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Amusement park operator Six Flags has become a “teen daycare center” after offering too many discounts, according to its chief executive.
During an earnings call with analysts, Selim Bassoul – who took on the role in November – spoke about the company’s new strategy to prevent “rioting” teenagers from running amok. The plan involves raising prices and trying to attract a more affluent customer.
“Our aggressive strategic change is still in the works, but my first nine months at Six Flags as CEO of Six Flags has only reinforced my initial belief in Six Flags’ potential,” Bassoul said.
A roller coaster at the reopened Six Flags Fiesta Texas in San Antonio, Tex. (Photo by Lie Ma/Xinhua via Getty) (Xinhua/via Getty Images/Getty Images)
In the second quarter, total attendance fell 22% year over year to 6.7 million guests, due in part to the elimination of free tickets and low-margin product offerings “coupled with increased prices in a market that had become accustomed to discounts.” is due to Six Flags CFO Gary Mick told analysts.
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The theme park operator is in an aggressive strategy shift after realizing it “had too much discount” and that “the philosophy of filling our parks” is not the right one, he added.
As a result, “we just got the discount store or we became a teen daycare,” Bassoul told analysts.
Part of the new strategy is introducing new pricing, which means catering to customers with families or young adults “who are willing to come and spend the money at our parks,” he added.
Six Flags Magic Mountain on May 22, 2008 in Valencia, California (Photo by Mathew Imaging/WireImage/Getty Images)
He said Six Flags has expanded its advertising to reach a broader market. In the past, the company has focused on past guests.
“Now we are changing that philosophy and going to a broader market. We’re going into what I call more affluent neighborhoods, where we want to get people from those neighborhoods to come to our park that have never been attacked,” Bassoul said.
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Though Six Flags has seen a drop in visitor numbers over the past three months, the company said it was able to offset much of the drop in revenue with higher guest spending.
Admission spending per capita increased 27% to $36.35 per person and in-park spending per capita increased 18% compared to the same period last year.
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The increase in admissions spending is “primarily due to higher realized ticket prices and a higher mix of single day tickets,” Mick added.
Heading into the fall, the company plans to add new offerings to drive traffic, such as: These include introducing a new menu, creating a larger Fright Fest with activities to attract more families, and introducing an Oktoberfest event.
Six Flags’ second-quarter revenue fell 5% to $435 million. Net income fell 36% to $45 million.