Are Theme Parks An Industry In Need Of Evolution?

Aug. 27, 2009 - PRLog -- Delta Market Research, Inc
333 N. York Road
Hatboro, PA 19040
215-674-1180
http://www.deltamarketresearchinc.com

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ARE THEME PARKS AN INDUSTRY IN NEED OF EVOLUTION?

In 2009, with a slumping national economy and a year fraught with situations out of the control of theme park operators, there are distinct strategies in play that will have a long reaching impact into the future of the theme park industry as a whole.

Among those diversely different strategies are deep discounting to get attendance v. not deep discounting and providing “value” brand positioning.

From 2nd quarter earnings releases, the overall impact on the future of the industry could be dramatic.  

As low in-park spending guests are drawn to the low entrance prices and bodies with deeply discounted Season Passes and multi ticketed bundling becomes the rage, the audience for the theme park industry will evolve into an audience of Guestus Minimus:

From our research, we know this guest not only is a low in-park spender in behaviors, but exhibits other behaviors that make this guest a high internal cost guest.

Guestus Minimus is more demanding and lodges the greatest complaints.  This guest is also more likely to seek even deeper discounting.

This can dramatically impact satisfaction scores.

We equally know that when a theme park becomes burdened with a high incidence of low in-park spenders, it impacts both the incidences and spending behaviors of high in-park spenders.

The Parks like Disney have just announced a rate increase, attempting to ward off brand cheapening and increase revenues.

Aside from bodies, the revenues are still decreasing. Deep discounters are keeping the tradition of theme parks alive, but do theme parks themselves need to find cost effective offerings outside the scope of major attractions?  The answer is “yes”.  

As domestic travel declines, and theme parks have spent money and time on resort business that is now eroding, this becomes lost dollars.

Many consultants, will, as they have done in the past enter with new and brilliant untested ideas for investment by theme parks, but the true inspiration for future development and evolution will come from only one source, that source being the audience itself, whether it is the audience a theme park has, or the audience the theme park wishes to attract.

Should the parks evolve and look for new audiences or stay true to their roots?
If the audience is provided an active role in the evolution, success within the audience, whether coveted or existing, will be assured.

“Anyone with a magic bullet to the future without projecting a return is firing a blank.” says Robert Norman, VP of Theme Park Consumer Insights, Delta Market Research.  “It becomes more important than ever for theme parks to keep their eyes in two places, those being the bottom line and their audience”.

The winners will evolve into stronger Parks while the discounters will find themselves getting buried deeper and deeper in discounts, feeding the bear (Guestus Minimus) that won’t go away.

Disney has planted its’ flag as a leader and it may be time for other industry leaders to stand up and be counted among the group that will not see the demise of the theme park in America, but will evolve into a stronger entity with a solid and loyal audience when economic times turn the corner.

About Delta Market Research:
Delta Market Research, incorporated in 1982, provides Market Research for the theme park industry that is actionable both on the Operations side and Marketing side as well as Resort and peripherals.

"Working with Delta Marketing has enabled us to stay connected with our guests which allows us to deliver the attractions and services that are most important to them.  They are a true partner and share our commitment in being a guest focused organization."  

Frank J. O'Connell
General Manager, Hershey Entertainment Complex

Delta Market Research, Inc
333 N. York Road
Hatboro, PA 19040
215-674-1180

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Delta Market Research has been providing Actionable data to clients for over 30 years.
Market Research for Theme Parks, Non-Profits and Ad-Agencies.