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The consolidation continues in the theme park business. But will the latest deal mean a better experience for visitors?
Earlier this month, Spanish theme park operator Parques Reunidos announced its exit from the U.S. theme park business by selling its Palace Entertainment properties to Herschend. The deal combines some of the most beloved regional parks among fans, including Herschend’s Dollywood in Tennessee and Palace’s Kennywood in Pennsylvania. The deal also brings Herschend into the Southern California market for the first time, as it includes Palace’s Castle Park in Riverside and Raging Waters in San Dimas properties.
This one gives me hope due to Herschend’s well-earned reputation for excellent customer service. If you are frustrated with the high price and complexity of visiting a popular theme park like Disneyland, Universal Studios or one of the Six Flags parks, walking into Herschend’s Silver Dollar City or Dollywood will remind you why you first fell in love with theme parks.
Fun rides. Great shows. Friendly employees. Efficient operations. Tasty food at reasonable prices — including Herschend’s iconic cinnamon bread. In my book, Herschend’s theme parks are best in America outside of Disney and Universal right now. They often offer an even better deal, too.
That has some fans of the Palace Entertainment parks excited. The hope is that Herschend will be in better position to support improvements in attractions and customer service than Parques Reunidos has been. Of course, there also is concern that the dealing is not done.
The Palace sale follows last year’s merger of the former Cedar Fair and Six Flags chains under the Six Flags brand. The theme park industry’s game of musical chairs is likely to continue. During his company’s latest investor call, Six Flags CEO Richard Zimmerman said that the company may consider selling “smaller, noncore parks.”
The dominance of Disney and Universal has made business tough for many competitors. No one else has the money to build the immersive, IP-driven attractions that those parks offer. So parks have to find other ways to attract fans, including new ride designs, festivals and shows.
One advantage that Herschend has in this business is its ownership. Herschend is a family-owned company, so it does not have to answer to impatient Wall Street investors the way that publicly owned corporations like Six Flags and SeaWorld owner United Parks must. That allows it the opportunity to defer immediate profits in favor of spending on things that build long-term customer loyalty, such as employee training and retention, aggressive maintenance and better food and show quality.
As more parks change ownership, perhaps a few of them might end up in the hands of innovative families who are willing try something new with a former chain park. Such as the Koch family, which runs the delightful Holiday World in Santa Claus, Indiana. Or the next Bertch family, which in 2022 opened the promising Lost Island park in Waterloo, Iowa.
Parks like Silver Dollar City show that it’s possible to provide Disney quality without Disney IP or investment. But it takes patience and commitment that Wall Street is not always ready to support.
