United Parks & Resorts, the newly rebranded company behind iconic names like SeaWorld, Busch Gardens, and Sesame Place, just announced record revenue and adjusted EBITDA for Q1 2024. The market applauded, but amidst the headlines about weather impacts and new attractions, a critical detail lies buried within the transcript – a hidden metric that could signal a far more explosive growth trajectory than Wall Street currently anticipates.

This isn't about flashy new roller coasters or even the impressive cost-cutting measures, though those are certainly noteworthy. Instead, the key lies in the company's accelerating digital transformation, particularly the explosive growth and adoption of their mobile app. While mentioned in passing, the numbers associated with this app reveal a story of rapidly changing consumer behavior and a potential revenue goldmine for United Parks & Resorts.

Consider this: the app has now been downloaded over 9.4 million times, a jump of nearly a million since the end of Q4 2023. Even more compelling, total revenue generated through the app is up approximately 10% year-over-year, accompanied by a staggering 28% increase in the average transaction value for food and beverage purchases compared to traditional point-of-sale orders.

These figures paint a vivid picture of guest behavior in the digital age. Visitors are increasingly relying on the app to enhance their park experience, embracing mobile ordering for convenience and ultimately spending more in the process. This trend speaks to a fundamental shift – a move towards a more seamless, digitally integrated park visit.

Mobile App Usage Growth

The table below shows the rapid adoption and revenue growth of United Parks & Resorts' mobile app:

What makes this so significant for United Parks & Resorts? It signifies the potential to unlock a powerful feedback loop: increased app adoption leads to higher in-park spending, which in turn incentivizes further app development and feature expansion. This cycle can lead to a virtuous spiral of growth, driving both revenue and operational efficiencies.

Here's the hypothesis: if United Parks & Resorts can capitalize on this digital momentum, they could be on the cusp of a significant per capita spending surge, far beyond the modest 4% increase reported this quarter. Think double-digit increases, driven by a combination of enhanced mobile ordering, personalized offers, and targeted promotions delivered directly to guests through the app.

Potential In-Park Per Capita Spending Surge

The chart below illustrates the potential upside in in-park per capita spending driven by app adoption and increased average transaction value:

Now, let's look at the numbers. In Q1 2024, in-park per capita spending, excluding the impact of the one-time Abu Dhabi revenue, was $38.15. If we assume a conservative 10% increase in app adoption by year-end, coupled with a 15% increase in average transaction value for in-app purchases, the potential upside becomes clear. This scenario could push in-park per capita spending well over $42, representing a more than 10% jump compared to Q1.

But it doesn't stop there. Imagine the possibilities if United Parks & Resorts leverages the app to personalize guest experiences, offering exclusive deals on merchandise, early access to attractions, or even dynamic pricing based on real-time demand. The potential to capture additional revenue streams is enormous.

The takeaway? Wall Street may be focusing on the traditional drivers of theme park performance, but the real game-changer could be lurking in the palm of every visitor's hand. The mobile app, more than just a convenient tool, is evolving into a powerful engine of growth for United Parks & Resorts. If the company can successfully navigate this digital transformation, the journey ahead could be far more exhilarating than even the wildest roller coaster ride.

"Fun Fact: Did you know that SeaWorld parks rescue an average of over 1,000 animals annually, ranging from sea turtles to manatees? Their commitment to conservation goes hand-in-hand with their entertainment offerings, creating a unique brand proposition."