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Pricing games and schemes


Dr. Jack Samuels aka The Fun Doctor gives his two cents on park pricing in this opinion piece


“ In these


inflationary times the problem of pricing may require more creativity


I ”


n these inflationary times, pricing of services can be a difficult task. Park operators are by no means exempt and the problem of pricing may require


more creativity. Traditional pricing schemes for the theme park


and attractions business include some common and might include some other - perhaps not-so-common - pricing models:


1


One-day tickets: Visitors can purchase a ticket for a single day of admission to the park or


attraction. Whereas many places utilise consistent fixed pricing, some have experimented with dynamic pricing. Disney first tested the concept of dynamic pricing with their Broadway Show “The Lion King”. In January 2023 this show broke another revenue record and is still the highest grossing longest running show on Broadway. Other producers wanted to buy Disney’s pricing model. These pricing models can be built statistically by anyone but take a lot of data collection and input to make them workable. Disney has been using this in their parks as well. The problem is not dynamic pricing, but rather over- pricing given the current economic conditions. I used to hear that people would go to Disney every year, but now they say they can’t afford it that frequently. Disney and much of Central Florida’s parks have survived on foreign tourists.


It is easy to see this if


you visit almost any time of the year. Although most parks sell add-on food packages or other single-day add-ons such as fast-type attraction passes, we have not seen what we might call an “ultimate package” that gives you everything for a day at a value price.


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Multi-day tickets: Parks offer tickets that allow visitors to enter the park multiple times over a


set period, usually up to a week. These tickets often provide significant savings. Sometimes, you can also purchase a multi-day ticket that does not expire, which is a variation of this. Multi-day tickets might also include additional perks like those mentioned above for single-day tickets, but this does not appear to be a common practice.


Season passes: Visitors can purchase a pass that grants them unlimited access to the park or


attraction for an entire season. Season passes can be a great value for frequent visitors.


4 5 6


Purchased Frequent User Discount Cards: This is something that we haven’t seen in the Theme Park


Industry much if at all. A frequent user discount card might be sold at a small price which affords a discount for other things purchased. Such a scheme would also enable attractions to generate additional mailing lists and targeted promotions by collecting data when customers purchase such a card.


Group rates: Many parks offer discounted rates for groups of a specific size, such as school groups or


corporate outings. This is another category that can be played with, for example, by offering special add-ons or accommodations rather than entry ticket discounts.


Special promotions and discounts: Parks may offer discounts for military personnel, senior citizens, or


residents of certain states or regions. Each of these can be a subject for discussion. Military and other public service discounts such as first responders and teachers are given more or less to honour these populations. Perhaps some other types of perks should be offered to these people? For example, Delta Airlines allows the military to get on the plane before all able-bodied passengers begin boarding, but they don’t offer a military ticket discount. Maybe a limited fast pass for free for such people would be a better idea because sometimes these people have limited time or vacations. Age-related discounts such as those given to senior citizens or children may or may not be appropriate, but seem to be customary. Location- related discounts such as local or state residents are designed to attract locals more to places so that they come more frequently and spend money on food or merchandise.


7


VIP packages: Some parks offer premium packages with additional perks, such as skip-the-line access


or exclusive add-on experiences. By offering a variety of pricing schemes, parks, and attractions can attract a diverse range of visitors and cater to different budgets and preferences.


I have not been a big proponent of skip-the-


line or fast-pass add-ons and have discussed this at great length in previous articles.


So, it seems that the problem of pricing has many different ways to go. Some of the ideas expressed might be new or untried - but should provide food for thought when it comes to considering a solution to the issue.


NOVEMBER/DECEMBER 2023


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