BRIEF STUDY ON THEME PARK OPERATIONS

PROJECT X

MAJOR PLAYERS IN THE NORTH AMERICAN

THEME PARK INDUSTRY (2005)
120
100
80
60
Visitors (in millions)

40
20
0

TYPES OF THEME PARKS

Theme parks can be categorized based on several factors which influence

the size of their operations:
Investment
Visitors
Attractions
Demand

TYPES OF THEME PARKS

Type

Investment
(million )

Visitors
(million)

Attractions

Demand

Destination

Over 250

> 3.5

Over 55

Tourist demand
can reach over
50%

Regional

100 250

1.5 3.5

35 50

Tourist demand up
to 25%

Urban

80 - 100

0.7- 1.5

25- 35

95% from the

immediate urban
areas

Niche

10 - 80

~0.75

Variable

Variable

MANAGEMENT & OPERATIONAL PRINCIPLES

Purpose of a privately owned theme park = GENERATE PROFIT!

Profit is achieved by maximizing income while maintaining minimal cost of operations.

Other essential factors include

Time
Effort
Money

MANAGEMENT STRATEGIES
To increase income:

Ensure increased umber of visits

Design healthy pricing policies

Stimulate secondary visitor expenditure

Boost park usage by corporate clients and other entities

Obtain income through other means: letting, franchises, concessions, grants, sponsorship
or consultancy services

FINANCIAL RESULTS OF THE WALT DISNEY

COMPANY BY BUSINESS SEGMENTS, 2005
Revenue

Operating
Income

Media Networks

13,207

41.3

3,209

62.5

Parks & Resorts

9,023

28.2

1,178

22.9

Studio
Entertainment

7, 587

23.8

207

4.0

Consumer
Products

2,127

6.7

543

10.6

Total

31,944

100

5,127

100

PARKS & RESORT PROPERTIES OWNED BY

WALT DISNEY COMPANIES

MANAGEMENT STRATEGIES
To reduce costs

Appropriately manage human resources

Reduce costs of merchandise by franchising and distribution chains

Reduce cost of utilities

Establish energy-saving measures

Adjust park operations during off-peak season

QUESTIONS