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.


 

7,243 thoughts on “Revenue Management–Theme Park Industry”

  6. Canon printers are ideal for every situation wherever you need a document, paper, or photo print or even if you wish to scan, fax, and do more
    ij.start canon

  9. I really love your blog posts, they are resourceful and helpful. Keep it up!

    Meanwhile, I have a great news for every student. We are teaching how to be financially buoyant. You guys should check it out.

  10. Microsoft365.com/setup allows you to download and activate the Microsoft Office setup. Microsoft 365 plans for personal and home provides robust Office desktop apps including Word, PowerPoint, Excel, Outlook, and OneNote. Met frequent software updates.
    Microsoft365.com/setup

  11. Microsoft 365 plans for personal and home provides robust Office desktop apps including Word, PowerPoint, Excel, Outlook, and OneNote. Microsoft 365 subscribers can install the latest version of MS Office and get frequent software updates. Microsoft365.com/setup

  12. This application is considered for video calling across the globe. Be it with friends or family or with your colleagues, this application makes it possible to connect and do video chat or conferencing, wherever you are. | Skype Login

  13. Microsoft 365 plans for personal and home provides robust Office desktop apps including Word, PowerPoint, Excel, Outlook, and OneNote. Microsoft 365 subscribers can always install the latest version of MS Office and get frequent software updates. Skype Login

  15. لیفت صورت چیست؟
    خدمات لیفت صورت و سفت کردن پوست صورت که به rhytidectomy (ریتیدکتومی) شناخته می شود، یک عمل زیبایی است هزینه لیفت صورت در اصفهان که باعث زیبایی صورت افراد می شود و به آنها، جوانی را هدیه می دهد.

  16. لیفت صورت چیست؟
    خدمات لیفت صورت و سفت کردن پوست صورت که به rhytidectomy (ریتیدکتومی) شناخته می شود، یک عمل زیبایی است هزینه لیفت صورت در اصفهان که باعث زیبایی صورت افراد می شود و به آنها، جوانی را هدیه می دهد.

  17. read
    لیفت صورت چیست؟
    خدمات لیفت صورت و سفت کردن پوست صورت که به rhytidectomy (ریتیدکتومی) شناخته می شود، یک عمل زیبایی است هزینه لیفت صورت در اصفهان که باعث زیبایی صورت افراد می شود و به آنها، جوانی را هدیه می دهد.

  18. The online ij start canon portal has the potential to download the latest printer drivers and software with online manuals for every specific model, for example, Maxify, Pixma, CanoScan, IMAGEPROGRAF, etc.

  19. Canon allows you to install and set up a Canon inkjet printer and ensure that you receive outstanding printing results.

  21. Go through the canon.com/ijsetup webpage,e, click Set Up and start the Canon ij printer setup process. If you have a Canon inkjet printer (wireless or wired), setting up the complete printer is easy. To download canon printer drivers and install them on your pc, visit canon.con/ijsetup and follow instructions.

  22. microsoft365.com/setup is an official portal to activate and start your Microsoft 365 product including office apps, cloud services and other collaboration services. You’ll need to Sign In and enter Microsoft 365 product key.

  23. Go to norton.com/setup and download Norton setup. With over 64+ Million Users, Norton is already on the list of best antivirus security that helps you manage your digital life anywhere.

  24. McAfee antivirus is a full threat protection based antivirus program that you can install and activate at Mcafe . You cannot deny that in the present time, antivirus is the necessity of each system due to multiple threats, malware, and viruses. Mcafe.com/activate | ij.start canon

  25. Canon printer drivers and software are essential to install and set up your Cannon device. Thus you can look for a few options like, check if inbuilt printer drivers are available on your system, download printer drivers online, or use an installation CD, you may have received with your printer. ij.start canon

  26. This application is considered for video calling across the globe. Be it with friends or family or with your colleagues, this application makes it possible to connect and do video chat or conferencing, wherever you are. | Skype Login

  27. We all know Skype application is one of the prominent applications that are used globally. This application is considered for video calling across the globe. Be it with friends or family or with your colleagues, this application makes it possible to connect and do video chat or conferencing, wherever you are. | Skype Login

  28. Download and install Canon ij setup from Cannon/ijsetup to start using powerful features packed into the incredibly compact bodies of your Canon printer. You can find multiple ranges of printers such as canon inkjet selphy, Maxify, Canon mg3620 ink, Canon mx490 ink, or others.
    cannon/ijsetup

  31. Nice post. I be taught one thing more difficult on completely different blogs everyday. It would all the time be stimulating to read content from other writers and observe a bit something from their store. I’d want to make use of some with the content on my weblog whether you don’t mind. Natually I’ll provide you with a hyperlink on your internet blog. Thanks for sharing. Tampa

  32. Bitdefender is the tool to provide you best security from multiple cyberattacks. It offers protection for multiple devices under one subscription, which can be managed by a single device.
    Bitdefender Central

  35. McAfee antivirus is a full threat protection based antivirus program that you can install and activate at Mcafee . You cannot deny that in the present time, antivirus is the necessity of each system due to multiple threats, malware, and viruses. Mcafe.com/activate

  36. This application is considered for video calling across the globe. Be it with friends or family or with your colleagues, this application makes it possible to connect and do video chats or conferencing, wherever you are. | Skype Login

  37. Download and install Canon ij setup from Cannon/ijsetup to start using powerful features packed into the incredibly compact bodies of your Canon printer. You can find multiple ranges of printers such as canon inkjet selphy, Maxify, Canon mg3620 ink, Canon mx490 ink, or others.
    Cox webmail Login

  38. The online ij start canon portal has the potential to download the latest printer drivers and software with online manuals for every specific model, for example, Maxify, Pixma, CanoScan, IMAGEPROGRAF, etc.

  48. SportsMatik provide amazing facts about all type of world sports history, facts and trivia. Click on the area of interest below that you want to know info about sports.

Leave a Reply

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