Comcast said attendance at its Universal theme parks in Orlando has been softer, with the company linking the trend to a more cautious consumer backdrop and more expensive travel. The company’s second-quarter results pointed to weaker traffic, and management said that pattern has continued into the third quarter.
According to Comcast co-CEO Mike Cavanagh, the pressure is being driven by softer consumer sentiment and higher travel expenses. That combination can be especially important for destination parks such as Universal Orlando, where many visitors must budget for flights, hotels and other trip costs in addition to admission.
The issue comes as oil prices approach the $100-a-barrel level, adding to concerns about transportation costs and vacation affordability. Rising fuel prices can ripple through the travel industry, making trips more expensive for families and potentially causing some visitors to delay or cut back on leisure spending.
For Comcast, the update suggests that broader economic conditions are having an effect on its parks business even as demand for entertainment remains important. The company said it is monitoring the trend closely as it moves through the current quarter.
