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High prices drag down U.S. theme park performance

2024-08-11

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Xinhua News Agency, New York, August 10 (Reporter Xia Lin) According to local media reports in the United States on the 9th, due to rising prices, many consumers have cut their entertainment spending, resulting in a recent decline in performance of well-known theme parks such as Disneyland, Six Flags and Universal Studios in the United States.

Comcast, which owns Universal Studios and other assets, saw its related business revenue drop 10.6% in the second quarter of this year compared with the same period last year. During the same period, the visitor rate of Six Flags amusement park fell 2%. Although the passenger flow of Disneyland remained stable, its operating income in the United States fell 6%.

Martin Lewison, a professor at Farmingdale State College affiliated with the State University of New York, uses the term "price tag shock" to describe the feelings of ordinary consumers when visiting American theme parks. In the United States, "price tag shock" generally describes the psychological state of consumers who are shocked and hesitant to buy after seeing the price tags of goods that exceed their expectations.

After the impact of the COVID-19 pandemic, the number of visitors to Universal Studios and Disneyland rebounded, but has recently begun to decline. Comcast President Mike Cavanagh believes that due to high domestic prices in the United States, many consumers choose to travel abroad, which has also affected the operation of American theme parks to a certain extent.

The Wall Street Journal reported that while American theme parks are losing their glory, other industries closely related to ordinary consumers, such as catering and accommodation, have also shown a trend of weak demand, attracting great attention from investors.