by

Revenue Management–Theme Park Industry

Industry Overview

Theme parks, primarily engaged in operating a variety of attractions, such as mechanical rides, water rides, games, shows, theme exhibits, refreshment stands, and picnic grounds, are physical locations for the enjoyment of a large group of people.

During the Gilded Age, many Americans began working fewer hours and had more disposable income. With new-found money and time to spend on leisure activities, Americans sought new venues for entertainment. Theme parks, set up outside major cities and in rural areas, emerged to meet this new economic opportunity. These parks reflected the mechanization and efficiency of industrialization while serving as source of fantasy and escape from real life.

You can learn the theme park history from link below:

http://en.wikipedia.org/wiki/Theme_park

There are about 1305 currently operating theme parks in the world that have at least one roller coaster. In U.S. along, there are 267 operating parks. Theme Parks will offer great relaxation for everyone from small children to old people. Those who want to take a world trip can get great fun and enjoyment by visiting the best theme parks around the world. Here are some of the top theme parks around the world:

Magic Kingdom Park at Walt Disney Word:

Epcot, Olando U.S.

Tivoli Gardens, Danmark

Ocean Park, Hong Kong

 

The stability of the theme park industry is a function of many different factors that affect attendance rates and admission prices. Theme park admission prices are influenced primarily by attendance rates, which vary according to the quality and amount of marketing, product and software additions, competitors’ actions, weather, economic conditions, gasoline prices, and government regulations, among other factors.

Space

Theme parks usually have both the direct revenue generating methods (e.g. the admission to the rides and attractions) and the indirect revenue generating methods (e.g. restaurants, retail stores, picnic areas, etc).

Generally speaking, theme parks sell spaces implicitly.

  • Theme parks sell admissions to customers not by the size of the spaces that customers will occupy. Customers will get access to all the attractions which admission fee covers, freely.
  • Theme parks divide up the whole spaces into attractions, F&B areas, shopping areas, convention areas, etc. Unlike hotels sell rooms and airlines sell seats, parks don’t sell specific divided space to their customers. However, those function areas are all revenue streams to parks.

Theme parks use their space to generate revenue from different streams. For example, admission to access to the attractions, in-park restaurants, shops, recreation such as fishing, golfing, picnic area and party place. To attract corporate business, some theme parks even have decent convention centers. For example, The Thorpe Park of Surrey, England, is the best water ride park in Europe and one of the leading business convention center in Britain.

 

My suggestions to theme park is:

  • Develop on-site accommodation.  Disney resort shows a good example to the industry to attract customers stay more days at park and to enhance theme park experience by accommodate customers on-site. Also, on-site accommodation will be an effective way to attract conferences and corporate business to the park.

 

Time

Theme parks sell time explicitly.

Usually, theme parks sell tickets based on the length of time. Selling the time explicitly gives parks the control of service duration. The length could be by days, by week, or even by year.

For example, SeaWorld Orlando has “single day with 2nd visit free” pass

http://seaworldparks.com/en/seaworld-orlando/Book-Online/Tickets/Tourists/Single-Park

Walt Disney Theme Parks Orlando offer different passes with length of 1 day to 10 days for one single park or all four parks.

http://tickets.visitorlando.com/Walt-Disney-World-Resort/?s_kwcid=TC|10370|disney%20world%20tickets||S|e|9657284354

You can even get an annual pass from Disney World if you are a super fan of Disney or you live in the neighborhood of those parks.

http://disneyworld.disney.go.com/tickets-passes/

Depending on length of ticket purchased, the average price per day for a 7-day Magic Your Way Base Ticket is less than half the price of the same single-day ticket. It’s like saving over 50%.

Other than selling the time explicitly, I would suggest theme parks to think of splitting time by below ways:

Seasonality. Theme parks’ hot seasons are normally on the spring break and summer break when children are out of school. Selling school break pass will attract more attendance from the family section.

Performance/events time. For those who don’t want to spend a whole day at park, but are attracted by certain performances/events, selling a performance time to them will be a good way to satisfy them and increase revenue.

 

Price

The price of admission to amusement parks generally includes access to rides and attractions, as well as live entertainment. Customers pay extra money for services such as concessions, arcades, specialty rides/attractions (e.g. bungee jump), and merchandise, including t-shirts and toys.

An admission rate is an all-inclusive price paid to gain access to all rides, attractions, and live entertainment offered by the sample unit. These rates are typically tiered for different types of buyers (e.g. child, adult, senior, family).

To justify price discrimination, theme parks have both the physical and non-physical choices.

  • Physical rate fences include different admission packages based the type of amenities and inventory, such as one day ticket plus shuttle, combo ticket for two (or more) parks, admission with food packages, and admission with accommodation and food, etc.

See how universal studio charges for different packages:

http://www.universalstudioshollywood.com/tickets/type/special-offers-outer/

 

SeaWorld Orlando’s “All day Dinning” pass

 

  • Non-physical rate fences includes rates for different time of usage (e.g. annual pass, 7 days pass, 3 days pass and one day pass), family packages (e.g. SeaWorld Orlando provides “buy two adults tickets get one kid ticket free”).

See how Disney prices annual pass with different restrictions:

I would suggest theme parks justify price discrimination by using more creative physical and non-physical rate fences. For example, VIP pass to give priority to customers who want to avoid waiting lines by paying more. Private guide pass will offer customers private tour guide service if they want to pay more.


 

11,374 thoughts on “Revenue Management–Theme Park Industry”

  1. Attractive, post. I just stumbled upon your weblog and wanted to say that I have liked browsing your blog posts. After all, I will surely subscribe to your feed, and I hope you will write again soon! flower delivery melbourne

  2. I seriously loved this post. You describe this topic well. When hiring home contractors it is critical for select a trusted name in construction. Experienced and efficient staff should strive for excellence and pay close attention to every detail of your house. 보스토토 주소

  5. Thanks for every other informative site. The place else may just I get that kind of information written in such an ideal means? I have a venture that I’m just now operating on, and I have been on the look out for such information. Native American

  8. Excellent read, I just passed this onto a colleague who was doing a little study on that. And he actually bought me lunch because I found it for him smile So let me rephrase that: Thanks for lunch! bong88 casino

  11. Food/Beverage, Merchandise and Souvenir Sales: Revenue from the sale of merchandise, papa’s games food and beverages, as well as souvenirs and other items related to the park. Sponsorship Deals: Revenue from partnering with brands to offer promotions within the park or on the park’s website.

  17. It is perfect time to make some plans for the future and it is time to be happy. I’ve read this post and if I could I desire to suggest you few interesting things or tips. Perhaps you could write next articles referring to this article. I want to read more things about it! Teacup poodle for sale

  20. This is a fun game, and if you play it with some pals, you’re going to have a great time. One of my very good pals who is currently employed at cookie clicker is the one who introduced me to this game, and I’ve had the opportunity to collaborate with him on quite a few occasions when playing it. It is really incredible!

  23. This post on basketball legends was quite entertaining despite the fact that it took me some time to read all of the comments that were deleted. It was really helpful to me, and I’m sure it will be to everyone else who comments on this post as well! It’s wonderful that you’re not just getting information, but also having fun!

  24. Hi there are using WordPress for your site platform? I’m new to the blog world but I’m trying to get started and create my own. Do you require any html coding expertise to make your own blog? Any help would be really appreciated! trang chủ 8xbet

  26. I truly welcome this superb post that you have accommodated us. I guarantee this would be valuable for the vast majority of the general population.
    nyc florist

  27. I think this is an informative post and it is very useful and knowledgeable. therefore, I would like to thank you for the efforts you have made in writing this article.
    nyc florist

  32. Regular visits listed here are the easiest method to appreciate your energy, which is why why I am going to the website everyday, searching for new, interesting info. Many, thank you 
    bipoc winemakers

  33. The first phase the preparation should, theoretically, be uninfluenced by the intended intensity and duration of the sound which is subsequently produced. In fact, however, so quickly are the three phases accomplished that the pianist rarely has capacity to think, in performance, of each phase separately.
    bipoc winemakers

  35. A very awesome blog post. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. I was exactly searching for. Thanks for such post and please keep it up. Great work
    bipoc winemakers

  41. Anda bisa bermain Slot Online dengan aman dan menyenangkan tanpa harus mengkhawatirkan hal apapun, costumer service kami juga tersedia selama 24 jam, kapan saja Anda membutuhkan bantuan kami akan bersedia untuk membantu Anda.

  42. Spesial Slot Gacor situs Bimaspin bisa Anda dapatkan dengan mudah dan 100% bisa menang, sudah banyak yang membuktikan slot games kami dan membawa kemenangan yang besar, sudah banyak yang membuktikan slot games kami dan membawa kemenangan yang besar.

  43. Hanya dengan menggunakan satu user Game Slot saja Anda sudah bisa mendapatkan banyak keuntungan berupa promo bonus dan juga hadiah spesial lainnya. Anda akan merasakan kemenangan besar yang belum pernah Anda rasakan sebelumnya pada situs lain.

  44. Slot Gacor Hari ini menjanjikan kemenangan besar serta banyak keuntungan yang sangat mudah untuk diperoleh hanya dengan bermodalkan 25.000 saja. Anda pun bisa langsung mengajak kerabat serta teman terdekat Anda untuk turut bergabung juga bermain di situs Raden138.

  47. That could be at the same time the best send in that in reality preferred examining. It’s actually not every single day that many of us support the chance to figure out the very first thing. silk pajamas for men

  50. very interesting post.this is my first time visit here.i found so many interesting stuff in your blog especially its discussion..thanks for the post! info

Leave a Reply

Your email address will not be published. Required fields are marked *