Why don't you make money in most theme parks in China?


[China Network News] Recently, China's amusement, equipment letter, and information network have learned that Shanghai Disneyland will open in June this year, sparking buoyancy. In fact, as early as the 1990s, China has set off a "heat of theme parks." The theme parks have become an integral part of the amusement industry. However, in many domestic theme park projects in full swing, the operating performance is not satisfactory. About 70% of the theme parks are in a loss state, 20% are in a balance of payments, and only about 10% are truly profitable. So, what causes many theme parks in China to not make money? At the same time, under such a severe situation, how should the theme park change in order to realize long-term operation and long-term profitability?
According to relevant data, at present, 30% of China’s urban residents’ income is increased by 30% for material consumption, 30% for saving, and 40% for spiritual and cultural consumption. In this context, but whether the digestive power of urban residents can simultaneously meet the increasing speed of theme parks? This is an issue that investors should ponder. The population of second- and third-tier cities is limited, but theme parks are less attractive if they do not invest in a certain size. However, investment in large-scale parks requires a densely populated and highly-trafficked wide-area market. Therefore, after such a theme park attracts the first batch of “look-and-buzz” tourists, it is difficult for visitors to come back for the second time.

The profit model is the key: not making money because most theme parks do not have a good profit model. Whether the theme park can succeed or not, the most crucial factor is whether the project can meet consumer expectations. The attractiveness of the project determines the consumer's staying time, and the staying time determines the amount of consumption. Although China's population base is large, it seems that there is no problem with regard to passenger flow. However, due to the characteristics of the operating modes of Chinese scenic spots, ticket revenue is used as the main revenue, and the profit model is too monotonous. Therefore, it cannot develop by leaps and bounds. (Extended reading>>> In order to successfully develop a theme park, these things must be understood.) China's amusement facilities and information network reminded investors that it is not enough to rely solely on ticket sales if the theme park is to develop effectively. Integrate resources such as catering, accommodation, shopping, entertainment, and children's play, such as through children's play projects, driving the development of peripheral industries, and extending the children's industry to adults' shopping and entertainment industries. Only in this way can the park enhance profitability. (Extended reading>>>What is the status of the indoor children's playground?

Operation is a big problem: The theme park is actually a highly demanding business model, and the requirements for the team, value chain, process management, interactive management, experience publicity, and customer management are all very high. However, we lack products that have good satisfaction and fitness. Many domestic theme parks not only need to be content-specific, but also require a very systematic understanding of experience design, line design, product presentation, interaction with consumers, and control of crowd influence. This is why many theme parks look similar but can't be done. Because they did not learn the essence, they were unable to grasp the laws of the industry, and they did not have the corresponding talents and mode operating experience. China's amusement facilities, information preparation, and network have learned that the “333” of the theme park, which replaces 30% of amusement facilities and content every three years, has not been very satisfactory in China. In fact, technical aspects, amusement facilities, etc. are not problems and the cost is not high. However, Paradise does not make money and decides that it cannot rely on replacement facilities and requires service personnel to provide a good environment. If you can't do this, you won't be able to increase the attraction of the theme park. This is the status quo of the "evil cycle" of many theme parks in China. (Extended reading>>>Amusement Park Management: How to make the queue discharge bigger profits?)
China._Net understands that at present, China has entered a new era of the development of a large-scale theme park and is developing towards a high-speed and healthy road. Future theme parks will gradually become the main consumer objects for people's leisure and entertainment. Therefore, through the amusement industry, With the correct management and operation, the theme park will stand out and achieve profitability. (Extended reading>>> More foreign investment in the competition Future competition in China's amusement market is intensifying)

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