My two cents on Why Wonderla is facing a "Perfect Storm"
Perfect “storm” facing Wonderla
1. Evolving Customer tastes with greater expectations from a “park” experience due to:
Increased global travel among Indians with trips to Disneyland, Sentosa Singapore etc.
Rising avg. income and cheaper travels make trips to world class amusement parks in Dubai,
Sentosa Singapore, Disneyland Hong Kong affordable / aspirational to the rising middle class
Parks getting old: Kochi > 15 years; Bangalore > 10 years; only incremental growth likely.
Falling footfalls due to:
Subdued discretionary spending due to uncertainty in IT sector
Increased ticket / non-ticket prices due to GST
political agitations , Cauvery water protests on the Bangalore- Mysore highway
No Novelty factor for repeat customers. Long Gestation period for introducing new rides. Approx.
time: 1 new ride per year.
Capital intensive business with rising cost of setting up new parks- Bangalore Park cost @ 5 crores in
2005; Hyderabad cost 82 crores 10 years later (for land & civil works).
Challenges in acquiring large land parcels in new cities for future growth & expansion:
Unavailability of land parcels within City perimeters
Land available only in outskirts (poor infrastructure and connectivity)
Poor “Park” experience (personal)
Extremely crowded during weekends and vacations leading to long queues and fatigue
Increased waiting times also due to poor “queue” management as members of large group repeat
rides, jump queues etc.
Deteriorating ratios / numbers over the last 3 years: (Source: Value research)
ROCE % = 22.76% (2016) < 27.55% (2015) < 38.02% (2014)
RONW% = 15.75% (2016) < 20% (2015) < 29.56% (2014)
PS: First post here. Please excuse if any forum guidelines have not been followed in this post.