2014 IAAPA Institute for Attractions Managers Table of Contents

Transcription

2014 IAAPA Institute for Attractions Managers
Table of Contents
Page
1.
Table of Contents
3.
Welcome Letter
5.
Schedule
7.
2014 Faculty List
11. Participants
13. Funworld Park Data and Operating Statistics
33. Attractions Industry Overview
59. Facility Operations in the Attractions Industry
79. Marketing and Public Relations in the Attractions Industry
95. Finance in the Attractions Industry
117. Revenue Operations in the Attractions Industry
147. Leadership in the Attractions Industry
1
March 26, 2014
International
Association of
Amusement Parks
and Attractions
Headquarters
1448 Duke Street
Alexandria, VA 22314, USA
Phone +1 703/836-4800
Fax +1 703/836-6742
www.IAAPA.org
2014 EVENTS
2014 IAAPA Leadership
Conference and Latin America
Networking Event
5 -7 March 2014|
San Francisco, CA
Welcome to the Institute for Attractions Managers!
This promises to be an exciting 2 ½ days for each of you as you learn
from some of the top leaders in the attractions industry. This Institute
provides you the opportunity to enhance and expand upon what you
already know about the core elements needed to become a leader in the
industry. You will explore the fundamental aspects of marketing;
revenue operations; finance; human resources; and safety operations. In
addition you will have the opportunity to network with your peers to
share best practices and learn from one another.
We encourage you to participate fully in this event, ask questions, share
ideas, probe for deeper meaning from the facilitators and challenge each
other in order to gain the most from this experience.
We believe that the knowledge you gain from this experience will help
you continue your journey of becoming a leader in the industry.
Euro Attractions Show
September 23-25, 2014
RAI Exhibition and Convention
Centre in Amsterdam,
The Netherlands
Best wishes and enjoy the program.
Asian Attractions Expo
June 17-20, 2013
China National Convention
Center
Beijing, China
IAAPA Attractions Expo
November 17-21, 2014
Orlando, Florida, USA
Paul Noland
President & CEO
IAAPA
Doug Stagner
Chair, IAAPA Education Committee
Corporate Senior Director, Operations
SeaWorld Parks & Entertainment
3
IAAPA Institute for Attractions Managers
San Antonio 2014 Course Schedule
Day 1
Day 2
Day 3
Location
Hyatt Regency
Location
Hyatt Regency
Location
Hyatt Regency
8:30- 8:45
Course introductions
8:30- 8:45
Class announcements.
8:30- 8:45
Introduction to case-study
8:45 - 10:15
Introduction to the Attractions Industry
10:15 - 10:30
Refresher break
8:45 - 10:45
Financial Management Course
8:45 - 10:45
Group work and Case-study
10:30 - 12:15
Facility Operations and Safety Course
10:45 - 11:00
Refresher break
10:45 - 11:00
Refresher break
12:15 -1:00
Depart to Six Flags Fiesta Texas
11:00 - 1:00
Revenue Operations Course
11:00 - 1:00
Presentation of Case-studies
1:00 - 2:00
Lunch
1:00 -2:00
Lunch
1:00 -2:00
Lunch and Certificates
2:00
Course Concludes
2:00 - 4:00
4:00 - 5:30
5:30 - 7:00
Marketing & PR Course
2:00 - 4:15
HR & Leadership
4:15 - 4:30
Introduction to case-study
4:30 - 6:00
Facility Tour
Ripley's San Antonio Attractions
Facility Tour
Six Flags Fiesta Texas
Welcome Reception & Dinner
5
Institute for Attractions Managers
Faculty Biographies
7
Bob Amoruso has over 35 years of experience in the Amusement industry. He started in 1977 in
the family business, Adventureland Amusement Park on Long Island NY Working in F&B as a front
line employee and gradually working his way through the ranks to
management.
Bob stepped away from the amusement business for a few years to work with TGI Friday's Corp
in various California locations as a GM and Regional Manager. The training received there would
become invaluable throughout his career. Returning back to his family roots on Long Island, he
worked at Splish Splash Water Park as a Director of F&B, AGM and ultimately GM. The early
years at Splish Splash growing the business, and doing whatever needed to be done in the
trenches were great lessons. Splish Splash was bought by Palace Entertainment in 1999, and
more lessons were learned from a corporate standpoint. Returning to Adventureland & family in
2005 brought all the lessons full circle.
Bob Amoruso
Bob's responsibilities include all revenue based operations, F&B, Games, Retail, and Purchasing.
Together our family is growing the business to become an exciting and successful operation for
our future and our guests.
Revenue Operations
2014
With 30 years of experience at the Disneyland Resort in Anaheim, Bret Pfost has gained diverse
Operations Experience, Resort knowledge, Strong Leadership, and Sound Business Sense. In his
current role as a Certified Senior Restaurant Manager at Disney California Adventure, Bret influences a culture of 4 Key Service. (Safety, Courtesy, Show and Efficiency)!
Bret began his career with the Disneyland Resort in 1984 as a Foods Host and has since gone to
hold a variety of senior leadership roles within Attractions Operations, including Food and Beverage, Attractions, and Resort Development for the openings of Disney's California Adventure
and Tokyo Disney Sea. In 2004, Bret became the Site Leader for California in regards to World
Safety and Accessibility for the Walt Disney Company. As the Site Leader for California, he has
enjoyed the opportunity to Audit the Safe practices of Disneyland Paris, Walt Disney World in
Florida, Tokyo Disneyland, Tokyo Disney Sea, and Hong Kong Disneyland. In addition, Bret has
spoken in Rome, Argentina, and Canada in regards to the 4 Keys, Theme Park Management and
Disney Guest Service. He is a senior member of ASQ (American Society of Quality) and a member
of the 2014 IAAPA Food and Beverage Committee.
Breƚ Pfost
Facility Operations & Safety
2014, 2013, 2012, 2011, 2010
Bret resides in Palm Springs, California where he enjoys Sunny Skies, Tennis, Swimming, Golf,
and delightful Restaurants.
Eamon Connor is the Director of Education Programs for the International Association of Amusement Parks and Attractions (IAAPA) where he manages the association’s institute programs,
including the Institute for Attractions Managers; education programs at IAAPA’s trade expos and
the association’s education products. He has twenty years’ experience in education program
development, training, education and project management.
Prior to joining IAAPA he served as a corporate trainer for Office Depot a large office supply
chain based in the United States. Mr. Connor was born in Ireland but lives in Alexandria Virginia
in the USA.
Eamon Connor
Facilitator
2014, 2013, 2012
Jana Evanger has 20 years of experience in the amusement and attractions industry, most of
which within the Human Resources realm. She began her career with Paramount Parks as a Production Assistant with their Design + Entertainment division. She was later promoted multiple
times with Paramount Parks having served as a Corporate Human Resources Supervisor in Charlotte, NC, Manager of Training, Development, & Employee Services at Paramount’s Great America in Santa Clara, CA, and Attraction Director at Star Trek: The Experience at the Las Vegas Hilton.
Jana also briefly worked with Cedar Fair Company as the Vice President and General Manager of
Star Trek: The Experience at the Las Vegas Hilton. In 2007, Jana and her family made the move to
Central Texas having accepted current role of Corporate Director of Human Resources for Schlitterbahn Waterparks & Resorts in New Braunfels, Texas. She has held a Senior Professional in
Human Resources certification since 2003 and Professional in Human Resources Certification in
2001. She is a graduate of Appalachian State University in Boone, North Carolina.
Jana Evanger
She has served as an IAAPA HR Committee member in 2009 and again for 2014. Jana is currently
involved in a Central Texas employer think tank that is exploring solutions to managing millennials.
Human Resources & Leadership
2014
Jeffrey Siebert oversees all aspects of Six Flags Fiesta Texas’ marketing initiatives including advertising, communications and group sales.
Siebert joined Six Flags Fiesta Texas with more than 17 years of amusement and theme park
industry experience most recently as the corporate director of marketing for Schlitterbahn Waterparks and Resorts. Prior to that, he was the Manager of Communications and Guest Experiences for Paramount’s Kings Island and was responsible for creative communication strategies.
Siebert started his career as the Marketing Manager for Americana Amusement Park in 1994.
A graduate of University of Cincinnati, with a degree in Electronic Media, Siebert enjoys amusement parks, movies and spending quality time with his wife, and two children. He is also actively
involved in a number of coaster enthusiast organizations.
Jeffrey Siebert
Marketing & Public Relations
2014
Victor Danau is the Manager of Education Programs for the International Association of Amusement Parks and Attractions (IAAPA) where he helps manage the organization’s training and development programs. Prior to joining IAAPA in 2013, Victor served as the Admissions & Guest
Relations Manager for Six Flags America in Largo, MD. Having started as an intern at the park in
2008, Victor took on multiple roles within the Operations team.
In addition to his park experiences, Victor has attended, developed, and presented courses as
faculty for the AIMS Safety Conference and for International Ride Training’s iROC program. Victor earned his Bachelor of Business Administration from the George Washington University
School of Business and is currently pursuing an MBA from the University of Maryland Robert H
Smith School of Business.
Victor Danau
Finance
2014
9
First Name
Bob
Bret
Eamon
Jana
Jeffrey
Victor
Barbara
Cody
Chris
Matthew
Cal
Joseph
Ann
Naomi
Kyle
Mike
Jeff
Stephanie
Melanie
Yannick
Rochelle
Gregory
Ana Rosa
Rob
Keno
Margaret
Renee
Manuel
Clifford
Josh
Sharon
Yvonne
Crystal
Last Name
Amoruso
Pfost
Connor
Evanger
Siebert
Danau
Ackermann
Acuna
Baker
Bevington
Brim
Brown
Carne
Castillo
Corner
Cruz
Filicko
Forcht
Forde
Gemme
Hammonds
Harris
Hawayek
Kastl
Knieriem
Lynch
McCrady
Morales
Nxomani
Parisher
Parker
Pedigo
Puertas
Email Address
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
Company
Adventureland Amusement Park
Disneyland Resort
IAAPA
Schlitterbahn Waterparks
IAAPA
City of Spokane Parks & Recreation
Wave Garden Hawaii
Six Flags Over Texas
Light Magic
Phillips Entertainment Inc
Calgary Stampede
Canadian National Exhibition
Kennywood Park
SeaWorld of Texas
D-BOX Technologies inc.
Aquatica San Antonio
The Henry Ford
Bowlera
Wave Garden Hawaii
MB Skywheel
CPI Amusement & Pageantry World
Bowlera
National Zoological Gardens
The Buckhorn Saloon & Museum
Ripley's Believe It or Not!
Title
Sr. Director of Revenue Operations
Manager of Food Operations
Director of Certification Programs
Corp Director of Human Resources
Marketing Director
Manager, Education Programs
Training Supervisor
Director of Business Development
Operations Manager
Owner
Guest Services & Security Manager
Games & Attractions Manager
Corporate Alliances Director
Operations Manager
Midway Programming Manager
Operations and Gates Manager
Public Relations Manager
Employment Manager
Manager, Park Operations
Director of Attraction and Professional Gaming
Operations Manager
Manager, Special Programs
General Manager
Culinary Manager
Owner/Founder
supervisor
Creative Director
President
Managing Director
Aquatics/Park Services Manager
Communications Manager
Operations Director/Retail Manager
Manager of Operations
11
First Name
Kristian H.
Debbie
Lenny
David
Patricia
Jeremy
Ruben
Last Name
Rasmussen
Rios-Vanskike
Schelstrate
Smith
Snyder
Underkoffler
Vasquez
Email Address
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
Company
Rogaland Fritidspark AS
San Antonio Zoo
SkyWheel Myrtle Beach
Hershey Park
Ripley's Believe It or Not!
Title
CFO
Marketing & Public Affairs Assistant Manager
Retail Manager
Labor Optimization Manager
General Manager
Manager of Ride Oeprations
Operations Supervisor
Institute for Attraction Managers
Funworld Park:
History, Financial Data and
Operating Characteristics
13
Funworld Park
Overview
MISSION STATEMENT
Funworld Park’s Mission is to make smiles last longer. Funworld Park does this by providing a safe, fun
and secure entertainment experience for guests of all ages.
Core Values
Service
Safety
Entertainment
Value
BACKGROUND
Funworld Park is located in the mid-west close to a major town, with a population of 4.5 million within a 1
hour drive time radius.
OWNERSHIP AND HISTORY
Funworld Park opened in 1994. The Park was built and operated by a local family company who also owned
a camping ground in the area; the Park quickly established itself as a summer day trip destination for the
local area.
Over the next several years, various rides were added to the Park but with no particular strategy or clear
direction. As a consequence the Park failed to attract new customers and began to lose market share. As
running costs increased, profits tumbled and investment suffered. By 2007 the Park had become run down,
and was generally viewed as an unsafe place to bring a family.
At the end of the 2008 season the Park was sold to Big Park Corporation, a US company with headquarters
in Atlanta.
Big Park immediately brought in a professional management team that understood the theme park
business. Six individuals were hired as the nucleus of the new management team (all six had previous
experience with medium sized parks at various locations in the USA.) these new appointments covered the
key management functions of the Park general manager, director of marketing, director of finance, director
of human resources, director of operations and director of food and beverage operations.
The new team quickly put together a short term tactical plan and increased expenditure on capital
improvements and marketing. More importantly, they developed operating and reporting systems and
brought a professional demeanor to the organization. Over the next year, attendance and revenues grew
and operating expenses were brought in line. The overall result was that in 2009 Funworld Park, for the first
time, started to show a positive cash flow.
The new management team realized that the park had tremendous potential; however, a significant
investment would have to be made if the Park was ever going to reach beyond its current year-to-year
approach. They realized that the park, at its current level, wasn't attractive enough to make people want to
come and to compete with the larger parks and other attractions within a 2 hour drive time. Major capital
investment was therefore needed to bring in the big rides and improve the infrastructure. Fortunately the
Big Park Board of Directors had the vision and foresight to think long-term and was willing to make the large
financial commitment that was necessary.
After much study and debate the Big Park Corporation Board approved capital expenditures of $2.6 million
for 2010, $5.4 million for 2011, $1.3m for 2012 and $1.0m for 2013 as well as significant increases to the
marketing budget.
Although a gamble at the time, the net result of these decisions was the record results of the past three
years.
15
Funworld Park Capital Expenditure History
In the theme park industry there are two types of capital expenditure:
Maintenance capital – (or asset preservation) the capital required to maintain the rides, attractions and
general infrastructure of Park to the correct standard and would not therefore attract additional attendees.
As an example: the demolition of an old toilet block and the building of a new facility.
Marketable Capital – capital that will drive (incremental) attendance to the Park. As an example: the
installation of a new ride.
2010
In 2010 the Park purchased a Huss Top Spin in order to add to its Thrill ride collection and a Zamperla
Flying Carousel to add to the Family ride collection. In addition it undertook a refurbishment of its kiddie
collection. The general theme of this capital year was “Something new for everyone”. The total expenditure
was $2.6 million.
2011
Based on the success of the 2010 capital plan a new marketing theme was developed for the next season.
The tag line became, “Funworld, coolest place on the planet” The headline attractions for this effort was the
addition of a river rapids ride and a refurbishment of the log flume. This theme was also extended into the
group sales area where the Park improved the picnic grounds and enhanced the menu options in order to
boost sales. Games also saw an upgrade with improvements in the lineup games and the addition of water
pistols on both of the water attractions. Total cost $5.4 million
2012
With ride capacity now at a good level the Park turned its focus to quality improvements on existing features
of the Park. The budget of $1.3 million was used to upgrade 3 rides, one food facility, and one retail outlet.
The idea was to take 2012 as an off capital year and to come back in 2013 with another major addition. The
marketing theme for the year was, “Fresh Family Fun”.
2013
With concerns growing about the general state of the economy throughout the 2012 season plans for a new
attraction were put on hold. Capital of $1million was allocated for the Park but the intent was on improving
general productivity and reducing costs in order to improve margins. Projects for this year included
replacement of older F&B equipment such as walk in freezers which were not energy efficient, new broilers
which replaced flat top grills and a new admissions ticketing system that allowed the Park to sell tickets on
line as well as speed up transaction time at the gate. The tag line for the year was focused on driving the
message of value, “Smiles cost less at Funworld Park”.
Year
2010
Capital
Expenditure $
$2.6 million
2011
2012
2013
$5.4 million
$1.3 million
$1.0 million
Notes
Addition of Top Spin, Flying Carousel and improvements to kiddie ride
area
Addition of River Rapids and improvements to picnic and games areas
Upgrade to food, Retail and Ride areas
Back of House improvements to F&B areas and IT support.
FUNWORLD PARK ORGANIZATIONAL CHART
17
FUNWORLD PARK KEY DATA
The Park is situated on 50 hectares with a further 10 hectares available for purchase adjacent to the
property. The Park’s operating characteristics can be summarized as follows:
Funworld Operating Characteristics
2013
Size
Operating Days
Opening times
Operating Hours
123 acres
126
10am-6pm
1,008
Annual Attendance
Average attendance per day
753,000
5,976
Annual Revenue
EBITDA
Price (Rack rate)
$
$
14,234,930
3,822,566
$18
# Full time Employees
# Seasonal Employee (peak)
# Rides
# Food and Beverage Outlets
# Retail Outlets
# Games
47
373
25
7 plus 12 carts
5
22
COMPETITORS
Magic Park with an annual attendance of 3.2 million is located one hour drive south of Funworld Park with a
number of smaller family parks, shopping malls and FEC’s also in the area.
MARKETING PROFILE
The marketing strategy had been two pronged. First, the Park needed to attract new customers from the
local market. These were people who had never been to Funworld Park before but lived within an hour to an
hour and a half drive away. Secondly it was felt that it was critical to get people to come back again and
again during the season.
Since the area of dominate influence for Funworld, as measured by the local TV stations, was only 250,000,
and since Funworld was clearly not a destination resort it was felt that this approach was the best, and so
far it had been working surveys showed that 65 percent of the Park's guests came from within a 50 m
radius, 20 percent from a 50 to 100 m radius, and 15 percent from more than 100 m away.
A major challenge to Funworld Park is Magic Park, the 5th most visited park in the US, which is located a 60
min drive away. However, Magic Park being a destination park was attracting guests from a much wider
area and did not specifically focus on the local market. The only other competition was a number of smaller,
local attractions (family entertainment centers, petting zoos, etc.) in the local area.
The strategy for getting people to come for the first time was to make them aware of what Funworld Park
was and to offer discounted admission to entice them to make that all important first visit. Awareness had
been created by significantly increasing media spend. The budget had almost doubled in the past several
years, and by developing a series of corporate sponsorships. Both tactics were designed to have people
aware of what Funworld Park was and to have the name repeated over and over "If the public is continually
blitzed with the words 'Funworld Park,' eventually they are going to come and see what it's all about!"
In order to build repeat business, a series of promotions were developed in order to get people to come
back again at different times. Some of the promotions and special events that had become successful were:
special teen nights, evening concerts in the summer months, fireworks, special kids’ festivals, a month long
local food festival, and a two-week Halloween promotion. All of these events had had a positive impact and
had boosted attendance compared to those times when special events were not planned. The Park used
an advertising agency, a media buying service and a public relations firm and was generally pleased with
the job that these companies were doing.
A key element of the marketing strategy was to develop the Park website and upgraded the service to
enable guests to purchase admission passes on line. All advertising media now contains the website
address and customers are encouraged to visit the website to obtain discounts and information about the
Park. The marketing department would like to offer a bigger discount on admission tickets to drive more
customers to the website and increase internet sales as they believe that internet sales benefit the Park as
the customer has paid in advance for admission and is therefore likely to have a higher secondary spend on
the day of the visit. Also guests have to register in order to purchase tickets enabling their personnel data
to be captured and used for marketing purposes.
The marketing department is currently researching the use of social and mobile media applications as
marketing and customer relationship management tools.
ADVERTISING BUDGET (2011-2013 ACTUAL)
(000's)
Television
Radio
Print
Outdoor
Internet and social media
ACTUAL
2013
$ 465
$ 290
$ 130
$ 130
$ 155
ACTUAL
2012
$ 420
$ 260
$ 110
$ 100
$ 125
TOTAL
$ 1,170
$ 1,015
ACTUAL
2011
$ 390
$ 240
$
90
$
90
$ 100
$
910
%
39.74%
24.79%
11.11%
11.11%
13.25%
100.00%
MARKETING CHARACTERISTICS
Target Market Profile
Primary Market:
Local area
Distance
Park
0 – 100 km
Secondary Market:
100 plus km
Tourists and “Drive in”
market
from
Tactics
Season Pass
Early Bird Specials
Group Sales (Picnic, etc.)
Promotions
Convention and Visitors’ Bureau
cross promotions
19
DEMOGRAPHICS
SOCIO ECONOMIC
Market researchers divide the population into 6 socio-economic groups or social grades, which are based
on the occupation, or job, of the head of a household. These grades give some idea of a household’s
income and how it might be spent.
They are:
A
Higher managerial, administrative, professional e.g. Chief executive, senior civil servant, surgeon
B
Intermediate managerial, administrative, professional e.g. bank manager, teacher
C1
Supervisory, clerical, junior managerial e.g. shop floor supervisor, bank clerk, sales person
C2
Skilled manual workers e.g. electrician, carpenter
D
Semi-skilled and unskilled manual workers e.g. assembly line worker, refuse collector, messenger
E
Casual laborers, pensioners, unemployed e.g. pensioners without private pensions and anyone living
on basic benefits
The table below shows these groups as a percentage of total attendees
Funworld Park Age Structure
It is also useful to understand the age profile of visitors to the Park
Funworld Park Market by Travel Distance (catchment area)
FUN
WORLD!!
65% <50M
20%
<100M
15% >
100M
21
REVENUE PROFILE
The Food and Beverage director has responsibility for non-gated revenue operations. This includes food
outlets, retail operations, and the games midway. The Park also earns a small amount of revenue from
parking.
RETAIL OPERATIONS
Funworld Park has five retail outlets: 2 gift stores at ride exits, a general store, and 2 T shirt stores.
Summary of Retail
Operations
2013
# Employees
33
REVENUES
$1,091,850
EXPENSES
PER CAPS
2012
PER CAPS
33
$
1.45
$1,022,000
% Revenue
$
1.40
% Revenue
COST OF SALES
WAGES
OTHER
TOTAL EXPENSES
$ 491,333
$ 295,884
$ 10,919
$ 798,135
45.00%
19.00%
1.00%
73.10%
$ 480,340
$ 288,667
$ 12,264
$ 781,271
47.00%
20.00%
1.20%
76.45%
Retail #
Size (ft²)
sales / ft² /
day
Sales per
shop per
day
Number
of Staff
# 1 Gift Store at ride
# 2 Gift Store at ride
# 3 T shirt
# 4 T shirt
# 5 General Store /
Emporium
183
152
122
122
6.2
3.6
6.9
8.0
1,125
548
836
976
2
2
2
2
518
10.0
5,180
2
Total ft²/ avg. sale.pr ft²
1,097
7.9
8,665
Sales per year
1,091,850
SV
1
TL
1
Breakers
2
14
Av. Per
Shop
2.80
FOOD AND BEVERAGE OPERATIONS
The Park operates 7 outlets, 12 carts and a small catering operation and had an annual turnover of $2.5
million in 2013. The Park has been attempting to increase its amount of group business. In order to help
with this sales effort the team developed a series of menus that offered several options for complete meals
at different price levels.
Groups were able to select a meal in their price range and then eat their meal together in one of the five
themed pavilions in the picnic area adjacent to the park. The picnic area offered a total seating capacity of
700 people. The catered meals in the picnic area had an average check of almost $11.00 and had been
well received by the guests. More importantly, the service and quality had made it easier for the marketing
department to sell group business.
The Park has also experimented with locally produced food promotions and a weeklong local food festival
Summary of F&B Operations
2013
PER CAPS
# Employees
119
REVENUES
$2,635,500
2012
PER CAPS
119
EXPENSES
$
3.50
$2,416,300
% Revenue
$
3.31
% Revenue
COST OF SALES
$ 856,538
32.50%
$ 797,379
33.00%
WAGES
$ 778,968
29.56%
$ 759,969
31.45%
OTHER
$ 100,149
3.80%
$
96,652
4.00%
TOTAL EXPENSES
$1,735,655
65.86%
$1,654,000
68.45%
OPERATING PROFIT
$ 899,846
34.14%
$ 762,300
31.55%
Restaurant
Number
of
Seats
Average Check
$ (3 peers)
Number
of Staff
# 1 sit down table service
# 2 sit down table service
# 3 sit down fast food
# 4 sit down fast food
# 5 walk up pizza, etc.
85
70
30
60
30
30
20
17.95
18.75
14.75
13.5
13.2
10.25
5.95
10
10
6
10
3
3
3
Average Check size
13.48
In addition to the restaurants, there are 12 food stands
(with no seating). The average check at these food
stands is $4.25.
SV
TL
Breakers
Av. Per Outlet
12
2
4
6
69
3.63
23
GAMES OPERATION
The games operation is overseen by the Retail and Games Operations Manager. The Park has a total of 22
midway style games in two locations.
Summary Of Games
Operations
2013
# Employees
40
REVENUES
$ 993,960
PER CAPS
2012
40
$
1.32
$ 941,700
% Revenue
EXPENSES
PER CAPS
$
1.29
% Revenue
COST OF SALES
WAGES
OTHER
TOTAL EXPENSES
$ 253,460
$ 223,386
$ 19,879
$ 496,725
25.50%
22.47%
2.00%
49.97%
$ 254,259
$ 217,938
$
9,417
$ 481,614
27.00%
23.14%
1.00%
51.14%
OPERATING PROFIT
$ 497,235
50.03%
$ 460,086
48.86%
HUMAN RESOURCES PROFILE
Funworld Park employs over 373 seasonal employees. Wages and salaries are the biggest single operating
expense at the park accounting for 30% of the total.
2013 Funworld Staffing Data
Department
Rides
Food Service
Retail
Games
Front Gate
Cleaning
Security
First Aid
Parking
Maintenance
Finance
Cash Control
Receptionist
General Manager
Human
Resources
Marketing
TOTAL
Budget Staff
% total
Permanent
Seasonal
Total
2
3
3
1
0
1
3
0
89.5
119.4
32.7
40.0
32.7
25.4
10.4
5.2
7.8
6.2
-
91.5
122.4
35.7
41.0
32.7
26.4
13.4
5.2
7.8
20.0
4.0
6.2
1.0
1.0
21.8%
29.1%
8.5%
9.8%
7.8%
6.3%
3.2%
1.2%
1.9%
4.8%
1.0%
1.5%
0.2%
0.2%
2
3.9
5.9
1.4%
6
47.0
373.2
6.0
420.2
1.4%
100.0%
20
4
0
1
1
25
TOTAL APPLICATIONS YEAR-TO-DATE:
1,899
No 15-17 year olds.
30% of staff is over 21 years old.
The HR department is responsible for the following functions:
All employee recruitment and hiring functions (background checks, tests, etc.)
Pay roll issues
General employee training including:
o orientation,
o guest services,
o general safety
Employee termination issues
Supervisory Level Training
Individual departments are responsible for on the job training in job specific functions as well as scheduling
and day to day supervision.
THE HR CHALLENGE
The Department faces a number of big challenges;
Employee Retention
Management Development
Customer Service
EMPLOYEE RETENTION AND MOTIVATION
Employee turnover was over 30% in 2013 resulting in the park actually hiring 492 employees during the
operating season.
The Park has invested heavily in recruitment programs including the following:
On line application at Funworldpark.net, the park’s web site
High school visits
Jobs Fair
The relatively high turnover of employees and the resulting cost in terms of training and loss of experienced
staff has led to a Park wide focus on retention.
The Park now employs a number of different programs to both retain seasonal employees through the
season and to motivate employees on the job.
Employees who stay beyond August 14 are paid 1 extra $ per hour.
The Park has established a number of discount programs with local movie theater and outlets for
employees.
The Park uses an awards Program, “The Oscars”, to reward employees who provide excellent or
superior customer service. Supervisory level employees and departmental management operate this
program.
The Park offers regular party nights for employees
The Park operate an employee of the week / month program
Employee can bring family and friends to Park (restrictions apply)
MANAGEMENT DEVELOPMENT
A second challenge that the Park faces is to develop a strong group of supervisory level employees. The
Park has created a Leadership Academy that all supervisory level employees must participate in.
CUSTOMER SERVICE
A further challenge is for HR and operations to work together to ensure that staff deliver a high quality
service to guests. The quality of the service is measured using customer feedback surveys and mystery
shopper reports
27
FINANCE PROFILE
Funworld Profit & Loss (EBITDA)
2013
ACTUALS
ATTENDANCE $
CAPITAL IMPROVEMENTS $
REVENUES
TICKETS
ATTRACTIONS
FOOD
RETAIL
GAMES
PARKING
LESSEE/OTHER
SPONSORSHIP
INTEREST & OTHER INCOME
TOTAL REVENUES
EXPENSES
SALARIES/WAGES (INCL
TAXES)
MARKETING
TRAVEL / ENTERTAINMENT
EQUIPMENT RENTAL
OUTSIDE SERVICES
REPAIRS & MAINT
OPERATING SUPPLIES
UTILITIES
INSURANCE
PROPERTY & OTHER TAXES
TOTAL EXPENSES
EBITDA
EBITDA per day
2012
%
753,000
1,000,000
$ 8,515,000
$
150,600
$ 2,635,500
$ 1,091,850
$
993,960
$
301,200
$
195,780
$
291,040
$
60,000
$ 14,234,930
ACTUALS
$
$ 11.31
$ 0.20
$ 3.50
$ 1.45
$ 1.32
$ 0.40
$ 0.26
$ 0.39
$ 0.08
$ 18.90
60%
1%
19%
8%
7%
2%
1%
2%
0%
100%
PER
CAPS
%
$ 10.95
$ 0.18
$ 3.31
$ 1.40
$ 1.29
$ 0.37
$ 0.26
$ 0.39
$ 0.08
$ 18.22
60%
1%
18%
8%
7%
2%
1%
2%
0%
100%
730,000
1,300,000
$ 7,992,500
$
131,400
$ 2,416,300
$ 1,022,000
$
941,700
$
270,100
$
189,800
$
281,336
$
57,999
$ 13,303,135
% Rev.
COST OF SALES
FOOD
RETAIL
GAMES
TOTAL COST OF SALES
PER
CAPS
% Rev.
$
$
$
$
856,538
491,333
253,460
1,601,330
33%
45%
26%
$
$
$
$
797,379
480,340
254,259
1,531,978
33%
47%
27%
$
4,379,353
30.76%
$
4,272,540
32.12%
$
$
$
$
$
$
$
$
$
$
1,170,000
54,750
73,000
693,500
800,000
708,100
650,000
210,000
72,331
8,811,034
8.22%
0.38%
0.51%
4.87%
5.62%
4.97%
4.57%
1.48%
0.51%
61.90%
$
$
$
$
$
$
$
$
$
$
1,015,000
51,100
73,000
671,600
605,900
693,500
600,000
200,000
58,400
8,241,040
7.63%
0.38%
0.55%
5.05%
4.55%
5.21%
4.51%
1.50%
0.44%
61.95%
$3,822,566
$
30,338
26.85%
$3,530,117 26.54%
$
28,017
`
2013
Category
Price
Unit
sales
2012
Revenue
Attendance
Price
Unit
sales
Revenue
Attendance
Main Gate
Adult
$18.00 100,000
$1,800,000
100,000
$17.50 85,000
$1,487,500
85,000
Child
$13.50 80,000
$1,080,000
80,000
$13.00 75,000
$ 975,000
75,000
Senior/Handicap
$13.50 10,000
$ 135,000
10,000
$13.00 10,000
$ 130,000
10,000
$12.50 100,000
$1,250,000
100,000
$12.00 100,000
$1,200,000
100,000
$12.00 135,000
$1,620,000
135,000
$12.00 135,000
$1,620,000
135,000
Picnics
$11.00 50,000
$ 550,000
50,000
$11.00 50,000
$ 550,000
50,000
Outings
$10.50 25,000
$ 262,500
25,000
$10.50 25,000
$ 262,500
25,000
Discount Tickets
$12.00 100,000
$1,200,000
100,000
$11.50 100,000
$1,150,000
100,000
Individual
$40.00 10,000
$ 400,000
60,000
$40.00 10,000
$ 400,000
60,000
Early Bird
$30.00
6,000
$ 180,000
48,000
$30.00
6,000
$ 180,000
45,000
After 2:00 pm
$15.00
2,500
$
20,000
$15.00
2,500
$
15,000
Promotions:
Coupons
Family of 4 (2
adults +2 children)
Group Sales:
Season Pass:
Complementary
Total
Total Per caps
Yield
-
25,000
643,500
$
37,500
-
$8,515,000
$
11.31
62.82%
25,000
753,000
-
30,000
628,500
$
37,500
-
$7,992,500
30,000
730,000
$
10.95
62.56%
29
Funworld Ride Package
2013
Capacity per Hour # Operators
Thrill Rides
River Rapids Ride
Wooden Roller Coaster
Steel Loop Coaster
Giant Ferris Wheel
Falling Star Ride
Huss Top Spin
Log Flume
Frog Hopper
8
1,000
520
840
1,200
480
880
1,000
90
6,010
Family Rides
Perimeter Railroad Train
Carousel
Zamperla Flyer
Scrambler _
Wet/Dry Slide
Bumper Cars
YoYo
Antique Gas Cars
Himalaya
Musik Express
Dark Ride
11
600
400
520
520
300
700
640
600
450
800
400
5,930
1
1
1
1
1
1
1
1
1
1
1
11
Kiddie Rides
Kid Roller Coaster
Kid Swing Ride
Red Baron
Bumper Boats
Venture Canoe Ride
Kiddie Driver School
6
540
300
540
300
360
360
2,400
1
1
1
1
1
1
6
25
Supervisors
Teamleader
Breakers
14,340
3
2
2
3
1
1
2
1
15
32
3
5
6
14
46
31
IAAPA
Introduction to the Attractions
Industry
Operations
and Safety
Revenue
Operations
Marketing
Finance
Leadership
33
IAAPA
Industry
Operations
and Safety
Revenue
Operations
Marketing
Finance
Leadership
Program Goals
• To develop skills necessary to become a senior member
of a management team
• To demonstrate an understanding of the complexities
involved in business development and expansion in the
industry
• To explore different issues and challenges facing people
in the industry
35
Program Goals
• To apply critical leadership skills such as
communication, decision-making, consensus-building,
networking and negotiation
• To learn independently and cooperatively within groups
to achieve success
Objectives
Participants will:
Make decisions based on information provided
Define elements of five core content areas:
•
•
•
•
•
Finance,
Marketing,
Revenue Operations,
Leadership, and
Safety
Share insight into best practices in the industry
Construct a personal plan of action
International Association of
Amusement Parks and Attractions
IAAPA is made up of more than 4,000
members in 90 countries and work
through a series of volunteer
committees to provide services in four
areas:
 Conference, exhibitions and meetings
 Education, professional development,
and training
 Communications and media relations
 Government relations and safety
International Association of
Amusement Parks and Attractions
IAAPA was formed more than 90 years ago for
professionals who own, manage and
operate:








Amusement parks
Theme parks
Waterparks
Family entertainment centers
Zoos and aquariums
Museums
Attractions
Manufacturers and suppliers that serve them
37
Education and Professional Development
• Expo Conference
Programs
• Executive Education
Programs
• Webinars
• Safety Institutes
• Certification
Some House Keeping Rules
Timeliness
Be on time; stay on time (presenters)
Pay Attention
Turn off cell phones, smart phones, etc
Take Breaks
Refresher break every hour (or so)
Ask Questions
No stupid questions, other may have the same question
Resources
Use presenters as a resource
Who R U?
Attractions Industry: An Overview Pt 1
39
What is the attractions industry?
•
•
•
•
What?
Why?
How?
Oh No!
• What type of attractions?
• Why do people go to attractions?
• How drive attendance to
attractions?
• Oh No! What are barriers to
attendance?
41
The Attractions Experience Matrix
High Adrenaline
Passive
Active
Low Adrenaline
The Attractions Industry: Today
• There are more than 400 amusement parks and traditional
attractions in the United States alone.
• In 2012, amusement parks in the United States entertained
300 million visitors who safely enjoyed more that 1.7 billion
“rides.”
• There are approximately 300 amusement parks in Europe.
• The Magic Kingdom at Walt Disney World in Florida, USA,
was the most visited amusement park in the world in 2012.
• The most visited amusement park outside of the United
States was Tokyo Disneyland.
• According to the publication Amusement Business, four
of the world’s top ten most visited amusement parks
are in Asia. One of the top ten parks is in Europe and
the remaining top ten most visited parks are in the
United States.
• Amusement parks and attractions in the United States
generated $12.0 billion in revenues in 2007.
• Family Entertainment Centers (FECs) host an average of
381,000 guests annually, with the larger facilities
hosting up to 622,000 guests annually.
43
• FECs also experience comparatively high levels of
repeat visitation—more than three visits per season.
• The United States amusement park industry provides
jobs for approximately 670,000 year-round and
seasonal employees.
• According to an IAAPA survey, 28 percent of Americans
surveyed visited an amusement park last year, with 50
percent of Americans indicating that they plan to visit
an amusement park within the next 12 months
Industry Resources
TEA attendance Survey
http://www.teaconnect.org/
Benchmark Studies:
http://www.iaapa.org/resources/by-type/research-papers
IAAPA Foundation Economic Impact Study
Global Themepark Revenues (2007)
Region 2007 Rev
US $m 2012 Rev
Projected %
USA $11,990 49.85%
$14,538
47.35%
Europe
$4,946
20.56%
$6,828
23.24%
Asia Pacific
$6,367
26.47%
$8,419
27.42%
Latin America $261
1.09%
$328
1.07%
Canada $487
2.02%
$588
1.92%
$30,701
100.00%
Total
%
$24,051 100.00%
*PWC Global Entertainment and Media Outlook 2008 - 2012
The Theme Park Industry by Attendance (2012)
205.9 million
Total theme park attendance for top 25 worldwide parks
131.6 million
Total visits to the top 20 parks in North America
58.0 million
Attendance for the top 20 European parks
109.0 million
Total visits to the top 15 Asian parks
13.2 million
Attendance to top 10 parks in Mexico and Latin America
25.1 million
Top 20 worldwide waterparks attendance
15.4 million
Total visitation to top 20 waterparks in US
2012 TEA/AECOM Report
45
Global Themepark Attendance (2012)
Rank
PARK , location
% change
2012
2011
17,536,000
17,142,000
1
MAGIC KINGDOM at Walt Disney World, Lake Buena Vista,
Florida
2.30%
2
DISNEYLAND Anaheim, California
-1.10%
15,963,000
16,140,000
3
TOKYO DISNEYLAND Tokyo, Japan
8.50%
14,847,000
13,683,000
4
TOKYO DISNEY SEA Tokyo, Japan
8.50%
12,656,000
11,664,000
5
DISNEYLAND PARK AT DISNEYLAND PARIS Marne-La-Vallée,
France
1.90%
11,200,000
10,990,000
6
EPCOT at Walt Disney World, Lake Buena Vista, Florida
2.20%
11,063,000
10,825,000
7
DISNEY'S ANIMAL KINGDOM at Walt Disney World, Lake
Buena Vista, Florida
2.20%
9,998,000
9,783,000
8
DISNEY'S HOLLYWOOD STUDIOS at Walt Disney World, Lake
Buena Vista, Florida
2.20%
9,912,000
9,699,00
9
UNIVERSAL STUDIOS JAPAN Osaka, Japan
14.10%
9,700,000
8,500,000
10
ISLANDS OF ADVENTURE at Universal Orlando, Florida
4.00%
7,981,000
7,674,000
Source AECOM / TEA 2012 Theme Index
Top Ten Global Themepark Groups Worlwide (2012)
PARK , location % change 2012
2011
4.70%
126,479,
000
121,821,
000
16.40%
54,000,0
00
46,400,0
00
7.90%
34,515,0
00
31,990,0
00
27,130,0
00
25,750,0
00
26,220,0
00
24,300,0
00
3.00%
24,310,0
00
23,600,0
00
0.90%
23,600,0
00
23,400,0
00
23,359,0
00
9,400,00
0
9,300,00
0
21,731,0
00
7,550,00
0
9,210,00
0
1
WALT DISNEY ATTRACTIONS 4.7% 126,479,000 121,821,000
2
MERLIN ENTERTAINMENTS GROUP 16.4% 54,000,000 46,400,000
3
4
UNIVERSAL STUDIOS RECRE ATION GROUP 7.9% 34,515,000 31,990,000
PARQUES REUNIDOS 3.5% 27,130,000 26,220,000
5
SIX FLAGS INC. 6.0% 25,750,000 24,300,000
6.00%
6
SEAWORLD PARKS & ENTERTAINMENT 3.0% 24,310,000 23,600,000
7
8
CEDAR FAIR ENTERTAINMENT COMPANY 0.9% 23,600,000 23,400,000
OCT PARKS CHINA 7.5% 23,359,000 21,731,000
9
HAICHANG GROUP 24.5% 9,400,000 7,550,000
10 COMPAGNIE DES ALPES 1.0% 9,300,000 9,210,000
Source AECOM / TEA 2012 Theme Index
3.50%
7.50%
24.50%
1.00%
Top 20 water park worldwide 2011
2012 Attendance #
Waterpark 1
TYPHOON LAGOON AT DISNEY WORLD,
2,100,000
2
CHIMELONG WATER PARK,
2,021,000
3
BLIZZARD BEACH AT DISNEY WORLD,
1,929,000
4
OCEAN WORLD,
1,720,000
5
AQUATICA, Orlando, FL, U.S.A.
1,538,000
6
CARIBBEAN BAY AT EVERLAND
1,508,000
7
AQUAVENTURE, Dubai, U.A.E.
1,300,000
8
WET 'N WILD, Orlando, FL, U.S.A.
1,247,000
9
WET 'N WILD , GOLD COAST
1,200,000
10
SUNWAY LAGOON, KL MALAYSIA
1,200,00
Sources: Economics Research Associates, Themed Entertainment Association (2011)
Finance
25
Top 20 water park worldwide 2011
#
Waterpark 11
12
13
14
15
16
17
18
19
20
RESOM SPA CASTLE, S. Korea
SCHLITTERBAHN,
ATLANTIS WATER ADVENTURES
SUMMERLAND, Tokyo, Japan
HAPPY MAGIC WATER CUBE,
THE JUNGLE WATER ADVENTURE,
WILD WADI, Dubai, U.A.E.
BEACH PARK, Aquiraz, Brazil
SIAM WATERPARK, Tenerife, Spain
OCEAN PARK WATER ADVENTURE, Jakarta,
2011 Attendance 1,158,000
1,017,000
1,000,000
990,000
968,000
951,000
860,000
843,000
800,000
750,000
Sources: Economics Research Associates, Themed Entertainment Association (2011)
Finance
26
47
Economic Impact of European Themeparks
Summary of Economic Impacts
• Total economic impact €8.6bn
• Total visitor attendance 145.5m
• Total revenues €4.3bn
• Total wages paid €1.3bn
• Expenditure on capex within Europe €371.9m
• Total direct employment (FTEs) 47,590
• Total tax contribution €713.6
Source: IAAPA Economic Impact Study 2009
Economic Overview of US Attractions
• Total # attractions
30,000
• Total revenues
$34 bn
• Total direct employment (FTEs)
1,275,000
• Total employment (FTEs)
2,313,000
• Total wages paid
$11.1 bn
• Expenditure on capex
$5 bn
• Total tax contribution (State & Federal)
$41.1bn
• Total economic impact
$219 bn
Economic Overview of US Amusement Parks
• Total economic impact
$95 bn
• Total visitor attendance
300 m
• Total revenues
$12.9bn
• Total wages paid
$4.9bn
• Expenditure on capex
$2.5 bn
• Total direct employment (FTEs)
675,000
• Total indirect employment (FTEs)
392,000
• Total tax contribution
€17.9 bn
• Total # parks
382
Employment in Attractions v’s Other Industries
Industry Attractions industry*
Computer and electronics manuf. Machinery manufacturing Telecommunications Chemical manufacturing Oil and gas extraction Motor vehicles and parts manuf. Jobs
1,275,051
1,125,400
1,101,200
1,024,100
803,700
783,800
731,700
* Direct job impact attributable to the US attractions industry
49
Economic Impact by Category (Sales)
Industry Amusement/Theme Parks Museums
Family Entertainment Centers
Zoos, Aquariums, Botanical Gardens
Water Parks
Historical Sites
Nature Parks
Sales $bn
$13.0
$8.2
$7.6
$2.5
$1.2 $0.8
$0.6
Economic Impact by Category (Employment)
Industry Direct Employment Amusement/Theme Parks 695,241
Museums
257,966
Family Entertainment Centers
163,291
Zoos, Aquariums, Botanical Gardens 68,527 Water Parks
57,207 Historical Sites
20,630 Nature Parks
12,190 Total
1,275,052
* Direct job impact attributable to the US attractions industry
Attraction Type
Water Parks Amusement/Theme Parks Amusement Parks & Water Parks #’s in USA
143 382 525
Amusement Arcades Bowling Centers Roller/Ice Skating Rinks Miniature Golf Courses Coin‐Operated Amusement Devices Concession Operators 7,383 4,293 1,282 1,125 1,707 573 7,
Family Entertainment Centers Museums Historical Sites Zoos, Aquariums,& Botanical Gardens
Nature Parks Total 16,363
4,851 3,712 2,809 1,562 29,822 Source: IAAPA Economic Impact Study 2012
What will Attractions be like in 2020?
51
Attractions of Tomorrow
Trends and Tendencies
Mature market
Higher expectations (Technology)
Consolidation
Building destinations
Hybrids
Branding rules
Changed demographics
Trends and Tendencies
Mature market
Consolidation
Hybrids
Branding rules
Consolidation !
53
Mature market
Consolidation
Hybrids
Brand Sense
Hybrid Destinations
Mature market
Consolidation
Hybrids
Brand Sense
Brand Sense
Mature market
Consolidation
Hybrids
Brand Sense
Changing Demographics
Mature market
Consolidation
Hybrids
Brand Sense
55
Fun World Park
Park Characteristics:
•
•
•
•
•
•
•
Small Regional Park in middle of US
50 Acres in size
Annual Attendance 753,000
Operating Days 126
Annual Revenues (2013) US$14 million
Operating Profit US$ 3.8 million
Ticket Price US$18.00
Fun World Park
Park Characteristics cont’d:
•
•
•
•
•
•
# Full time Employees
# Seasonal Employee (2011 peak)
# Rides
# Food an Beverage Outlets
# Retail Outlets
# Games
47
373
25
7 plus 12 carts
5
22
Group Activity
• Imagine that you are the new General Manager of
the park
• It is the end of you first day on the job.
• What are the park’s positive aspects?
• What are the park’s negative aspects?
• What can you improve?
• What must you change?
• Give reason for your answers.
57
Reflect and Share IAAPA
Industry
Operations
and Safety
Revenue
Operations
Marketing
Finance
Leadership
IAAPA
Photo credit: [name to be inserted]
Facility Operations and Safety
Operations
and Safety
Revenue
Operations
Marketing
Finance
Leadership
59
Facility Safety Operations
Risk Management Systematic Training
Bret Pfost
Senior Manager
Disneyland Resort
[email protected]
Operations
and Safety
Today’s Agenda-Operations-Safety/Training
• Introductions/Safety 1st
• Discuss Attractions Industry standards
• Risk Management Theory/Risk Management Exercise
• How to Build, Manage and Evaluate Systematic Training
Operations
and Safety
61
WELCOME
• Name
• Occupation
• What does your Safety Culture look like now and what do
you want it to look like in the future?
Operations
and Safety
Safety FIRST
• Walt Disney’s 4 KEYS to unlocking the Magic:
• Safety
• Courtesy
• Show
• Efficiency
• Building a Safety Culture requires a plan + process =
preparedness
Operations
and Safety
Industry Overview
• How safe is the attractions industry?
 The attractions industry is safer than
most other forms of recreation
 Injury risk rates* for a variety of sports and recreation:
• Football: 864
• Table tennis: 14
• Volleyball: 273
• Bowling: 39
• Fixed-site amusement rides: 8
 In 2005, over 300 million guests visited U.S. amusement
facilities; of the
Sources: NSGA, CPSC, IAAPA, Heiden Associates
total 1,713 ride-related injuries, only 132 required overnight hospital
treatment
* Injuries per million activity participant days
Source: National Safety Council Research and Statistical Services Group:
“Fixed-Site Amusement Ride Injury Survey,” 2005 Update
Operations
and Safety
5
Industry Overview (cont’d)
• How safe is the attractions industry? (cont’d)
 Regulation of the U.S. attractions industry
• Federal: OSHA
• State level: varies by state
– 44 of 50 states have amusement ride regulations – 27 states base
regulations on ASTM F24
– Other areas regulated include energy use, environmental (waste and
grease disposal, stormwater runoff, noise), etc.
• Local sanitation and safety inspections
 Global regulation
• National laws and regulations in India, China, Japan
• Local regulations and ordinances in Hong Kong and Paris, France
Operations
and Safety
6
63
• How safe is the attractions industry? (cont’d)
 IAAPA ride incident reporting system
• Ride safety results, first released in 2003 and continuing each year,
reinforce the industry’s focus on safety
 ASTM’s F2291 world
standard for ride design has
been adopted by most parks
 Most parks participate in safety programs
• ServSafe® Food Safety training/certification
• Lockout/Tagout (LOTO) – OSHA
standard for control of hazardous
energy release
Operations
and Safety
7
Industry Approach to Safety
• Industry approach to safety
 Industry mission statement – Focus on safety
• Works to align all employees with good safety practices
 Safety awareness at all levels:
• Owner
• Management
• Employees
• Guests
• Manufacturers
Employee
Safety
Operations
and Safety
Guest
8
Risks and Safety management in an attraction park (1/3)
Food & Beverage
• A rigorous process to select and monitor suppliers
• Operational procedures based on HACCP* risk analysis
• A microbiological control plan and internal audit
• Training for compliance with good hygiene practices
*Hazard Analysis and Critical Control Point
Merchandise
• A rigorous process of design and test product according to
regulations
• Systemic risk assessment
• Withdraw and recall process in case of anomalies
Crowd control
• Management and anticipation of any possible crowd movements
• A design of all pathways, access, exits in relation to the maximum
number of visitors
Operations
and Safety
9
Employee
working
environment
• Employees health and Safety risk prevention plan is essential
• Analysis and risk evaluation of all workstations
• Maintaining regulatory compliances to all facilities and equipment
• Training & promotion of employees Safety awareness
Weather
condition
management
• Thunder storms and lightning procedures
• Winter conditions: snow, ice, freezing temperature
• Wind and storms
Evacuation
efficiency
Operations
and Safety
• A global coherence of evacuation procedure for both buildings,
attractions and the whole park
• Planned drills to insure that scenarios are in line with legal and
company required performance (evacuation timing)
• Create a dedicated comittee to set or improve any procedure
10
65
Fire prevention &
rescue
Medical assistance
& emergency
responses
• First link in the emergency response chain
• Efficient public evacuation, fast rescue intervention & limitation of
fire propagation
• In constant contact with accredited fire Safety offices and
government departments
• First Aid structure is the second link in the emergency response chain
Qualified medical personnel provide emergency first aid services
• AED* devices have become an essential life saving tool
*Automated External Defibrillator
Security
• The mission is the day to day security of people and property
Operations
and Safety
11
Risk Management Theory
• The business value of managing risk
 Why is risk management important to a facility operator?
• Financial impact to company (negative cost associated with poor risk
management)
• Reputation/public perception (want to be seen as a safe place for
guests)
• Humanitarian (reduce and/or eliminate "pain and suffering" from
injuries)
Operations
and Safety
12
Risk Management Theory (cont’d)
• The principles of risk management
1.
Identify hazards.
2.
Assess hazards to determine risks.
3.
Develop controls and make risk decisions.
4.
Implement controls.
5.
Supervise and evaluate.
A key point on risk:

You can never completely eliminate risk; however, you do all you can to
minimize it.
Operations
and Safety
13
Risk Assessment Activity
• Explain Activity- (5min)
• Review scenarios with your group (15 min)
• Share results with group (25 min)
Operations
and Safety
14
67
Risk Management Theory
• The risk assessment matrix
Risk Assessment Matrix
Probability
Frequent
Likely
Occasional
Seldom
Unlikely
A
B
C
D
E
Severity
Catastrophic
I
Extreme
Extreme
High
High
Moderate
Critical
II
Extreme
High
High
Moderate
Low
Marginal
III
High
Moderate
Moderate
Low
Low
Negligible
IV
Moderate
Low
Low
Low
Low
Operations
and Safety
15
Get What You Expect!
How to Build, Manage and
Evaluate Systematic Training
Bret Pfost
Disney Parks
Objective
Use the four components of the
Performance Alignment Process to:
• Develop and define source documentation
• Convey expectations through effective
training
• Evaluate the skills, knowledge and abilities of
your employees
• Reinforce behaviors to sustain performance
and business process
Benefits of a Systematic
Training Program
• Increases focus on the quality of the
Guest experience
• Establishes a process to sustain
growth
• Creates a standard platform for
training
69
Performance Alignment
REINFORCEMENT
ENSURING CONSISTENT RESULTS
WHAT YOU GET
ASSESSMENTS
EVALUATING UNDERSTANDING
TRAINING DELIVERY
CONVEYING EXPECTATIONS
DOCUMENTATION
SETTING EXPECTATIONS
WHAT YOU WANT
WHAT YOU GET
DOCUMENTATION
WHAT YOU WANT
Documentation
Setting Expectations
• What do we mean by documentation?
• How do you determine when documentation is
needed?
• What kind of documentation already exists in
your business?
WHAT YOU GET
TRAINING DELIVERY
DOCUMENTATION
WHAT YOU WANT
71
Training Delivery
Conveying Expectations
•
Learning objectives influence training delivery
– Use actions that can be observed
•
Considerations with training delivery
– How difficult is the task?
– How important is the task?
– How frequently is the task conducted?
•
Considerations with trainers
– What are the standard expectations?
– How are they identified?
– What training do they need?
•
Define your commitment to training
WHAT YOU GET
ASSESSMENTS
TRAINING DELIVERY
DOCUMENTATION
WHAT YOU WANT
Assessments
Evaluating Understanding
• Determine key knowledge, skills and behaviors to
be assessed
• Evaluate knowledge and performance
• Designate Trainers to conduct all assessments
• Ensure Trainers understand how to conduct an
effective assessment
REINFORCEMENT
WHAT YOU GET
ASSESSMENTS
TRAINING DELIVERY
DOCUMENTATION
WHAT YOU WANT
73
Reinforcement
Ensuring Consistent Results
• Sustain performance with effective
Management tools
• Establish a process to revise documentation
and training
• Track progress
• Evaluate results to support continuous
improvement
REINFORCEMENT
WHAT YOU GET
• OPERATIONAL AUDITS
• REFRESH TRAINING
ASSESSMENTS
• KNOWLEDGE ASSESSMENTS
• PERFORMANCE ASSESSMENTS
TRAINING DELIVERY
• TRAINING TOOLS
• COMPUTER BASED TRAINING
• SIMULATIONS
• JOB AIDS
DOCUMENTATION
• OPERATING GUIDES
• FEDERAL/STATE REQUIREMENTS
• MANUFACTURER’S REQUIREMENTS
WHAT YOU WANT
Summary
• Connecting process and systems are critical
• Continue to invest in people, not just technology
• Keep it simple
• Commit to an alignment model
• Business reinvention never ends
• Technology will enable you to streamline
Exercise
• Review the following scenario
• Get into groups
• Discuss the scenario
• Using the Performance Alignment come
up with new procedures to prevent
reoccurrence of the accident
75
Chester's Coaster
• Chester’s Coaster is a large high speed
wooden roller coaster
• The Coaster can run 6 trains at a time
• There are 5 brake zones
• There are 12 rows of bench seats per train
and each bench can hold 2 passengers
• There is a 48” height requirement
Chester’s Coaster Current State
• Current Documentation
– The Facilities team uses PM Checklists each
morning to perform preventative maintenance
work. A large portion of their work is passed
down person to person via “tribal knowledge”.
– The Facilities team uses a SOP. It was last
updated 5 years ago and many of the
technicians regard it as “not what we actually
do”
– New Trainees are trained by any available
employee that is working when the trainee
reports to work. Training takes about a day,
sometimes more, sometimes less
Chester’s Coaster Current State Cont..
• Current Documentation
– The Operations Team performs an Opening
Checklist each morning. Most employees
perform the checks “their way” and fill the
checklist out when they are done. The
checklist was last updated in 2003
– The Operations Team has a Operating Guide,
but the employees don’t seem to know where
it’s kept. Employees are not required to read
the OG
Chester’s Coaster Accident
• An accident occurred at Chester’s Coaster just
after opening. The red train entered a break zone
that was occupied by the black train. The red train
stopped hard and lightly bumped into the black
train.
• No one was seriously hurt, but one small child,
that was about 4 years old, riding in the red train,
received a serious laceration on his arm. He was
violently slammed into the restraint when the
train stopped. The child was sitting in a row with
his brother and sister.
77
Result of Accident Investigation
•
After investigating the accident, Government Inspectors
found a break fin was missing from the red train.
•
The Inspectors found that break fins should be inspected
every day per the Facilities PM Checklist. The procedure
was missing from the SOP
•
The Government Inspectors cited the park for having more
than two passengers sitting in a row. The boy that was
injured should not have been seated with two other people,
He was also only 36” tall.
•
There was no padding on the restraint the boy hit. The
Operations Cast Members, as part of their opening
checklist, are supposed to check for padding.
Conclusion
“You can dream, create, design and
build the most wonderful place in the
world, but it requires people to make
the dream a reality.” – Walt Disney
IAAPA
Marketing and Public Relations
Operations
and Safety
Revenue
Operations
Marketing
Finance
Leadership
79
Contents
Industry Overview
FunWorld Park: “Where Your Smile Lasts Longer”
Marketing Theory
Marketing Practice
Skills Exercise – Case Study
Marketing
1
Objectives
Upon completion of this course, attendees will be
able to:
 Describe the attractions industry from a marketing perspective –
market penetration, growth potential, and competitors for the
family discretionary dollar
 Define the importance of the new “Three P’s”
 Discuss some of the unique challenges when marketing services,
including market segments
 Describe best practices in public relations, advertising, and
promotions
 Identify the metrics marketers use to measure success
Marketing
2
81
Industry Overview
How Big is Attractions Industry?
In the USA:
• 30,000 attractions.
• Directly employing more than 1.3 million workers.
• Generating nearly $34 billion in sales.
• Total Economic Impact: $219 billion.
Source:IAAPA
Marketing
3
Market penetration – park visits per population (U.S. versus
international)
CA: 41.9%
EUR: 11.8%
Pop: 33.4M
Pop: 808M
US: 111.2%
EMEA: 7.2%
Pop: 301M
Pop: 1.9B
ASIA/PAC: 6.4%
Pop: 3.8B
LA: 5.1%
Pop: 568M
Sources: PriceWaterhouseCoopers LLP, Global Entertainment & Media Outlook, 2007-2011; U.S. Census Bureau;
International Data Base (IDB).
Marketing
4
Who is our competition?







Other attractions
Sporting events
Movies
Hotels, resorts
Cruise ships
Shopping malls
Other discretionary family spending
Marketing
5
Examples of attractions marketing
2013 IAAPA Brass Ring Awards Winners
Ocean Park, Hong Kong,
Best Digital Marketing
Silver Dollar City, Branson MO, USA
Best TV and Radio
Marketing
6
83
Marketing Theory
Definition of marketing
 An organizational function and a set of processes for creating,
communicating, and delivering value to customers and for
managing customer relationships in ways that benefit the
organization and its stakeholders.
Source: American Marketing Association
 Marketing amusements/attractions is marketing services
 Marketing in the service industry requires different skills from
manufacturing and commodity marketing
Marketing
7
Marketing Theory (cont’d)
Marketing – The Four P’s and the New Three P’s
 The four P’s of marketing (the “marketing mix”):
•
•
•
•
Product
Price
Place
Promotion
 The new “three P’s”:
• People
• Process
• Physical evidence
Marketing
8
Understanding service delivery systems
 Service-based businesses – which include amusement/ attraction
industry – face similar marketing challenges
 Need research to understand consumers’ choice criteria
 Need to understand nature of the services offered – The actual
service “activity”; how delivered; type of demand for the service;
provider’s relationship to customers
 The tangible product/service
+
The intangible product/service
=
The whole product experience.
Marketing
9
Understanding service delivery systems (cont’d)
 Developing product positioning strategy involves:
• Identifying the organization’s service concept
• Determining how it differs from competitors’ offerings
• Finding out how well it meets needs of customers in different market
segments
 To develop a positioning strategy, also need to analyze the following
areas:
•
•
•
•
Market size, location, trends
Internal corporate resources, constraints, values
Competitive strengths, weaknesses, current positioning
Organization’s unique Points of Difference (Unique PODs)
Marketing
10
85
Understanding service delivery systems (cont’d)
 One effective approach – SWOT analysis:
Strengths / Weaknesses / Opportunities / Threats
• Create marketing strategy based on strengths
• Use to develop corporate strategy
Marketing
11
Understanding segmented markets
 Demographics of different target markets – Families/ children,
teenagers, young adults, seniors
 Part of developing a positioning strategy is:
• Doing research to identify what attributes of a given service are
important to specific market segments
• Based on analysis of corporate resources and constraints, selecting
most appropriate target market segments to serve
• Openness to improve appeal to a given segment by changing certain
attributes: extending hours, reducing prices, requiring uniforms for all
employees, etc.
Marketing
12
Who is your target market?
 Conducting market research
• Informal or formal, primary or secondary research
 Doing surveys, focus groups, interviews
• Questions must be carefully constructed to elicit the most accurate,
useful information
 Answer the question:
Who is currently attending your park?
• This is your target market
• Beyond the current demographic, who are you strategizing to target?
Marketing
13
Marketing Practice
Explaining the Promotion “P” (of the marketing mix)
 Components:
•
•
•
•
Public relations
Advertising
Promotions
Electronic marketing
Marketing
14
87
Marketing Practice (cont’d)
Explaining the Promotion “P” (cont’d)
 Public relations
• Primary difference between
PR and advertising:
– With PR, which is free, the park has
no control over the eventual content
– With advertising, which is paid for,
the park has control over the content
• PR opportunities – Press events, media visits, media outreach
• Crisis communications
– Only through designated company spokesperson
– Timely, truthful, concerned, responsible
Marketing
15
 Advertising
• Striking a balance between the mediums – Print, outdoor, radio,
television, web
– All differ by pricing, target market, strengths/weaknesses
– Determine goals and objectives of media purchases – May be:
» Reaching new market segment
» New features/rides
» New improved image
• Timing of media placement
• Expense – Why little advertising money goes just a little way
Marketing
16
 Promotions
• Promotion techniques
–
–
–
–
Media promotions and ticket giveaways
Mass market couponing
Early ride times
On-site events
Marketing
17
 Digital / Social Media
•
•
•
•
•
Your website
Building a permission-based database
Email blasts
Online ticketing
Search engine optimization
Marketing
18
89
Collaboration
 Marketing happens inside the park as well as out in the
marketplace
 Why it is essential that marketing and operations work well
together
 How marketing can support operational goals inside the park
Marketing
19
Metrics
 Measuring success
•
•
•
•
•
•
•
Annual attendance
Average ticket price
Average length of stay
Per capita spending
Market share (if possible to obtain)
Gross revenue
Net revenue
 Coupon codes (PLU [price lookup] codes)
Marketing
20
FunWorld Park
FunWorld Park: “Where Your Smile Lasts Longer”
 FunWorld Park – Key facts
• Medium-size regional theme park in Columbus, Ohio
 Size and scope
• 753,000 annual attendance
(2011)
• Park has 419 employees
(full-time plus seasonal)
• 2011 total revenue was
$14,234,930
• 2011 per caps was $18.90
Marketing
21
FunWorld Park (cont’d)
FunWorld Park’s Marketing Department
 Marketing budget – $1.17 million
 Uses the following market assumptions:
• Size of market
– Primary market (within 50-mile radius): 1.1 million
– Secondary market (from 50 miles away up to 4 hours away): 3 - 5 million
– How they measure the market
• Guest makeup
– 65% come from within a 50-mile radius
– 20% come from within 50 to 100 miles away
– 15% come from more than 100 miles away
Marketing
22
91
FunWorld Park’s Marketing Department (cont’d)
 Category
 Main Gate
 Promotions:
 Group Sales:
 Season Pass:
 Total
Revenue
$3,015,000
$2,870,000
$2,012,500
$61,7500
$8,515,000
Attendance
190,000
235,000
175,000
128,000
753,000
Marketing
Category
Main Gate
Adult
Child
Senior/Handicap
Price
Unit sales
FunWorld Park18.00
Gate Revenue
100,000
23
Revenue
Attendance
13.50
13.50
80,000
10,000
1,800,000
1,080,000
135,000
100,000
80,000
10,000
12.50
100,000
1,250,000
100,000
12.00
135,000
1,620,000
135,000
11.00
10.50
12.00
50,000
25,000
100,000
550,000
262,500
1,200,000
50,000
25,000
100,000
40.00
30.00
15.00
10,000
6,000
2,500
400,000
180,000
37,500
60,000
48,000
20,000
Promotions:
Coupons
Family of 4 (2 adults +2
children)
Group Sales:
Picnics
Outings
Discount Tickets
Season Pass:
Individual
Early Bird
After 2:00 pm
Complementary
Total
Total Per caps
Yield
-
25,000
643,500
Marketing
8,515,000
11.31
62.82%
25,000
753,000
24
Skills Exercise
FunWorld Park purchased a rapid river ride at the IAAPA
Attractions Expo for the next season.
In addition, it has upgraded its restaurant facilities, adding
a new walk-up F&B facility, as well as converting unused
space into a picnic and catering area.
 What marketing tactics can the marketing team employ to sell the
park for the next season?
Marketing
25
93
IAAPA
Finance
Operations
and Safety
Revenue
Operations
Marketing
Finance
Leadership
95
Objectives
able to:
 Understand role and importance of finance within an organization
 Understand and define major income and expense items for facilities
 Describe the financial metrics that attractions should be monitoring
regularly and why
 Describe the key principles of operating margin and yield management
 Explain depreciation, amortization, and EBITDA
Finance
Role of Finance in a Themepark
• Facilitator and service dept. to other departments
• Financial accounts versus management accounts
• Directors should be prepared:
Money is important
• Finance involved in decisions/approvals
Finance
97
Role of Finance in a Themepark
•
•
•
•
•
•
•
•
Bookkeeping and reporting
Budget and Control
Loss Prevention
Cash Office
Taxes (VAT, import duties, sales tax, income tax)
Legal, Contracts
Stock taking
Payments (terms and conditions)
Finance
Impact of Finance in a Department
• P&L responsibility
•
•
•
Budgeting
Staffing
Reporting
• Entrepreneurs
•
• Proposals of new initiatives
• Be Prepared
• Show Spirit and Believe!
Actuals
• Invoicing, purchasing on time
• No surprises
• Time Sheets
Numbers/information
should be correct,
accurate
Finance
Key Performance Indicators
Managers should be in control by monitoring:
• % Cost of Goods Sold
COGS / Revenue
• Per caps
Revenue / Number of visitors (pax)
• Yield
Discounted price / Full Price
• Labour %
Labour costs / Revenue
• Labour Hourly Rate
Labour costs / Worked Hours
• Sick Rate
Sick costs / Labour Costs
• % Ebitda
Ebitda / Revenue
• Capacity per hour
Sum of all hourly capacity of rides/shows
• Revenue per square meter
Revenue / square meters
• ????
Other indicators?
Finance
Only worth when figures are compared by:
- Actual
- Previous year
- Budget
And when periods are clearly defined
- Day, week, month
- Year to date
- Full year
Finance
99
Key metrics
 These metrics should be monitored daily:
•
•
•
•
Per caps
Daily attendance
Planned/budgeted income versus actual
Labor costs (can be hourly labor, or a productivity metric)
 Daily, weekly, monthly, quarterly, and annual tracking of actuals against
the budget
 Increases in daily attendance are worth more to the bottom line than
increased per caps for the same day
 Good budgeting anticipates known causes of revenue increases or
decreases; e.g., special events that will bring in more guests
Finance
Funworld Park’s Financial Statement
Funworld Park: Other operating characteristics
 126 Operating Days
 Pricing Policy – Regular Adult, $18.00; Child, $13.50;
Senior/Handicap, $13.50
• Season pass holders
– Individual, $40.00
– Early Bird, $30.00
– After 2:00 pm, $15.00
• Discounts
– Family of 4 Discount, $12.00/family
– Discount tickets, $12.00
• Coupons
– Bring the price down to $12.50
Finance
2013
ACTUALS
ATTENDANCE
CAPITAL IMPROVEMENTS
PER
CAPS
2012
%
ACTUALS
753.000
1.000.000
PER
CAPS
%
730.000
1.300.000
REVENUES
TICKETS
ATTRACTIONS
FOOD
RETAIL
GAMES
PARKING
LESSEE/OTHER
SPONSORSHIP
INTEREST & OTHER INCOME
TOTAL REVENUES
8.515.000
150.600
2.635.500
1.091.850
993.960
301.200
195.780
291.040
60.000
14.234.930
11,31 60%
0,20 1%
3,50 19%
1,45 8%
1,32 7%
0,40 2%
0,26 1%
0,39 2%
0,08 0%
18,90 100%
7.992.500
131.400
2.416.300
1.022.000
941.700
270.100
189.800
281.336
57.999
13.303.135
10,95
0,18
3,31
1,40
1,29
0,37
0,26
0,39
0,08
18,22
60%
1%
18%
8%
7%
2%
1%
2%
0%
100%
Finance
Funworld Park’s 2013 Income
• Ticket/gate revenue was $8,515,000, or 60.00% of gross
revenue
• Total F&B, games, and retail income was $4,721,310, 33.%
of gross revenue
• Per caps: Gate – $11.31; F&B, games, and retail –$6.27
• Per caps growth 2013–2012:




Gate: 3,28%
F&B: 5,74%
Games: 2,32%
Retail: 3,57%
Finance
101
Funworld Park Cost of Goods
2013
COST OF SALES
Actual
2012
% Rev.
Actual
% Rev.
FOOD $
856,538
33%
$
797,379
33%
RETAIL $
491,333
45%
$
480,340
47%
GAMES $
253,460
26%
$
254,259
27%
TOTAL COST OF SALES $ 1,601,330
$ 1,531,978
Finance
Funworld Park expenses
2013
EXPENSES
2012
SALARIES/WAGES (INCL TAXES)
$
4,379,353
30.76%
$
4,272,540
MARKETING
$
1,170,000
8.22%
$
1,015,000
32.12%
7.63%
TRAVEL / ENTERTAINMENT
$
54,750
0.38%
$
51,100
0.38%
EQUIPMENT RENTAL
$
73,000
0.51%
$
73,000
0.55%
OUTSIDE SERVICES
$
693,500
4.87%
$
671,600
5.05%
REPAIRS & MAINT
$
800,000
5.62%
$
605,900
4.55%
OPERATING SUPPLIES
$
708,100
4.97%
$
693,500
5.21%
UTILITIES
$
650,000
4.57%
$
600,000
4.51%
INSURANCE
$
210,000
1.48%
$
200,000
1.50%
PROPERTY & OTHER TAXES
$
72,331
0.51%
$
58,400
0.44%
TOTAL EXPENSES
$
8,811,034
61.90%
$
8,241,040
61.95%
EBITDA
$3,822,566
26.85%
$3,530,117
Finance
26.54%
Funworld Park’s 2013 Expense highlights
 Total cost of goods sold (F&B, games, and retail) was $1,601,330
or 33,92% of revenue from those areas
 Cost of goods sold was a slight increase from 2012, which was
$1,531,978, or 34,97.% of revenue
 Total expenses for 2013 were $8,811,034, an increase of 6,90%
over 2012
Finance
Revenue Theory and Practice
Fixed and Variable costs
• Fixed costs - A fixed cost is a cost whose total dollar amount remains
constant as the activity level changes.
Include rides, facilities, buildings, equipment
The industry has very high fixed costs – Very capital intensive
Fixed items must be paid for whether the park is open or closed; whether there are
guests or not
• Variable costs –A variable cost is a cost whose total dollar amount varies in
direct proportion to changes in the activity level.
Include labor (largest component), and all non-capital costs, such as electricity,
supplies, etc. A park must cover both its fixed and variable costs out of generated
revenue – Once these are paid, the remaining amount is profit
Seasonal facilities lose money when they’re closed – This is why peak season is so
critical to these facilities
Finance
15
103
Operating margin
 A measure of what proportion of a company's revenue is left over
after paying for variable costs such as wages, supplies, etc. (i.e.,
cost of goods), or, operating income divided by sales revenue (net
sales)
• Example:
Your cost for a Funworld Park T-shirt is $3.00. You sell it
for $15.00. After the sale, you would subtract cost of
goods, as well as the cost of labor, sales and marketing,
general/administrative, and depreciation/amortization, to
get the operating margin
• A good operating margin is needed to cover fixed costs
Finance
Yield management
 The process of understanding, anticipating and reacting to
consumer behavior in order to maximize revenue or profits
• In the attractions industry the key relevance of yield management is in
reductions in the posted gate price: discounts, coupons, multi-day
passes, etc.. Intended to increase attendance
– Gate price reductions typically decrease the actual gate revenue per
person, but will tend to drive volume
Finance
Depreciation
 Measuring the loss in value of an asset: In accounting, the allocation of
the cost of an asset over its economic life. Covers deterioration from use,
age, and exposure to the elements
 Depreciation is a very important factor in the attractions industry, because
of the high fixed cost investments in rides and ride machinery, equipment,
and buildings
 Example:
New roller coaster cost: $10 Million
Depreciation period:
10 years
Annual depreciation amount:
$1 Million
• Second year purchase: $500,000 ride, 5 years
• What will the depreciation amount be in the second year?
Finance
Amortization
 The gradual elimination of a liability, such as a mortgage, in regular
payments over a specified period of time
 Parallel to how depreciation breaks out an asset into separate years
as it declines in value, so amortization divides the cost of a liability
over several years to represent its increasing value to the company as
the liability (typically a mortgage or other loan) is paid off
 Example:
A park buys 20 acres of land
A 30-year mortgage is secured
Monthly payment is:
$100,000
$10,000
Finance
105
CASH FLOW
 Movement of Cash into or out of a business/project/financial
product:
• High revenue might sound great but does not mean anything when the
invoices are not being paid!!!!
Finance
EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization)
 An approximate measure of a company's operating cash flow based
on data from the company's income statement: Calculated by
looking at earnings before the deduction of interest expenses, taxes,
depreciation, and amortization
• Offers an indication of how much cash the company is generating
• Such an earnings measure is of particular interest in cases where
companies have large amounts of fixed assets which are subject to
heavy depreciation charges (such as the theme
park/amusement/attractions industry)
Finance
Is EBITDA and Cash
Flow the Same?
Finance
NO!
They Are different:
EBITDA does not take into account the actual cash inflows and
outflows.
Example:
 Principle payment is not reflected in EBITDA
 Account Receivable Collection
 Accounts Payable Payments
Finance
107
Capital Investments
Capital investment and ROI
 In this capital-intensive business, management must constantly invest
and re-invest, to continually refresh the quality of the park experience for
the visitor base
• Owner/operator must have a “new attraction strategy”:
– What should I spend money on for next season?
– When will I recoup the money?
• Make projections of additional visits, higher spending that will flow from the
new investment
 Example:
A park buys a new teacup ride
A new gift shop will go next to it
Total investment
$500,000
50,000
$550,000
• Projected recoup percentage per year:
10%
Finance
Capital Investments
Asset management and valuing a facility
 Asset management: Management should develop a rationale and a
set of well-defined steps to govern the investment process
• Take an intelligent approach to investments
 Valuing a facility: Measuring what a property is worth
• “Multiple of revenues”: Use of EBITDA to value property
– Examples:
» Cedar Fair paid about 10 times EBITDA for Paramount
» Premier paid about 8 times EBITDA for Six Flags
• Value of the land the park is sited on
• Value of the assets (used especially in liquidation)
Finance
Capital Investments
Decision process:
1. Identification Stage – determine which types of capital investments are
necessary to accomplish organizational objectives and strategies
2. Search Stage – explore alternative capital investments that will achieve
organization objectives
3. Information-Acquisition Stage – consider the expected costs and
benefits of alternative capital investments
4. Selection Stage – choose projects for implementation
5. Financing Stage – obtain project financing
6. Implementation and Control Stage – get projects under way and
monitor their performance
Finance
26
Capital Investments
Finance
109
Capital Investments
Net Present Value:
NPV Method calculates the expected monetary gain or loss
from a project by discounting all expected future cash
inflows and outflows to the present point in time, using the
Required Rate of Return
Based on financial factors alone, only projects with a zero or
positive NPV are acceptable
Finance
Capital Investments
Internal Rate of Return (IRR) Method
The IRR Method calculates the discount rate at which the
present value of expected cash inflows from a project
equals the present value of its expected cash outflows
A project is accepted only if the IRR equals or exceeds the
RRR (required rate of return)
Finance
Capital Investments
Payback Method:
Payback measures the time it will take to recoup, in the
form of expected future cash flows, the net initial
investment in a project
Shorter payback periods are preferable
Organizations choose a project payback period. The greater
the risk, the shorter the payback period
Easy to understand
Finance
Capital Investments
Payback Method:
With uniform cash flows:
Payback
Period
Net Initial Investment
= Uniform Increase in Annual Future Cash Flows
With non-uniform cash flows: add cash flows period by
period until the initial investment is recovered; count the
number of periods included for payback period
Finance
111
Capital Investments
Return on Investment (ROI):
ROI is an accounting measure of income divided by an accounting
measure of investment
ROI =
Income
Investment
Finance
Capital Investments
Accrual Accounting Rate of Return Method (AARR):
AARR Method divides an accrual accounting measure of
average annual income of a project by an accrual
accounting measure of its investment
Also called the Accounting Rate of Return
Finance
Capital Investments
AARR Method:
Accrual Accounting
Rate of Return
Increase in Expected Average
Annual After-Tax Operating Income
Net Initial Investment
=
Finance
Capital Investments
Economic Value Added (EVA®):
EVA is a specific type of residual income calculation that
has recently gained popularity
EVA
=
After-tax
Operating Income
{
Weighted-Average
Cost of Capital
Total
X ( Assets
Current
Liabilities
)}
Weighted-average cost of capital equals the after-tax
average cost of all long-term funds in use
Finance
113
Capital Investments
Residual Income:
Residual Income (RI) is an accounting measure of income
minus a dollar amount for required return on an accounting
measure of investment
RI = Income – (RRR x Investment)
 RRR = Required Rate of Return
Required Rate of Return times the Investment is the imputed cost of
the investment
 Imputed costs are costs recognized in some situations, but not in the financial
accounting records
Finance
Capital Investments
Question: Which method is Best?
Answer:
It Depends!!!
They Key Factor:
Take an intelligent approach to investments.
Be consistent!!!
Finance
Skills Exercise & Case Study
Funworld Park’s Finance Department is planning an
investment...
 What will be the return?
 How many years should
the loan be for?
 How is the return calculated?
 What will be the impact on
revenues: and how will
that be calculated?
Finance
Summary of Course:
Useful Financial Tools:
•
•
•
•
•
•
Role of Finance
Budget and Control (KPI’s)
Look at major Income and Expense
Definitions of Key Accounting Terms
Steps to Capital Budgeting
Evaluations Methods
Finance
115
IAAPA
Revenue Operations
Operations
and Safety
Revenue
Operations
Marketing
Finance
Leadership
117
Contents
Industry Overview: What Is Revenue Operations?
Revenue Theory: Why Is Revenue Operations Important?
FunWorld Park’s Revenue Operation
Revenue Operations in Practice
Revenue
Operations
2
Objectives
able to:
 Describe the ways in which attraction revenue operations differ from
high street retail
 Discuss the importance of revenue operations to an attraction’s total
revenue
 Define per capita, penetration, and cost of goods
 Describe the three major types of revenue operations
 Identify the key operations challenges for each of the three types of
revenue operations
 Describe pricing and layout strategies to improve revenue operations
results
Revenue
Operations
3
119
Industry Overview
What do we mean by revenue operations?
 All the non-gate revenue sources in a typical attraction
 Revenue types:
•
•
•
•
•
Food & Beverage (F&B)
Retail
Games
Other (lockers, parking, rental [strollers, wheelchairs, etc.])
Revenue partners (or leased operations) – Opportunity to diversify
offerings and increase bottom line by leasing to established brand outlet
for food or retail services
Revenue
Operations
4
What are the operating characteristics of these revenue
areas in the attractions industry?
 Limited park season- Approx. Memorial Day to Labor Day( Spring –Fall)
 Impulse purchases – One chance to capitalize; need to have right
product available at the right time
 Limited repeat business – Many guests come only once a season
 Season pass holders often do not spend much per visit (no need to
“bring home a memory”
Revenue
Operations
5
Revenue
Operations
6
PICTURES SELL !!
Revenue
Operations
7
121
Themeing & Signage From Vendors
Revenue
Operations
Refill Programs
8
BIG $$$
Revenue
Operations
9
REFILL PROGRAMS
Revenue
Operations
Revenue
Operations
123
Revenue
Operations
New for 2014
Revenue
Operations
13
What makes park retail different from the high street?
 Limited season (limited opportunity for business) Retailer only
has one opportunity to make sale
 Majority of sales are at day’s end This is a difficult shift to staff
and competes with guests’ desire to get home or to reserve last of
disposable income
 Need to turn inventory quickly Difficult to hold from one season
to the next
 Inventory commitments made months in advance of opening
(difficult to change and limited time to update)
Revenue
Operations
14
Impulse items by register
Racks with name items & jokes & tricks
Revenue
Operations
15
125
RETAIL
Revenue
Operations
16
BIG Revenue Generator
Mucho !!!!
Merchandise
Opportunities
Revenue
Operations
17
Characteristics of midway games
 Important to entice guests’ interest through employee salesmanship,
flash (merchandise display), and excitement of the area
 Play encourages play When one guest plays, more are drawn in
 Prize drives play, guest will play based on prize assortment
 Cash handling procedures & systems are different than traditional
retail and must be managed carefully
 Midway games add incremental per cap to attractions which can be
approximately 10%
Revenue
Operations
18
WHATS HOT
Revenue
Operations
19
127
Promotions
Revenue
Operations
20
Cash Boxes
Revenue
Operations
21
$$Short Range Basket ball $$
Revenue
Operations
22
Game/Prize/Flash
Revenue
Operations
23
129
Revenue Theory
Why is revenue operations important?
 All three types (F&B, retail, and games) are very profitable
operations in and of themselves – They contribute significantly to
the facility’s bottom line
• F&B/retail/games sales are critical to success – The industry’s
business formula is based on volume
 Revenue outlets are needed at the facility to meet guest demand –
For food/drink, gifts/souvenirs, entertainment, variety
 KNOW YOUR USAGE AMOUNTS
Revenue
Operations
24
Usage
Sales
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Revenue
Operations
25
Vendor Usage
Revenue
Operations
26
Usage
Comp Days 1/1/2013 Tue - 12/31/2013 Tue vs. 1/1/2012 Sun - 12/31/2012 Mon
Path:Mkt Type:COLD DRINK Prod Type:POST MIX
Fountain BIB's
This
Last
Diff
Chg %
Mix (T)
Mix (L)
POST 5 GA
2520
2775
-255
-9.19
68.6
68.5
COKE CLASSIC
1275
1460
-185
-12.67
50.6
52.6
SPRITE
625
645
-20
-3.10
24.8
23.2
DIET COKE
485
500
-15
-3.00
19.2
18.0
DR PEPPER
135
170
-35
-20.59
5.4
6.1
1155
1278
-123
-9.59
31.4
31.5
HI-C FRUIT PUNCH
550
595
-45
-7.56
47.6
46.6
FUZE TEA RASBY-K
193
0
193
100.00
16.7
0.0
HI-C PINK L-ADE
175
148
28
18.64
15.2
11.5
BQ ROOT BEER
115
113
3
2.22
10.0
8.8
FA ORANGE
73
68
5
7.41
6.3
5.3
FUZE TEA SWEET-K
50
0
50
100.00
4.3
0.0
NT SWEET&LEMON
0
365
-365
-100.00
0.0
28.6
2.5G BIB
SG GINGER ALE
Totals
0
-10
10
100.00
0.0
-0.8
3675
4053
-378
-9.32
100.0
100.0
Revenue
Operations
27
131
Revenue Theory (cont’d)
Operations revenue and expense figures
 Potential revenue opportunities from the key revenue areas –
Proportion of total income
• 37.0% – Total % of income from all three revenue types, made up of:
– Food & beverage: 19.9%
– Retail: 7.3%
– Games: 9.8%
 Typical revenue and expense ratios:
• Globally, all operations revenue* of amusement parks averages from 40% to
47% of the park’s total income
• Globally, amusement park operations expenses average between 50% and
70% of the park’s total income
* Includes F&B, retail, and games revenue plus tenant/concessions, sponsorships, and other revenue.
Source: IAAPA, Managing Attractions for More Profit: An International Survey of Operational Performance , 2004
Revenue
Operations
28
What Determines Vendor Pricing
• Product Cost - What it cost the vendor to purchase products from their
suppliers, manufacturers. They more they buy the lower their costs are.
They get built in incentives to move more product.
• Administrative & Selling Costs - Includes the cost of servicing the
account and processing orders.
• Delivery & Handling Costs -This boils down to cost per drop. The drop
cost to deliver 1 case is the same as 100 cases. Bigger orders mean
less deliveries
• Profit on the Account – The % mark up or profit the supplier needs to
make an account profitable after considering the above factors.
Revenue
Operations
29
What’s The Point !
The key point is that if you find ways to lower the
distributor’s cost of servicing your account, and
give them the opportunity to make more profit
"dollars", they are usually willing to work on a
lower "mark-up." As a result, you get lower
overall prices and other important benefits too,
which I'll discuss further below.
Revenue
Operations
30
Give Suppliers the Opportunity to Make
More Money on Your Account
Prime Agreements
Distributor PRIME AGREEMENT / Container Programs
• 70% of purchases to be made from the prime vendor, along with other
contractual considerations that seek to address supplier costs.
• By working with a distributor to address these costs, mutual benefit can
be achieved that will result in lower costs for the food service operator.,
• Distributor prime agreements enable operators to focus their efforts on
running the business, rather than constantly bidding out products and
tracking price fluctuations.
• A distributor prime agreement will typically improve overall operational
and product consistency.
• Plush Container Programs – A BIG Savings
Revenue
Operations
31
133
RESULTS
Reduction in Food Cost.
Fewer vendors and invoices to deal with.
Less purchasing activity
Better vendor service
Improved product consistency
Closer vendor relationship
Revenue
Operations
32
BUDGETS
Revenue
Operations
33
Key terms in revenue operations
 Per capita (per caps) – Revenue divided by the number of visitors; Calculated
for an individual location/facility, or sold item, and for the park as a whole,
for a period (day, week, etc.)
• Importance: “Levels the playing field”; enables comparison of the sales on any item,
or sales outlet, with any other
• Effective management tool
 Cost of goods – Wholesale price retailer pays to obtain an item
• Importance: Directly impacts margin – Expense is taken directly from the bottom line
 Labor costs – Cost of the labor that was required to sell item
• Importance: Impacts margin, is important indicator of both insufficient labor
(understaffed) and surplus labor (overstaffed)
Revenue
Operations
34
Examples of Cost of Sales %
and it’s
Chicken & Shrimp Platter
Hamburger Platter
Retail Price
9.99
Costs
3.50
Margin
6.49
COS % = 35.0 %
Retail Price
Costs
Margin
COS % =
Labor
Labor %
Labor
Labor =
.50
5.0 %
Total Cost ( COS + Labor) 4.00
Total Profit
5.99
Revenue
Operations
6.99
1.65
5.34
23.6 %
.50
7.1 %
Total Cost (COS + Labor) 2.15
Total Profit
4.84
35
135
How operations revenue is calculated
 To determine operations revenue, subtract the cost of goods and
labor cost from sales revenue:
Revenue derived from sales
– Cost of goods
Gross margin
– Labor cost
Net profit
 The result is the net profit from revenue operations
Revenue
Operations
36
Average cost of goods sold for each revenue operations area
– Cost-to-sales ratios
 As percentage of revenue produced in that area
Park Location
Number of Guests
U.S. & Canada
Open ≤
200
Days
Open >
200
Days
Europe
All Other
Countries
500,000 or
Fewer
500,001 to
1,500,000
1,500,00
1 or More
TOTAL
Redemption Arcade Games
21%
16%
23%
10%
22%
22%
11%
20%
Beverages
16%
17%
26%
26%
21%
22%
26%
22%
Plush/Operator Games
25%
27%
27%
28%
27%
27%
24%
26%
Food
27%
27%
26%
39%
27%
29%
35%
29%
Merchandise
41%
38%
41%
39%
38%
43%
39%
40%
Category
Source: IAAPA, Managing Attractions for More Profit: An International Survey of Operational Performance , 2004
Revenue
Operations
37
Cost Of Sales
Week Ending:
August 4, 2013
GAME
Weekly
Revenue
Inventory Used
August 11, 2013
COS
Weekly
Revenue
Inventory Used
August 18, 2013
COS
Weekly
Revenue
Inventory Used
August 25, 2013
COS
Weekly
Revenue
Inventory Used
MONTH END
COS TOTAL
COS
Pirates Cove
$
585.70
$ 1,851.00
32%
$
687.50
$ 2,269.00
30%
$
613.70
$ 2,829.00
22%
$
959.80
$ 3,255.00
29%
28%
Fried Frog
$ 1,300.00
$ 3,194.00
41%
$
1,159.90
$ 3,641.00
32%
$ 1,312.40
$ 3,288.00
40%
$ 1,398.40
$ 3,792.00
37%
37%
Ring Toss
$
722.40
$ 3,235.00
22%
$
1,053.80
$ 3,917.00
27%
$
883.30
$ 3,103.00
28%
$
925.30
$ 3,848.00
24%
25%
Long Range
$ 3,311.00
$ 7,748.00
43%
$
2,537.20
$ 7,880.00
32%
$ 2,908.00
$ 8,017.00
36%
$ 3,308.00
$ 7,128.00
46%
39%
Whopper
$ 1,885.00
$ 5,918.00
32%
$
1,567.00
$ 6,830.00
23%
$ 1,587.50
$ 6,858.00
23%
$ 1,858.00
$ 7,419.00
25%
26%
Rising Waters
$
971.60
$ 3,656.00
27%
$
1,157.00
$ 4,445.00
26%
$ 1,445.90
$ 5,101.00
28%
$
987.40
$ 5,731.00
17%
24%
Balloon Dart
$
994.00
$ 2,889.00
34%
$
910.70
$ 3,292.00
28%
$
638.50
$ 2,763.00
23%
$
885.40
$ 2,846.00
31%
29%
High Striker
$ 1,302.40
$ 3,818.00
34%
$
419.40
$ 4,385.00
10%
$ 1,059.80
$ 4,436.00
24%
$ 1,345.80
$ 4,516.00
30%
24%
Squeeze Play
$
662.00
$ 2,768.00
24%
$
1,015.90
$ 3,584.00
28%
$
932.70
$ 3,477.00
27%
$
770.40
$ 2,826.00
27%
27%
Short Range
$ 2,019.00
$ 7,298.00
28%
$
2,790.00
$ 9,048.00
31%
$ 2,377.00
$ 7,919.00
30%
$ 1,988.20
$ 8,129.00
24%
28%
Rope Climb
$
45.00
$ 4,849.00
1%
$
10.00
$ 4,851.00
0%
$
40.00
$ 4,790.00
1%
$
100.00
$ 5,533.00
2%
1%
Frog Bog
$
699.70
$ 3,864.00
18%
$
783.80
$ 4,401.00
18%
$
692.60
$ 3,921.00
18%
$
728.30
$ 4,435.00
16%
17%
Whac-A-Mole
$ 1,046.00
$ 3,958.00
26%
$
1,113.80
$ 4,411.00
25%
$
987.00
$ 3,900.00
25%
$
920.90
$ 4,211.00
22%
25%
Balloon POP
$ 1,100.00
$ 3,824.00
29%
$
904.90
$ 3,855.00
23%
$ 1,786.90
$ 6,179.00
29%
$ 2,179.60
$ 6,712.00
32%
29%
Goblet Toss
$
863.00
$ 3,033.00
28%
$
1,492.60
$ 3,804.00
39%
$ 1,369.00
$ 3,713.00
37%
$ 1,346.00
$ 3,354.00
40%
36%
Dart Kiddie
$
992.30
$ 3,379.00
29%
$
833.80
$ 3,897.00
21%
$ 1,011.50
$ 3,349.00
30%
$
$ 3,038.00
30%
27%
Sales
$
$
$
TOTAL
$ 18,499.10
27%
27%
-
$
-
$ 65,282.00
$
28%
$
18,437.30
$
-
$ 74,510.00
25%
-
$ 19,645.80
-
$ 73,643.00
900.60
$
27%
-
$ 20,602.10
$
-
$ 76,773.00
38
The three key metrics for all revenue operations
 Per caps – Amount spent per visitor
 Penetration – Sales measured against total number of visitors in
any given period
 Factors that influence the above two metrics
• Visitor mix
– Tourists – More likely to buy souvenirs
– Local repeat visitors – Less spending per trip
– Group outings – School classes, seniors, etc.;
patterns vary
• Weather
• Facility’s mix of offerings
Revenue
Operations
39
137
Revenue operations outlets at FunWorld
 7 F&B outlets,
12 carts,
small catering
operation
 5 retail outlets
 2 games venues
Revenue
Operations
40
FunWorld Park’s Revenue Operation (cont’d)
Food & Beverage outlets*
 Types of F&B Relative advantages and disadvantages (from
operations viewpoint)
• Food stands/carts (no seating) (12)
– Pros/Cons
• Walk-up food & beverage outlets (3)
pizza, snacks, etc.
– Pros/Cons
• Sit-down fast food restaurants (2)
– Pros/Cons
• Sit-down table service restaurants (2)
– Pros/Cons
* Note: FunWorld Park does not have branded food outlets.
Revenue
Operations
41
Food & Beverage outlets (cont’d)
 Key metrics and measures of success for F&B
• Cost of goods Very important
• Average size of check
• Number of table turns per day
(times a table is used by
different party)
 Challenges for FunWorld’s F&B operations manager
• Analyze sales information to determine food items that are selling
and those that are not and modify orders accordingly
• Improve per caps
Revenue
Operations
42
Retail outlets
 Types of retail
Relative advantages and disadvantages
• Carts Pros/Cons: Capture midway traffic, quick transaction time, ease of setup &
tear down / high exposure to theft, weather, challenge to re-stock during business
hours
• General gift store Pros/Cons: Specific, unique product mix, higher average
transaction, upsell opportunities / drawing guests into the store, slower turn &
higher risk on inventory (3)
• Souvenir/gift stores at exits of rides Pros/Cons: Forced traffic flow, relevant
product mix, memory of the day impulse / lower spend per cap, limited opportunity
to capture attention & sale (2)
• Photo booth Pros/Cons: Incremental spend, low inventory investment,
opportunity for multiple location / equipment maintenance, new technologies
Revenue
Operations
43
139
Retail outlets (cont’d)
 Key metrics and measures of
success for retail
• Cost of goods Very important
• Inventory control – Also includes
carrying the cost of inventory, as
well as turnover (how fast product sells)
– “Open to buy” – Retail management tool
 Challenges for FunWorld’s retail operations manager
• Need to make buying decisions months in advance – Anticipate styles and
fads
• If items are not selling they must be unloaded quickly or they’ll need to be
written off
Revenue
Operations
44
Games/arcade
 Types of games Relative
advantages and disadvantages
• Single-player games (midway-type)
– Pros/Cons
• Multi-player games (midway-type)
– Pros/Cons
• Redemption centers (arcade game venue; points won earn tickets, which
the player can accumulate to redeem for prizes at different value levels)
– Relates especially to video games/arcades
– Pros/Cons
Revenue
Operations
45
Games/arcade (cont’d)
 Key metrics and measures of success for games
• Cost of goods for the prizes – Factors: size of prizes; amount charged
for the game; how many winners
 Challenges for FunWorld’s games operations manager
• Purchasing challenges are similar to retail: Need to make decisions six
months in advance as to what will be “hot” prizes
• Popularity of prizes can be major driver of whether visitors play games
or not
• Redemption centers – The redemption tickets equal cash; there must
be an effective system to control them
Revenue
Operations
46
Practical factors affecting revenue operations
 Layout/placement of F&B, retail, and game areas
• Location of all types of outlets must preserve traffic flow
– Must be integrated with the attraction design and layout
– Outlets easily accessible from, but not impeding, main flow of traffic
– Ride exit flow (recent trend: exiting a ride through a gift shop)
• Food – Offer convenient venues for all types of food needs
– Quick drink stands, vending machines, snack shops
– For popular restaurants, open location – Space for lines, in shade
– Provide convenient cold drinks on hot days, and vice versa
• Retail – Expert visual merchandising, reflect theme/brand
– Make it as easy as possible for people to spend money, but not feel they’re being
pressured
Revenue
Operations
47
141
Practical factors affecting revenue operations (cont’d)
 Layout/placement of F&B, retail, and game areas (cont’d)
• Games – Should be located in high traffic areas
– Display the plush (prizes) outside – Appealing, draws interest
 Pricing strategies
• Products should be at prices relative to competitors (both in the park and on
the street)
• Product offerings should cover all price levels to meet the spending
composition of all guests
• “Trading guests up without trading them away” – Focus on average retail
size of transaction ($5-7) and increase units per transaction, while
balancing the layering of price points
Revenue
Operations
48
Revenue Operations in Practice (cont’d)
 Inventory control
• An attraction selling $5 million at retail is dealing with up to 350,000
items, which need to be sold to be profitable
• Need for strong policy and procedures, good systems, and good
management to move the merchandise
• Important to develop inventory control procedures and physical inventory
procedures
• “Open to Buy” report
– Definition: The dollar amount of merchandise budgeted for a particular
period that a buyer has not yet ordered
– Is a management tool – Tells buyer what is selling and not selling, to allow
decisions early in season of what to discount
Revenue
Operations
49
Midway Games
Inventory
Revenue
Operations
DATE:
August 26, 2013
DAY:
Monday
Attendance:
Weather:
Game
August 27, 2013
50
August 28, 2013
Tuesday
August 29, 2013
Wednesday
August 30, 2013
Thursday
August 31, 2013
September 1, 2013
WEEK - END
Saturday
Sunday
TOTALS
5,000
3,500
23,000
Friday
2,500
2,500
2,000
3,500
4,000
Clouds
cloudy-sun
sun clouds
cloudy 83
Clouds -Sun 85
Humid pt sun 85
10:30
10:30
10:30
10:30
11pm
11:30
Varian Per
Revenue ce Cap Revenue
Variance
Per Cap
Revenue
Variance
Per Cap
Revenue
Variance
Per Cap
Revenue
Variance
Per Cap
Revenue
Variance
Per Cap
Revenue
Variance
Per Cap
Revenue
Per Cap
Pirates Cove
$
265.00
$0.11 $
440.00
$0.18 $
293.00
$0.15 $
368.00
$0.11 $
561.00
$0.14 $
466.00
$0.09 $
438.00
$0.13 $
2,831.00
$0.12
Fried Frog
$
509.00
$0.20 $
516.00
$0.21 $
378.00
$0.19 $
691.00
$0.20 $
693.00
$0.17 $
911.00
$0.18 $
580.00
$0.17 $
4,278.00
$0.19
Ring Toss
$
469.00
$0.19 $
445.00
$0.18 $
242.00
$0.12 $
501.00
$0.14 $
600.00
$0.15 $
790.00
$0.16 $
612.00
$0.17 $
3,659.00
$0.16
Long Range
$
475.00
$0.19 $
1,071.00
$0.43 $
771.00
$0.39 $
1,155.00
$0.33 $
1,371.00
$0.34 $
1,540.00
$0.31 $
867.00
$0.25 $
7,250.00
$0.32
Whopper Water
$
739.00
$0.30 $
719.00
$0.29 $
585.00
$0.29 $
1,106.00
$0.32 $
1,347.00
$0.34 $
1,044.00
$0.21 $
988.00
$0.28 $
6,528.00
$0.28
Rising
$
778.00
$0.31 $
806.00
$0.32 $
587.00
$0.29 $
866.00
$0.25 $
1,030.00
$0.26 $
971.00
$0.19 $
642.00
$0.18 $
5,680.00
$0.25
Balloon Dart(Park)
$
277.00
$0.11 $
354.00
$0.14 $
324.00
$0.16 $
396.00
$0.11 $
559.00
$0.14 $
611.00
$0.12 $
436.00
$0.12 $
2,957.00
$0.13
High Striker
$
477.00
$0.19 $
545.00
$0.22 $
470.00
$0.24 $
568.00
$0.16 $
836.00
$0.21 $
1,207.00
$0.24 $
691.00
$0.20 $
4,794.00
$0.21
Squeeze Play
$
308.00
$0.12 $
308.00
$0.12 $
172.00
$0.09 $
330.00
$0.09 $
557.00
$0.14 $
518.00
$0.10 $
330.00
$0.09 $
2,523.00
$0.11
Short Range
$
670.00
$0.27 $
953.00
$0.38 $
606.00
$0.30 $
1,078.00
$0.31 $
1,087.00
$0.27 $
1,575.00
$0.32 $
1,003.00
$0.29 $
6,972.00
$0.30
Rope Climb
$
760.00
$0.30 $
652.00
$0.26 $
450.00
$0.23 $
970.00
$0.28 $
971.00
$0.24 $
777.00
$0.16 $
624.00
$0.18 $
5,204.00
$0.23
Frog Bog
$
456.00
$0.18 $
553.00
$0.22 $
420.00
$0.21 $
500.00
$0.14 $
1,259.00
$0.31 $
1,061.00
$0.21 $
518.00
$0.15 $
4,767.00
$0.21
Whac a Mole
$
352.00
$0.14 $
466.00
$0.19 $
364.00
$0.18 $
622.00
$0.18 $
737.00
$0.18 $
832.00
$0.17 $
677.00
$0.19 $
4,050.00
$0.18
Balloon Pop
$
638.00
$0.26 $
335.00
$0.13 $
629.00
$0.31 $
962.00
$0.27 $
778.00
$0.19 $
1,633.00
$0.33 $
1,076.00
$0.31 $
6,051.00
$0.26
Goblet
$
479.00
$0.19 $
362.00
$0.14 $
363.00
$0.18 $
593.00
$0.17 $
557.00
$0.14 $
784.00
$0.16 $
549.00
$0.16 $
3,687.00
$0.16
Balloon Dart (Kid)
$
388.00
$0.16 $
329.00
$0.13 $
325.00
$0.16 $
466.00
$0.13 $
428.00
$0.11 $
839.00
$0.17 $
540.00
$0.15 $
3,315.00
$0.14
$0.00 $
-
$0.00 $
-
$0.00 $
-
$0.00 $
-
$0.00 $
-
$0.00
$0.00 $
-
$0.00 $
-
$0.00 $
-
$0.00
$3.02 $
74,546.00
$3.24
TOTALS
$
8,040.00
$
-
$0.00 $
-
$3.22 $
8,854.00
$
-
$0.00 $
-
$3.54 $
6,979.00
$
Revenue
Operations
-
$3.49 $ 11,172.00
$
-
$3.19 $ 13,371.00
$0.00
$0.00
$0.00
$
-
$3.34 $ 15,559.00
$0.00
$
-
$3.11 $ 10,571.00
$
-
51
143
Point Break Retail OTB
Point Break
Water Park
Budget 2013 Rev - Retail REVENUE
$
567,822
Budget 2013 COS sold / Merch - Park Owned
Budget % Cost of Sales 2013
Ending 2012 Inventory
Ending 2011 Inventory
Increase or decrease of inventory
$
181,774
$
$
108,287
102,939
Obsolete Inventory
32.0%
4.9%
(OBS)
$
-
Amount $$ need to fill store
$
65,000
(BDGT COS P/O- INV) + (OBS + Stock Fill)
$
107,529
108,287
2012 Ending Inventory
$
Purchases 2012 (open to buy)
$
Purchases 2013 (Open to Buy)
$
139,895
Cost of Goods Available for Sale (ending Inv + Purch)
$
248,182
Less - Cost of Goods Sold
$
(181,774)
2013 Ending Inventory (projected)
$
105,038
Revenue
Operations
142,895
52
Retail OTB
Revenue
Operations
53
Open to Buy Budget
Game
Balloon Darts
Blockbuster
Can Alley
Derby Race
Fish Pond
Golf
Hi-Striker
Krazy Ball
Long Range
Basketball
Penny Press
Ring Toss
Bank a Ball
Skeeball
Rising
Water Wars
Total
2013 Revenue
$24,387.25
$44,254.35
$34,559.25
$24,092.00
$30,706.00
$11,607.00
$20,291.35
$24,197.00
Target COG
30.00%
25.00%
25.00%
25.00%
45.00%
$26,613.25
$1,787.75
$18,167.00
$2,691.00
$7,137.50
$62,968.15
$4,401.00
$337,859.85
30.00%
25.00%
30.00%
20.00%
25.00%
25.62%
2014 Stock
Value
$7,316.18
$11,063.59
$8,639.81
$6,023.00
$13,817.70
$0.00
$5,072.84
$7,259.10
$7,983.98
$0.00
$3,633.40
$0.00
$0.00
$15,742.04
$0.00
$86,551.63
Revenue
Operations
54
 Inventory control (cont’d)
• Shrinkage and loss prevention – Cannot afford to ignore
– Goal is not to eradicate it (which is impossible), but to get it down to a number
that is manageable
– Need to have enough controls to “keep the honest people honest” but not make
the park an unpleasant place to work
 Employee training
Upselling
• Employees – Well-trained in cash register, suggestive selling
• Guest contact – Individual sales to each customer; focus on individual sales,
upselling, and transaction speed
• The right employees are crucial in games – Fun, energetic, engaging,
outgoing; they will make or break success of games
Revenue
Operations
55
145
Creating new operations revenue sources
 Non-traditional revenue sources/opportunities: VIP tours, front-of-line
access, birthday parties, sleepovers
 Mitigating the unpredictability of retail – Increase operations revenue
by:
• Targeting outer-market visitors: Learn what demographics are being
marketed and focus product mix to that market
• Leveraging group sales: Find out (from Group Sales Dept.) about park’s
group business and tailor food and retail products specifically to reach those
groups
• Wooing repeat customers: Local visitors may respond to effective couponing
and promotion of non-logo items (fudge, candy, etc.)
Revenue
Operations
56
Skills Exercise Case Study
FunWorld Park’s new merchandising manager is struggling
to make sense of the reports from a number of his retail
outlets...
 Can you discern the problem?
 What remedies do you suggest?
Revenue
Operations
57
IAAPA
Leadership
Operations
and Safety
Revenue
Operations
Marketing
Finance
Leadership
147
Contents
Industry Overview
HR Theory and Practice
FunWorld Park’s HR Department
Leadership
2
Objectives
able to:
 Identify the factors affecting the hiring challenges the attractions
industry faces today
 Understand key HR characteristics of the industry
 Identify potential leaders and know how to develop them
 Describe the importance of training and performance
management in maximizing employees’ potential
Leadership
3
149
Industry Overview
How Many People does the Attraction Employ?
In the USA:
• 30,000 attractions
• Directly employing more than 1.3 million workers
• Generating nearly $34 billion in sales.
• Total Economic Impact: $169 billion
• $48 billion in total labor income,
• Supporting nearly 2.1 million total jobs.
• Jobs include seasonal employment and are expressed
as part-time and full-time jobs.
Source: IAAPA
Leadership
4
How many and what kind of people does our industry
employ?
 Amusement parks – About 1,000 seasonal employees needed for
every 1 million park visitations per season
 Main groups the industry hires from:
• Young people – Local high school and
college students
• Students from foreign countries
• Senior citizens and retirees
– Work Kampers
Leadership
5
Outline of HR characteristics of the industry
 Seasonal park operations require mass seasonal hiring
• Facilities face major challenges in recent years finding enough available
workers to meet needs
 Employment pool of young people means inexperienced workers,
summer scheduling challenges
• Early school start in many areas limits employment period
 Must hire and properly train employees for quick ramp-up
 High turnover – As much as 300% in a season
 Young people in lead positions supervising their peers
Leadership
6
Outline of HR characteristics of the industry (cont’d)
 Competition in the general service sector for young employees:
• In last 20 years, developed countries have transitioned from
manufacturing to service-based economies
• Unemployment rates are at historic lows
 With pressure to fill gaps in traditional
worker sources, parks are:
• Recruiting from other countries
• Hiring senior citizens/retirees
Leadership
7
151
Outline of HR characteristics of the industry (cont’d)
 Hiring of foreign students and workers continues to grow
• Presents new HR responsibilities and challenges – Providing
housing/transportation, visa issues, additional paperwork
• Attention to language/cultural issues may be important
Leadership
8
The attractions industry as a career
 Many leaders in this industry started out as seasonal employees and
rose through the ranks
 The most important thing a park can do is to clearly identify a track
for growth and increased responsibility
• Give interested employees every opportunity to advance up the
“ladder” in succeeding years
 Parks can also develop retention plans
• Encourage young hires to return in following years, thereby building
their loyalty and interest in the industry
• Scholarships are an especially good method
Leadership
9
HR Theory and Practice
Understanding the Young Worker
 First real work experience for many
• Need training in business basics: punctuality, arriving in uniform, proper
attitudes and appropriate verbal responses
• Need to understand and comply with policies on sexual harassment,
“disability etiquette,” cultural sensitivity issues
 Heavily scheduled; needs flexible work scheduling
 Working with young people as employees
•
•
•
•
Be clear about core values and hold to them
Show respect – Value their contribution
Fun and teamwork are both strong motivators
Provide a clear path to job growth
Leadership
10
Leadership
11
HR Theory and Practice (cont’d)
Employee “Life Cycle”
Recruiting
Hiring
Onboarding
Training
Recognition
Employee Relations
Discipline
Termination
153
Leading Through Others (cont’d)
 Key criteria for a sound training program
• Develop thorough training materials
– Seasonal employee handbook, department guide, individual workstation
guides, supervisor guides
– Safety manual
– New employee training checklists, specific job training checklists
– Training tests
– General training programs: cash, emergency actions, hazard communications
• Variety of modalities in training presentation: Lecture, guest speakers,
discussion, practice, audio-visual, case studies
• Training includes coaching and leading
• Evaluate training for effectiveness and usefulness to workers
Leadership
12
Team-building
 Team building is crucial to employee retention
 A great team is a group of people who all share in the same
perspective
• Shared perspective might be:
– A common vision for their job, or
– A common mission of guest satisfaction, or
– Other aspects of the attraction’s “culture”
 Building a successful team is not easy – It requires patience, good
communication, mentoring, and providing feedback to the team
members on a continuing basis
Leadership
13
Performance Management
 Proper appraisals
 Setting objectives and follow-up
 Performance management is not a singly yearly event; it is a
continuous process (year-long cycle)
 Managing performance of seasonal workers
• Not as formal as for full-time staff
• For purposes of productivity, evaluations should center on quantitative
measures (safety audits, throughput analysis, food waste programs,
inventory control, speed of admission transactions)
Leadership
14
Identifying Leadership Qualities in
Employees
 How do you identify potential leaders?
• Employees who are dependable,
dedicated, responsive to direction
• Often the one who shows an interest, wants to learn, shows maturity
• Most competent person at their frontline job may be good supervisor
material
• People who like people!
Leadership
15
155
Leadership in the attractions industry
 People – The industry’s most precious resource
 A unique feature of the attractions industry – Many young people in
supervisory and leadership positions
• Challenge of supervising one’s peers
• Older workers may not respond well to younger supervision
 Many of the leadership challenges in the industry are customer
service challenges
• Require ability to deal with the public
and handle complaints, conflicts, etc.
 Mature workers offer experienced
leadership resource
Leadership
16
Leading Through Others
 Leadership through others is focused on more informal leading –
Coaching, mentoring, and providing feedback
 Coaching
• Ongoing process – Assessing employee performance and providing
constructive feedback
• Purpose: To clarify performance standards and motivate employees to
improve current job performance
• Essential coaching skills
– Active listening – Hear, paraphrase, understand, interpret
– Constructive feedback – Specific, direct, descriptive
– Creating a supportive climate – Problem-solving approach
Leadership
17
Leading Through Others (cont’d)
 Delegation and motivation
• Importance of consistency to established operating standards
 Productivity and scheduling optimization
• Scheduling for improved productivity – Consider operational requirements
for best performance
• Scheduling often amounts to puzzle solving; accommodating schedule
needs of employees
• Dealing with difficult employees
Leadership
18
Defining leadership
 What is leadership?
• A few perspectives:
– “Managers are people who do things right, while leaders are people who
do the right thing.” Warren Bennis, Burt Nanus, Leaders: Strategies for Taking Charge, © 1985, rev.
2003
– “Leadership is the art of accomplishing more than the science of
management says is possible.” Colin Powell, The Powell Principles, © 2003
– “Leaders...set examples.” Peter Drucker, The Leader of the Future, © 1996
– “Leaders grow; they are not made.” Peter Drucker, The Leader of the Future, © 1996
 Leadership vs. management
Leadership
19
157
Defining leadership (cont’d)
 Key functions leaders must be able to perform in leading and
managing their employees:
•
•
•
•
•
•
Decision making
Supervising
Motivating
Communicating
Organizing
Training and/or coaching
 Also, emotional intelligence is important: self-awareness, social
awareness, optimism, service mindset to both employees and guests
Leadership
20
Situational Leadership
 Tailoring leadership style to fit the needs and talents of specific
employees in specific circumstances
 Using different approaches – train, collaborate, delegate – based on
needs of particular staff, projects and tasks
 Core competencies of effective situational leaders:
•
•
•
•
Commitment to certain core principles (e.g., safety)
Ability to capture attention, win over, articulate goals
Ability to craft clear and meaningful messages
Ability to cultivate trust by treating staff with consistency, support and
receptivity
• Commitment to continuing self-improvement
Leadership
21
FunWorld Park
FunWorld Park’s HR Department
 At FunWorld, each department recruits and hires its own employees (a
common HR model)
• Individual departments attend job fairs, make school visits
• HR handles paperwork and mass orientation
• Departments handle job specific orientation and job training
 Key advantage:
• Departments make far more effective recruiters
 Key disadvantage:
• Takes time/money/resources in critical ramp-up period
 Bottom line: Parks that make this heavy commitment up front will reap
benefits in staff quality and retention
Leadership
22
FunWorld Park’s HR Department (cont’d)
 Another common HR model – HR does all recruiting, hiring,
paperwork, and training, then “sends” employees to departments
 Advantages:
• Paperwork is well-organized, complete, and timely
• Fewer people involved – easier to schedule
 Disadvantages:
• Focus is on signing up “bodies” to fill “slots” – not on understanding of
operational areas, or retention
• Little attention to team suitability or “fit”
• Tends to result in high turnover
Leadership
23
159
 FunWorld’s recruiting/hiring timeline: 2014
• External information needed:
– School calendars of nearby high schools and colleges/universities
– Dates and locations of local high school job fairs
• Internal information needed:
– Operating dates of the park
– Training days required for different job functions
– Budgets for training
Leadership
24
 FunWorld’s recruiting/hiring timeline: 2014 (cont’d)
• Additional activities to plan into calendar:
– Recruitment program – Who, what, when, where, how
– Retention program – Building into the next year
– Employee recreation/appreciation plans during the year
• Key questions in developing calendar and scheduling each item:
– What components need to also be considered in scheduling this item
(including dependencies – in both directions)
– What is the critical path, or timing, for this item?
Leadership
25
Skills Exercise
FunWorld Park has been asked to develop new
recruitment and retention plan.
 What should be the components of this plan?
 What should the park consider when developing this plan?
 How should the park measure the plan’s success?
Leadership
26
161

2014 IAAPA Institute for Attractions Managers Table of Contents

Transcription

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