by Philip Hernandez
This article was initially published for the Green Tagged Insights newsletter. You can listen to this article or subscribe to Green Tagged here.
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 high-end and budget options thrive while the middle struggles—appears across consumer sectors. This suggests the need for more clearly differentiated offerings for regional attractions: 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 is parallel to the attractions industry’s own supply chain difficulties, suggesting 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 encouraging 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.
Philip Hernandez is a journalist reporting on the haunted house industry, horror events, theme parks, and Halloween. He is also the CEO of Gantom Lighting and Founder / Publisher of the Haunted Attraction Network, the haunted attraction industry’s most prominent news media source. He is based in Los Angeles and co-founded/co-hosts the Green Tagged podcast
