, and we are optimistic that our momentum will continue through the upcoming season and beyond.”
Are you surprised to see the drop in attendance at Six Flags?