Why Cedar Fair Might Be Struggling This Year

XS NightClub said:

If you don’t think management is in a ‘sky is falling’ WTF happened this year mentality you’re an ostrich with your head in the ground.

I hate ostriches, lol.

I wasn't trying to say that this years slump hasn't got their attention, but I don't think that it's a full on panic, heads are going to roll scenario.

I'm sure there is going to be a close look at a lot of things in the off season (heck, it's happening already). Hopefully a lot of good things will come out of it. Many have been mentioned in this thread (cleaner restrooms, better food options, etc.). It should be interesting to see what changes come in 2019, and I don't mean attractions.

CP is very much a clean, safe, and fun place. I wasn’t speaking of CP specifically.

My two cents. Whether CF is really struggling or not, I think people are getting desensitized to and less excited about big roller coasters. Tallest, fastest, wickedest, intense-est. Standup, floor-less, mega, glide, launch, hybrid...........Ho hum......
Yes I know that is Cedar Points claim to fame and I love all of these coasters but I read people suggesting more coasters is the answer to improve Cedar Point. Isn’t CP already well stocked with big, fast, tall, intense? Why does Disney do so well, so consistently? Theme and variety! A world class dark ride and a top notch, themed log flume to go along with their great coasters would make CP a much more interesting place. Of course every few years they could still update and/or add a new-fangled coaster. But right now they are way too one-dimensional. Most people when they hit a certain age cannot ride Maverick and Raptor over and over without getting severe head and stomach aches. The dark ride and log flume would be a great change of pace, still be made somewhat thrilling, won’t make you crack your cookies, run in any weather (at least the dark ride), and the whole family could ride. I feel like I can guarantee these additions, if built top notch, (not another Disaster Transport) would be very popular and create a lot of buzz. Case in point, even though Steel Vengeance is fantastic, it just did not create much buzz among the average person. Because it is just another big, fast and intense. 95% of people don’t know about or don’t really care about RMC. When I have mentioned Disney in this forum before people always respond that CP is not Disney and can’t afford these types of attractions. I don’t buy that. I think if CP wants to go to the next level, and attract more consistent crowds, they build these types of rides to add to their already fine line of coasters. Time for CP to grow and mature.

I’ve searched all over this thread but found no one claiming the sky was falling for Cedar Fair. But what I did find was constructive criticism that suggests:

Cedar Fair does a lot of things really well. Some things, like world class rollercoasters, they might even be the best at. Other things, like a variety of attractions that allows for families to enjoy an entire day together, they could improve upon. And few things, like restroom cleanliness and variety of food that isn’t deep fried and thrown under a heat lamp, they downright suck at.

No one here is saying that efforts aren’t being made because they most definitely are. But, as some have suggested, there’s a plateau in the overall guest experience, something that with a few more tweaks and additional family attractions would be fixed easily.

Perhaps this new Forbidden Frontier is exactly that? Time will tell.

But yeah, I’m quite certain none of us claimed the sky is falling.

How many record years can the company have? Here is my story. I've been a platinum passholder for 10 years give or take. My spending roughly, I'm not going do a bunch of research.

2 plat passes. <$400

3 KI gold passes <$400

2 stays at LP in camper <$400

2 stays KOA near KI <$300

So $1500-$1650. Not including gas, grandsons, food, etc. I love eating at Dave's or Melt. The Sweet Spot.

I'm not saying at all that CP and KI aren't my best days ever. What I'm saying is that there is a big world out there. Niagra Falls, Smokeys, etc. It doesn't have to be an amusement park that drags their attendance down. If I'd done it right we wouldn't have spent the money this year, but SV is awesome, and I've never gotten as many rides on a new coaster it's opening year. Always figured the hype would go away after it's opening season. Going to Vegas in 28 days! Check that off the bucket list. Taking a year off next year. Not saying I won't buy a one day ticket though.

Anyways, what I'm trying to say is, it should be expected that sooner or later those patrons need to be replaced. I had a baby, my kids moved out, he's not 48", etc. Maybe 2018 was the year everyone tried something new. I wouldn't call it a trend though. And I did not sell. I will in 25 years. It will reach a new high before then.

Maybe they can incorporate a "the sky is falling" ride into Forbidden Frontier.

Record revenues for Cedar Fair in August.

http://ir.cedarfair.com/newsroom/press-releases/news-release-detail...fault.aspx

Well that’s really good news to read, It was pleasantly well run when we were there for 5 days in August, staffing seemed fine, it was hot and sunny and busy. Overall wonderful visit!

I agree staffing was fine in August, it wasn’t this past Sunday however at least at Midway Market. It was a disaster, but not an unexpected one. Hoping it is not a prelude to another short staffed October.

Should we start a new thread about why Cedar Fair might be having an OK year?

That might be a little premature, but hopefully they can pull it out.

“Zimmerman noted that the strong August results were not enough to entirely overcome the challenges the Company faced through the first seven months of the year.”’

The initiatives they have started to turn things around look to be having a positive impact, it got us to come back for another Breakers stay for 5 days. Going back for another Breakers stay in October as well (Now if only they’d allow Sunday stays and just take the money I’m trying to give them, straight 8 hours back to Wisconsin isn’t going to happen after a Sunday at the park).

Good job Management.

+5% attendance but only a +1% increase in spending? Sounds like a lot of season passholders decided to go to the parks in August.

Shouldn't a pretty good jump in attendance equate to more than the 1% increase in spending?

According to the press release, net revenues were up $17 million in August (6% increase). So revenues were up by a higher percentage than the attendance increase. The 1% guest spending increase was in park per capita spending. Increases in attendance numbers alone will not increase per caps. That per caps increased is an indication that it wasn't a lot of season pass holders going to the CF parks that accounted for the increase in attendance.

There was some pretty aggressive discounting in play for August at CP. There was BOGO, bring a friend, and the single day ticket dropped to $44 online. I’d imagine the other CF parks also tried similar promotions. Makes sense we saw a good increase in attendance, but flat in per cap.

As for the of the out of park revenue spike the Hotels I figure are still going strong, but thinking also Sports Force could be a primary driver. Judging how the lot is always full when I pass, thinking they are doing quite well there.

Discounting was not really that aggressive, nobody ever pays gate prices and even all year you could get a single day ticket for $49 if you bought 1day in advance. Few people wake up and decide randomly to go to CP considering it's location. Per caps increasing slightly is good b/c the 2017 season total year per caps were 47.30 The resort are doing very well, sold out essentially every weekend in August. The new breakers wing replaced the deteriorated place Sand Castles had become in comparison is driving that. It's at a higher price point than Sand Castles. CF is still down from their pre year projections by about 12M thus the dial back on the EBIDTA full year. Expect CF EBIDTA to make the big jump come 2020 FY with the completion of all the hotel projects and that 30-35M/yr extra Capex going away over the approximate 140M core Capex..

Not aggressive discounting? $29.99 (plus fees and tax) was offered via email and (of course) purchased for an August vist. That’s over 50% off the gate price. Except for the heat and several major attractions being down (MF, TTD, Raptor, windseeker, Sky ride, as I recall) it was a wonderful visit.

Shades- It’s a 1% increase in PER CAPITA spending. So every person who came in the gate, on average, spent 1% more than compared to last year.

Thanks. I stopped at the tag line. Nevertheless, a $0.52 increase per person seems pretty anemic but it is better than nothing I suppose.

$0.52 per guest x 4.7M guests = just shy of $2.5M increase in in-park spending for August, plus an additional $2M in out-of-park spending. That’s not chump change.

So we mentioned possibly opening resorts on Sunday nights during HalloWeekends. Thinking about fleeing Lighthouse Point next weekend (weather looks like caca) and we were thinking Castaway Bay instead... Website says it’s open Sunday night and I can make a reservation but the lady on the phone says no. Not sure how to get a best 2 out 3 tiebreaker?

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