Theme Park, Business VS Operational

Edited: January 13, 2020, 7:40 AM

hello everyone,

im from indonesia, in my experience to date, the issue of business vs. operational is often alluded to, issues of expenditure efficiency, maintenance costs, safety, qualified operational personnel and others. but the business side assesses many things that can be efficient (without reducing quality) so that finance is balanced, even though both sides agree on safety, service is the main for the customer. I am waiting for your opinions, thank you

Replies (1)

Edited: January 13, 2020, 10:12 PM

Theme parks are extremely expensive to operate. They need tons of labor, high turnover, greatly affected by weather, the parts for rides are extremely expensive as there are few buyers so few manufacturers and not much scale, and for many amusement parks they just sit and lose money for half of the year because they are closed and then when they open they still might be losing a ton of money when open because the weather is bad in the spring. Then if the weather is bad in the spring that means they have less money to spend on operations in the summer/fall when its busier.

In the past big companies have looked at theme parks and thought "well these places are expensive and crowded, so therefore they must be good businesses." Many companies learned the hard way it is not that easy. Marriott, Time Warner, Paramount, and several other companies were in the business for a short time and exited because it wasn't as profitable as they thought it would be. The USA theme park boom was in the 70's and outside of Orlando there hasn't been any major park built since then because the parks that already exist are so far ahead in terms of capital that has been spent building and expanding them, that there is no way to compete (unless you count the mall in New Jersey which just recently opened, I don't consider that a major park, its part of a mall).

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