Six Flags guests are pulling out additional cash this 12 months for journeys to the corporate’s 27 theme parks – an indication executives contemplate to be validation of their shift away from discounted tickets towards attracting usually higher-spending households.
Report buyer spending per capita within the first three months of the 12 months offset a 5% drop in attendance, the Arlington-based operator of amusement and water parks mentioned Monday. Guests spent almost $81 per journey within the first quarter, up 7% from about $75 in the identical interval final 12 months.
Selim Bassoul, the corporate’s president and CEO, credited park leaders with making a “customer-obsessed tradition,” together with a willingness to experiment with new costs and occasions. He mentioned buyer satisfaction ranges and season go gross sales are enhancing.
“12 months-to-date, as of Sunday, April thirtieth, our season go gross sales are greater than double what they had been final 12 months over the identical interval,” he informed analysts Monday throughout the firm’s quarterly outcomes name.
On the firm’s Six Flags Over Texas park in Arlington, single-day tickets begin at $39.99 whereas season passes price $79.99 to $159.99.
Bassoul mentioned he expects attendance to rebound this 12 months, though chilly and wet climate in California and Texas dragged on customer tallies within the first three months. Attendance totaled 1.6 million for the quarter, a 5% drop from the identical interval a 12 months in the past.
“The trail towards progress by no means follows a straight line, however we’re inspired by the progress we now have remodeled the previous two quarters,” mentioned Bassoul, who turned chief government in late 2021 with a three-year plan to rework the corporate.
“We’ve some of the iconic manufacturers within the U.S.,” he mentioned. “Nonetheless we now have not stored tempo with model constructing previously few years. Our innovation was missing. Our visitor expertise was common at finest. At this time, we’re pursuing extra occasions and extra interactive household initiatives to get our company to spend longer time in our parks and to extend season go holders’ visitations per 12 months.”
Bassoul’s technique drew critics final 12 months when park attendance and customer spending nosedived in mid-June when the corporate scaled again on discounted tickets in style with youthful guests and did away with an infinite meal plan. Seasonal occasions within the fall steadily started to reverse these developments.
Six Flags shares had been up almost 20% Monday to $26.88.
Six Flags’ income of $142 million was a first-quarter document and a 3% enhance over the identical interval final 12 months, based on chief monetary officer Gary Mick. However the firm additionally spent extra on promoting to advertise season passes.
Mick mentioned the corporate had 3.2 million go holders initially of April, down 11% from the identical time final 12 months. However with season go gross sales up considerably this 12 months, Mick mentioned, Six Flags closed the hole and is now down 4%.
Constantly enhancing the customer expertise is how Six Flags will develop, Bassoul mentioned. That features consideration to security, cleanliness, meals high quality, pace of service and different facilities.
“There continues to be a rising client demand for native, out-of-home leisure, and we imagine Six Flags sits squarely in the midst of the whole lot a client is on the lookout for,” he mentioned.
Six Flags will roll out a brand new cellular app in June with options akin to a each day schedule of occasions, interactive maps, a meals ordering system and go purchases and entry. Bassoul mentioned the expertise ought to result in even higher in-park spending as a result of the common cellular meals invoice is 10% increased.
It additionally plans to pilot dynamic pricing – just like surge pricing popularized by ride-sharing corporations – for single-day tickets at a number of of its largest parks beginning in July. Firm executives didn’t establish the parks.
“That may allow us to robotically change a selected worth level primarily based on demand for that park on that day,” Bassoul mentioned. “We imagine we now have pricing energy, however provided that we ship an distinctive visitor expertise. … Our purpose is to proceed the success we noticed final 12 months and enhance our visitor satisfaction scores throughout all our parks. And if we will do this, then we will enhance the costs steadily over time.”
Mick mentioned the corporate expects 2023 pre-tax revenue to exceed its earlier document of $518 million in 2018.
Six Flags plans to spend about $150 million this 12 months on new rides and infrastructure upgrades, Mick mentioned. Six Flags Over Texas debuted its long-awaited Aquaman: Energy Wave multi-launch water coaster in March. It’s the park’s 14th curler coaster.
