Merlin Entertainments, which is one of the world’s biggest operators of theme parks and attractions, has been introducing “dynamic” pricing since last year
Visitors to popular attractions like Legoland, Thorpe Park and Madame Tussauds might have to pay more during busy times and less when it’s quieter.
This is because Merlin Entertainments, the company that owns the sites, has started using “dynamic” pricing. Scott O’Neil, the group’s chief executive, said this new way of pricing means they can change ticket costs depending on the time of year and manage how many people visit.
“We had it in 2023 and we had the highest guest satisfaction scores in the history of the company, and seven million additional guests,” Mr O’Neil said. “So we’re definitely getting the signal that our processes are moving in the right direction.”
He explained that “dynamic” pricing helps make sure visitors have a good time even when it’s busy by managing queues. Sometimes, people can wait for more than an hour for the best attractions. Mr O’Neil also said that offering cheaper tickets during off-peak times, like a rainy weekend in March, makes these experiences “available and accessible to all”.
He compared it to “happy hours” in bars, as well as hotels and airlines which usually charge more during busy times but offer cheaper prices when it’s not so busy. “It is not a new concept, but our focus is on two things that matter most; the guest experience and making sure that we are accessible and value-based for families,” he explained.
Merlin enjoyed record high sales as more and more visitors were drawn to attractions in city centres. In 2023, their total revenues shot up by 8% to an impressive £2.1 billion compared to the previous year leading to 62 million visitors worldwide. One quarter of all tourists who visited London also took a trip to one of its attractions last year, with almost half of those visiting more than just one, according to info from the company.
However, Merlin did announce that it had slipped into a pre-tax loss of £214million last year, a big drop from a profit of £106million in the previous year. The company stated that this was due to once-off costs that included the refinancing of some of its debt.
On Monday, the group announced that they have agreed to purchase the Orlando Wheel at Icon Park, which happens to be the tallest ferris wheel on Americas east coast. This will give them a stronger presence in one of the top global tourist destinations. Mr O’Neil expressed excitement about the launch of a new rollercoaster, aptly named Hyperia, opening in May at Thorpe Park.
This will be its tallest and fastest ride yet. He also said that the demand from customers has been immense for the Nemesis Reborn ride at Alton Towers. Mr O’Neil concluded by saying: “Coming out of Covid, we learned that we need each other, we need experiences, and we value memories over things.”
He said that customers are “gravitating toward quality” experiences, with popular attractions like Legoland and Pepper Pig theme parks continuing to draw in the crowds.
