Floundering in Florida
While Disney, SeaWorld, and Comcast had varied stock performances in 2023, they all encountered significant setbacks in their largest theme park market: Florida. Home to iconic attractions such as Disney World, Universal Orlando, and SeaWorld’s five resorts, Florida played a pivotal role as parks resumed operations in June and July of 2020—almost a year ahead of their California counterparts.
Initially, guests didn’t hesitate to pay the higher post-pandemic admission prices, and theme park operators thrived throughout 2021 and 2022. By 2022, Disney reported a staggering 40% increase in average revenue per guest compared to pre-pandemic levels.
However, the situation took a turn for the worse in 2023, with visitor fatigue becoming evident in Florida. This contrasted with the relatively stable performance of all three operators in California and international markets. While Disney, SeaWorld, and Comcast introduced new attractions, including two roller coasters and a cutting-edge shooting gallery, they failed to attract substantial crowds during the summer season. Nevertheless, there are several reasons to believe that 2024 will mark a positive turning point for these theme park giants.
Preparing for an Exciting Journey
SeaWorld recently unveiled plans for a 504-room hotel at its Orlando location, transforming its most visited attraction into a full-fledged resort destination. Disney also demonstrated its commitment to the industry by announcing a nearly doubled capital expenditure of $60 billion over the next decade for its theme parks.
These initiatives indicate that these companies are focused on long-term growth rather than short-term fluctuations in stock prices. Comcast continues to thrive and now looks forward to developing the Epic Universe attraction in Orlando by 2025. Disney, despite implementing cost-cutting measures, remains determined to maintain its leading position in the theme park market.
Considering the positive outlook of the global economy for the upcoming year, investors and theme park enthusiasts may once again flock to these experiences in 2024.