We’re living in an uncertainty epidemic.
With uncertainty higher now than during COVID (EPU Index) and consumer confidence plunging to roughly 34% lower than a year prior (University of Michigan’s Index of Consumer Sentiment), the theme park industry faces unprecedented challenges. Domestic tourism is struggling, international travel patterns are shifting, and attractions must adapt quickly.
What’s the antidote? Diversification.
Over the past two weeks on Green Tagged, we’ve examined how industry leaders are strategically diversifying to mitigate risk in this volatile environment. By betting on multiple outcomes simultaneously, they’re positioning themselves to weather whatever economic scenario emerges.
Universal's Geographic Hedging Strategy
Universal’s announcement of their first European theme park—a £50 billion investment targeting 8.5 million first-year visitors when it opens in Bedford, UK in 2031—represents more than just expansion; it’s a sophisticated geographic hedge.
The 476-acre complex, located just 35 minutes from London by train, provides Universal access to both the UK domestic market (with 80% of England’s population within two hours) and the broader European tourism ecosystem. This positioning creates protection against regional economic downturns while capitalizing on increasing American interest in European travel.
Universal’s diversification strategy extends beyond geography:
Geographic diversification: New ventures in UK, Texas (Universal Kids Resort), and Vegas (Horror Unleashed)
Demographic diversification: Distinct products for families, horror enthusiasts, and upscale travelers
Revenue stream diversification: Theme parks, hotels, entertainment districts, and IP licensing
This multi-faceted approach perfectly mirrors what United Airlines revealed in their recent earnings call—a company preparing for multiple economic scenarios by strategically balancing their portfolio across markets and demographics.
United's Barbell Approach
United’s dual economic forecasts (stable vs. recession) signal their preparation for continued uncertainty. Their operational response offers the most instructive insights for attraction operators: cutting domestic capacity by 4% while seeing growth in two seemingly contradictory segments—premium cabins (up 9%) and basic economy (up 7%).
This “barbell demand” pattern—where both high-end and budget options thrive while the middle struggles—is appearing across consumer sectors. For regional attractions, this suggests the need for more clearly differentiated offerings: premium experiences for those still willing to splurge and value options for increasingly cost-conscious visitors, with less emphasis on middle-tier packages.
The implications become more significant when considering United’s hardware delays—receiving only 71 new jets instead of the planned 100 due to supply chain challenges. This parallel to the attractions industry’s own supply chain difficulties suggests companies must build contingency plans for delayed capital investments, further cementing the value of operational diversification.
The Local Imperative
Both trends point to a significant opportunity for regional parks: focusing on local audiences. As United reduces flights to secondary markets and travelers grow more hesitant about discretionary spending, attractions within driving distance stand to benefit—if they position themselves correctly.
Seasonal events become particularly valuable in this environment. Halloween and holiday offerings create urgency and provide compelling reasons for locals to visit during what might otherwise be shoulder seasons. With their relatively modest infrastructure requirements compared to permanent attractions, they offer efficient returns on investment while drawing visitors who might otherwise stay home.
Strong local marketing, membership programs that encourage frequency, and strategic community partnerships can provide stability when tourism falters. The barbell effect applies here too—offering premium seasonal experiences alongside value options allows parks to capture spending across the economic spectrum.
News Roundup
Merlin Partners with RWS Global for Entertainment Production
Sphere Expands Beyond Concerts with Film and Documentary Slate
Disney Paris Expansion: 'Up' Flies into Adventure World
- May 15 2025 – new World Premiere entry street with restaurant & retail.
- 2026 – World of Frozen land, “Adventure Way” hub, and a Pixar Up‑themed Wave Swinger—the IP’s first ride.
- Construction starts this fall on a Lion King flume and nighttime lagoon show.
What We’re Watching — top 3 trends (Jan‑Apr 2025)
Outbound wins, domestic cools. United is slicing 4 % of U.S. seat capacity and chasing high‑income flyers to Europe & APAC; regional parks should pivot to locals and drive markets .
Entertainment goes gig. Merlin axed hundreds of performers and tapped RWS to deliver 100 “copy‑paste” shows in 2025—signal that outsourcing live ops is accelerating across the sector .
Cap‑ex on ice, events on fire. With tariffs and supply snarls inflating build costs, mid‑tier parks are shelving big rides and leaning on repeat‑draw festivals to keep cash flowing .
Q&A: Ask Green Tagged
This is our inaugural Q&A section, and we want to hear from you! Have questions about the themed entertainment industry, operational strategies, or trends we’ve discussed on the podcast? Send them our way, and we’ll address them in upcoming newsletters.
Email your questions to [email protected] or reach out via our social channels. We’re looking forward to engaging with your most pressing industry questions!
On the Road
Saudi Arabia | Through April 23
Scott is conducting master classes for the General Entertainment Authority.
East Coast Haunters Convention | April 23-27 | Philadelphia, PA
Philip is reporting on the show.
IAAPA Asia Expo | June 28-July 3 | Shanghai, China
Philip is attending the main show and EDUTours.
IAAPA Expo | November 17-21 | Orlando, FL
We’ll both be attending the industry’s flagship event.
Want to connect at any of these events? Reach out through our website or social channels—we’d love to meet you in person!
