• ℹ️ Heads up...

    This is a popular topic that is fast moving Guest - before posting, please ensure that you check out the first post in the topic for a quick reminder of guidelines, and importantly a summary of the known facts and information so far. Thanks.

Merlin Resort theme park future strategy

M

Maelstrom

TS Member
I dont know if this has been posted before but there is an interesting presentation document on the merlin site about the future strategy of the Merlin Resort Theme parks from last October. It does confirm the investment cycle is now 4 years and is Peak, low, low, low, with peak typically being 10-12m and low 1-2m. It uses Alton Towers and Garda as examples of their future strategy inc a Map of Alton and it highlights the overflow carparks as potential future expansion space, it also mentions potential new advertising, promotions and trade models to come for Alton in the future plus Major Theme park Capex.

the report is the second one down dated 30th oct on below link

http://www.merlinentertainments.biz/results-and-presentations
 
I don't think they see the resort theme parks as being big areas for growth. They can get a lot bigger return on investment from building midway attractions such as Dungeons, Sea Life and Madame Tussaud's. They will invest in the theme parks enough to keep people going, but not enough for ginormous growth.
 
Looks like they're looking into adding lodges accommodation at Gardaland, Chessington and Heide too. Hope they keep each one unique and we don't see carbon copies of the Enchanted Village popping up within the Merlin portfolio.
 
Heide-Park already have a lodge style holiday village. Although it's quite basic.
 
It's not necessarily a bad thing, this investment cycle. Disney operate something very similar to low-low-low-high (obviously it's all relative, a low year at Disney will see them spend more money on a park than a Merlin high year) but probably with even longer gaps between the highs.

The problem comes with the fact that Merlin also like to see some new attraction at their parks every year, meaning that on the 'low' years it's very often something cheap and poor quality (less so at Towers which is better run than the others). If they built a major new ride every four years but then spent the money during the low years on upgrading, refurbishing and improving (think EP this year) then that'd create very good theme parks.
 
I think the investment cycle is ok, they just need to give bigger budgets to maintain what they got. We would all like to see more investment in new attractions but they are investing the right kind of money for the size of parks, just not always on the right things! major chains operate a very similar investment cycle. Plus those amounts are the average spent on peak and low years as Alton and Garda will get higher amounts on both due to generating much higher revenues which is why we see better investment in non major years at Alton.
 
I noticed there was barely any mention of capital expenditure on existing attractions in that presentation.
 
Its doesnt look too bad to me. They seem to know what they're doing more or less. Although, perhaps they did get a few of the target markets and slogans wrong at the beginning. :rolleyes:

You have to remember that presentation is given from a business point of view and is directed at people who are deep within the company. Things like the investment cycle will make more sense to directors etc. who know what their park actually runs on. It will all be rough indications. Take CBeebies Land for an example, that was a 'low year', but I highly doubt that cost under £2m.
 
AstroDan said:
I noticed there was barely any mention of capital expenditure on existing attractions in that presentation.
Click to expand...

All the parks need to work on what to do with rides over their 10 year plus lifespan, rather than just installing and leaving them to rot. Particularly the dark rides and attractions more than the coasters.
 
I do like how one of the strategies for Alton Towers is to increase capacity in the park and one of the aims of the park capex spends, am glad merlin have identified this and the benefits this will being for both guests and the shareholders.
 
No way they're gonna get 50% of all visitors coming to their parks for a short break.
 
Looks like they have very ambitious ideas for Gardaland, it looks like a perfect theme park location with a nice area already full of tourists and is within driving distance of 5 of European Largest cities.
 
It makes me laugh, it really does.

They may well bang on about their 'stature' or how many 'hotels' they run or how many they want to stay for short breaks.

But they just WILL NOT invest in the cash to ensure their resorts are as good as possible! How can they pretend to be this and that when they have theming that is so dilapidated that peoples health is at risk, or so rotten that it has to be replaced on an emergency basis? Or they have to leave scaffolding up on a long term basis because they don't have the funds to sort it out?

For example, they consider Europa-Park a competitor. The gulf between ANY Merlin resort theme park and EP is so enormous that Roland probably doesn't even register Gardaland.
 
And why are they thinking about building more accommodation at Chessington when it isn't even a two day park? At least Alton Towers is investing in tree top rope corses etc to make a short break destination. And Thorpe don't pretend their hotel is for a short break, just a place to stay.
 
Maybe they're deluded that CWOA offers more than it does.

It's a good place for a family day out but certainly isn't a multi day destination.
 
Remember that Chessie is quite close to London as well. Well not that close, but it can be convenient for a lot of people who want to visit the park and the city.
 
You must log in or register to reply here.
Top