Please ensure Javascript is enabled for purposes of website accessibility

You Must Be This Tall to Ride in Cyberspace

By Rick Munarriz – Updated Apr 5, 2017 at 4:58PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

New media for new rides is becoming standard in an old industry.

Holiday World is one of the amusement park industry's best-kept secrets. Tucked away in rural Santa Claus, Ind., the family-owned attraction thrills visitors with its collection of award-winning wooden roller coasters, throwback kid-friendly rides, and seasonally themed charm.

It's the sector's perpetual Golden Ticket winner as the cleanest park in the country. It's also an amazing value. Once inside, items like soft drinks, sunscreen lotion, and water park inner tubes are free for the day.

With all of its retro appeal, few would confuse Holiday World as a cutting-edge proprietor. Then again, when it came time to introduce two new dry rides for the 2008 season, it chose an unlikely stage to make that announcement by going viral through Google's (NASDAQ:GOOG) YouTube.

YouTube? Isn't that the name of one of its water park rides? It isn't, but thanks for playing along.

The announcement itself isn't industry rattling. The addition of a carousel and a kid ride pale in comparison to the more ambitious water park expansion that Holiday World revealed two months ago. 

The medium is the message
This isn't the first time that Holiday World has been a cyberspace trendsetter. The park's website launched a blog two and a half years ago of behind-the-scenes anecdotes. As brilliant as it is endearing, the blog keeps guests close during the off-season and builds anticipation for upcoming events.

It's also contagious. Shortly after Holiday World's blog-trotting ways, Cedar Fair (NYSE:FUN) launched one for Cedar Point. Six Flags (NYSE:SIX) doesn't flesh out its individual properties that way, although it has run construction diaries in the past. It's not every day that you find public companies taking pages out of the playbook of a family-owned business.  

Disney (NYSE:DIS) plays on another level. It can bankroll more elaborate Web developments like ride-specific games and even a virtual version of the Magic Kingdom itself. You just know that Universal's Islands of Adventure -- a park owned by General Electric (NYSE:GE) and Blackstone (NYSE:BX) -- will pull out all the cyberspace stops when the time comes to promote its Harry Potter attraction in two years.

However, regional amusement parks can still score with bunt singles. Whether it's Holiday World offering clues about upcoming additions, or Cedar Fair rolling out coaster-specific templates for News Corp.'s (NYSE:NWS) MySpace, the seasonal players are making the most of the level playing field that the Internet has become.

We can't be that far removed from park-specific Facebook widgets, photo-sharing sites, and eventually even social networking sites on a small scale. It's mostly locals who attend regional parks run by Six Flags and Cedar Fair. Isn't it time that they found a way to monetize their websites at the local level, especially during the off-season?

Why not? Aren't regional amusement parks the original social networks? When parks were built at the end of trolley lines, they were the ultimate social destinations. That spirit hasn't died. You see it in school trips and corporate picnics. You see it in handshakes and high-fives as patrons spot familiar faces. You see it in the new Star Spangled Carousel that will begin turning in Santa Claus, Ind., next May; proving quite literally that what comes around goes around.   

There's more Foolish fun:

Cedar Fair and its chunky yield have made the units attractive to readers of the Motley Fool Income Investor newsletter service. Disney is a Stock Advisor recommendation. Ride any of the newsletters -- for free -- with a 30-day season pass.

Longtime Fool contributor Rick Munarriz enjoys taking his family on coaster treks over the summer. He owns units in Cedar Fair and shares in Six Flags and Disney. He's been to Holiday World twice and wonders if singing its praises too loudly will make it the industry's worst-kept secret instead. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy, and you are tall enough to ride it.  

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$98.17 (-0.58%) $0.57
The Blackstone Group L.P. Stock Quote
The Blackstone Group L.P.
BX
Twenty-First Century Fox, Inc. Stock Quote
Twenty-First Century Fox, Inc.
FOX
Cedar Fair, L.P. Stock Quote
Cedar Fair, L.P.
FUN
$40.08 (-0.99%) $0.40

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.