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.


 

11,390 thoughts on “Revenue Management–Theme Park Industry”

  10. Haben Sie genug von lästigen Werbeanzeigen zwischen Ihren Lieblingsvideos? Laden Sie dann diesen Ad blocker Chrome herunter und installieren Sie ihn. Da es sich um die beste Erweiterung handelt, mit der Sie alle Arten von Werbung blockieren und Ihre beliebtesten Filme und Serien mit dem Werbeblocker Chrome ansehen können.
    Ad Blocker Chrome

  11. This valuable appears to be like utterly preferred. Every single one of small to medium sized details manufactured using lots of the past becoming familiar with. I need this approach a tremendous amount. پالت پیچ و مهره

  14. Nice to be visiting your blog again, it has been months for me. Well this article that i’ve been waited for so long. I need this article to complete my assignment in the college, and it has same topic with your article. Thanks, great share. QQ1x2

  16. This is a wonderful article, Given so much info in it, These type of articles keeps the users interest in the website, and keep on sharing more … good luck Cali Plug Online

  22. Youre so cool! I dont suppose Ive read anything in this way before. So nice to seek out somebody with many original thoughts on this subject. realy i appreciate you for beginning this up. this excellent website is one thing that is needed over the internet, an individual with a bit of originality. beneficial task for bringing new stuff towards the net! winsloto slot gacor

  24. Great goods from you, man. I’ve understand your stuff previous to and you’re just extremely great. I really like what you have acquired here, really like what you’re stating and the way in which you say it. You make it entertaining and you still take care of to keep it sensible. I cant wait to read much more from you. This is really a wonderful website. movers san diego

  25. That is the excellent mindset, nonetheless is just not help to make every sence whatsoever preaching about that mather. Virtually any method many thanks in addition to i had endeavor to promote your own article in to delicius nevertheless it is apparently a dilemma using your information sites can you please recheck the idea. thanks once more. win247

  36. Outlook Spotlight의 특집 기사를 통해 활기 넘치는 온라인 카지노의 세계를 탐험해 보세요. 최신 스포트라이트 기사 “2023년 한국을 대표하는 카지노 베스트 7(2023년 한국을 대표하는 카지노 사이트 베스트 7)”에서 대한민국 온라인 게임의 정점으로 두각을 나타내는 상위 7개 카지노 사이트를 공개합니다.

    기사를 자세히 살펴보며 온라인 게임 경험을 재정의하는 추천 카지노 사이트를 찾아보세요. 우리가 선별한 목록에는 보안, 게임 다양성, 사용자 경험, 독점 기능 등의 요소에 대한 철저한 평가가 반영됩니다. 스릴 넘치는 게임부터 최첨단 기술까지, 우리는 이러한 카지노 사이트를 업계 최고로 만드는 주요 특성을 강조합니다.

    귀하가 노련한 플레이어이든 온라인 카지노 세계에 처음 입문하는 사람이든 상관없이 저희 기사는 귀하의 게임 여정을 향상시키는 데 도움이 되는 귀중한 통찰력과 권장 사항을 제공합니다. Outlook Spotlight의 전문가 보도를 통해 역동적인 온라인 게임 영역의 최신 동향과 제안에 대한 정보를 받아보세요.

    카지노사이트

  38. Outlook Spotlight에 대한 OUOUR가 포함 된 온라인 카지노의 세계에서 최고를 탐색하십시오. 2023 년에는 한국을 폭풍으로 데려 오는 상위 7 개 카지노 사이트를 발견하십시오. 우리의 전문가의 추천은 온라인 게임의 흥분 영역을 탐구하여 정식 경험을 위해 최고의 카지노 사이트를 제시합니다.

    오우르가 분별력있는 플레이어를위한 최고의 선택을 밝히기 때문에 스릴 넘치는 온라인 카지노 대학교에 몰입하십시오. 최첨단 게임에서 보안 플랫폼에 이르기까지 한국 온라인 카지노의 환경 탐색에 대한 최고의 가이드를 제공합니다.

    카지노사이트

  39. 2023 년 한국 최고의 7 개 카지노 사이트에 대한 OUR가 포함 된 온라인 카지노 게임의 정점을 탐색하십시오. 비교할 수없는 게임 경험과 예외적 인 서비스를 제공하는 길을 이끌어내는 최고 등급의 카지노 ated (카지노 사이트)를 발견하십시오. 우리의 추천은 궁극적 인 온라인 카지노 모험에 빠지도록 신중하게 선별됩니다.

    가장 유혹적인 보너스, 최첨단 게임 선택 및 안전한 게임 환경을 발견하십시오. 우리의 스포트라이트 기사는 온라인 카지노의 역동적 인 세계에서 정보에 입각 한 선택을위한 포괄적 인 가이드입니다.

    Whather 당신은 노련한 선수이거나 새로 온 사람들입니다. 우리의 전문가 추천은 Evry 수준의 전문 지식을 제공합니다. 세 심하게 연구 된 기사를 통해 최고의 카지노 사이트를 탐색하여 곡선보다 앞서 나가고 온라인 게임 경험을 높이십시오.

    한국 온라인 카지노 장면의 최신 트렌드와 발전을 놓치지 마십시오. 우리가 2023 년에 눈에 띄는 상위 7 카지노 사이트를 제시하면서 스릴 넘치는 게임과 독점 프로모션의 세계로 뛰어 들었습니다.

    카지노사이트

  42. 최고의 7개 바카라 사이트”에 대한 포괄적인 가이드를 통해 온라인 바카라의 세계를 탐험해 보세요. 바카라 애호가들에게 가장 평판이 좋고 흥미로운 목적지에 대한 심층적인 개요를 제공하는 이 통찰력 있는 기사에서 최고의 플랫폼과 권장 사항을 찾아보세요.

    저희가 엄선한 목록은 여러분이 스릴 넘치는 게임 플레이, 안전한 환경, 보람 있는 경험을 혼합하여 바카라의 역동적인 환경을 자신있게 탐색할 수 있도록 보장합니다. 이 고전적인 카드 게임을 해보고 싶은 노련한 플레이어든 초보자든 관계없이 우리의 순위와 권장 사항은 모든 수준의 전문 지식을 충족합니다.

    카지노(바카라 사이트) 환경을 탐색하여 각 플랫폼을 차별화하는 고유한 기능을 알아보세요. 세련된 인터페이스부터 매력적인 보너스까지, 저희 가이드는 귀하가 정보에 입각한 선택을 하고 바카라 여행을 한 단계 더 발전시킬 수 있는 지식을 제공합니다.

    바카라사이트

  43. Looking for free bingo games?Join the ultimate bingo online experience with Bingo Clash! Test your skills to compete against players in real time. Join now and bingo for cash!

Leave a Reply

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