SKYHAWK

[jzarley]

^Some very good points... Your reference to the Walleye season slowing overall tourism in the area is very interesting. Not being a fisherman, that's a variable I'd never even consider. However, I do know how important of a role fishing plays in the tourist economy of that region.

Over the last few years, Cedar Fair's revenue and income growth (both have continued to grow, even as attendance fell) have been due to per-capita spending increases in the park and out-of-park revenues (i.e., hotels). It's the basic supply & demand market curve...prices have reached the point which the market will bear. It's to CF management's credit that they realized it before a drop in revenue/profit occurred. It will be interesting to see how lower prices affect CP's attendance next year...in an interview on NPR with Kinzel he said one of the things they were going to do at all parks next year was $0.25 cotton candy!

I also wonder how much "ho-hum" attractions over the last two seasons has affected attendance. In 2004 there was nothing really new (well, except for TTD actually running a larger percentage of the time), and 2005 just brought Max Air. A nice little addtion to be sure, but not what anyone would call a headliner. (Keep in mind that when PKI introduced Delirium it was paired with SDATHC...)

[RailRider]

Lake Erie is considered the Walleye capital of the world and the number of people that visit the Islands, fish and go to Cedar Point is pretty amazing. I think its a factor in the whole situation, but still beleive that CP had raised prices too high and patrons were no longer willing to pay the price over the last couple years. This is the big reasson like you said CP is dropping the prices for next year, its a move long overdue.