Merlin Entertainments introduces a new pricing model aimed at spreading visitor numbers throughout the year, boosting guest satisfaction, and responding to increased demand for theme park experiences.
Merlin Entertainments, the entertainment company responsible for operating popular attractions including Legoland and Thorpe Park, has adopted a new “dynamic” pricing model akin to strategies used by airlines and hotels. This approach, highlighted by Chief Executive Scott O’Neil, allows the company to adjust ticket prices based on the season, aiming to balance the distribution of visitor numbers throughout the year and enhance the overall guest experience. This method has been in place since last year and has reportedly resulted in record high guest satisfaction scores and an upsurge in visitor numbers.
The pricing strategy is designed to offer more accessibility and value to families, particularly during off-peak times such as rainy weekends in March, by providing discounted tickets. O’Neil likened this model to the “happy hours” concept in bars, where prices are adjusted to attract more customers during less busy times.
Despite reporting a pre-tax loss due to one-off costs like debt refinancing, Merlin Entertainments announced a significant increase in total revenues in 2023. The company is expanding its portfolio with new acquisitions such as the Orlando Wheel at Icon Park and the introduction of new attractions, notably the Hyperia rollercoaster at Thorpe Park. The success of the dynamic pricing strategy and ongoing developments signal Merlin Entertainments’ positive growth trajectory and responsiveness to rising consumer demand for quality experiences, particularly post-COVID.