Investment at ATR - refurb vs. monetary return.

[Rob]

Split from the Fantastical Express topic - please continue discussion >> Sazzle.

At least it doesn't seem quite as desperate as randomly giving away a grand like the a scratch-card.

Hey Alton! Why not spend all this money on fixing up and improving and dilapidated park and make people want to go to it that way?

I have nothing against proper television/radio/print advertising, but these sort of hi-jinks are a waste of money. Get your house in order before you go flogging it round the country.

Thing is, however much I agree that money should be spent on maintaining the park, if they want to get more people to the park in the short term (which I'm sure they do with the season going as it is) then marketing such as this is what they need to do. Giving things a repaint, replacing theming objects and so on are great and will show the park to people in a better light but it will have a minimal effect in increasing the low guest numbers this year.

So stunts like this, especially if they don't cost too much relatively speaking, are a good idea and do raise awareness of the resort. Even if it just gets lots of people talking about Alton Towers there is a very good chance that this will encourage even more people to go. Marketing is probably seen as one of the most important departments so they probably get a good budget for things like this.

We can only hope that in the closed season there is some sort of budget for giving the park a bit of a once over, somehow I do doubt it though.

 

[Sam]

Re: Re: The Fantastical Express

Thing is, however much I agree that money should be spent on maintaining the park, if they want to get more people to the park in the short term (which I'm sure they do with the season going as it is) then marketing such as this is what they need to do. Giving things a repaint, replacing theming objects and so on are great and will show the park to people in a better light but it will have a minimal effect in increasing the low guest numbers this year.

The park are doing badly at the moment because of the short-termism encouraged by the kind of capitalism that Merlin engage in. The continued appetite for year-on-year growth without failure means the company can't effectively plan for the future. Unlike a family run business like Mack, who don't run the risk of being disposed of by the shareholders if they don't make a profit for a year or two to invest in their future.

What the park really needs is for its parent company to say "Right, we're going to invest hugely in the park for the next five years" and knowingly make a loss. To turn the struggling park around they need to spend more money, not less. They can either go on struggling for the foreseeable future, or take a deliberate big hit now with the possibility of big profits at the end.

It's better to forego any profit at the park for five years, than go on scraping by. For example, a lot of the rides are costing them money to maintain every year, whereas they could spend a lot of money now and have less to pay in the long term. They need to reduce their overheads, especially with a new water system. I'd suggest they invest hugely in the transport infrastructure to the park, including buses and the bypass. Then, a full and lasting refurbishment of park toilets and other amenities. An expansion in their accommodation, either by a hotel extension or Tipidorf-style area. Finally, a refurbishment of every attraction that needs it to bring it up to standard, and huge investments in high quality, beautifully themed new family rides and areas after SW7.

Edit: just realised my slightly confusing plan is exactly the same as Disney have just done to California Adventure to turn it around, if that helps you understand it better. A big investment in every area. Which seems to have been a massive success, even if it's cost a fortune in the short-term.

 

[Scott]

Re: Re: The Fantastical Express

I agree wholeheartedly with what you are saying as Merlin are far too short-termist in all of their plans and ideas... However, regardless of if that scale of investment is ever made, marketing still needs to take place and would still take place on the same scale (at least during the investment) and thus cost as much. Therefore campaigns such as this one would still take place regardless of any kind of investment level.

In fact, these kind of long-term but cost-effective ad campaigns are what the park needs... Marketing is one area where cost-cutting inspires rather than restricts.

 

[Benzin]

Re: Re: The Fantastical Express

Problem is, Merlin do not have the expenditure power of Disney, so even something like a California Adventure refurb is extremely unlikely... Sad, but that's true...

And the next issue, is the way that businesses are run in the current climate, profit for minimal investment is unfortunately the desired ideal with the branches of the system... Merlin are acting like every other business these days, which is unfortunately, causing issues to the guests, staff and god knows who else... But essentially, few businesses are going to think that far ahead (especially with the overall uncertain future of businesses) and are in too much of a panic mode to follow such a plan...

 

[Sam]

Re: Re: The Fantastical Express

If Merlin can make a good case to the banks or investors that they'll be able to make a profit in the long term, they could borrow the money for a 'stimulus package' for Alton Towers and give the park the big DCA-esque upgrade that it's crying out for.

 

[Benzin]

Re: Re: The Fantastical Express

That's a big if though, especially with the attendances of this year, which will be the whole deciding factor for whoever gives the money to the company...

Unless this recession and the leisure industry make serious waves forward, we could well be stuck in this situation for a while...

 

[Sazzle]

A fantastical debate about investment and return, but not very express !

I've split the above posts from the Fantastical Express topic for you to continue discussion without the 'bus' running over things .