The price of success Andrew Mellor Editor P
ricing at attractions is a subject often debated and in particular when the word ‘discount’ rears its head things can get even more interesting.
Deciding what prices to charge at the gate of an attraction is something operators sweat over at length on an annual basis (probably more in fact), while there are also many other elements of the pricing structure to think about, be it for the very youngest of visitors, concessions, families, school visits, a host of different groups and more. When you think about it, it’s an absolute minefield!
I remember ‘back in the day,’ and when the majority of parks had gone onto the pay-one-price system, that there were a number of significant price barriers that inevitably had to be broken as inflation and costs climbed ever higher and operators were forced to increase entry prices as a result. The psychology of breaking the GPB9.99 or GBP14.99 barriers, for example, were worrying moves for many who thought it may be too much for visitors.
Nowadays, of course, such figures seem a long time ago and many of the larger parks and attractions quote considerably more for an adult entry ticket bought on the gate. But the predicament is still the same – increasing prices is a hard thing for operators to do as they never really know how it will impact on attendances.
The subject of pricing came under the spotlight at an industry conference I recently attended. The speakers involved all came from very different types of operation and used different philosophies, through both choice and necessity, when it came to how and what they charged for entry to their venues. On the one hand, there was the free to enter museum which among other things utilises temporary, touring exhibitions as a way to increase revenues, along with the more familiar routes of a cafe/restaurant, retail sales, various membership schemes and more. On the other, there was what was referred to as the ‘value added model,’ a children’s FEC venue which doesn’t discount at all as it firmly believes in charging a fair price for what it delivers and that people will realise that and keep coming back. And then there was the membership model with loyalty schemes in the context of wildlife destinations which, in this instance, had ensured a regular income in the face of a funding crisis some years ago.
For me, I think one of the most interesting points to come out of the debate was a comment that the reason for no discounting at all was that the price being paid was what it costs the operator to sustainably deliver the product and as a result there was no room for discounting. Additionally, the argument was made that operators can deliver a great product to entice people back and not use discounted prices to achieve this.
It was also noted that once you start discounting, where does it stop and does doing so devalue the product? All good food for thought and a subject we could no doubt talk about for many hours.
Whatever your preferred way of pricing and getting guests through your gates, no doubt different methods work for different venues, but it’s intriguing to look at the various methods, the reasons people choose them and the impact on revenues at the end of the day.
Supporters of:
6 World news 8 US news 10 Asia news 12 Europe news 14 Waterpark news
16 Show report AAE, Hong Kong
19 Trade association profile – NAPHA
20 Conference report Vision XS Leisure Operators’ Conference 2012
22 Open to Question John Hudd, Interlink
24 Feature All aboard! Trains, trams and more...
28 Park Life Quassy Amusement Park, US
31 Buyers Guide Annual directory of manufacturers and suppliers
86 Show preview EAS, Berlin
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www.InterPark.co.uk 3
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