Given global trends, how should attractions best reinvest in themselves to ensure maximum growth?
Matthew Earnest, Entertainment + Culture Advisors (ECA): Think beyond the ride
As with any business, the focus should be on growing revenue potential. In this context, reinvestment should be considered not just a tool for attendance growth, but also a driver for stronger pricing or other revenue enhancements across the guest experience (food & beverage, retail, etc.). Keeping all revenue opportunities in mind, reinvestment can be defined as new attractions, entertainment and event programming, and premium guest experiences from dining to VIP access.
With this broader perspective, operators do not need to focus exclusively on capital intensive ride development but can also explore other guest experience investments that require less capital but still enhance the property and grow revenue potential. The reinvestment that created The Wizarding World of Harry Potter is instructive in that it included an innovative ride experience as well as Ollivanders Wand Shop and Butter Beer. The result was double-digit growth in attendance and per capita revenue.