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How will $4--$5--$6.50? gasoline affect theme parks?


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It's no secret in the auto industry that gas prices are headed skyward once the economy finally limps into a recovery. Gas may be sitting at a reasonable $2.72 a gallon now, but analysts at the Automotive Lease Guide predict it will be over $4 by 2013....

http://www.bankrate....-ford-explorer/

So, before Mr. Kinzel claimed high gasoline prices would boost attendance at Cedar Fair parks (and attendance fell). What will happen if the economy improves but gas goes to $4+ a gallon? What say ye?

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It's no secret in the auto industry that gas prices are headed skyward once the economy finally limps into a recovery. Gas may be sitting at a reasonable $2.72 a gallon now, but analysts at the Automotive Lease Guide predict it will be over $4 by 2013....

http://www.bankrate.com/financing/cars/reading-the-gas-price-tea-leaves-with-the-new-ford-explorer/

So, before Mr. Kinzel claimed high gasoline prices would boost attendance at Cedar Fair parks (and attendance fell). What will happen if the economy improves but gas goes to $4+ a gallon? What say ye?

$4/gallon gas seems like a downright bargain compared to the mere 32oz of soda you get for the same amount of money at your neighborhood Cedar Fair park . B)

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IMO, the economy getting better in any way will probably be good for the parks. High gas prices and the economy improving could even balance each other out- not great for parks, but better than any drop in attendance that could happen. Hopefully their prediction is wrong, though. :)

CedarPointer, wondering why every topic ends up being jolted off-topic by those who seemingly need to inform everyone that they feel the prices at the park are too high... :rolleyes:

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What I would like to see, especially at my job, is staggering of the workers, and 4 day work weeks. That would cut transportation cost for me personally, and the work would still get done. We are shorthanded daily, due to someone always being off, so why not? I may just suggest that....

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In my opinion, the economy is far from recovery. FUN reached a peak of 28.87 in 2007, and now some people are looking at 13.13 as if it's an amazing gain. Granted that may be better than the 6.85 or whatever it was at, it still isn't up to the amount that the CEO should take a sigh of relief.

The economy won't recover until businesses can prosper, and there was a time several years ago when running a small business was a lot easier than it is now. If I'm correct, more than 50% of the people employed 10 years ago were employed by a small business. Now small businesses are failing, and the unemployment is a reflection of that, no matter how many jobs the government will try to artificially create. The economic situation in this country is awful.

As for gas prices, everything really depends on what will happen in the future (how OPEC is treated, how we can support ourselves either by drilling ourselves or developing green technology or BOTH). It's impossible to say how high gas will go, whether it is to stay, drop, or raise to prices far beyond $4.

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The economy won't recover until businesses can prosper, and there was a time several years ago when running a small business was a lot easier than it is now. If I'm correct, more than 50% of the people employed 10 years ago were employed by a small business. Now small businesses are failing, and the unemployment is a reflection of that, no matter how many jobs the government will try to artificially create. The economic situation in this country is awful.

As for gas prices, everything really depends on what will happen in the future (how OPEC is treated, how we can support ourselves either by drilling ourselves or developing green technology or BOTH). It's impossible to say how high gas will go, whether it is to stay, drop, or raise to prices far beyond $4.

Here here! Just wait until Cap and Tax...

On topic, until I can't afford it anymore, I will go to the theme parks.

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On topic, until I can't afford it anymore, I will go to the theme parks.

I'm with you there, but the amusement park industry WILL hurt quite a bit. Local parks may still make it through, but destination parks like Disney World and Cedar Point will suffer the most. People who drive cross country now won't be able to afford it when/if times change for the worst.

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  • 5 months later...

Wow! $4 per gallon gas again? Back in the summer of 2008, when gas prices were flirting with the $4 mark, I never ended up paying for gas at $4 or above. I did fill up several times at $3.99. I`m glad I have a much more fuel efficient vehicle now, and a full time job so I can better weather the increases in gas prices. But it still puts a dent in the pocketbook. I mean, my car has an 18 gallon tank, so $1 more per gallon means I`m paying about $18 more per fill up. Thats enough for about $45 to $50 a month. Multiply that out over an entire year, and you come up with the $750 figure quotes in the article. Granted, that isn`t a lot of me, with a full time job. But for someone who is working minimum wage and can`t find full time work yet (I have one friend who has his college degree but can`t find work yet, and is working the graveyard shift at a local big box store), that extra expense can be quite painful to bear.

And it undoubtedly will end up impacting people`s travel plans. I typically visit Kings Island about twenty or twenty five times a season. It is about a 50 mile round trip from my house. With my gas mileage, it takes about 1 and two thirds gallons to go to KI. That means if i go to KI, it costs me $6.66 just in gas to go to KI one time! Multiply that by the number of visits I make to the park, and I definitely may cut my number of trips down. As a pass holder, more pass holders may end up spending more time in the park on fewer visits, to conserve the amount of trips they make to the park.

Only time will tell what happens with the price of gas. But it is a commodity that most of us can`t live without. We have to get to work, and in cities like Cincinnati, where there is not great public transportation, the car is primarily the only option most of us have for transportation.

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Well, here's what's gonna happen to me. I won't be able to afford to drive to work, and then I'll get fired. Now, shame on me, I drive a subaru forester-258K miles, 1998 model. So I'm being told to get a hybrid or a smaller car. That doesn't quite make sense to me. Trade a tired suv for a car payment and higher insurance rates? Dunno if thats the way to go either, and the financial part will probably come out about the same. The last few weeks with all my close encounters with deer, driving a small car just doesn't appeal to me at this point. Just gonna watch and see what happens. I KNEW the recession wasn't over.

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I certainly do not know all the details, but it seems that we are a nation that simply cannot survive with $5.00/gallon gas. Yes, countries like France and the United Kingdom are even now dealing with gas prices of $6+, but they also are part of a culture that uses public transportation, walking, bicycles, etc. far, far more than we as Americans do. Like socialized medicine, it's a different mentality, and it's something that can not be ingrained in a society overnight.

I know it's not this simple in any way, but it just seems that when gas starts topping $3.50 a gallon, the government needs to step in. Subsidies? I don't know. But when gas hit $4.00 a few summers ago, it undeniably devastated our economy. When you feel restricted in the jobs you can take, the cars you can drive, the places you can go all because of the price of gasoline, then we are living in a fear-based economy. I remember paying $60 to fill up my tank. It left me absolutely financially debilitated, and at the time, I was a sixteen-year-old with no real financial responsibilities, and a good job.

That being said, you can see how high gas prices create and perpetuate a cycle of poverty. $5.00 per gallon gas (and even $4.00 per gallon) truly creates a very strange situation where part-time jobs become useless, because a significant portion of your income goes towards getting to and from work. It's painful to see it happen to our economy.

And unfortunately, we as a culture have a very short memory. When gas was $4.00 per gallon, everyone demanded innovation. People wanted greener cars, and everyone rushed to sell their SUVs. But as soon as gas returned to $2.50, it's like we all just forgot what happened, and the SUV sales resumed and we just kept going like we always had. Now another wave of high gas prices is on the way, and everyone will panic again. If only we could've kept that environmentally conscious, go-green initiative even when we felt like we didn't "need" to anyway. But again, that's not the kind of people we are.

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I would gladly bike to work if that was an option-we all know that can't be done in our society. Irresponsible drivers, horrid weather-those two problems make it impossible for me. No, once it hits upwards of $4 a gallon, we're in trouble. Working a part time job didn't help-increased my transportation costs without solving the extra money issue. I dunno-gonna have to think about this one.

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Not going to bother me in the least. When gas went to 4$ the last time I bought a Hybrid Crossover SUV and can now go to Cp or KI and back on the same 13 Gal tank, and have enough gas left over for the week when we get home. With the attendance this winter at Fla. parks I would say that the economy is already picking up, but 4$ gas could slow that and people will stay at parks closer to home, I know I will.

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Much depends on if gas prices go up rapidly or slowly:

...And he's right… as long as gas prices increase steadily.

When gas goes up sharply, American consumers quickly abandon their incremental approach to downsizing and start outbidding each other on used Geo Metros. If you see a 20-to-30 cent price increase per gallon over the course of a couple weeks then of course people are going to panic, but if it increases steadily over time that gives the market a chance to react rationally....

http://www.thetrutha...ar-gas-in-2010/

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Its because the economy is starting to recover.

I own two cars a truck and a SUV that I dont drive. I get about 10MPG in my truck but I work is only 8 miles away. For me I would just have to cut out the pleasure trips. Since my work is so close it wouldn't really be smart to pay a higher price for a smaller car. Besides I like ridin high!

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Yes, even if the leak would take only say 8 to 10 hours to fix and resume pumping, this will be the "reasonable" excuse the detestable companies that we are unfortunately dependent on will use to raise the prices to the $4/gallon level. I was listening to a radio broadcast on the way to work right before Christmas, and an analyst was speaking of how its rare to see the spike above $3/gallon so quickly without having some sort of natural or man-made disaster to "justify" it. Well, Mr Analyst, here you go.... instant "problem".

P.S. Anyone but me wondering what happened to the promise that was essentially stated as "I will impose fines and financial sanctions against oil companies recording record quarterly profits while maintaining high prices at the pumps"?

Sorry, just disgusted about this whole pile of garbage.

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P.S. Anyone but me wondering what happened to the promise that was essentially stated as "I will impose fines and financial sanctions against oil companies recording record quarterly profits while maintaining high prices at the pumps"?

I do not intend to fan a flame here, but feel that I have to point out that the purpose and goal of most companies (including the oil companies) is to continually record growing and improving (record) quarterly profits. If the leaders of companies do not try to do this, they will be failing to uphold their fiduciary responsibility to their stockholders.

Price fluctuation, when dealing with a commodity like oil, whose price is primarily governed by traders, and whose product is consistently required by customers, is hard to avoid. That said, I also believe there are some stations, companies, etc that take advantage of that to fleece the consumer - I skip these stations no matter what the price.

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Think about that the next time you even consider speaking out about a $4 Coke or $6 six inch at one of your favorite places. Dont get it twisted bud, its the same thing, a product is a product is a product, and some jerk spiking the price just because he can, and because its "his duty" is what it is.

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Or as Richard Kinzel put it, paraphrased "People got to eat, play a game or two, buy a souvenir..." Couple of years later it was down to "people got to eat..." And per cap spending at Cedar Fair goes down, down, down....

And, oh yeah, if people paid $4 a gallon to get to that park, I somehow doubt they will be wonderfully amused at Dick Kinzel's idea of in-park values...a $5.99 soda at Cedar Point last day of last year, anyone?

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Sparky - you do make a valid point. I personally believe that businesses should be looking to make a fair profit - I think much of the disagreement people have is on what is fair and I'll admit there is a fine line between fair and unfair.

To me, I think that fair is when both parties are happy with the deal and are therefore likely to deal again in the future. This is why my gas purchases go to the stations that are consistently cheaper and the first to drop prices, not those that are the first to raise prices and last to drop prices. This is also partly why I try to minimize my in park spending at CF parks - because I believe Kinzel's statement that Terpy paraphrased shows an intent to fleece the guest versus just making a fair profit.

I'd also note that my biggest complaint about prices at CF is that I think they are a poor business decision - I believe there is better profitability and unit holder return to be had with lower prices and higher consumption.

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