Cedar Fair revenue up, attendance down on same-park basis

Yeah, I've got to counterpoint Gonchar on this one. I think that in much of the demographic area that Cedar Point draws from, that this is a bad thing. You can't hit these people over the head for $4 for a Pepsi and expect them to come back and throw money at you year after year. People will simply find something else to do. Amusement parks for most people are merely one form of entertainment, and it's not a tragedy if they try something new.

It's a downward spiral. Fewer people come, so you jack up prices, so fewer people come, etc. How long before that catches up to you? There's a ceiling for pricing. I may reluctantly pay $4 for a Pepsi once or twice, but what if it's $5? $7? Screw that. They won't find enough people to pay those prices, and then attendance and profits will fall.

That being said, I ate at Macaroni's and screwed them out of about eight Diet Pepsi refills to get even. Bladder be damned, I'm getting my fair share!

I don't necessarily think it's a bad idea for Six Flags to do this in markets like LA, DC, Dallas, etc. For Cedar Fair at parks that draw from Cleveland, Detroit, and Pittsburgh, though, I can't see it being successful long term. They need to find new ways to expand their business and keep people on-property longer, or at least keep them there all night.

We stayed at Breakers, and would have probably stayed there and hung out all night, but how long can you sit at a Friday's or a pizza buffet? Have a real bar (with "street pricing" for on site guests,) maybe a sports bar, some night club places that play nothing but the crap that I want to hear (Devo, anyone?). Hell, even Pay Per View movies in the room and a convenience store that sells six-packs.

Don't make me even want to explore Sandusky. Keep my attention there.

*** This post was edited by kpjb 7/8/2007 7:52:48 PM ***

I can't help but think the overall hassle of visiting a park (print n go tickets, season pass processing, season pass parking, high food prices, ungodly amount of promotions) is turning people towards other forms of summer entertainment. My visit to Lake Compounce this summer was enjoyable because it was a simple day at the park, something I think most people are looking for.

You know, the attendance drop could also be explained by fewer operating days---several CF parks opened later this year than they have in the recent past.

It's often been mentioned that amsuement parks are in heavy competition with other forms of entertainment. A friend of mine is huge into the movie industry (although he doesn't get payed for it--go figure). Last year, he was already talking about the "summer of threes."

Consider that Shrek the Third, Spiderman 3, Pirates 3 all came out around the same time, another critically acclaimed Pixar film Ratatouille was just released, and Harry Potter is right around the corner. Transformers is also doing extremely well. That's a huge amount of competition for a family's budget.

Consider that going out to the movies is around $10 a ticket, plus concessions that could add another $20-bucks or more each time, and there isn't that much money left for the parks.

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kpjb said:
They won't find enough people to pay those prices, and then attendance and profits will fall.

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But we seem to be working on the assumption that the in-park prices are the cause (or at least a cause) of declining attendance. That's the core point that I'm not sure I totally buy into.

If that is true, then yes, you can find yourself in a downward spiral. However, if attendance is dropping for pretty much any other reason, then based on the fact that you still see lines for drinks and food in the big parks, I still have to say it's a safe bet.

And even still, there's no set correlation between the prices rising and the amount attendance would drop. Maybe there is more play there than often suggested? (something else I believe)

Other than that, I like a lot of the ideas you threw out there. Those are exactly the type of things they should be jumping on at the Point.

On the Midway Market price change, it's not just the price that goes up for dinner, they also change the food. Lunch has burgers and pizza on the menu, dinner has some carved meats and some other selections that they feel justifies the extra 3 bucks or so.