Towards new pricing strategies for attractions

After decades of setting a single admission price and maintaining it all year round, major players in the theme park industry are adopting revenue management models common in the airline and hospitality industries, such as dynamic pricing and loyalty programs. This analysis reveals these trends applicable to all attractions, while first presenting the main pricing strategies of Quebec attractions.

Pricing strategies for Quebec attractions

In 2017, the Société des Attractions Touristères du Québec (SATQ) carried out an inventory of the pricing practices of its 177 member attractions. According to her, 41% used one rate for admission and another for additional activities or services. In contrast, only 11% of them did not require any fees.

Among the pricing strategies (excluding the simple rate) for attractions that require an admission fee, the sale of packages is the most common (57%), followed by seasonal passports (35%). Discount coupons and discounted pre-sale rates are the least preferred. As the SATQ notes, the higher the operating budget of attractions, the more attractions use such strategies.

Among the pricing strategies (excluding the simple rate) for attractions that require an admission fee, the sale of packages is the most common (57%), followed by seasonal passports (35%). Discount coupons and discounted pre-sale rates are the least preferred. As the SATQ notes, the higher the operating budget of attractions, the more attractions use such strategies.

Be inspired by the greats

Among the types of attractions, major theme parks are innovative in terms of pricing strategies. These changes are particularly noticeable among international groups. Any attraction, regardless of its size and type of offer, can be inspired by it and adapt these strategies to its context.

Disney, at a seasonal rate...

Since 2016, Disneyland Resort and Walt Disney World have offered a seasonal pricing structure for day tickets. The company offers three price ranges depending on the time of year, based on a fleet traffic forecasting model. For example, the highest range is used for the busiest days.

Six Flags Entertainment Corporation, which owns 18 parks in North America, including La Ronde in Montreal, has been using this strategy since 2012 in most of its parks. For online bookings, it offers discounts valid on the least busy days of the week.

The aim of this strategy, in addition to increasing revenue, is to better distribute the volume of visitors to the parks throughout the year and to reduce overcrowding during peak periods. This method also allows customers to know which days are less busy in order to get more out of their experience. In addition, by reducing the wait to board the rides, visitors have more time to spend at the various points of sale in the park.

In a study published in 2018, Atout France, the French Tourism Development Agency, recommends that leisure parks constantly change pricing. According to her, this strategy often allows for revenue gains of between 5 and 8%.

... at a dynamic rate (not a subtitle, just in bold)

Last October, Disney unveiled a strategy based on dynamic pricing that causes its rates to fluctuate according to the day of arrival and the length of stay. Here is a video presenting this new way of booking.

According to business intelligence firm Skift, it is likely that the company will continue to be inspired by airline industry practices by increasing prices as the arrival date approaches. By encouraging visitors to book well in advance of arrival or the day before they arrive, a park can more easily plan its activities.

Dynamic pricing is not without risks. Rising prices can cause customer dissatisfaction, especially among the most loyal customers.

Loyalty programs: a win-win strategy

Another change undertaken by major theme parks involves the addition of a paid loyalty program, which would eventually replace season passes and season passes. The one from Six Flags includes four levels, for a price ranging from $5.99 US to $16.99 US per month. It allows you to accumulate points in order to take advantage of benefits such as free parking, faster access to the rides, discounts at various points of sale in the park or even passes for a friend. The company recently enhanced its program by giving the opportunity to earn points by boarding a merry-go-round, attending a show, answering a survey or even sharing a post on social networks.

With this pricing strategy, Six Flags has access to multiple information on customer buying and visiting behavior, which allows it to offer more tools to promote customer retention. Another advantage mentioned by the company is the fact that members are less reluctant to see prices increase than the rest of the customer base.

Examples to follow for Quebec

Experts and specialized media agree that these new strategies will be increasingly present. This certainly requires investment, especially as the technology that makes it possible to refine these tactics and achieve better results can be expensive for some attractions. But these can follow suit as these innovations become more accessible.

There are plenty of other pricing tactics that are worth testing out. For example, at certain times of the year, the Granby Zoo offers a seasonal pass at the price of one ticket. These types of initiatives inevitably attract the attention of visitors and can increase attendance as well as loyalty!

Article originally published on the site of Tourism monitoring network