Universal's park attendance down
Amidst the deep global recession, parks like Universal Orlando had to cut operating costs to be profitable while attendance continued to decline for the 2nd straight quarter. Earlier this year, Universal terminated at least 70 middle management employees to cut operating costs.
Rolling out the one-of-a-kind Hollywood Rip Rocket Ride was suppose to be the trump card to help prop-up attendance but Universal still does not have a date. But slashing operating costs some 17% saved the day allowing Universal to continue to make a profit.
As the #2 theme park in Orlando, attendance dropped from 2.9 to 2.5 million visitors nearly 14% from a year ago while sales fell to $242 million or 11%.
While Universals COO Bill Davis believes that the park offers a valuable experience, much of the 30% profit came from deep cost-cutting initiatives company-wide.
Universal was not the only park to be affected by the depression but last week Disney announced a 19% drop in operating profits down to $521 million. Unlike Disney, Universals unique marketing schemes enticed customers to spend more at Islands of Adventure and Universal Studios reflecting an increase of 3% for the second quarter.
It was the same pattern across all the major theme parks, people that had booked long term vacations did not cancel but just spent less on food and merchandise. Universal experienced double digit declines in attendance across it's two theme parks.
Having opened the Hollywood Rip Rocket Ride may have stimulated attendance but Universal still has high hopes on the Wizarding World of Harry Potter planned to be rolled out in 2010.
Rolling out the one-of-a-kind Hollywood Rip Rocket Ride was suppose to be the trump card to help prop-up attendance but Universal still does not have a date. But slashing operating costs some 17% saved the day allowing Universal to continue to make a profit.
As the #2 theme park in Orlando, attendance dropped from 2.9 to 2.5 million visitors nearly 14% from a year ago while sales fell to $242 million or 11%.
While Universals COO Bill Davis believes that the park offers a valuable experience, much of the 30% profit came from deep cost-cutting initiatives company-wide.
Universal was not the only park to be affected by the depression but last week Disney announced a 19% drop in operating profits down to $521 million. Unlike Disney, Universals unique marketing schemes enticed customers to spend more at Islands of Adventure and Universal Studios reflecting an increase of 3% for the second quarter.
It was the same pattern across all the major theme parks, people that had booked long term vacations did not cancel but just spent less on food and merchandise. Universal experienced double digit declines in attendance across it's two theme parks.
Having opened the Hollywood Rip Rocket Ride may have stimulated attendance but Universal still has high hopes on the Wizarding World of Harry Potter planned to be rolled out in 2010.
posted by michael at
7:34 AM
