The Sinking Ship: (Un)Love Letters to Merlin

[Bert2theSpark]

I know this is harsh but even the GP have a strong hate for Merlin. But the only way Merlin will change is if they get bought out or merge with another company and the chances of that happening is as likely as a banana eating an apple...

 

[andeyhart]

I know this is harsh but even the GP have a strong hate for Merlin. But the only way Merlin will change is if they get bought out or merge with another company and the chances of that happening is as likely as a banana eating an apple...

I'm sorry, but that's ridiculously over the top. The general public are, at worst, ambivalent towards Merlin. They might complain about prices, but there is no evidence whatsoever to suggest they strongly hate them. They may have issues with the ride closures and carry a certain distrust of the company after the crash, but in the eyes of the public, that's related to Towers only, not Merlin as a whole. The Dungeons, SeaLife, Madame Tussauds and so on are all too popular to suggest there's any outright negativity harboured towards Merlin. Just this past week, I've heard several people mention what good value for money the MAP's are.

Ultimately, the GP do not care about Merlin's shortcomings on anywhere near the same level enthusiasts do.

 

[MaxPower]

, I've heard several people mention what good value for money the MAP's are.

The only reason the MAPs seem such good value to the public is because the standard gate prices for most Merlin attractions are extortionate.

Most people don't understand that many of the decisions made at the parks are directly influenced by Merlin, so I can't say I've heard many non-enthusiasts bashing Merlin.

There is definately more people being disappointed by their attractions though from the feedback I get from friends / co-workers, Alton Towers in particular due to the ride closures.

 

[andeyhart]

The only reason the MAPs seem such good value to the public is because the standard gate prices for most Merlin attractions are extortionate.

Absolutely. But I'd say most people book online nowadays, even without the MAP. More and more non enthusiasts are wising up to the ridiculous gate prices.

 

[John]

Not many people book online due to the prevalence of 2-for-1s, which means they never really have any idea how many people are going to turn up

 

[DiogoJ42]

Not many people book online due to the prevalence of 2-for-1s, which means they never really have any idea how many people are going to turn up

Yet Merlin still keep sh!tting out vouchers with every single cornflake in every single box.

 

[Steve74]

Yet Merlin still keep sh!tting out vouchers with every single cornflake in every single box.

Maybe this year there'll be less vouchers hence why they've reduced the advanced online price? I always used 2-for-1 vouchers for my first visit of the year then the "return for £15" for Scarefest but now the advanced online price is only a few quid more & that includes early ride time I'm tempted buy them instead

 

[jon81uk]

There are now online use codes printed inside the Kellogg boxes. I do wonder if they will start to remove the physical vouchers at some point. Would save staff on ticket booths as people can print at home or present on phone etc.

 

[Rick]

I think people forget about who is actually at the top of Merlin and people are even quicker to forget about the pivotal role that Varney in particular played in the early 90s. Love him or hate him, he lives and breathes this industry. You'd have to argue long and hard to convince me otherwise, after sitting down and chatting with him or indeed listening to his staff, I have the absolute opposite impression.

Looking at things at a much more local level, operationally, a lot of the higher ranking staff at Alton are pretty long standing - no vast changes. Creatively, it's much the same faces - Candy Holland has been leading the pack for the past two decades or longer.

For as long as most people on this board can remember, Alton has been owned by some 'big and evil corporation', whether it be a huge public company, private equity or a combination of the two. Now, you can wish to go back to the Broome years if you want and convince yourself that every inch of the park would be jet washed every morning, but I would suggest that the utopia that you seek would ultimately disappoint.

 

[PuddoBearBoy]

I think people forget about who is actually at the top of Merlin and people are even quicker to forget about the pivotal role that Varney in particular played in the early 90s. Love him or hate him, he lives and breathes this industry. You'd have to argue long and hard to convince me otherwise, after sitting down and chatting with him or indeed listening to his staff, I have the absolute opposite impression.

Looking at things at a much more local level, operationally, a lot of the higher ranking staff at Alton are pretty long standing - no vast changes. Creatively, it's much the same faces - Candy Holland has been leading the pack for the past two decades or longer.

For as long as most people on this board can remember, Alton has been owned by some 'big and evil corporation', whether it be a huge public company, private equity or a combination of the two. Now, you can wish to go back to the Broome years if you want and convince yourself that every inch of the park would be jet washed every morning, but I would suggest that the utopia that you seek would ultimately disappoint.

I agree to an extent however the flotation of the company is ultimately to blame. There we other suitable methods to raise capital (as they had been doing to finance major investments like Air and Oblivion) for many years. The Plc route suits those at the top because they get shares as part of their salary - effectively giving them more. Some might argue that is selfish.

If you don't believe me, see below, it's an entire gravy train of a haul of Directors huge benefits package, as part of "directing" a Public Limited Company. See below for the values that Director's have been selling (note: the figures below will no doubt represent a small holding of their portfolio which they have chosen to sell; perhaps some Directors needed to raise a couple of million for a yacht).

 

[Rick]

@PuddoBearBoy I can't have the "capitalism is evil" debate again, run a search for my previous responses to that. In terms of receiving shares as part of your salary, that's hugely common and isn't just reserved for the executive in most businesses including Merlin. Having a stake in a business that you work in is a fantastic opportunity - what better motivator is there to ensure that your employer does well and continues to prosper (It's pretty tax efficient too )

Let me just put that "gravy train" back on the rails - if you know anything about Merlin you'll known that Carr & Varney risked their own capital in buying out Vardon (along with Apax and others) in order to build Merlin into what it is today. The suggestion that some very talented people are doing something immoral by reaping the rewards of decades worth of work doesn't raise any alarm bells with me. That's the way the world works and to suggest that there is anything wrong with that is petty and a bit Jeremy Corbyn.

That said, I would like to see the share price rise - I want to flog some myself, I need to replace the mineral water in my swimming pool.

 

[PuddoBearBoy]

@PuddoBearBoy I can't have the "capitalism is evil" debate again, run a search for my previous responses to that. In terms of receiving shares as part of your salary, that's hugely common and isn't just reserved for the executive in most businesses including Merlin. Having a stake in a business that you work in is a fantastic opportunity - what better motivator is there to ensure that your employer does well and continues to prosper (It's pretty tax efficient too )

Let me just put that "gravy train" back on the rails - if you know anything about Merlin you'll known that Carr & Varney risked their own capital in buying out Vardon (along with Apax and others) in order to build Merlin into what it is today. The suggestion that some very talented people are doing something immoral by reaping the rewards of decades worth of work doesn't raise any alarm bells with me. That's the way the world works and to suggest that there is anything wrong with that is petty and a bit Jeremy Corbyn.

That said, I would like to see the share price rise - I want to flog some myself, I need to replace the mineral water in my swimming pool.

I didn't say I had an issue with capitalism. If the park's weren't regressing at the rate they are currently I'm sure no-one would care how big Varney's salary is. Let's have it right, I simply stated that the flotation of the company has caused a reduction in quality at a lot of their parks, and is the main reason we see the cuts we have today. Also, the internal Group Directors (New Openings, Safety, Food Safety, Engineering Safety, Merchandising, IP, Legal, RTP, Midway, Legoland Parks, Asia New openings [I could go on] have increased year on year, granted this is due somewhat to their rapid expansion in Asia/Middle East, however this is happening whilst operational, front line staff is being cut left, right and centre.

Furthermore, the article you included even states that 'About 2,000 senior managers and other long-standing staff at Merlin Entertainments will share in a £200m windfall'. If this is not a gravy train then I'm not sure what is.

 

[Rick]

I didn't say I had an issue with capitalism. If the park's weren't regressing at the rate they are currently I'm sure no-one would care how big Varney's salary is. Let's have it right, I simply stated that the flotation of the company has caused a reduction in quality at a lot of their parks, and is the main reason we see the cuts we have today. Also, the internal Group Directors (New Openings, Safety, Food Safety, Engineering Safety, Merchandising, IP, Legal, RTP, Midway, Legoland Parks, Asia New openings [I could go on] have increased year on year, granted this is due somewhat to their rapid expansion in Asia/Middle East, however this is happening whilst operational, front line staff is being cut left, right and centre.

Again, your argument makes no sense. Alton, plus its then parent were owned by a public company during the 'glory years', a flotation was inevitable and necessary.

We have cuts because attendance and revenue has nose-dived. You could argue (hypothetically, of course) that the cuts would perhaps be deeper under a different regime because the company has the strength and diversity to absorb some of the blow. Imagine if the Bryan or Thompson family found themselves in the same position.

Furthermore, the article you included even states that 'About 2,000 senior managers and other long-standing staff at Merlin Entertainments will share in a £200m windfall'. If this is not a gravy train then I'm not sure what is.

At the time of the article, the group employed circa 24,000 staff, so one in twelve received the share. Seemingly, the guy who makes the donuts at Chessington was excluded, poor chap.

 

[Rick]

"The share bonanza will be weighted towards executives, who are not expected to cash in large amounts of shares"

So you do have an issue with capitalism? I've lost track of what your arguing. Are you advocating a communist approach?

Please address my other points, or folks might suggest you don't have an answer for them and have therefore resorted to pretty pictures and rainbow text in lieu of debate.

 

[Poisson]

Just need someone to make an irresistible bid for Towers and Merlin would sell instantly. Until then, the parks will rot. Merlin, stick to midways, you can run them but Towers is dying from 6 seasons of rot. CWOA is dead and Thorpe is a season or two from it.

 

[PuddoBearBoy]

So you do have an issue with capitalism? I've lost track of what your arguing. Are you advocating a communist approach?

Please address my other points, or folks might suggest you don't have an answer for them and have therefore resorted to pretty pictures and rainbow text in lieu of debate.

I don't have an answer, I'm completely wrong, and your opinion is correct.

 

[Rob]

I think people forget about who is actually at the top of Merlin and people are even quicker to forget about the pivotal role that Varney in particular played in the early 90s. Love him or hate him, he lives and breathes this industry. You'd have to argue long and hard to convince me otherwise, after sitting down and chatting with him or indeed listening to his staff, I have the absolute opposite impression.

I don't actually doubt this and it is a good point. I do believe that Varney does care for Towers and wants it to succeed but at the same time his position at the top of the company means that he probably has either no or a very minimal say in the majority of going ons at the park. We all know the Fanta story; Merlin decided to ensure that Oblivion was plaster in disgusting Fanta branding, we sent Merlin/Varney a mass signed letter, Varney visited Towers and ordered it all to be taken down. Would he have done this without being informed? Probably not as he likely wouldn't have known.

But at the same time, Varney is at the top of the company and is in a position to order changes that others cannot. If he thought that Alton Towers was in a poor condition with a lack of rides, poor operating hours and so on he could enforce a change. So does he not know, does he not care or does he not agree? That is the question and only he truly knows this. I can't imagine that he doesn't know, that seems mad. As I said I do think he cares somewhat about the park but it would seem this is not to the extent that he wants it to be the best it can be. I've always said that the more you put into a theme park the more you will get out of it, certainly in the longer term. I do not think the approach Merlin take at present helps to entice back repeat visitors.

So long as their KPIs look positive they seem to be satisfied. Dan's response from his last letter to Merlin says it all about their attitude to Alton Towers and their other UK theme parks. Sub-standard is good enough. Yet guest numbers are only going to do one thing with this approach and it doesn't involve getting anywhere near 3 million guests again!

 

[GaryH]

I get the impression they dont really care anymore about visitor numbers. Given their prices, it seems they would rather attract the VIPs and those with more money than sense rather than the general normal people who used to visit the park regularly through the years.

 

[PuddoBearBoy]

Something quite interesting.

@AstroDan posted on the TT forum in 2011, regarding the Fanta sponsorship on oblivion, an open letter where Nick Varney highlights:

"With these points in mind, the following is a top line history of Alton Towers from a business perspective;
- Late 1990’s to 2006 : stagnating visitor attendance is not rescued by the odd
ride launch. Cost cutting removes shows and contributes to significant falls in
customer satisfaction. Family groups fall off again and the park loses its
national market"​

Nick then states:

"- 2008 to present : the resort is successfully relaunched to families via Mutiny
Bay and national marketing is re-introduced. Thi3teen (aimed at both family
and teen markets) is the most successful ride launch since Nemesis. On park
entertainment is re-introduced and focus on customer satisfaction drives this
to the highest levels ever. Programme of longer term investment in place"
​

There can be NO excuses that Nick isn't aware, or have seen first hand, how to manage a successful theme park, and the consequences of neglecting it. It seems as though history is repeating itself, however now under the management of Merlin.​

​

Appendix

http://forum.towerstimes.co.uk/viewtopic.php?f=45&t=29835

​

 

[Rob]

"On park entertainment is re-introduced".... "on park entertainment has now been scrapped because we realised that it doesn't generate revenue, but we have to keep it in CBeebies Land beause of that silly contract we signed".