Latest news with #UniversalKidsResort
Business Mayor
12-05-2025
- Business
- Business Mayor
Will Universal's Epic keep the ride going for US theme parks?
Universal is betting billions of dollars that thrill seekers and holidaymakers will be queueing in their thousands this month to ride rollercoasters at its latest theme park, which boasts Harry Potter's Ministry of Magic and a Super Nintendo World. But real life outside the gates of Epic Universe, and the market for theme parks, are both very different to 2019, when Universal's parent company, Comcast, started planning the massive new site in Orlando, Florida. Industry executives and analysts have begun to fear that the trade and culture wars sparked by the arrival of Donald Trump in the White House could hit demand among visitors to Florida this year. One executive expressed concern that the White House's actions could deter overseas visitors, as well as risk an economic slowdown that could sap appetite among domestic visitors for daily tickets that will be priced at more than $100. Epic Universe, which opens this month, is not the only US investment that Comcast is making in the sector. The group is also opening Universal Horror Unleashed, the first permanent year-round horror 'entertainment experience' in Las Vegas in August; and, in 2026, its first Universal Kids Resort in Frisco, Texas, marketed to families with younger children. Epic Universe is the largest ever investment by Comcast in its theme park business © Felix Mizioznikov/Alamy Rival Disney's parks and experiences business is also expanding in the US and abroad, with $60bn of investment planned over the next decade. Disney has more expansion projects around the world than at any time in its history, including new 'lands' and attractions at domestic parks in Florida and California. This week, the group revealed plans for a new theme park resort on Yas Island, Abu Dhabi, albeit funded by local entertainment company Miral. Theme parks have been a crucial engine for growth for both groups, with cash flow helping support Disney's investments in other areas, such as streaming and movies. Parks and experiences is the largest source of operating income for Disney, and the second-largest revenue driver after its entertainment division. Comcast president Mike Cavanagh, meanwhile, explained last month about the importance of its theme-park business given — unlike its television arm — it is 'not at all exposed to the shift in time on screens . . . park experiences have been thrilling to people, and we think we lean into that'. Epic will be the largest ever investment by Comcast in its theme park business. The site — Comcast's fourth in Orlando — includes five different themed areas, including the Wizarding World of Harry Potter, and How to Train Your Dragon. Its opening will enable the media group to offer week-long vacation destinations for tourists across its Orlando sites. But the opening of the park — the biggest in Florida for more than two decades — comes after a tougher time for the sector over the past year. Both Comcast and Disney enjoyed strong growth in 2022 and 2023 following the end of the pandemic, which sparked a boom in demand for experiences and travel as people sought to catch up on lost time under enforced lockdowns. But this bounceback faded in 2024, leaving attendance at the Florida parks still well short of 2019 pre-pandemic highs, according to Aecom, which supplies data on the industry. Revenues for Comcast at its parks division fell from $8.9bn in 2023 to $8.6bn in 2024, driven by a fall in park attendance, with earnings down from $3.3bn to $2.9bn. In the first quarter of this year, Comcast's parks division saw revenues fall again, which it blamed on the Hollywood wildfires. Disney's experiences business last year fared better — including cruise vacations — with revenues up 5 per cent to $34.1bn, but still much slower than the 16 per cent growth the year before. A note by Rothschild & Co's Redburn Atlantic analysts in October warned that the Florida theme park market was 'not healthy', with 2023 attendances about 13 per cent below 2019 levels. It blamed over-aggressive pricing strategies that have hit affordability, particularly for foreign visitors. Read More Female artists drive music sales boom in UK 'While Epic could well attract new visitors to Florida,' Redburn Atlantic wrote, 'given how Florida attendance has not recovered to pre-pandemic levels, with affordability in part to blame, we suspect it is more likely to take share from Disney.' Giant park operators like Disney and Comcast — followed by mid-level operators such as SeaWorld and Six Flags — have been pushing up per capita revenue through steep price increases. They have been willing to sacrifice high attendance as a result, said Chris Yoshii, global director of leisure and culture services at Aecom. People walk through the Dark Universe at Epic Universe. Comcast is hoping the park's new attractions will drive consumer demand © Thomas Simonetti/Bloomberg This was in part to give 'a premium experience' for those who can financially afford to visit, he explained, without needing them to wait in line too long. Parks in Orlando and California last summer were supported by wealthy foreign visitors, according to Yoshii. 'It questions whether [a theme park] is really a middle-class activity any more . . . family budgets are stretched and they're really pricing [these consumers] out,' he said. 'They are getting up to a point where this is about as much as they can do in terms of pushing prices. Going forward growing prices and profitability will be challenging in economically uncertain times,' Yoshii added. Analysts are also asking whether Trump's trade war will add to that uncertainty for the US theme parks. Airlines and hotel groups have warned that domestic travel is waning, while overseas visitor numbers could be hit by the threat of tougher, less welcoming border controls. Craig Moffett, an analyst at MoffettNathanson, last month pointed to the 'very significant drops in international travel to the United States . . . and some anti-American sentiment' when asking Comcast's management about its theme park business. But so far, both Comcast and Disney say that US consumer demand remains strong for their amusements. Comcast's Cavanagh said in the analyst call that both advance ticket sales and hotel bookings were 'strong for the overall parks and for Epic'. Sales 'continue to be tracking well' and there was 'continued steadiness in the backdrop for parks', he added, with 'a lot of folks from the US' who do not have to fly to get to Florida. He admitted 'there may be a delayed effect between what the airlines are starting to report on and what we see' but so far 'no real sign of that in our business as we sit here now'. Comcast and Disney are confident that their new parks and experiences will bring in new audiences. Executives claim that one reason for slower growth last year was the lack of any major new attractions, which tend to drive demand. Comcast is hoping that Epic will change that — this year at least. Analysts at JPMorgan forecast that Comcast's slate of new openings should 'tap into new demographics and geographies — capturing latent demand'. Recommended Disney expects its experiences division to be up 6 per cent to 8 per cent on the year, and reported a strong first half of the year. It told analysts this week that bookings at Walt Disney World were up 4 per cent in the third quarter against a year ago, and 7 per cent in the fourth, making the company 'very optimistic' about its prospects in the US. Johnston acknowledged that foreign visitors to US parks were down slightly in a call with analysts, but added that this had been more than offset by growth in US attendees. 'We've seen a bit of an impact, but it's literally like in terms of the mix one to one-and-a-half per cent. And what I would expect going forward is something similar to that. The good news is we're clearly more than making up for it with domestic attendance.'
CBS News
28-02-2025
- Entertainment
- CBS News
North Texas population growth drives demand for new, family-friendly attractions
It's no secret that North Texas is one of the fastest-growing regions in the United States, but there's a segment of the population driving some massive economic development to this area that may surprise you – children under 10 years old. The new Peppa Pig Theme Park, inspired by the Peppa Pig TV series, officially opens on March 1 in North Richland Hills. The rides and play spaces are designed specifically for kids six and under. "There's a lot of young families," said Brittany Williams with Merlin Entertainments. "We know they're going to love this park." Across the metroplex in Frisco, construction is underway on the first-ever Universal Kids Resort. It's another theme park meant for young children. "It's geared toward three to nine," said Stephanie Jarrett, a mom of three who lives in Arlington. "So you're really kind of targeting those kids that for all these years it's just kind of been, well, wait till you get a little bit older and you're going to have all these awesome places. And now you don't have to wait. Now you have them when they're little." Jarrett is somewhat of an expert on family fun. She runs an online blog and social media accounts dedicated to finding the top North Texas activities for children. "The business has grown a lot in ten years, kind of grown with my kids," she said. In addition to the theme parks, Jarrett says there's been an explosion in businesses that cater specifically to toddlers and younger children. "You've got them from McKinney to White Settlement and the Alliance area down to Burleson," said Jarrett. So why does North Texas seem to be such a desirable market for family-friendly development? "So without question, I think the north central or the metroplex area is the most significant growing area in the state," said Lloyd Potter, the Texas state demographer. In several North Texas counties, Potter says the majority of the population growth is from people moving here from other states, and they're more likely to have children than the average Texan. "As long as the migration flow continues, I think we can anticipate either stable or increasing number of young, school-age children," he said. It's a trend that companies and cities are betting on. Universal is investing $550 million in the kids resort, which will open next year. The City of Frisco says it will be an economic engine, creating jobs, generating millions in tax revenue, and providing support for surrounding businesses. In addition to the financial benefits of new family-friendly developments, continuing to bring in young families is critical for North Texas cities, as several deal with declining enrollment numbers and school closures. "Being able to say we have the schools, we have a well-run city, and we have a really great place to bring our kids – if that can attract them to come, the revitalization that goes with that is awesome," said North Richland Hills Mayor Jack McCarty. He says the city plans to capitalize on the positive impact the Peppa Pig Theme Park has already had on the area. "We will want to generate more business and create more economic development around it," McCarty said. "We have still a green space right next to it." The park expects millions of visitors in its first few years. "There's a market," Jarrett said. "There's a need. And I think there's always space for more. I think that a lot will hinge upon how these two do and how well-received they are by the community." Jarrett believes the more options for little kids, the better, to help keep North Texas such a desirable place to live for young families. Starting March 1, the Peppa Pig Theme Park will be open from 9 a.m. to 5 p.m. daily. Tickets start at $27.99.
