Docstoc

Themed_Attractions

Document Sample
Themed_Attractions Powered By Docstoc
					Case Study Part I
Themed Attractions

Definition
History
Economic
Issues
Prospects
 Definition

‘A family amusement
complex oriented
towards a range of
subjects or historical
periods, combining
the continuity of
costuming and
architecture with
entertainment through
rides, attractions,
catering and
merchandising, to
provoke an experience
for the imagination’
    History
   ‘Bakken’ 1583
   Vauxhall Gardens, London 1661
   Tivoli, Paris 1771
   Tivoli, Copenhagen 1843
   Grand Pier, Teignmouth, UK 1865
   Cedar Point, Sandusky, OH 1870
   Grona Lunds Tivoli, Stockholm
    1883
   Chicago's Columbian Exposition
    1893
   Coney Island, Brooklyn, NY 1895
   Blackpool Pleasure Beach 1896
   De Efteling, Netherlands 1951
   Disneyland, Anaheim 1955
   Six Flags, Texas 1961
   Legoland, Billund 1968
   Walt Disney World, Florida 1971
   Thorpe Park, Surrey 1979
   EPCOT, Walt Disney World 1982
   Disneyland, Tokyo 1983
Attraction Product

           Support Services


               Tangible

              Imagescape

               Features

           Augmented Image
  Economic Issues
 Location

 Market-
  Imagescape
 Development and
  Planning
 Theming
 Finance
 Location
       Imagescape




      Which Way?



Location            Market
Market–Imagescape Mix
  Image

           Current      Future/
                        New
 Market
 Current   ‘Me too ’   ‘Grand
                        inspiration’

 Future/   ‘New        ‘Wonder
 New        version’    attraction’
Development and Planning
SW Sweden
Local Market     Population
Primary           (1hour)
  Swedes         1,110,000
  Danes          1,590,000
  Total          2,700,000
Secondary          (2hour)
  Swedes          400,000
  Danes           950,000
  Total          1,350,000
Total Local      4,050,000
Tourist
Primary            (Skåne)
  Swedes          1,580,000
  Foreign          700,000
  Total           2,280,000
Secondary       (Copenhagen)
  Total           3,630,000
Total Tourist     5,910,000

Grand Total      9,960,000
Design Characteristics
Item                                Year 1      Year 5

Population catchment               9,960,000   9,960,000

Penetration rate                     6.7%       10.3%

Visitor numbers                    670,000     1,025,000

Peak month of July                 187,600     287,000

Design day                          10,907      16,686

Peak in ground                      8,726       13,349

Average entertainment units/hr        1.5         1.5

Total entertainment units/hr        13,088      20,023

Average attraction throughput/hr     750         750

Mean number of attractions            17          27

Poisson(1.5, 1.5) at 75%              21          31

Gamma(1.5, 4.5) at 75%                23          35
Theming
 Theming allows parks to develop a sense
    of individuality and product differentiation.
   The imagescapes provide passive
    entertainment for seniors and family
    members with young children who may
    not wish to participate in the anchor rides.
   Themed entertainment and waiting spots
    make queuing a less frustrating experience.
   Well themed areas, restaurants and shops
    can help in managing visitor flows by
    increasing walk-around time as well as
    raising
      secondary
      spend.
Finance
Net Income Statement (I)
Item               Year 5 (SEK)   Revenue %
Revenue
 Admissions a      217,300,000      55.6
 Catering           86,920,000      22.2
 Merchandising      65,190,000      16.7
 Miscellaneous b    21,730,000       5.6
Total              391,140,000      100.0


Cost of Sales
 Catering           34,768,000       8.9
 Merchandise        32,595,000       8.3
Total               67,363,000      17.2


Gross Profit        323,777,000     82.8


Other Income c      24,250,680       6.2


Total Income       348,027,680      89.0
Finance
Net Income Statement (II)
 Item                       Year 5 (SEK)   Revenue %
 Controllable Expenses
  Payroll                    140,669,700     36.0
  Marketing                  31,650,700       8.1
  Admin & General            15,239,200       3.9
  Maintenance                12,894,700       3.3
  Operating Supplies          9,143,600       2.3
  Utilities                  18,052,600       4.6
  Insurance                   7,033,500       1.8
 Total                      234,684,000      60.0

 Cash Flow                   113,343,680     29.0

 Capital Expenses
  Occupation Costs d         24,000,000       6.1
  Attraction Replacement     60,000,000      15.3
  and Renewals
 Total                       84,000,000      21.5

 Net Inc. before Taxation    27,343,680       7.5
 Finance
 Theme Park Break-Even Chart
 Revenue and Cost


                               R+I

                      D        C

        B
 C
                               Co

        A
 Co

R+I

  0
         V1          V2   Visitors
              Prospects
 The introduction of timed-ticketing to cope
  with queues and customer complaints.
 Move away from organic growth towards
  acquisitions (which simplifies planning
  issues) and joint ventures.
 The manufacturing sector, for example the
  motorcar industry, has seen the benefits of
  creating branded parks.
 4-D rides: a combination of the physical
  and virtual worlds, and more expensive.
       Case Study Part II
       Break Even Chart

 Fixed Expenses  Variable Expenses
                    100% Sales cost
 30% Payroll       70% Payroll
 100% Marketing
 100% Admin
 10% Maintenance  90% Maintenance
                    100% Operating
                     Supplies
 20% Utilities     80% Utilities
 100% Insurance
       Break Even Chart

 Fixed Expenses  Variable Expenses
 SEK               SEK
                  67,363,000
 42,200,910      98,468,790
 31,650,700
 15,239,200
 1,289,470       11,605,230
                  9,143,600
 3,610,520       14,442,080
 7,033,500         ________
 101,024,300      201,022,700
     Break Even Chart
         Formula
 N = R + I - Co – Ck
 N = 0 at break even
 R* when only fixed and variable
  operating costs are accounted for
  is:
  R* = - I + Co
  R* = - I + Cfo + Cvo
  R* (1 - Cvo/R)= - I + Cfo
 R* = (Cfo - I )/(1 - Cvo/R)
      Break Even Chart
         Operating
      I = SEK 24,250,680
     Cfo = SEK 101,024,300
   Cvo/R = SEK 201,022,700
                   391,140,000
         = 0.5139

   R* = (101,024,300 - 24,250,680)
              ( 1.0 - 0.5139)
        = SEK 157,951,085
    or in percentage terms,
R* = (25.8 - 6.2)/(1 – 51.4/100)
    = 40.4%
      Break Even Chart
            Total
         I = SEK 24,250,680
 Cfo + Ck = SEK 185,024,300
    Cvo/R = 0.5139

   R* = (185,024,300 - 24,250,680)
              ( 1.0 - 0.5139)
        = SEK 330,769,445
    or in percentage terms,
R* = (25.8+ 21.5 - 6.2)/(1 – 51.4/100)
    = 84.6%
         Profit Multipliers
    Net Income Before Taxes
    Revenue
   Admissions, volume, controllables held
               1.9873
   Admissions, volume, controllables
    relaxed 1.5732
   Admissions , price
               1.6924
    Cost of Sales
   Catering
               1.1185
   Merchandise
               1.1111
      Profit Multipliers
 Net Income Before Taxes
  Controllable Expenses
 Payroll              1.4794
 Marketing            1.1079
 Admin & General      1.0519
 Maintenance          1.0439
 Operating Supplies   1.0312
 Utilities            1.0615
 Insurance            1.0240

				
DOCUMENT INFO