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Merlin Reducing Capex Spending 2018-2021

I always thought the key to successful theme parks was reinvestment? Clearly the reason Merlin are insulated from this is that the majority of their resort theme parks are in the UK, which is a market they dominate.

What I don’t understand, just like everyone else, is that one of the key strategies is turning day trips into multi-day stays. To merit this you have to have the necessary quantity of attractions to tempt people to stay overnight. You surely can’t just increase accommodation beds without the requisite increase in things to do. I sort of think Merlin are just testing the elasticity in the market until it snaps. There surely will be a point this happens and we are already seeing this with the likes of Splash Landings.

Please vote with your wallet and support the few UK parks like Paultons and BPB who do reinvest and maintain properly. They value your custom and are a lot more deserving of your money.
 
What is everyone's opinion on the 'Alton Barrels Hotel' pipelined plan released in the Investor Relations presentation yesterday? Similar to one in Germany they currently have?

To me, this seems ludicrous considering they cannot currently sustain enough footfall and occupancy to operate their existing offering of hotels all year round (i.e. Splash Landings Hotel).

:)
 
venny said:
You surely can’t just increase accommodation beds without the requisite increase in things to do. I sort of think Merlin are just testing the elasticity in the market until it snaps. There surely will be a point this happens and we are already seeing this with the likes of Splash Landings.
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I had to rewind the video and do a double take at one bit. The footage shows a family going in and approaching the check in desk of a hotel to illustrate the point NV was making about investing in hotel capacity. The hotel that was shown? SPLASH LANDINGS!!

Oooooh the irony of it all. If it wasn't October, I'd swear blind this whole announcement and that video where an April fools joke. No wonder 1/5 was wiped off the companies value immediately after.
 
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Please see the 'Alton Towers Barrels'. This was from the Investor Relations power point which can be accessed here.
 
It's ok, Merlin can 'magic' up some money, no panic at all.

That video just goes to show how detached the execs at Merlin are from the real world operating of their attractions, and are only concerned with their shareholders. Not once in that video did he mention offering customers a high quality value for money experience.

He did however mention high quality themed accommodation..... I take it he hasnt stayed in ATH, Splash or Enchanted Village lately. And if he has stayed in CBeebies, well, thats because he can afford the £500+ per night being charged for a room there.

Whoever owns this website, get Varney to do a live Q&A session!!!!
 
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I just watched the video, and I would like to ask a couple of questions and raise a few points.
  • By hotel rooms, does Nick Varney mean hotel rooms in theme parks or in their ski villages?
  • Does anyone know if The Bear Grylls Adventure that Varney mentioned in the video is that Project Thor proposal in the NEC that appeared about 6 months-1 year ago?
  • I'm assuming that Project 2020 at Thorpe Park probably won't be the rumoured B&M Hyper, because I'm willing to bet that those things cost at least £20m, if not more, and with Thorpe's last two major investments seeing attendance plunge by 10% (Swarm) and not changing attendance at all (DBGT), I don't think Merlin would want to take that risk again. Maybe a Mack Hyper (a la DC Rivals) would be a cheaper alternative, although I'm not too sure on how much a Mack Hyper would cost in comparison to a B&M. Or maybe even a Vekoma Hyper, like what Energylandia was considering, would be a cheaper option.
  • I'm also thinking that this logic could be why Merlin opted for a slightly less expensive woodie for SW8. I also think we could see more GCI woodies in Merlin parks if SW8 is successful, despite what Nick Varney said about woodies. I can't think a GCI would cost much and from what I've heard, they mostly build good quality rides (well, apart from the old ones that ran/run PTC trains). I also think if marketed correctly, GCI woodies could give Merlin the huge profit margins that they so desperately crave due to a low cost.
  • Where does anyone think that Merlin could use the Peppa Pig IP, out of interest? They can't really use it in Britain, due to Paultons. And they can't use it at Gardaland as another Italian park called Leolandia has a Peppa Pig World. So that means that their only options are Heide (unlikely as they already have a kid's IP land) or a midway attraction.
P.S Sorry for such a question heavy post. It's just that this whole thing raises many queries.
 
Must be honest, even though I'm not a fan of IP based attractions, I do think The Bear Grills Experience would be an awesome addition to Alton Towers rather than a standalone in Birmingham. Something like that would surely be the kick-start to a Universal City Walk / Downtown Disney type resort area we've been wanting put on the Air car park for quite some time.

Of course they'd have to sort out the theme park and probably the bypass road first, but something like a Bear Grills attraction would bring in big numbers to Towers, I'd put my soul on it.

Same goes with DBGT to be honest. I think that ride would have performed much better for Merlin had it been built at Towers. Do the teenage chavs who visit Thorpe really give a crap about Derren Brown? I suspect no. The more mature teens, 20's and family orientated clientele who visit Towers would have appreciated that ride more (even though its total crap tbh).

Oh and yeah, what exactly do they expect to do with Pepper Pig when it's already at Paultons - and done exceptionall well I might add?
 
Sorry to add the the pile of questions but, when it says"second gates" (I can't find it currently but its in relation to theme parks) does it mean second gate parks? (IE animal kingdom, studios and Epcot at WDW)
 
Britford said:
Sorry to add the the pile of questions but, when it says"second gates" (I can't find it currently but its in relation to theme parks) does it mean second gate parks? (IE animal kingdom, studios and Epcot at WDW)
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I took that to mean repeat visits.
 
A second gate attraction is any attraction you can pay to go in without going into the others. If it costs extra but is inside the existing attraction it is an 'upcharge attraction'. The Splash Karts that used to be at Alton Towers and the current Scare Mazes are upcharge attractions. They cost extra, but you can't use them without going into the main theme park. Go Karts and Sky Coasters are common examples of upcharge attractions.

The water park, Extraordinary Golf and high ropes course are second gate attractions because they cost extra but you can use them separately to the main park. Chessington's high ropes course and Gardaland's Sea Life centre are also second gate attractions.

I think it's unlikely that we'll see any second gate theme parks. Presumably they were happy with the return they're getting from Alton Tower's high ropes course because they opened a second one at Chessie soon after. Could Heide Park or Gardaland get a high ropes course? Or would they do a Lego version? Could one of the International Legolands get a Lego themed Sea Life Centre? Or might one of the International Lego parks get a Lego themed water park? They already have at least a couple of Lego water parks. I don't think we'll see them build an indoor water park because the cost's too great. The fact that they haven't expanded Alton Tower's Water Park suggests it's not an area that they're keen to grow. Or will we see them invest in more Food Loops?

Merlin has identified Center Parcs as one of their main rivals. A high ropes course feels like the kind of thing that could steal visitors away from Center Parcs.
 
WickerManiac said:
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Please see the 'Alton Towers Barrels'. This was from the Investor Relations power point which can be accessed here.
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I'm sorry, I really tried to read as much of that as possible but was too distracted by how ridiculously written it is. As soon as I saw the phrase "Strategic Synergies" listed as a "Growth Driver" I knew it was a report written by the marketing department and was not to be treated seriously.
 
matthewgcole said:
As soon as I saw the phrase "Strategic Synergies" listed as a "Growth Driver" I knew it was a report written by the marketing department and was not to be treated seriously.
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Alas, these are not the words of a marketing department, but something far worse... management consultants! *runs away screaming*
 
I’ve not read it. My brain hurts too much. But
The £100million taken away is that over all resort parks and midway attractions world wide?
If so with the amount they have it may not be that noticeable.
Of course any reduction in spending is never good.
 
I'm unsure why they see Center Parcs as a competitor, because a Merlin Resort Theme Park offers a completely different experience to a Center Parcs holiday park. A Merlin park is a theme park with some hotels, a high ropes course and sometimes a water park next to it, like any other theme park with hotels. A Center Parcs holiday park is a massive holiday park with a water park, a high ropes course and multiple other activities alongside many places to eat, drink and walk.
 
Center Parcs as I understand them to be are aimed at a different market and clientele to the likes of Alton Towers at least. Middle classes who like the great outdoors and need a base and localised outdoor activities and relaxation.

I've not visited a Centre Parcs so don't really know what they like but the impression I get (and the reason why I probably are not interested in staying there) is that they are a middle class persons butlins. Where as the impression I get from Merlin is that they are aiming for the middle class guests yet the quality of workmanship and the targeting of their brand with the likes of the hipster slang communication and off the wall fonts seems to target a more working class market.
 
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