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Companies in this industry operate amusement parks or arcades. Major amusement park companies include Walt Disney, Six Flags, and Universal Parks & Resorts (all based in the US), as well as Compagnie des Alpes (France), Merlin Entertainments (UK), and Parques Reunidos (Spain); major arcade operators (all based in the US) include Namco Cybertainment, Dave & Buster's, and CEC Entertainment (Chuck E Cheese's).
Demand is closely linked to the health of the economy, especially consumer income. The profitability of individual companies depends on good marketing. Large companies can more easily build expensive rides and have economies of scale in operations and advertising. Smaller companies can compete by serving smaller markets or offering special rides. The industry is highly concentrated: the 50 largest companies generate about 85 percent of revenue.
Amusement parks get about 55 percent of their revenue from admissions and about 30 percent from food and merchandise sales. The remainder is made from a mix of parking fees, commission income from third-party exhibitors, advertising, and fees for hosting parties and other events. Many parks operate only for a portion of the year because of weather. About half of amusement parks, including 70 percent of water parks, are closed during the cold months. Parks open year-round may also operate hotels, stores, condos, golf courses, or other facilities in the vicinity.
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