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Amusement park operator Six flags According to its chief executive, it has become a “day care center for teenagers” after cutting too many discounts.
During an earnings call with analysts, Selim Bassoul, who took over the position in November, talked about the company’s new strategy to keep “advanced” teenagers from running amok. The plan includes raising fares and trying to attract more affluent customers.
“Our aggressive strategic shift is still a work in progress, but my first nine months at Six Flags as CEO of Six Flags have reinforced my initial belief in Six Flags’ potential,” said Bassoul.
A roller coaster at the reopened Six Flags Fiesta Texas in San Antonio, Texas. (Photo by Lie Ma/Xinhua via Getty) (Xinhua/ Getty Images / via Getty Images)
During the second quarter, total attendance fell 22% to 6.7 million guests from a year ago due to the elimination of free tickets and low-margin product offerings “combined with increased prices in a discount-accustomed market.” Flags CFO Gary Meek told analysts.
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The theme park operator has been in a process aggressive change in strategy It added after realizing it was “discounting too much” and that the “philosophy of filling our fleets” was wrong.
As a result, “we just bought a discount or became a day care center for teenagers,” Bassoul told analysts.
Part of the new strategy, he added, is to introduce new pricing, which means catering to customers with families or young adults who “want to come and spend their money in our parks.”
Six Flags Magic Mountain on May 22, 2008 in Valencia, California. (Photo by Mathew Imaging/WireImage/Getty Images)
Six Flags has expanded its advertising to pursue a broader market, he said. Previously, the company focused on previous guests.
“Now we’re changing that philosophy and going to a broader market. As I said, we’re going to go to more affluent neighborhoods, and we want to bring people from those neighborhoods to our park. It wasn’t targeted before,” Bassul said.
CALIFORNIA AMUSEMENT PARK ANNOUNCES HEAD POLICY AFTER TEEN STRUGGLES.
Although Six Flags has experienced a decline in attendance over the past three months, the company said it was able to offset much of the decline in revenue. increase in guest spending.
Admission costs per person increased 27% to $36.35, while in-park spending per person increased 18% year-over-year.
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The increase in admission costs was “primarily driven by higher realized ticket prices and a higher mix of single-day tickets,” Mick said.
In the fall, the company plans to add new offerings to increase visits, such as introducing a new dining plan, creating a bigger Fright Fest with activities to attract more families, and introducing an Oktoberfest event.
Six Flags second-quarter revenue fell 5% to $435 million. Net income fell 36% to $45 million.
