www.parkworld-online.com
Ticketing, Cash Handling & Access Control
Supply and demand
Pétur Müller, co-founder, DynAmaze, explains how to achieve optimal occupancy rates through dynamic prices.
E
specially in off-peak times and during the off-season, it is very diffi cult for many amusement parks and other leisure providers to achieve an optimal occupancy rate. Many factors, such as weather conditions, have an enormous infl uence on demand. Fluctuations in demand make it diffi cult to plan, lead to ineffi cient staff deployment, high per capita resource consumption and, overall, to signifi cant profi t losses. The current pricing structure does not address this problem: prices are static and not based on demand. However, there are alternatives: A Dynamic pricing strategy, based on current supply and demand. To elaborate, dynamic pricing is a special form of price differentiation: prices are no longer static, but adapt to the current demand and supply situation: If there is a lot of free capacity, prices fall; if demand rises, prices rise. The more precise the available data sources are for the respective capacities and demand, the more precisely the price can be optimized for any given situation. Ideally, every ticket can be sold at the optimal price, so that occupancy and profi ts can be optimized for each amusement park.
There are many parallels between the aviation industry (where dynamic pricing has its origin) and amusement parks that are not immediately apparent at fi rst glance: Without dynamic pricing, there is considerable variance in terms of demand. At the same time, both industries have very high fi xed costs and very low variable costs. Thus, there are almost no costs for the entry of an additional customer. At the same time, however, more customers lead to higher sales or profi ts, opti- mized labour deployment and optimized resource consumption. These parallels lead to a very high incentive to optimize the overall capacity utilization.
Using dynamic prices with DynAmaze We at DynAmaze have developed a platform on which we me- diate unused capacities of your off-peak times to end customers through dynamic prices. Unsold capacities are thus sold via an external booking platform at dynamic prices. DynAmaze offers an additional external sales channel, your internal booking sys- tem remains unaffected. The algorithm and the platform were developed in a research project of two German universities and are based on the latest research. Our algorithm determines the optimal price for each time. The tickets sold via DynAmaze are bound to individual time slots. This targeted and data driven customer management to free time slots makes real capacity optimization possible for the fi rst time. We use historical data of occupancy rates as well as live0 Google Popular Times data and weather data to identify how occupancy is developing for each individual leisure provider at any given time. In addition, providers can manage times and
SUMMER PART 2 2021
From left to right: Pétur Müller, Timo Gerth, Jasper Klimas – founders.
prices directly through a login-secured website. Additionally, the prices for each offer and time change depending on the demand on our platform.
Advantages for leisure providers By selling additional tickets in off-peak times, occupancy rates can be optimized sustainably. We have already been able to successfully optimize the occupancy rate at numerous partners in the past. Since only the admission price is optimised via Dy- nAmaze, there is a wide range of additional revenue potential on site, for example through gastronomy offers. In addition, we only offer tickets for times that are less demanded, so that our users become aware of our partners and also book directly on your website at regular conditions. DynAmaze is aimed at young people who like to spend their free time spontaneously and want to book and redeem their tickets on the go with DynAmaze. For example, the share of DynAmaze users under the age of 35 is over 80%. This allows you to specifi cally attract young people to your amusement park and considerably increase the share of young visitors.
Without
dynamic pricing, there is considerable variance in terms of demand
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