Coming up, changes on the horizon. Today we’re discussing ways the industry will change from the Russian invasion, the Galactic Starcruiser, Harry Potter Exhibition, Peppa the Pig, and the new Attack on Titan exhibition.
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Philip: From our studios in Los Angeles and Tampa, FL, this is Green Tagged Theme Park in 30. I’m Philip from Gantom Lighting and Controls and the Haunted Attraction Network, and I’m joined by my co-host, the wonderful Scott Swenson of Scott Swenson Creative Development.
Scott: Hello Philip, how are you this week?
Philip: I’m here.
Scott: Well, that’s certainly better than the alternative, because otherwise, I’d be hosting the show by myself. Which would be really difficult because I don’t know how all the technical stuff works.
Philip: You are great at monologue, Scott, you’re just fantastic at it.
Scott: I could probably talk enough, that’s true, but the challenge would be nobody to hear it because I couldn’t get the recording to start, so that would be the frustrating part.
Russian Invasion of Ukraine And How It Might Affect The Attractions Industry
Scott: So gosh, you know, I don’t know whether you’ve noticed, but there’s a little thing that has kind of happened in the world. It looks like there’s been an invasion in the Ukraine. I know it kind of probably went over everybody’s head, kind of wasn’t a real big blip on anybody’s radar. But Russia and the Ukraine have… well, Russia sent troops into Ukraine obviously, and we figured that we’d probably best hit this one first, because this is the largest elephant in the room when it comes to what may or may not affect our industry. It certainly has the potential to affect the world in general, but we kind of want to break it down and see how this kind of thing was going to affect the theme park and attractions industry. I know, Philip, not only have you done your research on this, you’ve also formed some very strong opinions as to what’s going to happen. So, let me kick it over to you and I’ll let you get it started, because I think you’re far more educated about this situation than I am.
Philip: I think we’re being a little bit glib about it, but of course, it is a terrible situation, and we want to underscore that it’s a terrible situation. I think where I wanted to walk with our audience on the line is, we’re really just looking at the impact that that would be felt by tourist attractions, and that’s the kind of line we’re walking on. So, we’re not really going to talk about the other issues with it, even though it is a serious matter. For me, I think in terms of how it’s affecting our listeners, it’s a pretty straight line that there are going to be economic echoes that are going to impact us. I think the most direct one which I’m sure one you’ve already been hearing about all over the news, is the oil prices. But the main things that are going on are oil prices and grains. Those are the two main things that we’ve been hearing, but I think the larger impact of those is oil prices directly impact transportation costs, which not only impact the cost of raw materials that parks use for development, but they also impact the end consumer in terms of prices at the gas tank. We know if you put all these things together what that does is, potentially, discourage travel, because you put the oil price on that. That’s how it impacts us directly. The delay on this is going to be maybe four to six months, so it’s kind of we’ve been talking this whole time about the timeline for this year and how parks and haunts, the haunts are getting ready, but how parks have been opening a lot of assets and trying to drive, kind of setup to dominos to have a really good summer and then holiday season, working on staffing all that kind of stuff. So, this is potentially a wrench being thrown into that situation of discouraging travel because costs are getting high.
Philip: The other wrenches potentially thrown into it is, the cost of raw materials. For example, I talked to two manufacturers this past week about the transportation costs and the increase it potentially would have on them, and both of them agreed that from what they’re seeing, as a theming and a fabricator, the cost of raw materials is doubling if not tripling around the July time period. So that means your costs for latex, costs for foam core, costs of those kinds of things, would double or triple. So, I think all this being said, if you have not paid for a project already that’s already contracted, that you are looking to do in the Q3 or Q4 time range that involves any of those raw materials, the price of those could significantly increase if you’ve not already quoted it. So, that’s like manufacturing stance on it. Then the end stances, people could be more reluctant to travel distances that rely on gas or any of that kind of thing. So, it could be another situation where tweaking your marketing to local audiences might be more beneficial in that time period, just because of the increased travel, oil, and transportation costs overall.
Philip: The bigger question, which I’m not sure I could really give an answer to, but the bigger question is, is that going to overall discourage tourism and lead to a little bit of a mini recession for the travel entertainment industry? I’m not sure about that. I think the thing we talked about last time, which is that inflation in the entertainment and tourism sector, is like half of what it is in some of the other sectors. So, I think if you combine that, and it depends on how long this goes, they may kind of cancel each other out. So, I’m not sure. I think that the demand is so high, and everything is so strong right now, I’m not sure there’s really going to be that much of a dip. But you could see people that have less disposable income, if your target is on that end, if you’re a nonprofit or the people you are targeting have less, they may be less like more reluctant to travel further distances, basically, for tourism and kind of stay local. But we’ve been dealing with that over the years, so those are my thoughts.
Scott: I would like to echo; I did not mean to be glib in the beginning. I was being glib about the fact that it is has been all over the media and we are very much aware of it. That is not to make light of the situation with people in the Ukraine having to deal with… Anytime you have to deal with a conflict situation there’s nothing to be made light of. My purpose was more to make light of the fact that it has been all over the news and we all know it. It’s always difficult for me to come on and talk about the really obvious things because we’ve already heard so much about them, and we’ve already seen them.
How To Prepare For All Possibilities?
Scott: As far as how it’s going to affect our industry, I think Philip could be very right. I also think, based on what we’ve seen with the pandemic, if this were three years ago, I would say Philip is 100% right. However, what I’m going to suggest is, as we’ve learned with the last crisis we’re still coming out of, the best way to be prepared is to stay prepared. So, when it comes to those things like oil prices, transportation, raw materials, et cetera, et cetera, et cetera, don’t put all your eggs in one basket. Have multiple parallel paths, this is the best thing you can do. Again, if I could sit here and say, “yes, Philip, you’re 100% right. It’s exactly the way it’s going to happen,” which I’m not saying that’s what you were suggesting. But, if I could sit here and say that I’d say, “great. Stick to your guns, get your stuff bid in, plan for these higher prices.” But I cannot sit here and confidently say that. What I can say is, it’s possible.
But one of the things, like I said, what we learned from the pandemic is you can’t decide, “I’m going to have one supplier for my widgets.” You’ve got to have multiple suppliers for your widgets that are preferably in multiple parts of the country, some local, and establish those early. Get those established so that you already have a working relationship, so that you can shift from one parallel path to the next as you need to.
As far as people attending parks, I have been shocked and amazed as to what has happened in the last, actually, even in the last three months when we never thought that the attendance, certainly here in Florida, would return as quickly as it did. But they’re having to close the doors at Walt Disney World for certain parks almost every day, not quite, but almost every day because of high attendance numbers. We still haven’t recovered from really anything of the pandemic, I mean there’s less concern about the actual spread, there’s more vaccinations, which is great. But you know, gas and oil prices still have not dropped to a basement low, they’ve come down a little, but they haven’t dropped to a basement low. People are traveling more, there are some people who never stopped traveling throughout the course of the pandemic.
So, I guess the advice that I would give is be prepared in multiple ways. Don’t think that you can just sit there and go, “well this is the way we’ve always done it. These are the vendors we’ve always used. This is how we’ve always had to transport hard goods and materials and whatever.” This is true whether you are a park or whether you are like me, a contractor who works with the park systems. If you’re doing bids now, make sure that you include in there a percentage of error, and I would say it’s it should be significantly higher. And if you were a park hiring a contractor, you should be open to this, and if you question it, hold their feet to the fire when they when the price goes up by 20%, 30%, 40%. Make them prove it, but recognize this is probably, or may, happen. It may not, but it may.
I think we just need to take what we’ve learned throughout the pandemic, and I think we need to be prepared on multiple levels with multiple options. I know people will say, “well I don’t have time to do that.” My response is, “you don’t have time not to.” It’s not that I disagree with what Philip is saying, I’m just not as certain about it as he is, and that could be because of my own ignorance so I will admit that. But I think that with any sort of situation, whether it is a conflict or a disease or whatever, there’s going to be right and left turns, and they’re going to happen at the most unexpected times. So, once again I say, have multiple paths.
Philip: I agree with having multiple paths overall, I think that, again to take back learnings from these past few years, everyone should understand now that we are a complex economy that is interconnected, and it is definitely difficult to perceive how this is going to shake through. So, I also think that all these things can be true at the same time and probably will be true at the same time. You will have some areas that will not struggle at all, maybe like your Disney because they’ve been, as we mentioned, kind of choosing their own audience, they’ve been kind of selecting a certain group of people, and they’ve been raising their prices. So, if you’re already intending to spend that much, transportation probably will not deter you because you’re planning this once in a [lifetime visit.]
Scott: A perfect example, let’s face it, a whole bunch of my clientele are zoos, aquariums, and museums. One of the things that I found interesting with my clients is, zoos usually operate as a local industry, their target is local. If they are relying on tourism traffic, my guess is this will not impact them negatively. If airfare goes up, I think it may impact them positively because more people are staying in town. Therefore, instead of flying to Hawaii to go on a dolphin watch, they’ll go see the dolphins at the local zoo or aquarium. So, again, I don’t know either, and I don’t think any of us do. I think the most important thing we can say is, just prepare on multiple levels for the same thing, because that way you won’t be stuck with your wallet hanging out.
Disney’s Star Wars Galactic Starcruiser: Media Embargo Lifted
Philip: OK, well our next section is kind of a, what did you miss in the past few weeks in terms of big things that have opened? So, we talked about kind of some of the oxygen being sucked out of the newsroom, but there have been a lot of big openings and big news in our world, in our industry. The first one is this past week has been the Star Cruiser. The media embargo was lifted, so we are finally seeing a lot of media takes, film, and video of the Star Cruiser experience. What do you think, Scott?
Scott: Yeah, well I haven’t experienced it firsthand so I really can’t say what I think is interesting from a social media standpoint is does anybody really like it?
Philip: I really haven’t found many.
Scott: I have heard so much negative. But what’s interesting is I really haven’t heard a whole lot of negative from people who’ve actually experienced it, I’ve heard a whole lot of negative from people who have either seen it or will, as we’ve talked about before, will never be able to afford it. There’s been significantly less, that I’ve seen, and it may be out there, there’s been significantly less about people who’ve actually experienced it. I do find it interesting because I was talking to somebody who’s not at all involved in the theme park industry and they saw some of the new images and that sort of thing and they said, “wow, the rooms just look like really cheap cruise line rooms.” I said, “well, that’s kind of the mindset that they’re going for.”
With the ongoing discussion in our industry about things being immersive, things being interactive, and things being gamified. How impactful is that? How important is that? Because what you’re really paying for is the possibility of engaging in the engine room, engaging in being trained to do XY and Z, having a variable story or plotline that’s going to engage one or two people. For me, the jury is still out. I will say that I think it is very pricey, I think that it is clearly targeting a very high-end market, and I think it is much more of a brag tag than it may be an experience. I also think it’s unlikely that people who are going to pay that much money are going to come away from it and say, “it wasn’t worth it. I was taken. I feel foolish.” It takes you back to kind of a Mark Twain story. I’m curious to hear from people who have actually experienced it, who went through the whole 2-day story arc. It may not be for everybody.
Let me take you back, let me let’s hop back in the old guys Wayback Machine and let’s go back to when Walt Disney World first opened here in Florida in the 70s. There was a magical place called the Contemporary Resort which nobody but the richest of the rich could get in. Or more accurately, no one could get in unless you knew somebody, you had to be connected somehow. There was discussion even back then that this was not the Disney brand. This is just the next Contemporary Resort. I only say that because I went to Walt Disney World the second year it was open and then again, the third year. The second year we could not get into the Contemporary Resort, we didn’t have any connections, we didn’t know anybody, we didn’t book at the moment they started taking bookings; they were taking bookings two and three years out. The second year we did stay at the Contemporary Resort, and it was only because my dad had a connection through somebody he had worked with.
So, this idea is nothing new to the Disney brand, nothing new at all. It’s pricey, and when there was only one hotel or two hotels because Polynesian was open as well, but when there are only two hotels on Disney property, everybody wanted to stay in them, you had to have connections, it was exclusive as hell. This is just the next level of that. There were people who would say, “well I’d much rather stay in the Holiday Inn down the Street, Holiday Inn in Kissimmee, than spend twice that much to stay at Contemporary.” But having done it, the experience and just the ability to eat, sleep, feed, all within a brand, it’s kind of fun, and that’s what you’re paying for. So, again, I haven’t seen much positive, I understand all the concerns, but it’s really not that new for Disney.
Philip: I would push back a little bit, not in the concept like the link to the Contemporary and capturing someone’s attention over and over with the brand and et cetera, I think you’re on the mark with that. I push back a tiny bit because, to me… Before I disagree, I also agree with basically what you’re saying with your overall stance, that is like, we are too in our own bubble to see it from like the guest perspective. The people that are paying to come to this experience, they’re so outside of our bubble because they have this amount of disposable income, and they’re not in the industry. I mean, they’re so outside of our perspective.
I also agree with your psychological argument, kind of thing, where like if you’re going to spend that much to do it, you’re actually biased to say it was a good experience, even if it wasn’t, because look at how much you spent, and look at how inclusive it is, and they have bragging rights thing. This is the crux of the argument, it would be a big deal to us, but if this were the price of a Starbucks to you, then you probably wouldn’t care. It literally is like the same as me being like, “Well, I didn’t really like that new Frappuccino flavor that I got last week, but whatever”, and you just go on with your life. That could really be it, you know?
Starcruiser Experience Is A Test For This Experience Genre
Philip: So, I think the thing I push back on is, I do think this is a big testing ground for Disney, in terms of testing this, this like genre of an experience that is like a storyline, kind of like with the actors and all that kind of thing. I don’t really think they have any other assets that they’re really testing this type of thing on. Now, that’s exactly almost the problem I have with it. It feels too much like a test, it feels like, to use industry terms, that it’s been value-engineered way, way too much.
I do think everything looks cheap, I do think that there’s a lack of droids, which is very confusing and just weird, I do think the designs are cheap, I do think that there’s hardly any aliens, there’s not a full band, there’s upsells everywhere, I think all those things. But overall, I think the theme is that it’s been value-engineered too much, which in my brain is like, seems like they’re just testing it, seems like a thing they’re just trying to test to figure out the perception of the audience. So, exactly Scott’s point.
I’m sure the people building this design themselves can’t even really get in the mind of the consumers, so they’re really just testing it. They’re trying to test to see, is this type of model going to work? How is it going to work? Then they could flesh it out later and deploy it in different places, just like the community thing we talked about last time. I think this is, if anything, this reads to me like a test, just overall like a beta test kind of, of this concept; of a much higher spend and also combining theme park and story elements together. You’ve never really had that before, to my knowledge, of the Disney brand where you’re combining a VIP park experience, you’re combining the park IPs, with the actors and the story experience inside with the hotel, these things together. Ultimately, it’s the same thing we’ve been talking about over and over, which is just a stronger vertical, kind of like they’re combining all of their assets together into a stronger vertical. But I think it is the first time they’re testing something like this.
Scott: Well, I would agree with you that it’s the first time they tested something like this on this public level, but there have still been experiences like this where you spend the night in the castle. There is an apartment there that they have rented out in three years. So, eh.
Philip: Capacity though.
Scott: Oh, absolutely. I agree with you 100%. It’s the first time they’ve done it publicly, that’s why I say publicly.
Philip: And no actors involved in that.
Scott: Actually, there were. There were character experiences involved in that, but welcoming, it wasn’t story-driven, but it was welcoming and private encounters with. But to your point, I think I think you’re right, I think it is a test. From what I’ve seen, to me it doesn’t look nearly as cheap as many people have said it does. To me it looks clean, which may make it look cheap because it’s not weatherworn like so much of the stuff that we’ve seen in the movies. So maybe that’s the mistake, maybe they’ve made it look too much like a galactic cruise ship and not enough like Star Wars, because Star Wars has never been clean. You know, the only thing that’s clean is the bad guys. It’s Imperial star cruisers that are clean, everything else is kind of ragtag and scuffed up a bit. So, maybe that’s the level that that is making people say it looks cheap.
The lack of droids, it doesn’t really affect me one way or the other. Lack of aliens I would like to see more, but that’s because I’m always about the actor, you know? But again, I think it is a beta test. I think that it is what it is, and it’s kind of like going back to the E-ticket days only this is the E-ticket that is more expensive than a car. The two nights on the Galactic Cruiser is like 2 seven-day cruises for two. So, it just depends on where you place your value, where you want to have fun, or how you want to have fun.
Fun New Openings For Everyone
Philip: Well, that is a great segue into some of the other big things that happened this week.
Scott: Because there’s a bunch of new ways to have fun.
Philip: There is a bunch of new ways to have fun, so the Harry Potter: The Exhibition premiered on February 18th and it’s running through September 18th at the Franklin Institute. Scott, you know the people over the Franklin Institute.
Scott: I do, and I love the people at the Franklin Institute. Franklin Institute is one of my clients and I had nothing to do with the selection of the Harry Potter Exhibition, I was just one of the ones cheering when they told me that they had it. I’ve known this was coming for a little over a year now, and I couldn’t be happier. I really couldn’t be happier for them. The thing that I love about it is, although Franklin Institute is very much a Science Center, and they are very stem-based, they don’t ignore the fact that there are other ways to bring people in and engage them in learning and engage them in science. I think, from what I’ve learned about the Harry Potter exhibition, this is just a perfect fit for them, it’s a great way to help bridge the common person into a science environment and a Science Museum. I applaud them for not being so paranoid, to include something that is clearly fantasy, that is clearly magic, and yet makes that transition; acts as a bridge once again into the world of science and the world of education. So, kudos to my wonderful friends at the Franklin Institute. I can’t wait to see this exhibition. I will see it actually in the not too distant future, a couple of months, I’ll be up there, so I’m looking forward to it.
Philip: Another big opening, for which Scott knows the people at, the Peppa Pig theme park opening at Legoland Resort in Florida.
Scott: Yeah, so Peppa Pig with Legoland, oh yeah. Now, I will tell you, Peppa Pig is a brand I did not know a ton about. I knew it was popular, I knew of it, but not having children of that age I really was not aware of the impact of this brand. The impact of this park I think is going to be even more impressive, and that is the fact that it is targeted for children who are on the autism spectrum. The park is designed to be not overwhelming for children who may have some additional issues when it comes to focus, reaction to noises and colors and movement, et cetera, et cetera, and yet it still is designed to be a lot of fun. So, I am very excited to see where this is going to go. I know that other parks, I’m sure there’s a certification or a designation that I’m missing, that have been approved for children with autism, but this is a whole park that is dedicated to that, and it couldn’t be in better hands than Legoland because I think Legoland has always been focused on the youngest of the guests without being dull to grownups. So, kudos to them, I’m excited.
Philip: Yeah, I like the idea that it is designed specifically with children ages 6 and under in mind, which is kind of what they said here in the release. To Scott’s point, it’s designed for all children under that age range in mind. So, it’s a really big step forward in terms of inclusivity. Also, I think it’s a big step forward in terms of this idea of crafting an area that is kind of just designed from the beginning for a slice that really hasn’t been touched that much in the past. But it’s just interesting to say we’re going to have these slices of experiences that we’re just telling people they’re designed for this age group, right off the bat. Even down to them thinking about how the longevity, kids 6 and under are not going to last. They said on here, ” ‘The preschool market doesn’t have that longevity to last 8, 9, or 10 hours at a theme park,’ explained [Rex] Jackson. The park can be experienced in as little as a few hours and serves as a complementary addition to the overall resort.”
It’s smart, you know, for that age range, you know a complementary addition, you can take your kids over, just the layout, all of the assets are just designed specifically for that age range in mind, and even the duration that they want to experience things.
Scott: It’s clearly been put together with their target audience in mind. Someone has been a great cheerleader and advocate for this particular demographic’s guest experience, and pretty much on all levels from what I’ve seen. Now, again, I’ve not visited it yet myself, I don’t have my little pink ears which I saw everybody wearing after the opening, which were absolutely adorable. I am tickled that this park exists, and I look forward to checking it out myself.
Philip: So also opening on February 19th, already opened on February 19th, Attack on Titan opened at the Art Science Museum, and I’ll read here from the release. “Hit manga series Attack On Titan will arrive on Singapore’s shores as part of a major exhibition at the ArtScience Museum, opening on Feb 19. This will be the South-east Asian debut of Attack On Titan: The Exhibition, which will showcase the immersive world of the manga series written and illustrated by Japanese creator Hajime Isayama.”
Philip: So again, I think all these stories are related. You know, here is also an example of the art Science Museum, to Scott’s point, accepting that they can look into the fantastical world to make connections to art and science. You know, it doesn’t have to be all the classic science examples here. Also, this is an example of somebody, a curator, looking at what’s important to their core market and acknowledging how popular this IP is in their local market. This all reminds me of when you’re in school and you’re trying to teach a lesson as a teacher and then you’re trying to think of, “how do I explain this concept, but use it in a way that the students can understand because they interact with something in their daily life? How can I make this example speak to them?” That’s why I like these examples.
Scott: Yeah, I think they’re great and I think it’s important for everyone to recognize. You may have an agenda. If you are an attraction who’s listening to us who happens to be an aquarium, zoo, museum, you may have an educational agenda, but you also have to recognize that agenda cannot be accomplished unless you have the interest and the attention of your young audiences who are the recipients of your great knowledge. Just because kids are having fun doesn’t mean they’re not learning, and I think that’s really important to recognize and incorporate into your overall product mix.
