Theme Park Revenue Management Term Paper

Flags

Revenue management is both an art and a science. Much like life both sides of the mind must be in accord with each other. Applying important information to help relate customer demands with the appropriate products and services requires a strong and deep understanding of the many different inputs that comprise the situation. The purpose of this essay is to examine how revenue management techniques can best be applied into a real and practical situation. To accomplish this, the essay will focus on the organization Six Flags Discovery Kingdom in Vallejo, CA.

To successfully understand the merger of these concepts, an analysis of the products and services of this theme park will first be examined to help paint a clear picture of the situation. The next portion of this essay will look at a competitors' analysis of the theme park and how this information influence revenue management decisions. The competition for this organization will also be examined and how their positioning affects the competitive advantage balance of the equation.

What Six Flags Has to Offer

According to its website: "Six Flags Entertainment Corporation is the world's largest regional theme park company with $1.1 billion in revenue and 18 parks across North America. The company operates 16 parks in the United States, one in Mexico City and one in Montreal, Canada. For more than 50 years, Six Flags has entertained millions of families with world-class coasters, themed rides, thrilling water parks and unique attractions including up-close animal encounters, Fright Fest® and Holiday in the Park®." Of these 16 theme parks, Six Flags Discovery Kingdom is one of their most attractive assets due to its location and its proximity to other tourist attractions.

To truly understand where Six Flags lies within the market, and a comprehensive revenue management application of the information is gained, it is important to examine the tangible and intangible products and services this organization provides for its customers. Six Flags is a theme park targeting families and youngsters in entertainment packages that include rides, animals, live music, food and games.

The park is open most of the year and but is open only on weekends during winter months. Tickets are offered in many combinations that include family passes and parking packages. Special events are commonly held with large popular music acts taking the stage and performing for the customers. Six Flags offers many different types of food and drink including alcohol.

The main focus of Six Flags is to offer an escape from the everyday mundane habits and practices that people are experiencing. The theme park is a fantasy land where cartoon characters come to life with comic book superheroes to create a real life make believe world where kids and adults can play and enjoy themselves with numerous different types of activities that….....