Theme Park Industry Trends Shaping The Market

Theme Park Challenges

The theme park industry experienced a challenging year. Will 2023 result in more favorable conditions? This crucial economic sector witnessed impressive growth before the coronavirus pandemic. Businesses operating amusement rides and theme parks will address several challenges shortly. Just consider five of the most pressing issues:

Addressing Labor Issues

Theme parks and amusement parks in the United States currently remain pretty labor-intensive. The 458 parks in the USA employed some 133,151 workers. However, in 2023, many companies will pay unskilled workers low rates.

One challenge facing many parks currently involves compensating employees adequately while remaining profitable. This issue has generated considerable controversy in recent years. For example, Florida recently passed a ballot initiative requiring a $15 minimum wage for amusement park labor forces. As a result, parks must find ways to balance the need for unskilled labor with rising living costs in nearby neighborhoods.

Enhancing Food Selections

They are improving the quality and availability of food selections that interest many parks. Some firms have begun introducing healthy meal options for patrons. Increasingly, large parks offer food courts to boost menu variety.

The trend to enrich meal options points to efforts to customize visitor experiences at theme parks. However, it may also reflect a desire to cater to millennial patrons. Currently, Millennials and Generation Z represent two growing demographic markets.

Innovations to Thrill Visitors

More parks have also begun introducing high-tech features to enliven rides and displays. For example, both augmented and virtual reality now increase the customized nature of some theme park exhibits.

Using high-tech digital technologies appeals to Millennial and Gen Z visitors widely. In the USA, parks frequently compete for the right to create entertainment based on intellectual property used in popular films and television productions. For example, Disneyland has often drawn upon animated characters created by Walt Disney.

Augmenting Security Using the IoT

Another trend in theme park management concerns integrating the Internet of Things with real-time data feeds to boost security. Some parks have implemented RFID-equipped wristbands to track visitor movements through their grounds. This technology permits the reallocation of personnel to accommodate long lines.

Digital technologies also enable parks to update visitors quickly. Management may advertise attractions and restaurants this way, too. The Internet currently assists crowd management.

Anticipating a High-Tech Future

Many analysts expect the technology merger with traditional theme park operations will boost this industry’s popularity. Businesses in this field require public support to thrive as a sector within the entertainment industry. The development of increasingly personalized, innovative visitor experiences may eventually assist theme parks in the United States and many other nations as they recover from the impact of the recent pandemic.

Trends In The Theme Park Industry For 2023

Changes in business models

Keeping similar profit margins with reduced capacity could significantly increase prices and allow customers to access all rides without lines.

With fewer customers and more pricing, theme parks will look to add value to their experiences and make them more immersive. Disney is already running this high-price immersive experience model at Star Wars: Galactic Starcruiser Hotel.

More dynamic pricing

Smaller regional theme parks may not be able to adapt to the luxury business model that larger ones can afford to adopt. As a result, dynamic pricing will become the preferred method for smaller theme parks to offset the pandemic business losses.

Instead of daily or weekly pricing at amusement parks, pricing will be based on length of stay, day of the week, season, and real-time reactions to weather. Technology advancements make this pricing model possible, and theme parks may keep it after 2023.

Changes in interactions between employees and guests

In 2023, employees will be re-training to ensure that health and safety procedures are followed. Additionally, consumers must have confidence that the offered experience is safe. In the U.S., differences in belief systems may lead to conflicts between employees and customers and among customers themselves.

Theme parks must examine how they can manage these differences through employee de-escalation training. Additionally, many companies will seek to revise their policies to reduce liability in case of park exposure.

More touchless technology and artificial intelligence

Another impact of the pandemic will be the increased adoption of touchless technology at all employee and customer experience levels. For employees, this could mean more facial recognition and retinal scanning technology. For customers, this means touchless ticketing, fewer doorknobs, and touchless sinks in restrooms.

Additionally, more companies will adopt AI predictive analytics programs that streamline operations. For example, theme parks invest in A.I. applications to help set dynamic pricing and analyze target park capacity.

More augmented and virtual reality in guest experience

In line with trends to provide a more immersive experience for guests, virtual and augmented reality technology usage will rise in 2023. Virtual reality creates a 3D digital environment that can interact with a person. Augmented reality transforms reality into a digital space, placing virtual objects in the real world.

Without the mass crowds that previously drove the guest experience, the industry is adopting both types of technologies in rides and attractions. This also caters to the millennial and Generation Z groups driving industry growth.

Changes in the food experience

Changes in the food experience accompany moving towards a more immersive guest experience. For example, guests are offered smoked turkey legs and butterbeer in Wizarding World of Harry Potter. In addition, theme parks are noticing that healthier ingredients combined with regional specialties are an excellent way to boost profits.

Hamburgers and hot dogs still rule the industry, but food quality is trending, and vegan and sustainable options are increasing. New designs for food preparation and eating areas are also being implemented with the co-utilization of kitchens for multiple eateries and larger dining areas.

Continued development of IoT infrastructure

Internet of Things (IoT) refers to the concept becoming the norm: physical devices connected to the Internet. Stock and point of sale monitoring will help streamline supply chain and sales decisions. This will help identify food and items selling in real time and guard against shortages.

Additionally, customers will see live information about lines at rides, attractions, and restaurants. This will allow theme parks to comply with social distancing regulations and provide a more streamlined experience. Security concerns still exist with enabling internet connectivity to more devices, but vulnerabilities are being studied and minimized.

More virtual assistants and video

IoT-enabled intelligent speakers and virtual assistant solutions will be adopted in 2023. This will allow guests to place pickup orders, find ticket prices, and book rides. Commercial iterations of Google Nest Hub and Amazon Echo 8 are expected to be adopted in the theme park industry. A virtual assistant will use IoT devices such as wristbands that will allow guests to access information relevant to their locations and activities.

More use of blockchain technology in ticketing

Blockchain technology is shaping the future of ticketing, acting as a secure option that effectively prevents price gouging and fraud. Blockchain prevents tickets from being sold above their face value. Also, they avoid duplicating keys so that visas can only be extended to one guest. Finally, it streamlines the guest experience allowing parks to embed discounts at merchants into tickets and eliminating the need to print tickets.

Increased attention to environmental impact

Generation Z and Millennials, the most extensive customer base of theme parks, are putting pressure on the industry to use clean energy sources, reduce waste, and offer vegan food options. In 2019, Six Flags Discovery Kingdom became the first solar-powered park in the Western U.S., and Walt Disney World now utilizes solar farms as part of its energy sources. Additionally, parks are cutting the use of straws and adopting plant-based options.

Theme Park Industry Stats and Growth Projections in 2023

Disney World has used IoT MagicBands since 2013 to help improve operational efficiency.

Disney has used wristbands with IoT technology and long-range radios for nearly a decade. The bands share data with hundreds of systems and sensors that help staff anticipate customer needs and enhance the guest experience.

The bands function as credit cards, tickets, and FastPasses, allowing Disney to see where guests are and what they are doing. In addition, the bars will enable the theme park to increase operational efficiency by adding staff to busy rides and allowing the team to re-route guests to other attractions.

After implementing dynamic pricing, Disney reported a 3% decrease in attendance and a 10% increase in per capita spending.

Since 2013, Disney has introduced different forms of dynamic pricing, including seasonal tiered and date-based pricing. Several other regional players have followed Disney in implementing dynamic pricing. Although Disney reported decreased attendance in the quarter following implementing dynamic pricing, it reported increased revenue and per capita spending.

Personalization in the theme park industry can increase revenues by up to 15%

The importance of a personalized guest experience is heightened, especially during the current pandemic. Using virtual reality technology and providing more immersive experiences are examples of personalization in the theme park industry. Additionally, wearable technology will allow parks to provide individualized offers and services.

Mobile app revenue is expected to reach $935 billion in 2023

Theme parks are expected to continue investing in the development of mobile apps, a trend that has been building for many years. Although park apps are not new, increased investment in loyalty and engagement solutions such as waiting time at rides is expected to increase.

400 vegan and plant-based options are offered at Disney World and Disneyland

Vegan options are part of the trend to increase sustainability at theme parks. In addition, theme parks are experimenting with combining traditional comfort foods with better ingredients to maximize customer experiences. The Impossible Burger is also a popular menu item at parks.

The World’s First Cartoon Network Hotel with 165 guest rooms opened in 2023

The Cartoon Network Hotel in Pennsylvania is the world’s first Cartoon Network brand-specific hotel. It follows the trend of immersive guest-focused experience and will include restaurants, an indoor pool, games rooms, and Cartoon Network characters. Warner Bros and Disney are both opening brand-themed hotels in 2023.

Evolv Express touchless systems can screen up to 3,600 people per hour.

In June 2020, Six Flags contracted with Evolv Technology to provide threat detection systems that can facilitate social distancing and require no stopping. This reduces the need for security personnel and allows theme parks to screen ten times more people than traditional metal detectors.