Some Q1 earnings call highlights...
- SEAS views itself as still having pricing power, as it continued realizing double-digit pricing increases in admissions and in-park products - "People are coming out and spending"
- Pass base up 22% (April 2022 vs. April 2019)
- Pass visitation running higher than normal, at 48% in Q1
- Staffing should be back to optimal levels by summer - Hadn't utilized international programs as much as competitors, and now using it in all SEAS parks
- Inflation/recession - SEAS likes its ability to weather downturn, even in "destination" market like Orlando, given that over 50% of SWO attendance is Florida residents
- New Sesame Places - Could be a conversion, new park, or "an expansion of one our existing parks as well"
Posted on Screamscape, but perhaps coming soon to all SEAS parks?
SeaWorld Florida
Park News - (5/5/22) Just a little something to watch for the next time you visit a theme park, especially SeaWorld Orlando. According to a picture on Twitter from a park guests on April 30th, it shows that a small line of text has been added to the bottom of one of the park’s restaurant menu boards that says, “A 5% surcharge will be added to all guests checks to cover increased operating costs.”
So in other words, the prices all listed above on the menu are actually 5% more expensive than posted. I’m not really sure why SeaWorld Orlando felt they needed to go this route rather than just increase the actual posted prices by 5%. Perhaps by adding this on as a operating surcharge, this allows the park to keep the entire 5%, whereas adding it on to the price of each item would then make the entire sum taxable, leaving the park with less than the 5% increase they desired. I’m no accountant, just taking a wild guess. Either way, this is definitely a new tactic worth keeping an eye on while everyone struggles with increased costs and supply-chain issues.
Posted on Screamscape, but perhaps coming soon to all SEAS parks?
SeaWorld Florida
www.screamscape.com
Park News - (5/5/22) Just a little something to watch for the next time you visit a theme park, especially SeaWorld Orlando. According to a picture on Twitter from a park guests on April 30th, it shows that a small line of text has been added to the bottom of one of the park’s restaurant menu boards that says, “A 5% surcharge will be added to all guests checks to cover increased operating costs.”So in other words, the prices all listed above on the menu are actually 5% more expensive than posted. I’m not really sure why SeaWorld Orlando felt they needed to go this route rather than just increase the actual posted prices by 5%. Perhaps by adding this on as a operating surcharge, this allows the park to keep the entire 5%, whereas adding it on to the price of each item would then make the entire sum taxable, leaving the park with less than the 5% increase they desired. I’m no accountant, just taking a wild guess. Either way, this is definitely a new tactic worth keeping an eye on while everyone struggles with increased costs and supply-chain issues.
They really are pushing things to the extreme and I really don't think they're gonna stop until they break people -- and that seriously sucks because it'll end up being decade(s) before BGW (and SEAS) is back to what it once was. They are being really great at being stealthy at how much they are milking from guests but eventually that pain will be felt even if it isn't seen.
It’s only at voyagers as far as I noticed, the most expensive restaurant to run
You know what….while I agree with most of what you said I can counter with two things:
1- They may be pushing things to an extreme, but people are still opening their wallets. I think it becomes a chicken and egg problem in the other way. Are people going to stop paying or will BGW become too expensive. With price increases and membership sale increases I don’t see a reason to stop right now. I’ll acknowledge it sucks for long time people but just with everything becoming more expensive and BGW going year round, it’s the consumer who was always going to feel the pain of it.
2- These price increases happened in the golf business too, and to a higher percent increase for tee times than park pass rates. PGA and USGA studied it and concluded that the pandemic has shifted consumer views and that outdoor activities have increased at unheard of rates. Golf, tennis, camping, hiking, amusement industry are all part of this. The way they know, especially in golf, is the average purchase of clubs. Club sales are over 200% up with average sale up from $450 to $1300.
Agreed, and it will be interesting to see what sectors thrive and/or suffer as consumers adapt to these increases and/or shift their spending.
At some point though, I do think continued >8% inflation AND $4+ gas is going to have an impact on all businesses.
Yes, they are.... until they don't. You can push someone clear to the edge of the cliff but if you push them over the cliff then it's all over. The problem is that this isn't going to be something that they can easily ease off of.... once they hit the point where people consciously realize the expense and the lack of quality for that expense they can't just ease off a bit and everything will go back to as it was.
Right. Which is hopefully what people in accounting and marketing departments are closely watching. But it seems for them moment we aren’t close to that yet.
I don’t have the time at the moment to do this, but I would be curious on the pass rate increase of WDW vs UO vs SEAS vs CF vs SF. Especially since the pandemic. I think it might be closer than expected.
For example Disneys pass anyone can buy was $994 at the start of 2019 and is now $1299. (This is to buy new not renew)
Universals highest pass is $714.99 now and was $420.67 in 2019.
SFA ultimate pass is $300, and closes historical data I can find for 2019 it was $180-200 for the same level at the time.
KD platinum pass is $230, was $195.
BGW is $426 and was $264 in 2019 (however the comparable current pass is likely one step down from the top end at $327).
Disney is a 31% increase
UO is a 69% increase
SFA is a 54% increase
KD is a 17% increase
BGW is a 61% increase (or 15% is you use the closes tier now that matches the top tier historically)
[I am self admittedly terrible at percentage increases so those are likely wrong]
But basically, because KD is right there and slower to increase pass costs (given where it is in CF park tiers vs BGW in SEAS’s) it makes BGW look bad. But compared to the Industry it’s seeming to be in line.
Last edited:
First of all, KD hasn't increased.... All CF passes start around $195 at the end of the prior season and then increase the closer you get to the start of the current season. They've always been around $220-$230 around this time of year and they were in the $190s at renewal at the end of last year.
Secondly, all of those parks/chains (with the exception of maybe SF) are continuing to invest and grow their parks and make them a better experience. While SEAS may be adding some coasters they are severely damaging the park experience in many other ways. Six Flags was dirt cheap prior so that's kind of negating that increase to begin with. At one point I might have said you could think about comparing BGW to Disney/Universal but those days are gone....
Your numbers honestly speak to more of an argument for what I am saying.... BGW is absolutely ridiculous increases in price and the time may be a lot closer to where people give up (I really don't understand what your 15% number is)..... Disney seems to also be hitting that threshold as well. Hell, I got rid of my SEAS pass because I can't justify the cost and I'm struggling to justify even using my free ticket to go ride Pantheon because I don't want to pay $30 for parking plus the stupid cost of stuff in the park.
I honestly feel the way you do with SEAS about KD and SF.
But….that being said…BGWs increases seem more in line with what’s going on than not. And mind you it was about 5 years ago that BGW finally did away with grandfathered pricing (which made them a better deal than anyone). I remember it distinctly because that was when I got my first pass and I was pissed to learn that I was paying $13/month and getting the same as someone paying half that because they happened to live in VA before me.
I don’t think though, to your point, that theres going to be this sudden sharp drop off. BGW is going to have a chance to course correct before people give up to the scale that it hurts. Likely what will happen is a pricing freeze for a while. (Random aside on Disney and not the thread for it, but they [based on rumors] wanted to intentionally hit the threshold because they learned they were losing money)
Just skimmed Six Flags earnings call transcript, and it is interesting to note that they are well aware of being "underpriced" relative to SEAS and CF - They are looking to close that gap. They are also focused on "premiumization" of their parks, starting with the top 5-6 parks which drive 70-80% of their business.
They are fully aware that embarking on this strategy will drive away some customers, but they seem to be willing to decrease park pass holders to drive a better guest experience, which they think will ultimately be more profitable.
FWIW, it looks like the street recognizes there could be pain shorter term with this strategy, leading to the selloff in Six Flags shares today.
I mean, BGW is increasing prices a stupid amount while destroying their biggest thing, shorting employee pay which seems to be resulting in some miserable experiences to many...... KD has the same pricing, has raised their employee pay and doesn't play games with their employees pay rates, seems to have better satisfaction than BGW even if it's not perfect and is starting to do exactly what BGW used to be known for with regards to theme and putting thought into expansion and attractions.
But this never was a them vs us argument from my point of view..... Certainly not Disney which was immediately who you tried to start comparing BGW's pricing to......
For what it's worth. You'd think that maybe, just maybe they'd put the money into raises for employees or paying down some of their long term debt or fixing long broken items at the parks. Nope...put it toward stock buy back to increase share price. Also it was announced that their CFO will step down.
SeaWorld CFO to step down, company plans $250M stock buyback
'The time is right for me to move on to the next chapter in my career.'floridapolitics.com
Sounds exactly what pushed us into the formula shortage..... I don't understand why companies seem to be against doing even the bare minimum anymore. It's all short term gains and implosions later.
Herein lies the problem. Unfortunately CEOs get paid to maximize profits and subsequently stock prices for shareholders. Too much emphasis is being placed on this and too little on longer term strategic planning and maintenance. Today's CEOs only stay in place about 5 years so whatever maintenance or long term costs that can be deferred until later will be. The CEO makes record profits and looks good and moves on to another company and leaves the long term problems for the next guy.
SeaWorld will announce it's 2nd quarter financial results tomorrow morning.