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 (China), Merlin Entertainments (UK), OCT Parks (China), and Parques Reunidos (Spain). Major arcade operators include US-based Andretti Indoor Karting & Games, and CEC Entertainment (Chuck E Cheese).
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 85% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
About 55% of industry revenue comes from admissions and about 30% from food and merchandise sales. Other sources of revenue include coin-operated games and rides, parking fees, commission income from third-party exhibitors, advertising, and fees for hosting parties and other events.
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