Merlin Entertainments introduces a demand-based ticket pricing strategy for UK attractions like Legoland and Alton Towers, aiming to optimize visitor experiences and manage crowd levels.
Merlin Entertainments, the operator of renowned UK theme parks such as Legoland, Alton Towers, and Thorpe Park, has introduced a dynamic pricing model aimed at optimizing visitor experiences. This approach varies ticket prices based on demand, allowing for cheaper entry during quieter times and higher prices during peak seasons. Scott O’Neil, CEO of Merlin Entertainments, likened the strategy to “happy hours” in bars, suggesting it makes attractions more accessible while managing crowd levels.
The company reported a significant increase in visitor satisfaction and numbers following the implementation of this model, despite encountering a pre-tax loss due to one-off costs. However, their sales reached a record high, with a noted growth in city-centre attractions’ popularity. Merlin’s global expansion remains robust, with recent acquisitions like the Orlando Wheel at Icon Park and the introduction of new attractions such as the Hyperia rollercoaster at Thorpe Park scheduled for May.
This move by Merlin reflects a broader shift within the entertainment and hospitality industries towards pricing models that respond in real time to changes in demand and weather conditions, targeting a balanced guest experience. The decision impacts around 20 of Merlin’s global venues, incorporating machine learning to adjust ticket prices dynamically.
Critics of dynamic pricing argue it lacks transparency and questions its fairness. However, Merlin defends the strategy as a means to enhance the guest experience by reducing queues and managing overcrowding effectively. Following a significant drop in visitors during the pandemic, such strategies are part of Merlin’s effort to rebound, with the company marking record revenues in 2023, partly thanks to increasing international tourism at its London attractions. This transition to dynamic pricing is geared towards ensuring memorable experiences for visitors, aligning ticket prices with visitor demand, and maintaining family accessibility through discounted off-peak tickets.
