The experience industry encompasses a broad array of entertainment and leisure segments, each contributing uniquely to the global attractions market. Key segments include amusement parks, water parks, family entertainment centers (FECs), zoos, aquariums, museums, and science centers. However, the industry also encompasses immersive shows, and pop-ups and activations, all of which play a significant role in the dynamic landscape of experiential entertainment.
Immersive shows, such as digital art exhibitions and interactive theater productions, offer dramatic sensory experiences that continue to grow in popularity. Pop-ups and activations, including limited-time events and branded experiences, generate buzz and exclusivity, driving short-term audience engagement. In the past two years, attractions such as immersive digital art galleries like teamLab’s exhibitions and branded pop-up events like Netflix’s “Stranger Things: The Experience” have demonstrated strong audience appeal and commercial success.
While traditional large-scale amusement parks remain a significant driver of long-term positive results, other categories are also showing promising growth. According to the Solomon Partners Experiential Update dated September 2024, Family Entertainment Centers and Theme Parks had revenue increases of 130% and 15% respectively for 2024 as compared to the pre-COVID year of 2019.
We also better understand that the success of the parks stems from effective integration of storytelling, guest engagement, and operational excellence—and those same attributes can be achieved on a smaller scale. Family entertainment centers (FECs) and smaller-scale attractions are evolving with innovative concepts, such as escape rooms, virtual reality (VR) arcades, and hybrid facilities that combine dining, gaming, and entertainment under one roof. Examples of these recent innovations include VR-based experiences like Sandbox VR and hybrid dining and gaming venues like Puttshack.
Our study of these categories reveals a key insight: the most successful projects prioritize sustained guest satisfaction, brand loyalty, and financial performance. This trend is most consistently demonstrated by the major players in the amusement park sector who invest heavily in proprietary content, large-scale infrastructure, and multi-generational audience appeal. However, for investors considering opportunities in the attractions industry, it’s crucial to evaluate why these types of attractions may present a more compelling investment than alternatives such as traditional retail, hospitality, or passive real estate ventures.
Investments in attractions provide a dynamic blend of experiential engagement and repeat visitation potential. Unlike static real estate assets, attractions are designed to evolve and refresh over time, ensuring continued relevance and guest interest. Additionally, attractions cater to growing consumer demand for unique, shareable experiences—a trend that drives both direct revenue and brand amplification through social media.
The attractions market also benefits from its capacity to appeal to diverse demographics. For example, immersive experiences and family-oriented venues cater to multigenerational audiences, enhancing the stability of revenues. Emerging concepts like hybrid entertainment facilities provide flexible formats that adapt to varying market conditions, offering resilience and scalability.
Investors considering alternatives must ask: Can “traditional” investments, such as conventional retail or commoditized food and beverage to name two examples, deliver the same level of engagement, repeat visitation, and adaptability as experiential attractions.
The most recent data from the U.S. Census Bureau shows that Millennials outnumber baby boomers in overall population (83 million to 75.4 million), putting them in the lead as consumers and influencers of wider consumer behaviors and trends. Millennials are leading the way in the experience economy as a generation that overwhelmingly (78%) prefers access to goods over ownership of goods. The “grey market,” as the “over-60s” were termed in a recent Economist article, currently spend $4 trillion a year, and are similarly interested in spending their hard-earned golden years enjoying new experiences.
Investors who accept these trends and the superior risk adjusted returns of the industry must still survive a mine field of poorly capitalized companies with little to no track records. Investors also face insurmountable challenges to deploy their assets directly and self-perform, as the design, construction and operation of these attractions requires specialized expertise.
Addressing these market opportunities has been the effort of a growing number of owner representation services offered by design firms, who must also navigate the tricky dynamic of marketing their self-performed work. As a firm rooted in financial markets and development, our practice has grown by being an independent firm focused on the merit of possible outcomes. The highest and best outcomes for the market depend on greater interaction between capital and the experience economy, and the growing body of evidence of financial success.
Ultimately, attractions can represent a dynamic and forward-thinking investment opportunity. With the right expertise and strategy, investors can tap into the growing demand of creating memories through experiential entertainment and create sustainable, profitable ventures that stand out in today’s competitive landscape.
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