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Amusement park operator Six Flags has transform “day care center for teenagers” after providing too many reductions, in line with its leader govt officer.
During an profits name with analysts, Selim Bassoul — who took over the position in November — talked in regards to the corporate’s new option to stay “rowdy” youngsters from operating amuck. The plan comprises mountain climbing costs and making an attempt to draw a extra prosperous buyer.
“Our aggressive strategic shift is still a work in progress, but my first nine months at Six Flags as Six Flags CEO has only reinforced my initial belief in Six Flags potential,” Bassoul mentioned.
A curler coaster on the reopened Six Flags Fiesta Texas in San Antonio, Tex. (Photo through Lie Ma/Xinhua by means of Getty) (Xinhua/ by means of Getty Images / Getty Images)
Throughout the second one quarter, general attendance dropped 22% to six.7 million visitors in comparison to a yr in the past due partially to the removal of loose tickets and coffee margin product choices “coupled with increased pricing into a market that had become accustomed to discounts,” Six Flags CFO Gary Mick informed analysts.
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The theme park operator has been within the technique of an competitive shift in technique after knowing that it “had discounted too much” and that “the philosophy of filling our parks” used to be now not the precise one, he added.
As a outcome, “we only got the discounter or we became a day care center for teenagers,” Bassoul informed analysts.
Part of the brand new technique is to institute new pricing, which means that catering to shoppers with households or younger adults “who are willing to come and spend the money in our parks,” he added.
Six Flags Magic Mountain on May 22, 2008 in Valencia, Calif. (Photo through Mathew Imaging/WireImage / Getty Images)
He mentioned Six Flags expanded its promoting to pursue a broader marketplace. In the previous, the corporate occupied with earlier visitors.
“Now, we’re changing that philosophy, and we’re going to a broader market. We’re going to, what I call, more affluent neighborhoods where we would like to bring people from those neighborhoods to come to our park who have not been targeted before,” Bassoul mentioned.
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Although Six Flags skilled a decline in attendance over the last 3 months, the corporate mentioned it used to be in a position to offset a lot of the drop in income via larger visitor spending.
Admissions spending in line with capita larger 27% to $36.35 in line with individual and in-park spending in line with capita larger 18% in comparison to the similar length a yr in the past.
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The build up in admission spending used to be “driven primarily by higher realized ticket prices and a higher mix of single day tickets,” Mick added.
Heading into fall, the corporate plans so as to add new choices in an try to build up visitations reminiscent of introducing a brand new eating plan, developing a larger Fright Fest with actions to draw extra households in addition to introducing an Oktoberfest tournament.
Six Flags 2nd quarter income fell 5% to $435 million. Net source of revenue tumbled 36% to $45 million.
