Capston

How “Fun” is the Amusement Park Industry?

(This case was developed in 2018 by Dr. William Carter at The University of Baltimore. Content is derived from both specified sources as well as a variety of general sources including company annual reports, industry analysis reports, and trade association and related websites.)

5 Top Theme Park Trends Dominating the Season

Hannah Sampson, Skift.com

- Sep 20, 2017

The world’s largest theme park operators are on a spending spree as competition for visitors grows ever more fierce. Disney, Universal, SeaWorld, and Six Flags have all announced new plans to add rides, attractions, and entire lands in the past few months — on top of expansions already in the works.

That kind of investment is crucial for operators to hold onto their fans, Dennis Speigel, president of consulting firm International Theme Park Services, told Skift earlier this year. “Our industry is a mature industry now, over 60 years old, and the hardest thing for us to maintain is market penetration,” he said. “And you do that through managing attrition, introducing new programs, season passes, capital investment.”

This year has presented challenges for the industry, and some operators have managed better than others. In August, SeaWorld CEO Joel Manby told analysts he was “not satisfied with our results” for the quarter that ended June 30 after attendance was disappointing at parks in San Diego and Orlando. Per-person revenue fell and the company reported a net loss after having to take a significant write-down on SeaWorld Orlando. Executives lowered the forecast for the full year. At Six Flags Entertainment, the first six months were so much softer than expected that the Texas-based company said in late July it was no longer “probable” that it would meet financial targets for this year. During the second quarter, per-capita spending and net income fell. “I’ll be blunt with you: I think that we can move with more urgency, I think the opportunities we have are with us right now,” CEO Jim Reid-Anderson said at the time. “And I think we need to execute faster, more efficiently, and in a more focused way to truly achieve our potential.”

Here are some of the trends that have dominated the last few months for theme parks.

WEATHER IS COMPLICATING MATTERS. The biggest blow came in early September when Hurricane Irma tore through Florida, forcing operators to close theme parks all over the state. Walt Disney World Resort, Universal Orlando Resort, SeaWorld Orlando, Busch Gardens in Tampa and Legoland Florida all shut down for at least two days. Parks escaped significant damage from the storm, but the closures and related cancellations are likely to hurt business for the quarter. Even before the hurricane, executives at Six Flags Entertainment said weather was causing problems. Rain over the Memorial Day holiday weekend and in the last two weeks of June kept attendance lower than expected at the company’s Texas and East Coast parks.

INTELLECTUAL PROPERTY FUELS EXPANSION. From Sesame Street to Guardians of the Galaxy, Star Wars, Harry Potter, and Avatar, established brands are dominating the landscape when it comes to theme park additions. Disney has made the most news on this front, announcing extensive plans in July at D23 Expo, a fan event. In addition to revealing new details about upcoming Star Wars-themed lands in Orlando and Anaheim and a Toy Story land in Orlando, the company also said new additions would be based on the Tron films, Pixar movies, and Marvel superheroes including Guardians of the Galaxy. That followed the opening of Pandora — The World of Avatar, based on the James Cameron movie, and a renovation of an older ride that added a Guardians of the Galaxy update. Universal Parks & Resorts opened a new Minion Park, built around the animated yellow villains, at Universal Studios Japan earlier this year. And the company announced a brand new roller coaster would be finished by 2019 at the Wizarding World of Harry Potter — Hogsmeade in Orlando. Not to be outdone, Six Flags announced a lineup of new rides for 2018 this month that includes several based on DC Entertainment characters such as Wonder Woman, Harley Quinn, and Cyborg. And SeaWorld, which has been trying to shift focus away from animal entertainment to family activities, revealed plans earlier this year to build a Sesame Street-themed land at its Orlando park as well as an entire Sesame Place theme park somewhere in the United States. The company already has a Sesame Place in Pennsylvania.

IMMERSION INNOVATION. Disney generated tremendous buzz with its announcement about a new immersive Star Wars hotel planned for the Walt Disney World resort in Orlando. Walt Disney Parks & Resorts Chairman Bob Chapek described the hotel during D23 as “a revolutionary vacation experience” featuring a “dedicated multi-day adventure. ” There will be, he said, “starship transportation,” characters, costumes, storylines and windows with a view of space. “It is 100 percent immersive and the story will touch every single minute of your stay with us,” he said. “It culminates in a unique journey for every person who visits.” Even though details were limited — there’s no information yet on an opening date, price, exact location, or what “starship transportation” might entail — the announcement has industry watchers wondering if Universal might come up with a similar concept for a Harry Potter-themed hotel.

EVERYONE WANTS WATER PARKS. Universal Orlando opened its latest addition, Volcano Bay, in late May. The operator describes it as a “water theme park” with an aqua coaster, raft rides, slides, and a beach. The new attraction also fits nicely into Universal’s bid to keep visitors on-site longer, giving them more of a reason not to wander off to Disney or SeaWorld if they have a day to spare. Six Flags Entertainment already has several water parks or water attractions within theme parks, but announced an expansion plan in April shortly after upgrading and reopening a water park in Mexico. The company’s former CEO, John Duffey, said Six Flags would star looking to acquire water parks near its current parks, in part to drive more season ticket bundle sales. “Taking over the operation of existing water parks allows us to expand our capacity and attendance with minimal investment providing a quick payback and high return on invested capital,” Duffey said. “We will look to accelerate this strategy in other markets as opportunities arise.” Reid-Anderson, who replaced Duffey in July, said later that month that the water park strategy would continue. “We have received multiple inbound inquiries from water park operators around the U.S.,” he said. “So the opportunity is not only compelling but it’s large-scale.”

OVERSEAS PARKS ARE PAYING OFF. U.S-based theme park companies are looking to cultivate new audiences, and much of that expansion has been in Asia. Disney CEO Bob Iger said earlier this month that the company’s newest major expansion, Shanghai Disney Resort, was “nicely profitable” in its first year. The resort opened in June of 2016, and more than 13 million people have visited since. Expansions in Shanghai are already in the works — a Toy Story land is coming in the spring — and the positive reception so far has Disney thinking about other possibilities in China. “Ultimately, it opens up more possibilities in terms of other theme parks on the mainland, but we’re way early for that,” Iger said.

Universal Parks & Resorts has a park coming eventually in Beijing, and the Comcast-owned operator completed the acquisition of the 49 percent of Universal Studios Japan that it did not previously own earlier this year. Comcast Corp. chairman and CEO Brian Roberts said in July that the launch of Minion Park in Japan had “significantly exceeded our early expectations.”

“The region holds tremendous potential for us,” he said, adding that he and other executives had just returned from a trip to China. “We are as enthusiastic as ever about bringing a spectacular theme park to Beijing.”

Amusement parks, like trade shows, evolved from the medieval ‘faires’ of the Roman Empire. First, the faires emphasized merchants selling and trading all varieties of goods. To attract even more people, attractions such as sporting contests and entertainers were added. Natural or produced attractions drew crowds seeking entertainment and diversions from everyday hardships. These crowds offered many opportunities for event organizers and the local entrepreneurs to profit from attendees. Possibly the first true amusement park is Dyrehavsbakken (‘The Animal Park’s Hill’) near Copenhagen, Denmark which is still open today. The natural spring at this location drew crowds from the city beginning in 1583 and the volume of potential customers attracted entertainers, craftsmen hawking merchandise, innkeepers, and food vendors. Connecticut’s Lake Compounce is the longest continuously operated amusement park in the U.S. having opened in 1846. Lake Compounce first drew crowds to watch experiments involving explosives.

The industry has come a long way! By 1997, parks in the U.S. alone saw 300 million attendees and generated $8.4 billion and these figures increased to 341 million and $12 billion by 2007. Globally, the amusement park and attractions industry is estimated to generate over $43 billion in revenue by 2020. The U.S. is currently the largest market at approximately one-third of the total global share. It is expected, however, that China will soon become the world’s largest market. Other booming markets include Dubai and Malaysia where national governments are eager to attract and exploit tourist spending.

A mature industry dominated by massive global competitors

Amusement parks can range from the quaint, 20-acre Enchanted Forest in Salem, Oregon to the massive 30,000 acres at Walt Disney World Resort in Lake Buena Vista, Florida (about the same size as the city of San Francisco). Although there are over 400 operators of amusements and attractions in the U.S. the market, and even more small and individual park operators globally, the industry is dominated by a few massive multi-park operators such as Walt Disney Company, Merlin Entertainments, Parques Reunidos, Six Flags Entertainment Corporation, SeaWorld Parks & Entertainment, Comcast (Universal Studios Parks and Resorts), Cedar Fair Entertainment Company, And China’s OCT Parks.

In the U.S. five firms control nearly 90% market share. Based on annual attendance figures, Disney’s World Resort in Lake Buena Vista (Orlando) Florida boasts four of the five most-visited parks in the country: Magic Kingdom; EpCot; Animal Kingdom; And Hollywood Studios. Their original Disneyland park in Aneheim alone ranks second in attendance and their Islands of Adventure (Florida) and California Adventure parks are not far behind. Of the twenty most visited parks in the U.S., only one – Hersheypark – is not owned by one of the five largest firms.

Operating Conditions

Amusement parks require a high level of capital spending, nearly three times the amount of an average industry in the U.S. Spending is driven by a constant need for new attractions and rides as well as the costly upkeep of rides and the large-scale park facilities. As technical advances allow for increased ride complexity and realism, the time and expense to launch a new ride can be staggering. The original Jurassic Park river ride at Universal Studios Hollywood took over six years to design and construct and total costs exceeded $100 million, more than the cost to make the movie.

The average park generates 60-65% of its revenue through admission tickets and purchases for specific rides or games. Food and beverages account for about 15-25%, and merchandise sales account for approximately 10-11% with the remainder produced by special events and sponsorships. Some companies own hotel and resort properties that also generate revenues. Revenue has been increasing for the industry, and despite the increasing costs to develop new rides and operate parks, industry-average return on assets (pre-tax profit/total assets) has increased in recent years. ROA in 2014, 2015, 2016, and 2017 was 4.5%, 9.0%, 11.9%, and 10.5% respectively.

Parks require a high degree of labor to operate, most of it seasonal and part-time. An average of 36% of total operating costs are related to salaries and wages (21% direct payroll costs and 15% benefits and other indirect costs). Other major operating costs, on average, include maintenance (8%), marketing and promotion (7%). Park operators can end up being major food service companies when all their park operations are considered. Six Flags, for example, is essentially one of the largest restaurant operators in the U.S. Another set of key suppliers for park operators are therefore large food and beverage distributors or direct supply companies. Utility costs can also be immense. Operating rides, shops, restaurants and all other facilities takes large amounts of electricity, gas, and water. Investments in increasing the efficiency of utility use (e.g. low-flow water fixtures, high-efficiency ice machines and freezers) as well as sustainability-related efforts that reduce paper, plastic, and overall garbage burdens are therefore an area of focus.

Rides: Design, Safety, and Regulation

Today’s highly engineered rides are designed and constructed by specialist firms that supply the global amusement park industry. Example include Switzerland’s B&M, Idaho’s Rocky Mountain Construction, and Baltimore’s own Premier Rides. The design and development of amusement rides requires a mastery of physics, engineering, and mathematics. As technologies improved to exploit and include computers, advanced materials, and other design innovations, the design and development process is increasingly rigorous, complex, and time-intensive. This process has also contributed to an extraordinary safety record proving amusement rides are one of the safest forms of recreation available to the public. The amusement park industry's tradition of continual improvement greatly enhances ride safety. For example, recent introductions include force reactive supports, headrests, comfort padding, seat dividers, ratcheted restraints, computer controls, and magnetic braking systems.

Modern-day ride designers employ a steady stream of advances to create new, unique, and safe amusement rides and attractions. Amusement ride manufacturers, for example, have applied the industry's biodynamic knowledge as it relates to G-forces to the design and construction of rides to ensure a safe experience. While technological gains have led to the development of bigger and faster rides, overall G-force levels have generally remained the same because riders’ tolerance levels have not changed. Park personnel use central control units and numerous high-tech sensors to constantly monitor all aspects of a ride. Mid-ride adjustments, activation of themed elements, and automatic system shutdowns occur faster and more accurately. Roller coaster manufacturers are still exploring the possibilities that opened to them with the advent of tubular steel tracks and polyurethane wheels. Lightweight fiberglass and plastics have contributed to the improvement of various rides and attractions, including carousels, animatronics, and bumper cars. Several types of amusement rides, especially roller coasters, employ vibration-dampening material to provide structural enhancement. “Locking” roller coasters on the track via a three-wheeled device (top, side, and bottom) produces a whole new world of twists, turns, and inversions. Modern catapult-type launch systems powered by pneumatics and linear electric motors have also expanded the creative options available to ride manufacturers. The integration of special effects, motion simulation, and/or theming within ride environments has resulted in a wider array of guest experiences.

Although safety is a chief concern and rides are statistically very safe, there are accidents. An average of two people per year die at U.S. amusement parks. With fast-moving and high-elevation experiences, it is no wonder parks are highly regulated for safety. These regulations are primarily specified and controlled at the state and local government level. Frequent and intensive inspections are demanded by local authorities and insurance providers. Amusement park staff follow detailed manufacturer guidelines for inspection and safety, and many parks use outside specialty companies to periodically re-inspect rides. These inspections take place on a daily, weekly, monthly, and yearly basis.

Experiences based on known characters and themes

Disney excelled at capitalizing on the attraction of licensed or owned properties popularized through movies (e.g. Disney characters and story themes) and this trend is even more important today. Like Disney, media company Comcast/Universal Studios has their own park division and is now number two in U.S. market share overtaking traditional themed ‘ride’ park operators like Six Flags, Sea World, and Cedar Fair. “The Wizarding World of Harry Potter”, for example, opening at Universal Studios in 2010 and lifted attendance by over 20% in its first six months of operation. DreamWorks has worked directly with Merlin Entertainment to open parks such as “Shrek’s London Adventure”. Warner Brothers, Marvel Comics, 20th Century Fox, and Nickelodeon are other examples of firms that own characters and story lines that can attract park visitors. Rides and attractions based on such licensed properties are a key driver of industry growth and park differentiation. Video game companies such as Ubisoft and Nintendo are also developing their own parks to exploit their owned intellectual properties. Disney even plans for a full-immersive Star Wars hotel for Orlando.

Market Drivers

Demographic and consumer economic conditions are primary drivers of the industry’s success. Discretionary income to support all-day or out-of-town family trips is key, as most attendance is family-oriented. Most attendees are local. In the U.S. for example, fewer than 30% of attendees report overnight lodging. Thus, the urbanization of populations in all developed and developing countries is a key driver and site section around population centers is critical. Tourism, however, is still critical as parks exploit vacationers often coming for more than just a visit to a specific park. Orlando, Florida, for example is known as the ‘amusement park capital of the world’ where vacationers can not only visit Walt Disney World’s parks, they can also enjoy Universal Studios, SeaWorld, and the Kennedy Space Center. Arlington, Texas is another attraction ‘center’ with the Dallas Cowboys’ football stadium, the Texas Rangers baseball stadium, a major horse racing facility, and other tourist attractions all nearby to Six Flags Over Texas theme park.

The primary audience for the industry is families with adolescents aged 10-19. In the U.S. this segment has been relatively stagnant or in a slight decline due to the country’s stable but lower birth rate than in years past. In 1990, the 10-19 age group represented 14% of the total U.S. populations whereas by 2017 that proportion was down to 12.9%. In most developing countries, however, economic growth and birth rates are resulting in an increased middle class population and a growing 10-19 age segment.

Competition is fierce among parks. Investment demands to keep up or stay ahead are high. Capital spending to drive differentiation and a park experience to draw repeat visitors can be as high as 9% of revenue. Investments include rides and themed park areas based on exclusive licensed properties as described above, water parks (a growing area as well), and multimillion dollar, innovative roller coasters. Park audiences demand new experiences and thrills. A continual stream of new rides and attraction is thus important. The life cycle of major character or movie themed rides are also often much shorter than traditional rides. Innovations driven by technology such as virtual reality, high-definition projection systems, holography, and robotics/animatronics are enabling rides that realistically immerse thrill seekers into their movies (see “Theme Parks: Fighting for your travel dollar though technology”). Parks essentially offer an entertainment experience, and that experience extends beyond just rides and attractions. Attendees want to maximize their time on entertainment, so premium-ticket mobile apps now provide benefits such as detailed maps, current park information, and ride reservations systems. Food service, integrating visits into one’s social media sharing, and retailing operations that meet attendees’ needs in-park as well as for memorializing their visit are also core components of amusement differentiation strategies (see “How Six Flags stirs up new thrills”).

Parks are outdoors, so weather matters!

Why did Walt Disney World choose to locate in Orlando, Florida? Weather- that is at least part of the reason. With the large fixed capital investment required for a competitive amusement park, operators need to maximize the flow of attendees. This is why the world’s largest parks are generally in areas with reasonably mild, and more importantly, consistent weather (e.g. Florida, Texas, and Southern California). Seasonal change has also driven differentiation as many parks have leveraged their investments for ‘off-season’ themes related to Halloween and winter/Christmas time. But weather still has a major affect on tourism and park attendance, even in sunny Florida.

In 2017, Hurricane Irma forced Florida parks to all close for several days even though they experienced minimal damages. One day represents significant business and losing a day can’t be made up. And it doesn’t take hurricane-level issues. Heavy rains throughout the 2017 Memorial Day weekend in Texas, for example, significantly affected Six Flag’s park attendance in Texas and the Eastern U.S. An important business model innovation that has helped smooth weather-related revenue variation is the use of season passes. Not only do season passes help lock local patrons into attending (and spending) at one park, they also help assure the operator of multiple ‘days’ of revenue regardless of weather and attendance.

A Challenging Future?

The industry is expected to grow over the coming years, but the rate of growth is expected to slow considerably. Conditions for consumer confidence, disposable income, and travel costs will be key. The domestic U.S. market appears rather saturated, and the primary age group is not growing. Opportunities for foreign growth markets, however, will remain attractive as economies grow and younger populations increase. Competition is also likely to force middle and lower level players to consolidate in order to build efficiencies and the necessary investment capital to compete with ever-increasing costs of licensed attractions and innovative, high-tech rides.

Theme Parks: Fighting for Your Travel Dollar with Technology

Forbes.com

Scott Kramer , Contributor; July 15, 2016

Theme parks continue to out-do one another with technology this year. Six Flags partnered with Samsung this year in opening nine virtual reality roller coasters across the country. Riders board real coasters and then strap virtual reality glasses over their eyes. Thus, they’re transported to a futuristic battle to save Earth from an alien invasion. They can’t see what’s on the real track, but they’re essentially looking at a virtual world in which they are flying with the likes of Superman to fend off villains. The virtual part is in sync with the real drops and turns. It sounds and looks like pure genius.

A cool new ride at Six Flags

Back in March, as a guest of Universal Orlando Resort, I was given a sneak peek of its new “Skull Island: Reign of Kong” 3-D thrill ride that officially opened this week in the Islands of Adventure amusement park there. The attention to detail in the ride’s staging area is jaw-dropping -- each of the thousands of rocks were carved and installed by hand, giving this as genuine a tropical island look as possible. And then there’s the ride vehicle, a 72-passenger safari open-air bus that’s made to look like it’s been weathered over time. This expedition vehicle is 40 feet long and weighs 17 tons -- and it’s anything but ordinary. It has all sorts of internal circuitry to make passengers feel as if they’re being bumped around with turbulence. Although the company won’t elaborate, it’s the park’s first completely trackless ride system.

As Universal describes it: Guests board the vehicle to navigate the increasingly foreboding terrain, traveling deeper into the ominous island where they're soon in the midst of a brutal struggle between beasts of unimaginable size and ferocity. Then, as those creatures turn on the expedition, an animated, 30-foot-tall King Kong head in the flesh approaches the bus, so close that guests can actually smell his breath. Believe me, he looks alive.

The attraction -- which lasts a relatively long time compared to most amusement park rides -- is a far cry from the park’s original “Kongfrontation” that debuted in 1990 as Universal Studios Florida’s premier ride. On that version, a 30-foot-tall mechanical King Kong grabbed a tram of riders “suspended” in mid-air and “dropped” it to the ground. The ride -- which was acclaimed for pushing the technological envelope -- actually used much less-sophisticated technology than resides in an iPhone.

Engineers told me that they in part developed this new Kong attraction via virtual reality, in which they were able to virtually sit in every seat of the ride tram and see every possible item and angle that a real rider would from their vantage point. They also developed the ride’s soundtrack that way, as well, to make sure that all riders’ senses were fully immersed in the experience. “It helps us define and zero in on the ultimate experience to make it even more immersive,” says Thierry Coup, Universal Creative’s senior vice president of the creative studio. “Oftentimes we’re guessing a little bit. Our skills, our knowledge and experience allow us to do that. But now we can verify everything and push it a little bit further.”Park executives say they’ve been employing more use of virtual reality in developing future rides.

And Disney is in the middle of creating a Star Wars section at Disneyland. I've seen the scope of the work and it's an undertaking. But early hints suggest that guests will be astounded by the technology.

As a theme park fan, all of these advancements excite me. It sounds like no matter which amusement park we attend within a few years, it will be much further advanced than those we grew up visiting.

How Six Flags Stirs up New Thrills

profilemagazine.com

September 15, 2017

By Jennifer Draper

David McKillips answers the phone from Texas, where he’s on-site at one of Six Flags’ eighteen theme parks across North America. He’s more than one thousand miles away from his New York office, but his tour is just kicking off. For the next thirty days, the senior vice president of in-park services is on the road with the entire management team to address many of Six Flags’ forty-five thousand employees face-to-face at annual town hall meetings throughout the United States, Canada, and Mexico. “We really enjoy spending time in our parks and meeting with the full-time and seasonal leadership team members to get their feedback and ensure that we are fired up and ready to go for the upcoming season,” McKillips says. The excitement in his voice is tangible.

His team does indeed have a lot to be excited about this year. After emerging from bankruptcy in 2010, Six Flags entered a high-growth period under new management that ushered in a new phase of the company’s fifty-six-year evolution—a blossoming of creativity and expansion that continues to this day. “The current management group brought a whole new level of focus, thinking, and innovation,” McKillips says. “It’s incredible. We have had seven consecutive years of record growth.”

Part of this transformation is thanks to McKillips, who now oversees four divisions for all theme parks on the continent: culinary, retail, games and attractions, and procurement and purchasing. He’s currently trying to ramp up Six Flags’ brand loyalty by providing unique park experiences. For example, his team is launching a signature candy shop with the Coaster Candy brand, starting with the flagship Atlanta location. “This will be a fantastic guest experience,” he says. “We are going to bring theater to the candy experience, making our homemade caramel apples, fudge, and treats right in front of you.”

Another project that thrills the leader of in-park services is the implementation of an interactive imaging program at the theme parks. “Having a picture or a memory from your day’s visit is so important right now, and our guests want to share these memories quickly and easily,” McKillips says. “Our guests are always taking their own selfies in the park, and we wanted to complement—not compete with—their smartphones.”

Now, Six Flags will self-operate the traditional front gate, character, seasonal, and ride photos that, in four parks currently, are seamlessly integrated into the Six Flags app. Guests can scan a code on the spot to download selfie borders and post to social media. An imaging innovation center will also include green-screen technology, augmented reality, and shareable video experiences. By increasing investment in innovation, McKillips aims to include self-serve kiosks in restaurants and mobile ordering technology, too.

McKillips says insight is the motivating force behind these positive changes. “Our senior leadership makes it a point to listen to our guests and our employees,” he says. “We talk to them face-to-face, we exchange e-mails, and we do extensive research to stay abreast of what is happening in each of our parks. It really helps me stay in touch with what they are thinking and feeling about the business.”

McKillips is conscious of each rung in the industry not only because of that constant communication, but also because of his personal experience. Twenty-five years ago, he started working in the operations department at SeaWorld in Orlando, Florida, cleaning up trash around the dolphin community pool area. “I really enjoyed being in an environment that is focused on making people happy,” he says. “I thought, ‘This is absolutely what I want to do. I want to work in entertainment.’” He moved around into sound engineering, catering, promotions, and

marketing until he had pretty much done every job at the park.

So he transitioned to Sesame Place in Pennsylvania, where he promoted the Sesame Street-themed park for two years before what McKillips describes as his big moment. When he attended the promotional expo in Chicago, he heard a presentation about the power of superheroes given by DC Comics senior vice president of promotions Joel Ehrlich. McKillips—who cites Batman and Plastic Man as his superhero favorites—knew he wanted to work for him. So, McKillips introduced himself and said he’d love to work there someday. Ehrlich called him and said they had a sales position. Although he never thought he would be in sales, he leapt at the opportunity.

For nearly a decade, McKillips worked in advertising and promotions for the comic book juggernaut in New York City. DC Comics—known for its iconic characters, including Superman, Batman, Wonder Woman, the Flash, and the Green Lantern—offered McKillips the chance to move up the ranks. He became the associate publisher of the company’s humor title, Mad magazine, and then ultimately was promoted to the position of vice president of advertising and promotions for all of DC Comics.

His full-circle moment occurred in 2000, when McKillips developed a comic book map for Six Flags in partnership with DC Comics, since the parks feature thrill rides titled after characters in the DC Universe. He sold advertising and promotions within the comic book map and established a great relationship with Six Flags. Then, the management team changed in 2007, and the company asked McKillips to join Six Flags to help form a new partnership group. “I thought it was an incredible, exciting opportunity to combine both facets of my career,” he says. “I had theme park experience, which I loved, and I had experience working with the DC superheroes properties, which I loved, and now I could do both.”

McKillips jumped aboard and created the Six Flags media networks, the sponsorship arm of the new management team that would introduce a new era of company growth. “We have a lot of fun,” he says. “We created incredible corporate alliances with great brands such as Coca-Cola, Cartoon Network, and M&M’s. We also worked with all the movie studios. I was involved with all of the negotiations and partnership discussions related to intellectual property incorporation and creating the programming that aired on Six Flags’ in-park TV network.” McKillips’s team has also brought in retail brands and in-park restaurants, such as Johnny Rockets and Cold Stone Creamery.

For eight years, McKillips expanded the partnership group to drive revenue and promotions. Then this past year, he switched from the sponsorship sales team to his current role heading in-park services. “My job is to complement that incredible experience our guests have on our award-winning rides with a great experience in our restaurants, retail locations, and games,” he says. “I’m looking at trends throughout all of entertainment, dining, and retail, and thinking about how we can approach the business dynamically in each one of those areas.”

In terms of the number of outlets and meals served, Six Flags is more or less a top one hundred restaurant in the United States, according to McKillips. That means that food and beverage innovation is key at the biggest regional theme park company in the world. He considers all the details, from line speed to menu management, to build strategic efficiencies. “We also make every effort to regionalize our concepts, especially around food, because the flavor profiles are a little bit different depending on what market you are in,” McKillips says. “For example, if you live in Northern California, you may have a burger with avocado and bean sprouts, while in New Jersey your burger is topped with bacon and cheese and even Taylor Ham.”

Six Flags expands its operating season past the primary summertime season with year-round events, featuring specialty menus and themed attractions. Mardi Gras

celebrations are taking place this spring at Six Flags Fiesta Texas and Six Flags Mexico. The company also is home to the largest

Halloween event in the theme park industry, Fright Fest. The company is expanding its footprint even further with its Holiday in the Park program, an immersive wintertime experience currently in nine parks with millions of twinkling lights, snow hills for sledding, holiday-themed shows, and seasonal flavors such as red velvet funnel cake.

“These signature events are so much fun not only for our guests, but for our employees as well because we get to play in all four seasons. We want to introduce new treats and experiences each spring, summer, fall, and winter,” McKillips says. “We want people to get excited about coming to our parks. Come for the rides, but stay for the total in-park experience.”

Top U.S. Amusement park companies

The Walt Disney Company

“The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company with operations in four business segments: Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media. For convenience, the terms “Company” and “we” are used to refer collectively to the parent company and the subsidiaries through which our various businesses are actually conducted. Our Parks and Resorts segment generates revenue from the sale of admissions to theme parks, the sale of food, beverage and merchandise, charges for room nights at hotels, sales of cruise vacation packages and sales, as well as rentals of vacation club properties. Revenues are also generated from sponsorships and co-branding opportunities, real estate rent and sales, and royalties from Tokyo Disney Resort. Significant expenses include operating labor, infrastructure costs, depreciation, costs of sales and other operating expenses. Infrastructure costs include information systems expense, repairs and maintenance, utilities and fuel, property taxes, insurance and transportation and other operating expenses include costs for such items as supplies, commissions and entertainment offerings.”

Comcast

Comcast, acquirer of NBC broadcasting and Universal Studios, is engaged in five different operating areas. Cable communications, cable networks, broadcast television, filmed entertainment, and theme parks. Our Theme Parks segment consists primarily of our Universal theme parks in Orlando, Florida; Hollywood, California; and Osaka, Japan. Universal Orlando includes two theme parks, Universal Studios Florida and Universal’s Islands of Adventure, our water park, Volcano Bay, which opened in May 2017, as well as Universal CityWalk Orlando, a dining, retail and entertainment complex. Universal Orlando also features on-site themed hotels in which we own a noncontrolling interest. Our Universal theme park in Hollywood, California consists primarily of Universal Studios Hollywood, as well as Universal CityWalk Hollywood. Our Universal theme park in Osaka, Japan consists primarily of Universal Studios Japan. We continue to expand our theme parks business internationally, such as through our plans to develop a Universal theme park in Beijing, China along with a consortium of Chinese state-owned companies. In addition, we license the right to use the Universal Studios brand name and other intellectual property, and also provide other services, to third parties that own and operate the Universal Studios Singapore theme park on Sentosa Island, Singapore. Our Theme Parks segment licenses the right to use a substantial amount of intellectual property from third parties for its themed elements in rides, attractions and merchandising.

SeaWorld Entertainment

We are a leading theme park and entertainment company providing experiences that matter and inspiring guests to protect animals and the wild wonders of our world. We own or license a portfolio of recognized brands including SeaWorld, Busch Gardens, Aquatica, Sesame Place and Sea Rescue. Over our more than 50 year history, we have built a diversified portfolio of 12 destination and regional theme parks that are grouped in key markets across the United States, many of which showcase our one-of-a-kind zoological collection. Our theme parks feature a diverse array of rides, shows, educational demonstrations and other attractions with broad demographic appeal which deliver memorable experiences and a strong value proposition for our guests.

Six Flags Entertainment Corp

We are the largest regional theme park operator in the world based on the number of parks we operate. Of our 20 regional theme and waterparks, 17 are located in the United States, two are located in Mexico and one is located in Montreal, Canada. Our U.S. theme parks serve each of the top 10 designated market areas, as determined by a survey of television households within designated market areas published by A.C. Nielsen Media Research in September 2017. Our diversified portfolio of North American theme parks serves an aggregate population of approximately 100 million people and 175 million people within a radius of 50 miles and 100 miles, respectively, with some of the highest per capita gross domestic product in the U.S.

Our parks occupy approximately 4,600 acres of land, and we own approximately 800 acres of other potentially developable land. Our parks are located in geographically diverse markets across North America. Our parks generally offer a broad selection of state-of-the-art and traditional thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues and retail outlets, and thereby provide a complete family-oriented entertainment experience. In the aggregate, during 2017, our parks offered approximately 850 rides, including over 140 roller coasters, making us the leading provider of "thrill rides" in the industry.

Cedar Fair LLC

In 2017, the Partnership entertained more than 25 million visitors. All of the Partnership's parks are family-oriented, with recreational facilities for people of all ages, and provide clean and attractive environments with exciting rides and entertainment. The amusement parks include: Cedar Point, located on Lake Erie between Cleveland and Toledo in Sandusky, Ohio; Knott's Berry Farm, near Los Angeles, California; Canada's Wonderland, near Toronto, Canada; Kings Island, near Cincinnati, Ohio; Carowinds, in Charlotte, North Carolina; Dorney Park & Wildwater Kingdom ("Dorney Park"), in Allentown, Pennsylvania; Kings Dominion, near Richmond, Virginia; California's Great America, in Santa Clara, California; Valleyfair, near Minneapolis/St. Paul, Minnesota; Worlds of Fun, in Kansas City, Missouri; and Michigan's Adventure, in Muskegon, Michigan. The Partnership manages and operates Gilroy Gardens Family Theme Park in Gilroy, California. The Partnership also owns and operates two separately gated outdoor water parks located adjacent to Cedar Point and Knott's Berry Farm, three hotels at Cedar Point (including the Castaway Bay Indoor Waterpark Resort in Sandusky, Ohio) and one hotel at Knott's Berry Farm. With limited exceptions, all rides and attractions at the amusement and water parks are owned and operated by the Partnership. The Partnership owns land on which Cedar Point Sports Center is located. The sports park is operated by a third party.

Estimated U.S. Market Share 2017

Walt Disney Company50.1

Comcast/NBC Universal17.5

SeaWorld Entertainment7.1

Six Flags Entertainment6.4

Cedar Fair LLC6.2

Total revenue U.S.

Year

Revenue $

million

Growth %

200412,391.000

200512,952.304.5

200612,959.100.1

200713,879.907.1

200813,280.90-4.3

200911,624.20-12.5

201011,453.80-1.5

201113,634.5019

201213,600.90-0.3

201314,369.605.7

201415,354.206.9

201516,781.809.3

201617,484.704.2

201717,540.600.3

Number of adolsecents aged 10-19 in U.S.

YearMillion% Change

200842.920

200942.85-0.2

201042.66-0.5

201142.38-0.7

201242.04-0.8

201341.83-0.5

201441.72-0.3

201541.69-0.1

201641.750.1

201741.860.3

201841.950.2

201941.92-0.1

202041.81-0.3

202141.77-0.1

202241.780

202341.760

202441.73-0.1

Selected Financial Data for Leading U.S. Amusement Park Operators

201720162015

Walt Disney Company

TOTAL REVENUE:184151697416162

Admissions

Food, beverages, merchandise

Sponsorships, licensing, other

Accommodations

OPERATING PROFIT377432983031

Comcast

TOTAL REVENUE:544349464391

Admissions

Food, beverages, merchandise

Sponsorships, licensing, other

Accommodations

OPERATING PROFIT238421901952

SeaWorld Entertainment

TOTAL REVENUE:126313441371

Admissions765818874

Food, beverages, merchandise498526524

Sponsorships, licensing, other

Accommodations

OPERATING PROFIT(201)60159

Six Flags

TOTAL REVENUE:135913181264

Admissions741715688

Food, beverages, merchandise525521500

Sponsorships, licensing, other786659

Accommodations151617

OPERATING PROFIT329233263

Cedar Fair

TOTAL REVENUE:132112881235

Admissions734716687

Food, beverages, merchandise422408398

Sponsorships, licensing, other

Accommodations165164150

OPERATING PROFIT295317295

($millions) Detail reported as available in company reports

(Amusement park/Resort operations only)