Key Points
- Universal Orlando reopened its Poseidon's Fury attraction this week, helping increase the park's capacity.
- Rival SeaWorld just got its Sky Tower observation ride running again, a month after opening a new roller coaster.
- Disney World brought back a traditional parade to its Magic Kingdom park for the first time in two years. New rides are coming.
Being too popular may seem more like a blessing than a curse, but it's been an issue at Walt Disney's(NYSE:DIS)largest theme park resort in recent months. Many of Disney World's Florida neighbors -- including $SeaWorld Entertainment(SEAS)$ and $Comcast(CMCSA)$ -- are also bumping up against the point where consumer demand is outstripping supply.
With large crowds seemingly impervious to price hikes and new premium offerings, Disney, SeaWorld Orlando, and Universal Orlando are posting record or near-record results despite not being at full strength. Folks keep coming to Central Florida's hotbed of gated attractions, and guest concerns about rising admission costs have now morphed into gripes about long lines. Thankfully for park visitors -- and the theme park operators themselves -- help is on the way.
You're going to need a bigger boat
Universal Orlando's Islands of Adventure surprised visitors on Monday by reopening an attraction that has been closed for nearly two years. Poseidon's Fury -- an immersive theatrical walk-through experience with a mythological bent -- is back. The unique experience closed two summers ago, but its return comes at a great time. Area schools are out this week for the annual spring break holiday, sending even more guests through its turnstiles.
Poseidon's Fury joinslast year's debutof the white-knuckle VelociCoaster thrill ride, giving the park additional capacity that it's putting to good use. The popular multi-launch dinosaur-themed roller coaster and the lower-capacity Poseidon's Fury attraction provide a combined hourly capacity of more than 2,000 visitors. Having more rides and attractions available helps spread crowds around, making wait times more bearable. It's also a welcome contrast to what's happening at Comcast's adjacent sister park, Universal Studios Florida. Its Revenge of the Mummy indoor coaster ride will be closed until late summer as part of a refurbishment, and the park recently shuttered its Shrek 4D theatrical attraction to make room for an upcoming Minions-themed experience. Good timing at one Universal Orlando park will hopefully compensate for the lousy timing at the other.
A couple of miles away, SeaWorld Orlando has two more attractions than it had a month ago. It opened the Ice Breaker roller coaster last month, a thrill ride that it was originally set to open in 2020 until the pandemic shifted its development timeline. This week it also reopened the Sky Tower observation attraction that lifts guests to an eagle's-eye view of the area. The park has two family-friendly rides that it has yet to reopen, but the immediate boost in capacity matters.
Disney World's Magic Kingdom -- the most visited theme park in the planet -- brought back a popular parade last week. In a couple of months it will open a newGuardians of the Galaxy-themed indoor launch coaster at its Epcot park. ATroncoaster at the Magic Kingdom has entered the second phase of testing, and could open by the end of this year if not early 2023.
The math is simple. Folks have shown a willingness to pay higher prices for the escapism that theme parks provide. Disney's price hikes getall of the media attention, but SeaWorld Orlando and Universal Orlando jacked up their pass prices by as much as 15% over the past few weeks. Disney following the lead of its smaller rivals by charging guests for faster access to rides has beencontroversial, but the House of Mouse has said that a third of its guests are paying up for the high-tech time-saver.
It's a great time forleisure stocksin general but theme parks in particular. There are two options at this point. Disney, Comcast, and SeaWorld Entertainment can raise prices -- again -- to reduce guest counts. They can also embrace the situation, ramping up capacity to be able to keep the turnstile clicks high without sacrificing the guest experience. There's also a third option, of course. They can increase the capacity as well as the price points. As long as crowds keep coming it's a safe bet that they will continue to flex their pricing elasticity until it snaps.
source:TMF
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