Six Flags CEO says parks grew to become ‘low-cost daycare heart’ for teenagers

ARLINGTON, Texas — Six Flags is seeking to elevate costs after seeing a lower in each attendance and income in its second-quarter earnings report this yr.

Throughout an earnings name final week, Six Flags CFO Gary Mick revealed the corporate noticed a 22% lower in attendance in comparison with this time in 2021, together with a lower of $24 million, or 5%, in income.

Mick attributed the attendance lower to “the elimination of free tickets and low-margin product choices, coupled with elevated pricing right into a market that had turn into accustomed to reductions.”

Firm officers mentioned the amusement park big is altering up its enterprise mannequin with the intention to maintain income at a gentle tempo whereas coping with attendance decreases.

Within the name, CEO and President Selim A. Bassoul mentioned the corporate has supplied too many reductions and that “the philosophy of filling our parks was not the correct technique.”

In accordance with Bassoul, the technique entails attracting clients who’re prepared to spend more cash contained in the parks.

“It was an inexpensive day care heart for youngsters throughout breaks and the summers,” Bassoul mentioned. “… we needed to begin going after clients who needed households, younger adults who’re prepared to return and spend the cash in our parks.”

When requested about Six Flags’ demographics, the CEO mentioned, “Our goal has at all times been to be part of the center class and even decrease center class.”

Bassoul mentioned value will increase and inflation have hit clients arduous outdoors the amusement park and that a few of these clients have not been in a position to return to Six Flags. 

“We consider… our demographic is what I name the typical earnings of the U.S. That is who we’re,” Bassoul mentioned. “… I am migrating slightly bit from what I name the Kmart, Walmart to possibly the Goal buyer.”

General, the corporate mentioned it has been in a position to offset the attendance lower by means of a mannequin of attracting extra clients who will spend extra and going after a unique market.

“We’ll a broader market. We’ll what I name extra prosperous neighborhoods, the place we want to carry individuals from these neighborhoods to return to our parks who haven’t been focused earlier than,” the Six Flags CEO mentioned.

Bassoul mentioned the corporate will probably be seeking to supply new eating plans, a “greater and higher” Fright Fest and a brand new OktoberFest occasion with the intention to get extra clients by means of the gates.

Again in Could, the amusement park big introduced it might be eliminating its month-to-month meal plan because of customers profiting from this system, which affected common clients’ experiences. Bassoul mentioned the plan was “priced too low” and created “enormous site visitors jams” at meals areas.

Bassoul mentioned a brand new eating plan is within the works as the corporate appears to be like to include “expertise to make it possible for individuals are not abusing the system.” This contains monitoring the meals bought by means of the plan.