1. Revenue Operations Institute for Attractions Managers IAAPA Operations and Safety MarketingLeadershipFinance Revenue Operations

2. Time schedule 05 min – Introduction & content 15 min - Identify additional income 50 min - Presentation revenue operations 20 min – Questions Group discussion

3. Revenue Operations About Ellen Verburg 3 Worked before: retail as store- and district manager, Since 2001 Leisure park,  Retail, (paid) Attractions, Games (RAG) Since 2010 also manager additional income, Top 3 Areas of Expertise: Visual Merchandising Management/Leadership Looking for new commercial trends Above all taking care of 2 beautiful sons

4. Revenue Operations 4 Contents Industry Overview: What Is Revenue Operations? Revenue Theory: Why Is Revenue Operations Important? Revenue Operations in Practice Best practice in Revenue Operations Questions

5. Revenue Operations Can you name sales beyond ticketing? 5

6. Revenue Operations 6 Industry Overview What do we mean by revenue operations?  Non-gate revenue sources in attraction park  Revenue types: Food & Beverage (F&B) Retail (shops & (onride) photo) Games (skill games, arcades, paid attractions) Others (lockers, parking, rentals, fastpass, etc.) Extra opportunity: revenue partners (leased operations)

7. Revenue Operations 7 Operating characteristics in attractions industry  Limited park season Approx. mid-April (Easter) to late September/October  Impulse purchases – One chance to capitalize; need to have right product available at the right time  Merchandise sales at the day end  Limited repeat business – Many guests come only once a season  Season pass holders often do not spend much per visit  Diversity of visitors school trips, teens, families, event crowed

8. Revenue Operations What makes park retail different from the high street?  Limited season limited opportunity for business  Mobiles go were the traffic is in the park based on weather (cold-warm drinks and snacks, warm- ice etc.)  Impulse purchase  Flexible opening based on attendance  Turn inventory quickly Difficult to hold from one season to the next, dead inventory during season closing (costs money)  Deploy staff where necessary 8

9. Revenue Operations Shops 9

10. Revenue Operations 10 Characteristics of shops  Impuls purchase one opportunity to sell, visitors are not coming for retail  Sales are at day’s end (Majority of merchandise)  Inventory commitments made months in advance of opening (difficult to change and limited time to update)  Sell an experience a souvenir is a reminder of your park  Visual merchandising Important were to place your product, as well in shops or at mobile carts Diversity of visitors school trips, teens, families, event crowed

11. Revenue Operations Games 11

12. Revenue Operations 12 Characteristics of midway/skill games  Important to entice guests’ interest through employee salesmanship make it look simple flash (merchandise display), and excitement of the area  Play encourages play When one guest plays, more are drawn in  Prize drives play guest will play based on prize assortment  Cash handling procedures & systems different than traditional retail, must be managed carefully  Midway/skill games add incremental per cap to attractions which can be approximately 10%

13. Revenue Operations Food & Beverage 13

14. Revenue Operations 14 Characteristics of food and beverage  Pleasure food visitors are a day out  Fun food slush station, chip twister etc.  Volume sales fast service (choose quickly)  Per outlet small assortment no depth in assortment  Take away finger food  Refill drink buy a refill cup, have free coffee etc. during the day.  Show and food combinations

15. Revenue Operations Sell an experience (coca cola video) 15

16. Revenue Operations 16 Revenue Theory

17. Revenue Operations 17 Revenue Theory Why is revenue operations important?  In park revenue can be very profitable  Contribute of total revenue  F&B, retail and games sales are critical to success The industry’s business formula is based on volume  Revenue outlets are needed to meet guest demand For food/drink, gifts/souvenirs, entertainment, variety  A day in the park will be complete when: food, drinks, gifts/souvenirs will extend the experience

18. Revenue Operations 18 Revenue Theory (cont’d) Factors that influence : Visitor mix –(Diversity of visitors, school trips, teens, families, event crowed) Tourist - more likely to buy souvenirs Local repeat visitors – less spending per trip Group outings –School classes, seniors, festivals Weather Facility’s mix of offerings

19. Revenue Operations Challenges for the manager: Improve per caps Looking for new income –innovative & trends Make buying decisions months in advance –Retail and games Retail, turn inventory quickly –if items are not selling they must be unloaded quickly or they’ll need to be written of Games, popularity of prices –can be major driver of whether visitors play games or not Games, theft employees Games, redemption centers, the tickets equal cash –there must be an effective system to control them F&B, analyze sales information – to determine food items that are selling or not, modify orders 19 Revenue Theory (cont’d)

20. Revenue Operations 20 Practical factors affecting revenue operations  Layout/placement of F&B, retail, and game areas Location all outlets must preserve traffic flow Must be integrated with the attraction design and layout Outlets easily accessible Main flow of traffic Ride exit flow (recent trend: exiting a ride through a gift shop or/and photoshop) Revenue Operations in Practice

21. Revenue Operations 21 Practical factors affecting revenue F&B  Offer convenient venues for all type of food needs Quick drink stands Vending machines Snack shops Popular restaurant, needs to be open location Space for lines in shade Provide cold drinks on hot days and vica versa Revenue Operations in Practice

22. Revenue Operations Revenue Operations in Practice Practical factors affecting revenue Retail  Reflect theme or Brand Use expert in visual merchandising Easy accessible location Make it easy to spend money Guests not feel pressured Pricing strategy need to be right Product offerings cover all price levels Control inventory 22

23. Revenue Operations Revenue Operations in Practice Practical factors affecting revenue Games  Games need to look like games High traffic area Games which seems easy to play Seeing price winners, attract players Big plush (license) Freedom in salesmanship (trade up etc) Inventory control 23

24. Revenue Operations Revenue Operations in Practice (cont’d) Practical factors affecting revenue operations (cont’d)  Inventory control (cont’d) Shrinkage and loss prevention  Employee training - Up selling  Employees Well trained in cash register, suggestive selling Guest contact – Individual sales to each customer; focus on individual sales, up selling, and transaction speed The right employees are crucial – Fun, energetic, engaging, outgoing; –(they will make or break success) 24

25. Revenue Operations Simple choice! (Fish video) 25

26. Revenue Operations Questions?

27. Revenue Operations Opportunities, being sexy & living life (video) 27

28. Revenue Operations 28

29. Revenue Operations Institute for Attractions Managers IAAPA Operations and Safety MarketingLeadershipFinance Revenue Operations