2011 - The season for small UK parks?

[Rob]

As the typical person's disposable income becomes lower than in many previous years, and the theme park giants raise their prices way above inflation, is 2011 the golden opportunity for smaller parks to make a big impact?

As people are priced out of an value for money day at Thorpe Park, where entrance prices are just 40p away from the £40 mark, or Alton Towers, where I believe the fee is now above £40, I would expect the competition smaller, local parks offer might pose a much bigger threat. The cheaper local parks will no doubt manage to attract some of the larger theme parks audience, so I feel 2011 would represent a good year to invest heavily, to draw in a large crowd and really create some competition, something that the UK amusement industry really seems to lack.

What are the general thoughts and ideas?

 

[Hixee]

Yes and no. The difference is that the 'smaller' parks tend to have smaller rides.

If you want the biggest, best coasters and theme parks in the UK, how many of those parks are going to be large-chain 'big' theme parks? A decent enough proportion I'd guess. The problem with it is the bigger parks almost have a monopoly. Their the first parks that often spring to mind, and they're the parks that do the most advertising. It's a viscous circle.

If the smaller parks can up their advertising and get more people interested in them, then yes, I think they'll put up a good fight. They're cheaper (and sometimes nicer) and they could be an option for more people now the big parks have gotten so expensive.

The problem I see with it is that as more people visit the small parks, and the small parks are more successful, they cease to be small parks anymore. It's a tough one, and I think it all depends on how well they can market themselves. If they do a good job of that, then maybe. If they carry on as they seem to be at the moment... I'm not sure.

 

[gavin]

Nice idea, but no.

From next month, we're going to start with the annual flood of two for one vouchers for the Merlin parks; I doubt that very many people ever pay the full price to get into those places. Like I've said in other topics, people get fooled into thinking that they're somehow "cheating the system" when they find these offers, when, in fact, near enough everyone has them and the parks know damned well that a "half price" entrance is still enormously profitable.

Then, do people really check what the prices are before they go? Sure, some will, but just as many won't. Nobody's going to make the decision to drive out to Alton Towers and then turn around and leave when they get there and see the prices. Sure, they'll moan about it, but they'll still pay.

I'm going to guess that the Merlin parks will report lower attendance figures this year than last year. Is that because of the economy? That's what people will say, sure, but it will actually mostly be due to the fact that none of them have any major new attractions this year.

Out of the smaller parks, Drayton Manor and Paulton's should do well this year, but that will be because of children's TV tie-ins, which will draw in families with young kids, rather than because they're cheaper to visit.

 

[Rob]

Hmmm,

I would still argue that theoretically, smaller UK parks would have the edge this year, so maybe more so a matter of the right advertisement strategies?

The other point worth a mention is that many families are now realising that theme parks are not cheap, I know this first hand, so maybe this could spin off the other way and force further closure of smaller parks.. I suppose that would, unfortunately, seem the more probable turn of events if we're to look to the past few years?

 

[marc]

I think this year Merlin will suffer as a lot of people got the pass for 2010 and might not get one for 2011, families that is. They might look at different options for 2011 but I do not think it will be the smaller parks.

Paultons, Blackpool and Drayton will do well this year and not only are they adding new rides they are adding a family theme. I already know of over 10 families at work are going to Peppa Pig and I am sure when they hear about Blackpool they will go there as well.

Basically what Gavin is saying is correct I think. 2 for 1 offers will help but its still an expensive day out and if they went last year they might not go back.

Theme Parks are no longer cheap days out, for us to go to Alton for a day costs about £150 due to fuel and hotel and that was with a pass.

 

[Rush]

If people cannot afford to go to the big parks (Alton, Chessington, Blackpool, Thorpe and Legoland) they won't go to a theme park, or they'll go to a smaller park if it's local and chances are they may have already been to that park recently and choose not to go again. Unless smaller parks invest and advertise they cannot get their image across on a larger scale. If a family from London can't afford to go to Thorpe they're definitely not going to make the effort to go to places like Lightwater or Camelot. (Places unheard of to most in the South of England anyway.)

It's already been mentioned that Drayton and Paultons are getting new family areas to their park which is almost certainly to bring in new customers. I predict it will be a good year for them and I hope it paves the way for future investment from both parks. Both of them being close to urban conurbations could also potentially "steal" some potential customers from the more expensive Merlin parks nearby.

The larger parks are bound to release the BOGOF offers as Gavin has stated as well. I look at Lightwater's website (which has weirdly been translated from Ukrainian according to Google Chrome ) and see that their ticket prices are just under £20. Now given the choice, a small, largely unknown park in the middle of Yorkshire or the UK's most famous theme park for 2 or 3 quid more, it's predeictable what the average park-goer would choose.

I'd say 2011 would see a slight decline in the bigger parks than an increase in the smaller parks, possibly with "middle-tier" parks like Drayton, Paultons (and possibly Flamingoland) doing a little better.

 

[rickydoodle]

As mentioned above, I think it will depend on the discounting provided by Merlin.

During an interview with Thorpe's marketing manager Andy De Luc, he said;

This year Thorpe offered a promotion allowing guests to come back the following day for £1! Is heavy discounting an important part of your business model?
The decision to charge £1 for a next day visit was to support THORPE PARK’s long term strategy of becoming a resort theme park destination. This will be an increasingly important focus for us and in order to sustain our growth plans, we need to encourage as many people as possible to consider THORPE PARK as a multi-day attraction to build our recognition as a resort destination.
Aside from this, discounting is an important part of our pricing strategy, but one we also carefully manage. Promotions with partners are a big volume driving channel for us and will continue to be for the foreseeable future. This year we have had to react more tactically with our prices due to an unpredictable market following the recession. This has, however, continued to stabilize in the second half of 2010 and we expect to return to a more normal trading pattern into 2011.

If Alton Towers entry is £40 and Drayton's is £20 but you have a half price entry ticket for Alton - you are given the perception that a day at Alton is better value for money. That's from a gate price point of view only, obviously.

The difficulty at the moment is that the small parks have been almost matched on price by the Merlin parks with the influx of 2-4-1 vouchers.

 

[Martyn B]

If Alton Towers entry is £40 and Drayton's is £20 but you have a half price entry ticket for Alton - you are given the perception that a day at Alton is better value for money. That's from a gate price point of view only, obviously.

Yeah I was thinking along them lines. People should still be pleased with paying £20 for Alton, considering Lightwater Valley and Camelot are both £23.

If they can be valued like that, surely Alton and Thorpe are both worth £40?

 

[rickydoodle]

It's certainly all about perception. If you pay the gate price to go into the Merlin park, you're either a foreign tourist or a fool. The sheer number of vouchers available is mind blowing. You have to wonder if the posted gate price only exists to make you think "Wow, we're saving so much money..." etc.

Similar to the Disney and Universal gates. Who really pays $80 for a day ticket, very few.

 

[bezzzzzer]

^ Of course they do, it's like when a circus comes to town.

They set the price double what they want people to pay and just leave vouchers in shops and tourist informations and libraies and chippies and pubs and wherever you can think of, then if anyone actually does pay full price it's a bonus. Plus, like has been said, everybody thinks they're getting a good deal, when infact they're just not getting a bad one.

Inevitably, those parks with new stuff will do good, those who aren't not as. I'm glad Merlin aren't getting owt because it puts Blackpool at the top, but I don't think it'll be a year for 'small' parks as a consequence.

The prices are irrelevant, because of what has been said regarding vouchers and stuff.

So the answer, no. But I wish it was yes.

 

[SaiyanHajime]

The "return tomorrow for (insert cheap amount here)" marketing strategy is a clever one, because it affirms the idea that the park cannot be completed in a day.

I think Gavin's theory regarding BOGOFs, that half the gate price is what the Merlin actually value their attractions at and could still rake in profits with, is true. And that the bogof makes visitors believe they are getting more than their moneys worth.

This is a predomeniently UK phenomenon. I found that in the US, a DVD on realease would be less than in the UK... But it takes longer to plumet in price and few reach the rediculously low value they do in the UK. Our culture is one that is purswaded heavilly by sales, bogof, btgof, etc.

 

[Mysterious Sue]

I still think there's a major problem with advertising of the smaller parks in the UK. None of my friends even knew of the existence of parks such as Drayton Manor. Unless you live near them, the sheer lack of advertising means that there's a large number of people unaware of an alternative.

So to answer the question, no. It's not simply a choice of say 'shall I go to Alton or to Drayton'. Small parks will never attract the travelling customer in the same way as Merlin parks unless they work on advertising.