Sunday, March 1, 2015

The One About Amusement Park Pricing

By: William Supko

You pull into the toll plaza so you can pay $15.00 for the privilege of parking.  Not even to the gate yet and you're starting to feel ripped off.  Why in the world do we have to spend an arm, two legs, and an earlobe just to get into the gates of an amusement park?  How can a family owned amusement park charge less than a corporate owned amusement park?  How can a family entertainment center charge less than a family owned amusement park?  We'll take a look at some things including the economy, labor costs and upkeep expenses.

Supply and Demand

One of the biggest factors in amusement park pricing is supply and demand.  There is a high demand by adrenaline junkies, families and teenagers looking for fun.  Price and long
lines are the two biggest complaints of the amusement industry.  Amusement parks can see lines of over 3 hours during the hot busy months of the summer.  Could you imagine how long that line would be if amusement parks charged half their current price.

Crowds waiting to get into Six Flags Great America and the park has already been open 2 hours.


New Anything and Everything

This one is kind of a no-brainer. Amusement parks shell out millions of dollars some years for new attractions.  New attractions are not the only thing purchased.  In addition to the new attractions they will build new food stands, new souvenir stands and new game stands to complete the experience.

Multi-Million Dollar Investments like the new for 2015  LAFF TRAKK at Hersheypark


Entertainment/Shows

The people in the shows and the strolling entertainment may or may not be on the amusement parks payroll.  A lot of parks contract out at least one or two of their shows.  Changing out shows, including props, lighting and staging, from one year to the next (and in some instances one season to the next) is another expense to add to the budget.

Luminosity at Cedar Point

Staffing

This is another one that is a bit of a no-brainer.  There's more to it than you see though.  Yes the people that run the rides, host the games, serve the food, and keep the park clean have to be paid but you also have the seasonal supervisor staff, the full time staff and maintenance to be paid as well.  In addition to that you have the people in marketing, graphic design, payroll, human resources, first aid, security, wardrobe and other behind the scenes people that need a paycheck.  

Amusement park employee hours are not just open to close.  Chances are during peak season there are employees onsite 24 hours a day. Employees that work hard and get paid to make sure you have a wonderful experience.  In addition to all the hours worked there are hours and hours of paid training that take place to ensure employees know all policies and procedures.

How many employees does it take to run GateKeeper . . . no, seriously, I'm asking.


Marketing

Parks work tirelessly to create a brand using websites, radio, print and tv ads, and social media.  All of these marketing reaches require a team that can create the copy and get the brand across.  Amusement parks then either internally or externally pay to have ads and websites created or updated.  Creating, updating and producing these marketing avenues requires a lot of cash.  Employees are also paid to monitor social media interaction for both offensive posts from the general public as well as to gauge return on investment.

I think my photos would look great on marketing material.  (Image: Kentucky Kingdom from Ferris Wheel)


Landscaping and Walkway Appearance

Amusement parks spend a lot of time maintaining a well groomed landscape.  Pulling dead plants, keeping gardens weed free, and replanting flowers so that something is always in bloom are all just part of what it takes to keep a park looking green.  Walkways must also be maintained.  Many parks go to extraordinary lengths so that you can't tell where walkways may have been dug up to repair, install or replace utility lines.


Knoebels - Even parks in a wooded setting need walkways and landscaping


Maintenance

Rides need a lot of tender loving care to operate as smoothly as possible.  Spare parts for a ride can be costly.  In addition to replacing worn or torn parts rides are also torn down to pieces, tested, inspected and put back together to ensure safety.

Maintenance doesn't just happen on the parks rides.  Food service equipment, HVAC equipment, and restrooms also need preventive or emergency maintenance from time to time.  Maintenance staff at an amusement park can include mechanics, plumbers, HVAC technicians, carpenters and more.

Fahrenheit at Hersheypark is torn down and inspected after the coaster season ends.


Utilities

Anybody know how much power it takes to dispatch a coaster train?  Utility bills including water, internet, electricity, trash, sewer and gas are something you probably don't consider while having a fun day at the park and that's probably a good thing.  Anybody know how many light bulbs a park goes through in a year?

How much does it cost to dispatch each of these?


Insurance

So you want to hoist people 300 feet in the air and them drop them down at 90 mph, that will be 1 billion dollars to cover them.  So maybe it won't be that much.  No exact figure here on how much it costs to insure amusement parks but it's probably a pretty hefty bill.

Kentucky Kingdom


This is in no way an inclusive list of every expense incurred at an amusement park but it gives you a little bit of an idea why your wallet is so much lighter at the end of the day at an amusement park.

Hope you enjoyed the read.  See you on the midway real soon!
-William

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