Bidenomics: Theme parks empty due to economic downturn

The economic crisis under the Biden-Harris administration has been accentuated at the nation's major theme parks. Disney, Universal and Six Flags have seen a drop in visitors over the past year, leading naturally to a drop in profits.

Len Testa, president of travel planning website Touring Plans, told Axios that in the face of rising costs, many users prefer not to go to parks and opt for other vacation destinations. He also added that "theme parks aren't doing the thing most likely to attract visitors: building new rides."

Testa indicated that a big part of the problem surrounding the theme park situation is the overall economic crisis: "When people pay more for mortgages, they have less money for vacations. That's just basic economics."

Profits have fallen.

Disney disclosed that in the latest quarter, compared with last year, overall earnings fell 3%.

Universal Destinations & Experiences, owned by Comcast, reported that revenue at its parks had fallen 10.6% compared with the second quarter of 2023.

Six Flags detailed that in the second quarter, total revenue had fallen 1% and guest attendance had dropped 2%.

Testa, citing data from his company, revealed that the downturn in park attendance is noticed by visitors: If "you ask people how long they're actually standing in line, those numbers are markedly down over the last year."

Park vacations vs. international travel

Executives at Disney and Comcast have ascertained that theme parks are competing with other types of vacations such as international travel, per The Wall Street Journal.

According to Bankrate, the average cost of a one-week vacation for a single person is nearly $2,000. Also, the costs of the parks and their services have skyrocketed by nearly $1,000 more since 2019.

"The base price of an adult ticket will have increased 32% between 2014 and 2025. The most expensive adult tickets have increased 91%," the Axios report reads. Similarly, more than 70% of this increase comes from the costs of things that used to be free.

Testa commented that more and more guests are comparing going "to the real Italy" for what it would cost to visit Disney World's "version of Italy at Epcot." Testa concludes, "At that price point, things like cruises and Europe become affordable options."