Waterparks, given their investments and fixed costs are always on the lookout to find alternate streams of revenue to boost their profit margins.
Regular attendance does not always necessitate a profitable park. Usually, ticket sales comprise just above half of the total revenue generated at water parks over the world. The rest of the revenue is generated with day-to-day sales at eateries, shops, entertainment centers, and other ancillary functions on the premises.
Water park investors and operators have to collaborate to develop these ancillary revenue streams so as to maximize their profit margins. In this post, we summarize 4 different ways water park owners can provide more options for their customers to bring about larger profits.
1) A Well-Designed Master Plan for Multi-Use
- For Entertainment, the Master Plan Should Factor in Local Preferences
A park’s master plan is one of the most vital aspects that drive its usability throughout the calendar year. The waterways and water bodies will be useful through the peak season. But the land use of the surrounding park zones is what will drive traffic in off seasons. Due to travel issues, a large component of a water park’s consumer base is of the local area. Park owners will have to analyze the consumer behavior of the locals to improve profit margins.
Analyze the amenities in the local area.
For example, some local areas could be in need of sporting amenities. In that case, a part of the water park can be zoned for this purpose, with futsal turfs, football fields, basketball rinks, squash courts, or other athletic facilities. These facilities can generate revenue off hours as locals pay for their usage on a timed basis. This could even function during park hours if the plan is compartmentalized with strategic separators such as walls and fences.
- Compartmentalize the Park’s Master Plan
This helps the load fall lightly on the management’s shoulders, as they can close off unused sections of the park after hours, and keep open the sections that are being used into the night, such as family entertainment centers, spas, and food courts. This also enables the park to accrue revenue from the late evening to midnight slot.
One of the better ideas for all-day usage is an entertainment center that is complete with gaming arcades, a laser tag or paintball zone, and miniature golf courses. Or you could even propose a multi-purpose theater that can host local comedians, drama groups, schools, and musicians, as well as screen movies. Amphitheaters can enable an open-air setting of the same, which younger age groups will love.Commercial units can be leased to other businesses in the area, such as fast food brands.
- The Layout Should Support Varied Visitor Movement Options
A good plan is one whose navigability is seamless and which has clear zoning concepts to help its guests. Land use will have to be decided in such a way that the park can also hold standalone functions, such as parties, themed events, weddings, or even concerts.
A concert area might need to include a large expanse of open space with no breaks and separators. These event areas will have to be cordoned off from the regular water park area, or, if water-themed parties are an idea, there can even be a designated party area with pools and slides. They layout should support alternate routing options for your park guests during such special events.
2) Simplify Transactions Using Technology
One of the recurring problems at water parks is the danger of water damaging electronic devices, wallets, and credit cards. For this, there are lockers provided, but that still does not solve the problem of impulse purchases. What if a guest, wet off a ride, wants to buy an artwork-imprinted towel, but does not have his wallet on his person at that moment?
RFID bands can solve this problem, allowing guests to even make purchases while wet. All you need to provide is the facility to load money onto these bands at credit card booths or kiosks designed for this purpose.
3) Create a Higher Perceived Value with Different Service Packages
- Diversify into Ticket Tiers
Customers will want to spend more money on your services if you give them a valid reason to do so. One foolproof system is of ticket tiers. Provide Regular, Premium, and VIP tiers to your tickets. Each ticket opens guests to widely unique services, allowing the ones who can pay more the leeway to use their money for small luxuries like private locker rooms.
- Create Service Packages Within Each Tier
You can further diversify the options available to your guests with Fast Track Packages, Food-Inclusive Packages, Children-Discount Packages, and more. The idea is to provide a higher perceived value vs. the actual value of each ride, food item, and merchandise.
4) Monetize with Unique Memories and Experiences
- Allow Your Guests to Make Lasting Memories
Memorabilia is a standard facility that most amusement parks provide to their guests. Toy stalls with customization options such as imprinted names can always make a mark on the target audience. You can also pepper photo booths around the park, ones which are capable of seating two or more park-goers at a time. During rides, events, or games, there can be laser-triggered cameras placed at strategic points tocapture a funny or embarrassing moment.At the end of the day, park-goers can collect these at the exit for a small price.
- PersonalizeServices for Groups and Families
One of the most common needs in a park is that of personal privacy. There are certain groups or families that prefer to enjoy their holidays away from the crowd, within their own company. For this reason, it is also imperative that park owners think of cordoning off certain private areas and VIP zones at premium prices to increase their monetization opportunities.
- Devising a Central Attraction will Raise Merchandising Power
Understand that the modern park is an “Experience Center.”In the experience economy of this microcosm, this means park owners will have to entice customers with multiple experiences over the course of the year.
One of the most effective ways of garnering revenue is by constructing a stand-out central attraction that sells your park’s reputation far and wide. Not only do people from distant towns hear about you, but opportunities for brand merchandising — toys, apparel, souvenirs —will open up and your park’s consumer play value skyrockets.
Water parks generally include 4 aquatic hardware elements — rides, a children’s area, a capacity holder, and a central attraction. The central attraction is what can make or break a park’s value. Designers and engineers will have to brainstorm over a suitable theme for this central attraction to stimulate imaginative play and build narratives that go beyond just the mere function of water equipment.
Arihant Water Slides has devised several of these central attractions to help water parks all over the world. One of our products, the Treasure Ship recently won the 2020 CII Design Award. Its self-sufficient design can not only hold hundreds of park-goers, but also has a pirate theme with so much potential for brand merchandising and ancillary functions like parties and themed shows.
Once target audiences are researched and these competitive ideas are analyzed, designed, and implemented, water parks become a booming business for any curious investor. Contact us to learn more about the financial and technical nuances that will make your water park the new attraction in your locality.
References: http://www.theparkdb.com/blog/the-business-of-theme-parks-part-i-how-much-money-do-they-make/