SeaWorld guest numbers grow as company plans expansion
SeaWorld reported its eighth consecutive quarter of record finances Tuesday as international and group visitors trickle back and guests generally spend more in the company's theme parks.
The Orlando-based company slightly exceeded pre-pandemic 2019 guest numbers this quarter as it continues efforts to boost attendance. Company officials are hopeful the opening of new rides and attractions this year, including a new roller coaster and children's water play area in Orlando, will turn the tide.
SeaWorld is also looking toward new ventures to continue its growth. Its first new theme park outside the U.S., SeaWorld Abu Dhabi, opens May 23.
The company also plans to open its first hotels in 2025 and 2026, although it has not announced where the accommodations will debut.
“We're one of the few in the industry that doesn't own our own hotels or have our own hotels, so we're excited for those possibilities,” CEO Marc Swanson said.
The company has wrestled with staffing shortages in recent quarters. Executives have mentioned “less-than-optimal levels,” particularly in food and beverage roles, as guests have returned to the parks.
Staffing has improved overall, interim Chief Financial Officer and Treasurer Jim Forrester said Tuesday, and SeaWorld is turning to technology to supplement human staffing.
Early in the call Swanson mentioned a consulting firm is suggesting ways for SeaWorld to “replace labor with capital and technology.” Forrester later said SeaWorld is increasingly using tech to augment staffing at its entrances and restaurants, such as by allowing guests to place mobile food orders via SeaWorld's app.
“We're also doing some very detailed labor hour analysis and making sure we've got the right labor at the right place, right time,”
Forrester said, adding he thinks staffing will grow to support the attendance SeaWorld expects.
SeaWorld had 3.4 million people visit its parks in 2023's first quarter, down by about 25,000 guests from the same period in 2022 but up by nearly 40,000 from 2019. The company attributed the decrease from 2022 to bad weather, especially at its California theme parks, and that its new rides opened earlier last year.
Still, the company's revenue was a record $293.3 million, up $22.7 million from 2022's first quarter and $72.7 million from 2019's, thanks to guests spending more on tickets, food and beverages and merchandise.
“We're generally pleased with the spending we're seeing across our parks and from the folks coming to visit,” Swanson said.
Adjusted earnings also hit a record, bringing in $6.5 million more than last year's first quarter for a total of $72.4 million.
International visitors are slowly returning to SeaWorld's parks, but their numbers are still around 40% below what they were at the beginning of 2019 before the pandemic began, Swanson said. Group attendance is on the rebound, “well ahead” of 2022's pacing and close to 2019 levels.