By Adam Catterall, Attractions.io
Secondary spending is up. Admissions are exceeding that of pre-pandemic levels. Theme parks are keeping themselves hot despite global financial uncertainty.
Disney’s former CEO, Bob Chapek, went on record saying the demand at its parks continues to be strong, and specifically called out ‘substantial’ increases in per-capita spending, up 40% on the same period in 2019. Much of this was attributed to the Disney Genie service. Chapek cited a 50% opt-in for the digital guest experience platform. Rival parks mentioned similar numbers, with Six Flags seeing visitor spending increase by over 50% when compared to pre-pandemic figures.
But, while spending grows, guest expectations are growing too. Digital natives now make up the largest demographic of attraction guests, and they want their real-life experience to be enhanced by technology. They’ve grown up in an age where personalised digital experiences are the norm, and they’ve lived through a time when they relied on their tech to maintain their social connections.
To sustain revenue growth and keep secondary spending ticking up, attractions need to cater to this digitally native demographic. Guest experiences must meet the expectations of digitally savvy guests by providing them with a guest journey that seamlessly connects the digital and real-world experience. Step one in this pursuit is understanding what they value and where their priorities lie in their attraction experience.
Gen Z and Millennials value time over money
When it comes to how Millennials and Gen Z spend their cash, experiences trump things.
More than 78% of Millennials would choose to spend money on a desirable experience or event over buying something desirable. 55% say they’re spending more on events and live experiences than ever before. This shift in priorities compared to previous generations supports the growth of an economy driven by the consumption of experiences.
But, as this demographic now makes up the majority of consumers, it’s important for attractions to recognise them as the dominant spending group and tailor their experiences to match their expectations. In their experiences, Millennials and Gen Z look for:
- Opportunities to create memories. 18-24-year-olds make up the largest demographic of Instagram users and they’re always on the lookout for a great photo or video opportunity. They also respond well to experiential marketing that encourages them to share their experiences on social media and save their favourite moments.
- Convenience, enhanced by technology. Gen Z was the first generation to not experience any moment of their lives without smartphones. And they’ve learnt to trust their technology to help them out. If they need food, they can get it delivered right to their door. If they need a ride, a car will show up at their exact location. They rely on their tech to make their lives easier.
- Bonding experiences. 79% of Millennials feel that going to live events with family and friends helps deepen their relationships. In many cases, they’ll meet someone who’ll become a good friend from these events. Frustration-free experiences allow for relationships to flourish.
The lesson here is that Gen Z and Millennials don’t put a price on memories. 67% of Millennials are willing to pay incrementally for unique experiences, compared to 36% of Boomers and 49% of Gen X. They’re happy to reach for their wallets for things that’ll improve their experience and allow them to create memorable moments.
With this knowledge, how can attractions optimise their guest experience with Gen Z and Millennials in mind? Start by removing the blockers.
The barriers blocking secondary spend
So, what’s stopping today’s guests from spending during a day out at an attraction? Let’s explore the biggest barriers to revenue growth:
- They’re getting lost due to a lack of navigation services. Attractions often exceed over 450 acres and they’re not easy to navigate. Guests waste a potion of their day trying to find their way to the next ride or attraction.
- Long queues for rides and attractions are preventing them from exploring. Exploration time is key for your guests to discover your retail outlets or grab themselves a bite to eat. But on average, guests only make it on less than eight rides a day due to long queues, with wait times regularly exceeding 100 minutes. The time they’re spending waiting is time that they’re not considering purchases or engaging with your park’s outlets.
- There’s a lack of visibility or access to premium offers and upsells. Operators lack a reliable way to surface offers during the experience. They also aren’t able to offer things to guests at the right time, such as fast passes or food discounts, when the intent to buy is at its highest.
Structuring your guest experience around the idea of breaking down these barriers and implementing technology at the right stages of your guest journey is critical to maximising your revenue. Sounds easier said than done, right? Well, maybe not.
Freeing up exploration time
Barrier one: getting lost. If your guests aren’t finding their way around your park and paper maps aren’t helping, try implementing a digital map with interactive wayfinding. Digital maps have the edge for tech-savvy guests because they:
- Are more familiar than physical maps. We’re used to using digital maps when we’re out and about, so why should attractions be different? And, when you consider that one in seven Millennials have never even read a paper map, digitising is the way to go for helping them get around.
- Allow them to plan their day. It’s not just about getting from A to B, digital maps also show guests where points of interest are in your park and how long it’ll take to get there. This allows them to pack more into their day, bumping up the number of revenue channels they interact with.
- Increase engagement through immersion. Zooming in and out, rotating and tilting functionality turns a mundane look at a map into an immersive experience. You could also add dynamic lighting for after-dark events, or enhance your map with seasonal customisations.
Beating the queues with virtual queuing
Barrier two: queuing. For 60% of guests, waiting in long queues for rides is the worst thing about the theme park experience. From a revenue perspective, it’s part of their day when—aside from some static marketing signs—they’re not in a position to be persuaded towards a purchase. And this will continuously happen throughout their visit—if they’re not in a physical queue, they’re running to the next ride.
Implementing a virtual queuing system frees up your guests to explore your park while they’re still in the queue for their favourite ride. Once they reach the front of the queue, they receive a push notification telling them that it’s time to ride. There are several benefits to running your queue operations in this way, including:
- Giving your guests back time to engage with your retail and F&B outlets, therefore boosting secondary spending.
- Allowing you to use direct messages to encourage guests to grab a bite to eat at nearby outlets while they wait.
- Increasing the sale of fast passes by notifying guests who are about to enter long lines.
By implementing tech like this, you’re not only improving the guest experience and banishing frustration, you’re also maximising guest engagement, opening up more opportunities for secondary spend revenue. But, what about if your guests aren’t seeing your revenue-driving promotions in the first place?
Expose guests to your retail outlets and premium offers to boost secondary spending
Sometimes during a busy day out to a theme park, certain retail outlets or special offers might just get missed by your guests. The intent to buy is there, but the items themselves go unnoticed. How do you ensure your premium discounts and outlets are getting the exposure they need?
Partly this comes down to your park layout and where you choose to position your retail outlets. Positioning a bar next to a thrill ride is a great way to incentivise older visitors to unwind with a drink while they’re waiting in your virtual queue. Or, positioning your F&B outlets on the way out of your busiest park area means guests will finish their thrills and know exactly where to head when hunger strikes.
Moving large points of interest around your park isn’t easy, but it can make a vast difference in how many guests engage with them and improve your overall guest flow.
Digitally, things are a little more flexible. If you’re using a guest experience platform, you can use well-timed push notifications to incentivise certain purchases based on a guest’s location. Or, if they’re in a long queue, for example, shoot them a notification about fast passes. If it’s coming up to lunchtime, remind them about your 2-for-1 burger deal. If they’ve just come off a ride and your photos are managed digitally, send them a reminder to check out their rollercoaster face.
With Gen Z and Millennials relying so heavily on their tech to help them out with their day, it’s the perfect means of communicating with them about what your park has to offer.
Meet expectations, drive revenue
To learn more about how you can grow your revenue while meeting the expectations of a digitally native guest demographic, download the guide ‘A Theme Park’s Guide to the Future of Revenue Growth’, developed by Attractions.io to learn how world-leading attractions like Merlin Entertainments, San Diego Zoo and Butlin’s increase their revenue across the entire guest journey.
