Admittedly, it's quite difficult to continue to produce an exciting
entertainment experience day-in and day-out, as the public always
looks to us to exceed their expectations.. Those of you that own
or operate within traditional family entertainment centers often
see the same faces walking through the door, many of whom might
be asking, "what new attractions are coming?" or "when
are you going to get a triple-loop negative gravity suspended roller
coaster?" As we all know, new attractions are the fuel for
increased revenues, but attractions alone are not the solution to
strong profitability. Controlling spending, particularly when using
borrowed funds, is somewhat of an art, as the savvy operator must
balance entertainment quality with projected returns. With budgets
remaining continuously tight, here are some tips to consider when
searching for that fine balance:
inability to receive 2 hours of entertainment for $20 or less
per person
The results of an assessment can help location managers to identify
weak spots, improve guest satisfaction levels, and ultimately
increase the frequency that guests will visit. Criticism of your
operation is good - particularly when your focus is one of continuous
improvement.
Understanding Capacity and Throughput
A bustling facility might be good for photos, but it can be a
real challenge in how guests are accommodated. It's important
that roughly 75% of on-site attendees be capable of partaking
in the entertainment offerings. In essence, sufficient entertainment
"slots" must exist, which include seats on rides, player
stations on games, or spaces within group experiences. If an insufficient
volume of slots exist, guests will spend more time waiting and
less time spending, which can negatively impact revenues on the
days we count on the most. Years ago, the philosophy was to design
a facility for a midpoint between peak periods and off-peak periods.
That philosophy has shifted over the past 5 years to focus more
on meeting peak period demands in an effort to capture the consumer
dollars during the periods when the consumer prefers to be on
the site. If Saturday's the day when 30% of your revenues are
generated, let's be sure that we can meet the demand and maintain
a high quality guest experience at the same time.
Often, Throughput and Capacity are easily confused. Capacity
refers to the quantity of entertainment slots that an attraction
or group of attractions provide. A ride with 16 double seats would
have a capacity of 32 patrons. Throughput on the other hand, relates
to the number of patrons that can be "processed" on
a given attraction during a defined period of time. Throughput
is often measured on an hourly basis with allowances for transition
times between users. So, our ride might hold 32 patrons and be
capable of completing four ride segments during the course of
an hour. That's a 128 person throughput. Conversely, a four-position
rock climbing wall might only be able to process one individual
every ten minutes on each of the four climbing sections. That's
24 users within one hour. Overall, our ride has a throughput that
is 5 times greater than the rock climbing wall. By carefully sizing
the attractions, we can offer each patron a memorable and complete
experience within a defined two hour visitation window without
long lines-or worse - lost sales from lack of capacity.
Bolstering The Promotional Packages
Promotional packaging of entertainment experiences is one of
the simplest ways to boost revenues in today's entertainment facilities.
By combining games tokens (or electronic credits), ride tickets,
group-play offerings, and food programs together, we can offer
patrons a better way to enjoy the facility. But are we really
using these packages wisely? In my opinion, the consumer needs
to easily see the value of purchasing entertainment in package
form. This means that the level of savings should be extremely
clear. The more one buys in package form, the greater the incentive
should be, sometimes 40% greater. If your facility can push the
per capita spending level from $13 to $16 and there are 50,000
visitors coming through the door each year, that's $150,000 in
clear revenue. In general, patrons will not typically seek out
incentives, instead they'll need you to provide them. The indirect
result to upselling the guest is the enhanced entertainment experience,
as the consumer has now experienced more of the facility during
the visit than they may have originally intended. This alone can
create a very positive reason to return.
Whatever method of entertainment enhancement is utilized, please
be consistent. Nothing's more baffling to the consumer than trying
to figure out which of the four options is actually a better value.
Spell it out and don't be afraid to identify just how much money
can be saved. After all, a consumer that believes they have identified
an above-average value is likely to spend 33% more during the
same visit.
Adding The Guest To Your Board Of Directors
Nothing's better than really understanding the desires of your
patrons, particularly those that are your most frequent visitors.
While it's not easy to appeal to everyones desires, there is often
some blending of desires that can meet the expectations of most
consumers. When speaking with guests, it's helpful to determine
three or more games, attractions, and activities that they would
like to see added to the facility. This provides the greatest
chance of cross-matching desires between guests, thereby allowing
attraction dollars to be placed in the areas with the greatest
potential impact. Be sure to do a reality check of these focus
group results, as the most popular choice may not prove to be
the most profitable one. That, of course, will get analyzed in
round two.
Creating A Value Standard
Once you've found your "value niche", make a point
to revisit the model each calendar quarter. It may also pay to
re-examine your target market to see what's changing among the
region's demographics. What was once a nice middle-class community
may have moved upscale in the past few years to what is now a
middle-upper family mix, complete with family incomes and desires
well above your original targeted consumer. These changes are
occurring throughout the United States, particularly as real estate
values continue to escalate. One thing's for sure - operating
a facility that offers quality entertainment at a fair price is
a hard model to debate. After all, once the value question is
out of the way, all your patrons can do is have fun!