In a bid to manage declining visitor numbers since the pandemic, Merlin Entertainments plans to implement surge pricing, inspired by airlines and cab services, at its leading global attractions including Legoland and Madame Tussauds.
Merlin Entertainments, the owner of iconic UK attractions such as Legoland and Madame Tussauds, has announced its plan to introduce surge pricing at its top attractions globally to manage the decline in visitor numbers experienced since the Covid-19 pandemic. This dynamic pricing model will result in higher costs for families during peak times like summer weekends, a strategy inspired by the pricing models of airlines and cab-hailing services. Utilizing machine learning, this system will adjust prices in response to demand.
The decision is part of a broader strategy to boost revenues following a dip in visitor numbers due to the pandemic. Despite challenges, Merlin reported a record sales figure of £2.1 billion last year, attributed to the return of international tourists and the launch of new attractions. The company attracted 62 million visitors, though this number still falls short of pre-pandemic levels. Visitor numbers were up by 13% compared to the previous year, signaling a recovery trajectory.
Merlin’s CEO, Scott O’Neil, emphasized the plan to implement this pricing model across Merlin’s top 20 global attractions by the end of the year. Despite a pre-tax loss of £214 million in 2023, attributed to one-off costs such as debt refinancing, Merlin remains optimistic about future growth. New investments in attractions like Cadbury World and the Orlando Wheel, along with an emphasis on digitally immersive experiences, underline Merlin’s commitment to enhancing guest experiences.
This move reflects a growing trend in the entertainment industry towards dynamic pricing to optimize revenue, especially in light of the financial impacts of the Covid-19 pandemic. Merlin aims to manage peak periods more effectively and provide benefits for guests who choose off-peak times to visit.
