The plummeting economy may remind some of a steep drop on a roller coaster ride. Local amusement parks, conscious of the worst recession in generations, are doing what they can to ensure that doesn’t keep potential customers from riding their roller coasters.
Amusement park heads say their businesses could offer thrill seekers some much-welcome diversion in such scary economic times, but they are dangling promotions for customers with the acknowledgement people are scaling back discretionary spending like never before.
Six Flags New England opened earlier this month, reviving last year’s promotion to charge adults at kids’ prices for single-day tickets. The park, just 20 miles north of Hartford in Awagam, Mass., opened for an extended two-week spring break, stretching the number of operating days to 143, up from last year’s record high of 142.
The park’s New York-based parent company faces mounting financial troubles, including a New York Stock Exchange delisting last week and a possible bankruptcy. But those troubles will have “zero impact on this park or any proprieties in the system,” said park President Larry Lutton. The park is set to unveil next month “Bizarro,” a transformation of its popular Superman ride.
Six Flags is aggressively promoting its $75 season pass, which comes with five free tickets for friends and about $400 in coupons. Lutton said the recession might actually provide opportunity for his park.
“At the end of last year, it appeared to help us,” Lutton said. “People weren’t going to Europe, they weren’t taking the long trips to Disney. They were looking for opportunities closer to home.”
The longer season last year gave Six Flags a much-needed attendance boost after seeing a steady drop from 27.9 million in 2002 to 24.9 million in 2007 throughout the entire park system. Six Flags does not report attendance at individual parks, but the company said attendance throughout the system increased 400,000 to 25.3 million in 2008. The biggest boost came in the fourth quarter, when attendance increased 9 percent and revenues jumped 5 percent, which Chief Financial Officer Jeffrey Speed attributed to the extended operating season.
Lake Compounce in Bristol canceled plans to boost its season ticket price $5 to $79.95 and is currently offering a preseason rate of $69.95. The park is also pushing a number of discount plans on single-day tickets through partnerships with AAA and Costco and is offering buy-one-get-one-free deals, marking a significant change in operating philosophy.
“We’ve never been a company that discounted a lot,” said general manager Jerry Brick. “From this standpoint, we are trying to be proactive, rather than reactive.”
The park will keep games and retail items at 2008 prices, though food prices get a slight bump. However, the free soda will still flow freely.
After operating 115 days during the 2008 season — the longest in park history — this year’s season will be stretched to 117 days. While attendance last year jumped to 700,000 from 675,000 in 2007, Brick said he hopes the three new water slides and other improvements part of a $2.5 million capital investment in the past year can help boost attendance again in 2009.
As corporations cut back on spending, Brick said he’s expecting a hit in one of the most important parts of the park’s business. Corporate picnics account for about 25 percent of park attendance, and Brick said his sales team will expand operations in New York, Rhode Island and western Massachusetts to make up for lost business in Connecticut.
“We’re going to try to be more aggressive,” Brick said. “We’ve increased what we’re spending in those areas.”
CoCo Key Water Resort, which opened a new location in Waterbury in October, said the indoor water park is attracting business within a 70-mile radius, including Long Island and Westchester County. In a given month, the park could offer as many as three or four special packages.
“For us, it was actually probably the best time to open,” said marketing director Kate Terricciano. “In October, coming into the cooler weather, people were looking to get away that was cost effective.”
Historical trends suggest families visit their regional parks instead of taking extended vacations during a down economy, said David Mandt, vice president of communications for the International Association of Amusement Parks and Attractions.
“Typically, we see guests may stay closer to home, but they continue to visit parks,” Mandt said. “Though, these are certainly unprecedented times.”
