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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,...
Flags Discovery Kingdom in Vallejo, California wants to implement a new revenue management system, maximizing revenue per customer, per visit and improving overall revenue. There are several tactics that can be utilized to extract the maximum revenue from customers. Some of these will be discussed in this paper. The nature of the business is important here, because amusement parks deal in a perishable good (park capacity). There are many
The effects will only be felt later in terms of the support that the activity gets from the public and the state government. This is a part of the competition between states to draw more persons into the states, and even in each county. This year the stakes are very high for the counties as the economy has been expanding, the dollar is weak and a number of big
A general comment on the legal environment included insurance premiums (although the case study specifically mentions that this was not Asia's case). These were generally very high, because of the risk they insured, and 100% coverage was mandatory in the industry (one of its particularities). The technological environment had perhaps just as much an impact on the industry as the economic or legal ones. The most important issue was related to
The level of the investment also isolated them more in the case of a failure. They paid attention to the wrong details. Disney acted on American views of Europe rather than on native views, which could identify the important cultural differences. It appeared that the managers were too confident in their success to research the small details about European cultures. In planning Euro Disney there were not any contingency plans
Hospitality Management Defining and Observing Hospitality Management Defining Hospitality Management The hospitality industry incorporates a broad range of different types of business, all of which have a common characteristics; providing some type of service which has a focus on the services where the provision of hospitality is a central element of the that service, and is a sub-category within the service sector. The industry includes hotels and lodgings, cruise ship companies, restaurants, theme
Co.uk 2012). These issues can negatively affect the economic impact of the parks operations. - Visitor Experience and Quality As noted above, variability can have a huge impact on economics. However, the intangibles of visitor experience and quality have been affected as well. Visitor perceptions have a lot of relationship to the visitor experience and its quality. This is what the attractions sell and it is much more abstract and harder to
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