Quicklinks: Summary, products and services | Data | Income and profitability | Expenses | History, strategy and challenges
Summary, products and services
Summary of the water parks business: how do water parks work? And how do they make money?
Water parks are businesses that provide recreational water activities for their guests. They typically have a variety of attractions, such as slides, pools, and water play areas. Many water parks also have food and beverage options, as well as other amenities like changing rooms and showers. Water parks make money by charging guests for admission and for the use of their facilities. They may also charge for parking, and for food and beverages purchased at the park. Some water parks offer season passes or discounts for groups, which can help to increase their revenue.
What products or services are typically provided by water parks?
Some water parks may offer different types of products and services, but most typically offer access to water slides, pools, and other water-based attractions. Many water parks also have on-site restaurants and cafes, as well as shops selling swimwear and other beach-related items. Some water parks may also offer other amenities such as locker rooms, showers, and changing facilities.
What industrial sector is the water park business part of? What is the market operating environment?
The water park business is part of the entertainment industry. The market operating environment for this industry is highly competitive. There are a large number of water parks and other entertainment options available to consumers, and new parks are constantly being developed. In order to succeed, water parks must offer a unique and appealing experience that draws visitors.
List and description of five of the most successful companies in the water parks business.
The top five most successful companies in the water parks business are: 1. Disney: The company behind the world-famous Disney parks, Disney is also a major player in the water parks business. Its water parks include the Disney’s Typhoon Lagoon and Disney’s Blizzard Beach, both located in Florida. 2. Universal Studios: Universal Studios is another huge name in the theme park industry, and its water parks include the Wet ‘n Wild Orlando and Volcano Bay, both located in Orlando, Florida. 3. SeaWorld: SeaWorld is best known for its marine life parks, but it also operates several water parks, including Aquatica Orlando and Aquatica San Antonio. 4. Six Flags: Six Flags is one of the world’s largest amusement park chains, and it operates several water parks, including Hurricane Harbor Arlington and Hurricane Harbor Los Angeles. 5. Kalahari Resorts: Kalahari Resorts is a chain of African-themed water parks with locations in Wisconsin Dells, Wisconsin; Sandusky, Ohio; Pocono Mountains, Pennsylvania; and Round Rock, Texas.
Data
Income: typical streams and percentage of income for water parks
- Ticket sales: 50-70%
- Food and beverage sales: 20-30%
- Merchandise sales: 5-10%
Expenditure: typical costs and percentage of spend for water parks
- Operating and maintenance costs: 30-50%
- Staff salaries and benefits: 20-30%
- Utilities: 10-20%
Pricing: Typical pricing of products and services for water parks
- Average one-day ticket: $37.12 (2018)
Profit: Typical profit margins for water parks
- Bottom of range: 20%
- Top of range: 30%
Income and profitability
List of the top three sources of revenue for water parks (AKA how do they make money?)
- Ticket sales – water parks typically generate the majority of their revenue from ticket sales. Depending on the size and popularity of the park, ticket sales can account for anywhere from 50-70% of total revenue.
- Food and beverage sales – another significant source of revenue for water parks comes from food and beverage sales. Parks typically have a variety of restaurants and cafes on-site, as well as concession stands selling snacks and drinks. These sales can account for 20-30% of total revenue.
- Merchandise sales – finally, water parks also generate revenue from merchandise sales. This can include items such as swimwear, towels, sunscreen, and other souvenirs. Merchandise sales typically account for 5-10% of total revenue.
Pricing: What are average prices among water parks? How do the market and competition affect this?
There is no definitive answer to this question as water park prices can vary greatly depending on a number of factors, such as location, size, amenities, and so on. However, according to a 2018 report from the International Association of Amusement Parks and Attractions (IAAPA), the average price of a one-day water park ticket in the United States was $37.12. This figure is likely to have increased in recent years, as the cost of living in general has gone up. Competition among water parks can also affect prices, as parks may need to offer lower prices in order to attract customers.
What are the profit margins in the water park business?
There is no definitive answer to this question as profit margins can vary greatly depending on a number of factors, such as the size and location of the water park, the number of visitors, and the costs of running the park. However, some estimates suggest that water parks can have profit margins of around 20-30%.
Expenses
What is the cost to build a water park business?
There is no definitive answer to this question as it depends on a number of factors, including the size and scope of the water park, the location, and the amenities offered. However, a rough estimate for a small water park with basic features could be around $1 million. For a larger water park with more features, the cost could be upwards of $10 million.
What is the staffing cost for a water park business?
The staffing cost for a water park business can vary depending on the size and scope of the business. Generally, water parks require a large staff in order to maintain safety and operation standards. The cost of staffing a water park can range from a few hundred dollars to several thousand dollars per day.
List of the top three ongoing expenses for water parks
- Operating and maintenance costs – these include the costs of running the park on a day-to-day basis, as well as any necessary repairs and upkeep. These costs can range from 30-50% of a park’s total budget.
- Staff salaries and benefits – water parks require a large number of employees to keep things running smoothly, from lifeguards to maintenance staff. Salaries and benefits can account for 20-30% of a park’s expenses.
- Utilities – water parks use a lot of water, of course, as well as electricity to power the pumps and other equipment. Utilities can make up 10-20% of a park’s total expenses.
History, strategy and challenges
What is the history of the water parks business?
The water parks business has a long and storied history. The first water park was built in 1966 in Anaheim, California. The water park business quickly grew in popularity, and by the early 1970s, there were over 100 water parks in the United States. The water parks business continued to grow throughout the 1980s and 1990s, and today there are over 1,000 water parks in the United States.
What business strategies are used by companies in the water parks business?
There are a few different business strategies that are commonly used by companies in the water parks business. One common strategy is to offer a variety of different pricing options to customers. This can include things like season passes, day passes, and group discounts. Another common strategy is to offer a variety of different attractions and activities at the park. This can help to attract a wider range of customers and keep them coming back.
The business secret some water parks use to make money is?…
Some water parks use a business secret called “dynamic pricing” to make more money. This means that they charge different prices for tickets depending on the time of day, the day of the week, and the season.
What recent challenges or dramatic events have been faced by companies in the water parks business?
The water parks business has faced several challenges in recent years. One challenge is the increasing cost of water, which has led to higher prices for water park admission and water park products. Another challenge is the increasing popularity of alternative water activities, such as swimming, surfing, and kayaking. This has led to lower attendance at water parks and has resulted in some water parks closing.