Amusement Parks & Arcades Industry Profile

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.

Global theme park spending is about $50 billion, according to the International Association of Amusement Parks and Attractions (IAAPA). Besides the US, the countries with the most popular attractions as measured by attendance include Japan, South Korea, China, France, and Hong Kong, according to the Themed Entertainment Association and AECOM.

The US amusement parks and arcades industry includes about 350 establishments with an annual revenue of about $18 billion.

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 more than 95% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

More than 60% of the industry's revenue comes from admission, followed by about 20% from meals, snacks, and other food items. Other sources of revenue come from merchandise like toys, games, hobby and craft item, as well as alcoholic beverages and ...