The Reasons of Declining Profits in Amusement Park
Operating children’s amusement park, I believe there will be a lot of problems at a loss. Faced with the rapid development of the market, people will be a little confused more or less, in this period, operators need calm analysis, so as to seek a better direction of development.
- Big market changes
It is so called “survival of the fittest”, the location can not control market needs. The market need is always changing, which needs the operators to have enough ability of judgement and decision-making competence. In different stages, it will affects the operating stratigies of the amusement park. Whether can grasp the market change and the key point of plays decides whether the amusement park can going concern or not.
- Fierce horizontal competition
Some investors see that amusement park have booming business and all blindly follow them. So the amusement park has a strange phenomenon of flocking together. Horizontal competition brings saturation and differentiation to regional market. The competition increases sharply. If the location can’t take up the powerful competitive position, the amusement park only have to face the losing of standing room.
- Market differentiation from other sectors of children’s formats
Business segment is a developing trend of modern children market. Children businesses like education, parent-child, tourist, catering, culture and art, health and so on are blooming, all will bring certain impact to children’s amusement park, then shunt the vested customer resource.
- Increasing operating cost
Amusement park which has low tenant ability will have more pressure because of increasing rental, operating costs, input cost and equipment maintenance cost. Generally speaking, rental takes about 20% to 30% in initial investment and annual operating costs of children’s amusement park. The rent and sale retio is about 15%, so children’s amusement park has a higher sensitivity of location rental.