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#1 1JJ

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Posted 01 April 2016 - 07:51 AM

In this article  Six Flags chairman Jim Reid-Anderson sat down with Bloomberg news to discus the recent news that Six Flags plans to build 10 parks in China in the next 10 years.  The article is a really good read but the most interesting thing was said here when Glen Carey of Bloomberg news asked him if the new international properties wold mean anything for the current properties here at home investors should know about. What he said makes me extremely excited for the future at Great Adventure.  Keep in mind this is Bloomberg news so the discussion is geared very much more toward the business aspect but it's still worth the read!  I suggest reading the whole article (the link is below the quote) as it is a really good read but here is the important part of Reid-Anderson's response to that question:

 

 

"Well as our shareholders very well know we operate our thirteen home based parks utilizing a strict regional theme park business model and we've been extremely successful in this venture", Reid-Anderson said.  "Looking to the future it is our goal to always be seeking ways to drive profits higher which essentially means finding ways to bring more guests through our gates.  We've accomplished this recently with our Holiday in the park events that we've expanded now to nine of our properties across the chain, adding six more weeks to our operational calendar and six more weeks of guests bringing in six more weeks of profits to the brand.  Though for a few years now we've recognized that some of our top performing properties have in a way reached the peak of the regional business model.  We of coarse always need to invest in new attractions to keep the market fresh and bring guests coming back through the gates but we've found that guest attendance and profits do not increase as much as we would hope.  We believe the reason is these parks have won their regional markets that effectively no matter how much we invest with a regional business model  we just will not see the additional revenues we hope for because these properties simply have no more of the market to win over, they've already won their markets!  So the question is then how can we significantly drive our profits higher for these high performing properties in the future.  We feel the only way to truly drive profits significantly will be to expand these properties markets' effectively transitioning them away from the regional park business model and into the destination resort model giving the properties the chance to market to much larger regions of the country.  This will be quite a drastic change for the brand and one that will call for multi-million dollar investments for hotels, attractions, new infrastructure and the like so this comes at big risks, but we know the payoff is worth it.  Our international partner properties which require no capital investments on our part will finally bring us the additional revenues to go ahead with this transition here at home."

 

When asked if this would be a change eventually coming to all of the brand's properties Reid-Anderson said that it would only be their top performing properties; specifically their locations near Los Angeles, Chicago and their property in New Jersey near New York & Philadelphia

 

Here is the link to the article


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