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What changes to operations should we expect post Covid-19?
- Thread starter Croftybaby
- Start date
Rojo
TS Member
Good point but if they only open one park out of Thorpe/Chessington/Legoland, I think demographics will go out the window.
Islander
TS Member
Why would they only open one park out of the three?
Matt N
TS Member
- Favourite Ride
- Mako (SeaWorld Orlando)
Think about it, though; how many days last season did the park get above 50% capacity? Taking into account that the last capacity number I heard thrown about for Towers was 28,000, when last season did the park get above 14,000 visitors? Even if we limit it down to 30%, like Shanghai Disneyland is doing, that's still 8,400 guests, and I'd imagine that they only exceeded that on a few pretty busy days last season.
With that in mind, I'd wager that the amount of guests required to make a profit is much, much lower than 30%; if it was any higher than 30%, then the park likely wouldn't open on any weekdays at all!
My point is; I'd imagine that the park could still make a profit on 30% capacity. And I don't think demand will be as low as some are suggesting, so I'd say that the park should easily be able to get at least a significant percentage of those 8,400 tickets sold on peak days.
With that in mind, I'd wager that the amount of guests required to make a profit is much, much lower than 30%; if it was any higher than 30%, then the park likely wouldn't open on any weekdays at all!
My point is; I'd imagine that the park could still make a profit on 30% capacity. And I don't think demand will be as low as some are suggesting, so I'd say that the park should easily be able to get at least a significant percentage of those 8,400 tickets sold on peak days.
Rojo
TS Member
I don't think they would, but on the previous page, there's a point of opening Chessington over Thorpe (because demographics).
My point was that demographics will hardly matter if they only open one.
Croftybaby
TS Member
- Favourite Ride
- Nemesis
Towers wont have a problem with capacity. The problem will be managing the numbers they regularly get.
Matt N
TS Member
- Favourite Ride
- Mako (SeaWorld Orlando)
It might also interest you to know that the manager of Comcast's (owner of Universal) parks division has said that "attendance at a lower level would be more beneficial than having the parks closed": https://www.fool.com/investing/2020/05/03/disney-world-rival-has-some-good-bad-news-for-inve.aspx
I know that Universal and Merlin are two completely different kettles of fish, but surely the same principle should apply, in theory? In fact, I reckon Merlin's parks could do better than Universal's, as Universal relies quite heavily on international tourists, whereas guests to Merlin's parks are almost exclusively regional.
I know that Universal and Merlin are two completely different kettles of fish, but surely the same principle should apply, in theory? In fact, I reckon Merlin's parks could do better than Universal's, as Universal relies quite heavily on international tourists, whereas guests to Merlin's parks are almost exclusively regional.
The biggest problem im seeing when it comes to attendance is if the parks opens in September. I know I keep saying it but next to no one will be able to go mid week hence why it’s normally shut a few days a week. If I’m correct isn’t the Disney and universal parks open throughout the year?. I know I keep saying it but if the parks only open 2/3 months with limited line up no sit down restaurants and no events due to social distancing. I don’t get how it’s worthwhile opening.
Croftybaby
TS Member
- Favourite Ride
- Nemesis
He actually said it would be more beneficial for 'ramping up' which is understandable. having the staff in place and the park running will make it easier to expand offerings as an when restrictions are lifted. But you also have to consider that Universal is a year round park. Towers 'ramping up' is going to come to a grinding halt at the end of October.
He also said: it [universal] could break even at 50% of its normal capacity. However, even that may prove ambitious,
Now if you compare that to towers and assume they have a similar profit margin (which I doubt they have), how many of the 50% will be annual pass holders compared to Universal.
Towers could open but how long can they or are they prepared to manage without making a profit?
Islander
TS Member
I think September is extremely pessimistic for a reopening time-frame. Parks in Asia are reopening now, and they're what, 4-6 weeks ahead of us in this crisis. Parts of Germany have indicated that parks can reopen in late May. I'd be surprised if opening in the UK was still prohibited in late June or early July at the latest.
As I said before what other countries do is completely different to what we do. Let’s say we ease lockdown in Juneish time within a month are they really going to say that’s it’s fine for large groups of people to be in one area?. The tourism industry is more then likely next to pubs and restaurants to reopen. I say September because come end of July or August when they get the go ahead to reopen it will take time to put measures in place and then get the right staffing levels and pre booking scheme in place.
Islander
TS Member
But the point is that in countries where parks are reopening, governments are not stating that it's fine for large groups to be in confined areas. Social distancing is still absolutely a high priority, but those parks are adapting.
Croftybaby
TS Member
- Favourite Ride
- Nemesis
I wonder how many staff will return if they open in June for 4 months work considering one of the first things Alton did was send them off with a reference letter to give their new employers.
We are doing things completely different that’s the problem. We ain’t even out of lockdown yet and anything could happen they will want to avoid a 2nd wave at all costs so that’s why they won’t rush to open theme parks. You can put all measures in place but it’s still a high risk area for the first few months after lockdown. If the indication was there that parks could open in July or August why would places like dreamland announce they don’t plan to open?. The parks know they are last on the list to reopen.
jon81uk
TS Member
Depends how willing people are to wear masks and many other factors. Given theatres are not expecting to open now (we had tickets in April, moved to September now moved to February) and government discussions that pubs may not open for a long time, it doesn't seem unreasonable to assume no earlier than September.
Also in regards to the Universal comments, Disney have indicated they would not be interested in re-opening with the parks running at a loss.
Alastair
TS Team
- Favourite Ride
- Rise of the Resistance
I can see the season being extended if and when the lockdown is sufficiently gone to allow parks to reopen in some capacity. There's currently very little reason why the park couldn't operate well into November, and perhaps even early December. Last year there wasn't really any truly cold temperatures (and by cold, I mean such that rides wouldn't be able to open) until the very start of December. If they really pushed the boat out, they could just remain open and have an expanded adjoining Christmas event, which would no doubt pull in huge revenue.
I’ve seen this many times. But who would turn up? Apart from weekends would it really be financially viable to open during the week when next to no one would turn up. Plus we don’t know what sort of weather we could end up with so even if it’s not freezing temperatures would you still go and it’s was still very cold would you want to stand around outside queueing with no indoor places to get warm or stay dry.
Alastair
TS Team
- Favourite Ride
- Rise of the Resistance
Well, that's where they'd have to put some effort in. Of course, they already do a small Christmas event with a "local market" on TowersStreet, however this would need to involve a much more extensive setup akin to the likes of EP with many more additional temporary tents for food places, decorations and theming. Without doubt it would make the money back that it would cost to stage, however it's whether or not Merlin want to take a "gamble." I put that in quotation marks as I'm highly doubting the Mack's books are showing losses over the Winter period, and they have coasters and rides and have to abide by the unpredictable operational temperatures just as we do here.
jon81uk
TS Member
They have the theming for Towers Street it is done every year for the Santa Sleepover hotel events. But I expect they will stick to previous years and just offer the hotel-centred openings as these are profitable and simple to run. Trying to scale it up doesn't always work. Chessington had huge problems one winter when too many annual passholders turned up and tried to meet Santa resulting in enormous queues. Keeping it to hotel stays only means they can offer a better quality product people are willing to pay extra for and therefore it will be profitable. If you can sell out an event with hotel guests there is little incentive to trying to make it bigger and opening up to day guests.
In regards to ride operation, Europa may have built the rides to open in lower temperatures, or Mack hardware has different operating tolerances compared to Intamin etc.
The lawns and courtyard would be a fantastic place for a Christmas Market, if Alton Towers could get the entry/car parking price low enough that non-riders would be happy to pay it (but maybe still have a few rides around that area open).
Of course, if social distancing is a thing at the end of the year still then Christmas Markets likely wont be.
Of course, if social distancing is a thing at the end of the year still then Christmas Markets likely wont be.