OCT GOES OTT! - Welcome to neilmead

www.parkworld-online.comVisit us atBooth 4836ParkWordNovember 2011Hello if you picked up this issue at IAAPA AttractionsExpo in Orlando. Central Florida is home to some ofthe world’s best but priciest theme parks – as high as $85 (plus tax) for oneday at a single Walt Disney World or Universal Orlando venue.Located about an hour away in Winter Haven, Merlin Entertainmentsentered the market last month with Legoland Florida on the former site ofCypress Gardens. Your discount for the out-of-Orlando location? Ten dollars.Adult admission is $75, while children up to the age of 12 – Legoland’s coremarket – pay $65, or rather their parents do.Admission to Legoland’s parks in Europe is generally cheaper, despitehigher rates of tax. As you’ll read in our interview starting on page 40, Merlinchief executive Nick Varney thinks the industry in Europe needs to raise itsprices. Without doing so, he argues, it will never secure the returns needed tomake the investments expected by guests. Even in the US, outgoing CedarFair CEO Dick Kinzel says (see page 38), “At some point, either capitalexpenditure is going to be reduced and/or pricing will increase”. To prove hispoint, Varney has devised an ‘entertainment cost per hour’ (ECPH) analysiscomparing theme parks to other leisure pursuits such as concerts andfootball matches. Broken down like this, parks come out on top every time.Of course the price of stadium concerts and major sporting events hasrocketed in recent years, and families might not take too kindly to theme parksdoing the same, but nevertheless such attractions traditionally operate onmuch lower returns, as many of you reading this will be acutely aware. Toachieve higher prices, Varney believes the industry needs to address negativemedia coverage. You may just find his ECPH figures a useful tool in doing so.Speaking for a moment as a ‘guest’ I do not think overpriced food anddrink or added ‘extras’ like car parking help with a park’s public perception,but they are not uncommon at other destinations either. However, about theworst value you can get at a theme park is by spending most of the dayqueuing for rides and attractions. Were visitors to work out their own ‘costper ride’ analysis on a peak day at some large parks, they might be in for ashock. Which is why November is a perfect time to visit Florida’s fantasticparks!Owen Ralph - EditorVisit us atIAAPABooth 4836Editor Owen Ralph (+44 161 438 2934)parkworld@btopenworld.comNorth American Editor Paul Ruben (+1 585 381 1012)parkw@rochester.rr.comContributors this issue Heather Eichenbaum, Nick Garrod,Marcus Gaines, Gary KyriaziSales Manager Mark Burgess (+44 1622 699124)parkworld@datateam.co.ukPublishing Director Paul Ryderpryder@datateam.co.ukManaging Director Parvez Kayanip.kayani@datateam.co.ukPublication Secretary/ Jennifer York (+44 1622 699109)Subscriptions parkworld@datateam.co.ukHead OfficeNOVEMBER 2011 ISSN: 1462-4796© COPYRIGHT 2011: ALL MATERIALS INTHIS PUBLICATION REMAIN THECOPYRIGHT OF DATATEAM BUSINESSMEDIA AND NO PART OF IT MAY BEREPRODUCED WITHOUT THE WRITTENPERMISSION OF THE PROPRIETORS.A request to insert an advertisement isdeemed to be an acceptance of DatateamBusiness Media Ltd’s conditions of trading,copies of which are available on request.Datateam Business Media LtdLondon Road, Maidstone,Kent, ME16 8LY, UKTel: +44 1622 687031Fax: +44 1622 757646www.datateam.co.ukMember of:NOVEMBER 2011