Theme parks, also known as amusement parks, are an extension of the entertainment and recreation industry that shares its borders with the travel and industry. Theme parks attract people of all ages, including children and teenagers. They enjoy the various rides and shows and even participate in interactive role-playing attractions like the wand play in the Wizarding World of Harry Potter in Universal’s theme park or the Ghost Town Alive in Knott Berry Farm. Eating out at theme parks and buying souvenirs are the added attractions for visiting the parks that have become a billion-dollar industry.
Theme parks or amusement parks play a critical role in the global leisure and entertainment industry. The theme parks are one-stop shops that provide leisure and entertainment solution that flourishes as a key tourist attraction and source of revenue. Theme parks provide guests with a simple, immersive, and entertaining experience that turns out satisfying. Theme parks are places of storytelling using beautifully complex systems that encompass economics, function, and human behavior, explains Eric Dalius, who wants to explore its various sides from an entrepreneur’s perspective.
Theme park business in numbers
The business of amusement parks has enjoyed steady growth over the years across the globe. During the period 2020-2025, its market size is likely to grow at a CAGR of 6.2%. According to the projection, the industry is expected to touch $72.44 billion in 2025.
Theme parks are big business across the world, and many business promoters dream of setting up theme parks that are a focal point for economic development and turning into a vital factor in the resort and commercial development world. According to Eric Dalius, before creating a business plan, entrepreneurs must understand the dynamics of the business of theme parks, which are specialized entertainment environments that serve as anchors and add amenities, activities, and elements the boost attendance, average spending, length of stay and repeat visits. Innovative rides, merchandise, and accommodations in theme parks have always remained popular among visitors of all age groups.
The drivers of the theme park business
Headcounts are the main drivers of the theme park business, which generates revenue. Going by the trend in North America, the retired baby boomers that focus on leisure spending and recreation are the main contributors to the business. A large chunk of consumers from the international tourism industry helps in the growth of the sector. Tourists want to soak in the entertainment, adventure, and thrills of the entertainment parks that offer a host of amenities, including dining and accommodations, which increase the enjoyment quotient and augur well for business.
High growth expected
There is an increasing demand, especially in North America, for fairground rides that are family-friendly and coasters that pump the adrenaline. The market growth of regional parks thrives on government support in promoting tourism and the rise in disposable income.
Technology too plays a critical role in the growth of theme parks. The business promoters are increasingly adopting technology advancements in pneumatics, hydraulics, and animatronics to create entertainment rides that provide hi-tech thrills. The motion simulator rides and Frisbee rides are set to drive the growth of the industry of theme parks. Therefore, there are clear indications of increasing demand for theme parks in the near future.
Segment analysis, market demographics, and rides
Consumer preference for mechanical rides made the mechanical ride segment hold the largest share in amusement parks. The increase in the number of visitors who take a particular interest in giant rides, 4D rides, and challenging roller coasters and the increased household spending of the middle-class population on outdoor activities fueled the growth. The addition of new theme parks by international players expands the scope of mechanical rides in the theme park market.
For many years the 36-50 age group dominated the consumer base of entertainment parks because they take their family and children to these places for entertainment. Therefore, the theme park operators focus more on young riders for balanced entertainment by offering aggressive rides. Another way of attracting people is to concentrate on wrist bands that grab the attention of people. The theme park operators are organizing ferry rides, entertainment shows, and vintage theme-based activities together with excellent hospitality that creates an irresistible attraction for the age group to add variety and improve attractions.
The way forward
Technology has been a great enabler to drive the popularity of theme parks, as evident from the introduction of new rides based on the latest technology that offers more thrills and fun. The use of IoT in various operations of amusement parks bears testimony to it. Moreover, technology is helping in better management of the theme parks by assisting in monitoring and tracking all the activities, managing the crowd better, and improving the visitors’ safety and the premises. The most visible technology application is streamlining the theme park operations by offering IoT enabled wristbands to visitors, which serve as an entrance ticket and passport while allowing credit card transactions. It eases the process of accessing various entertainment offerings that ensure a more pleasing experience for visitors who feel like coming back again. All these factorspropel the business on the fast track of growth.
Educational theme parks that use IoT enabled features to allow parents to keep close track of the children who can roam freely without any concern of getting lost. All such factors are contributing to increasing the popularity of theme parks and pushing up demand.
Challenges for the theme park industry
The business of theme parks is not free from challenges, mainly due to the lack of skilled labor necessary for providing quality services. The recreation industry is labor-intensive, and the increasing costs of maintenance and upkeep threaten to hinder the industry’s growth. Added to this is the threat of unfavorable demographic changes that can negatively impact the home entertainment experience in amusement parks.
The amusement industry’s key players are focusing on rider launches, R&D activities, and establishing new parks to maintain the momentum of growth.
