Top 7 Theme Park KPIs Every Owner Must Track for Success

Welcome to the world of theme parks, where magic meets fun! As a serial entrepreneur, I have seen multiple businesses grow and flourish. One thing that stands out is the importance of measuring key performance indicators (KPIs), which help to track progress and identify areas for improvement. In this article, we will be exploring the top seven theme park KPI metrics that every owner and operator should be tracking.

• Number of visitors: The most essential KPI is measuring the total number of visitors that enter your theme park. This number provides insights into the popularity of your park and helps to forecast future growth trends.
• Customer satisfaction rating: Measuring customer satisfaction helps you to understand the areas where your visitors are happy or unhappy. By tracking this KPI, you can improve the overall experience, which in turn can lead to increased revenue.
• Repeat visitors: This KPI measures the percentage of visitors who make a return visit to the theme park. A high number indicates that your park is creating a memorable experience that is worth revisiting.

As the theme park industry continues to grow, it's essential to measure these KPIs to stay ahead of the competition. In addition to the metrics mentioned above, we will also be covering revenue per visitor, average spending on food and beverages, attractions popularity ranking, and partnerships and promotional collaborations effectiveness. So, let's get started!

Number of Visitors

One of the most critical KPI metrics for theme parks is the number of visitors. It helps park owners understand the popularity of their park and how well it is doing from a financial standpoint.

Definition

The number of visitors is the total number of people who visit a theme park during a specified period. It includes everyone who enters the park, including annual pass holders, daily visitors, and any other paid or unpaid guests.

Use Case

Theme park owners use this KPI to measure the park's popularity and success. They can use this metric to identify peak or off-season periods, making strategic decisions to increase park attendance and increase profits. Also, monitoring visitor numbers can help detect issues that might deter visitors and address them before the issue escalates into a full-blown crisis.

How To Calculate KPI

Calculation of the number of visitors is remarkably simple. Take the total number of guests who visited the park during a specific period, and that is your KPI.

Calculation Example

Suppose a theme park got 50,000 guests during the summer holiday season. The number of visitors in that period would be 50,000.

KPI Advantages

• Identifies busy periods
• Measures success and popularity of the park
• Helps detect issues that can impact visitors
• Aids in making strategic decisions to increase attendance and profits

KPI Disadvantages

• Does not consider non-paying visitors like chaperones or children under a certain age
• Does not account for a day's length or seasonality

KPI Industry Benchmarks

The top theme parks in the world have annual visitors of millions to tens of millions.

Customer Satisfaction Rating

Customer satisfaction rating is a crucial KPI for theme parks. It measures how happy customers are with their overall experience, including ride quality, cleanliness, customer service, food, and atmosphere. Theme parks need to track this KPI to ensure they are meeting customer expectations and identifying areas for improvement.

Definition

Customer satisfaction rating is a metric used to assess how satisfied customers are with their overall experience at a theme park. This could be measured using surveys, ratings, or feedback forms. In essence, it is a measure of the emotional response of customers towards their experience.

Use Case

Theme parks use customer satisfaction rating to get feedback from customers about their experience and identify areas for improvement. They use this metric to create happy customers who keep returning to the theme park. Happy customers help promote the theme park through word-of-mouth marketing.

How To Calculate KPI

To calculate customer satisfaction rating, first, ask customers to rate their overall experience on a scale of 1-10. Then, calculate the percentage of satisfied customers by dividing the number of satisfied customers (those rating 7 or above) by the total number of respondents and multiplying it by 100.

Calculation Example

Suppose, a theme park surveys 1000 customers and receives a rating of 7 or above from 700 of them.

KPI Advantages

• Identifies areas for improvement by getting feedback from customers.
• Helps measure the effectiveness of initiatives to improve customer experience.
• Increases customer loyalty and advocacy, leading to repeat visits and increased revenue.

KPI Disadvantages

• Can be subjective as it relies on individual opinions and experiences.
• Difficult to get accurate and unbiased feedback from customers.
• May not identify specific areas for improvement, only that there is room for improvement.

KPI Industry Benchmarks

According to a study by J.D. Power, the average customer satisfaction rating for US theme parks in 2020 was 838 out of 1000.

Repeat Visitors

Definition

Repeat visitors refer to the number of visitors who have visited a theme park more than once within a specific period.

Use Case

The repeat visitors KPI is essential because it shows the level of customer satisfaction with the park experience. It is also an indication of how well the park is retaining its customers.

How to Calculate KPI

To calculate this KPI, you need to divide the number of repeat visitors by the total number of visitors and multiply by 100. The formula is as follows:

Calculation Example

For instance, if a park had 100,000 visitors, with 30,000 of them being repeat visitors, the KPI would be:

KPI Advantages

• It is a direct measure of customer retention rate.
• It provides insights into the park's popularity with repeat customers.
• It helps identify loyal customers who can become ambassadors for the park.

KPI Disadvantages

• It does not account for customers who visit different parks within the same chain.
• It may not be accurate if there is no accurate data for new visitors.
• It does not measure the satisfaction level of repeat visitors who might have had a negative experience.

KPI Industry Benchmarks

Industry benchmarks for this KPI vary depending on the size and location of the park. However, a 20% repeat visitor rate is considered average, with some parks recording as high as 40%.

Revenue Per Visitor

As a theme park owner or manager, you need to determine how well your theme park is performing. One way to do that is to measure Revenue per Visitor.

Definition

Revenue per visitor is the amount of money a theme park earns from each visitor on an average basis.

Use Case

Revenue per visitor helps park managers to analyze the effectiveness of their marketing strategies. It also gives management a better understanding of customer behavior, such as what customers are spending their money on during their visit.

How to Calculate KPI

Calculation Example

Let's say your theme park had total revenue of $500,000 last year and welcomed 100,000 visitors. The revenue per visitor metric would be calculated as follows:

Therefore, on average, each visitor spent $5 during their visit.

KPI Advantages

• Insight into how visitors are spending money in the park
• Allows managers to identify key areas for growth and investment
• Helps managers adjust ticket prices and promotions to maximize revenue

KPI Disadvantages

• Does not account for variations in season or weather
• May not be applicable to smaller theme parks with limited offerings
• May not be a reliable indicator of visitor satisfaction

KPI Industry Benchmarks

According to industry benchmarks, revenue per visitor at a theme park can range between $4 and $15.

Average spending on food and beverages

Definition

The average spending on food and beverages KPI measures the average amount of money theme park guests spend on food and drinks while visiting the park. This KPI is crucial for understanding how much revenue a park generates from its food and beverage offerings.

Use Case

The use case for this KPI is to identify the park's most popular food and beverage items and to track their sales over time. This KPI also helps parks understand the relationship between the number of visitors and the revenue generated from food and beverage sales.

How To Calculate KPI

To calculate the average spending on food and beverages KPI, use the following formula:

Calculation Example

If a theme park generates $500,000 in revenue from food and beverages and receives 100,000 visitors, the average spending on food and beverages would be:

KPI Advantages

• Helps parks identify the most popular food and beverage items
• Tracks sales trends over time
• Shows the relationship between visitor volume and revenue generated

KPI Disadvantages

• Does not account for visitors who bring their own food and beverage
• Does not consider the quality of the food or beverage offerings
• Does not provide insight into the profitability of specific food and beverage items

KPI Industry Benchmarks

According to industry benchmarks, the average spending on food and beverages for a theme park is between $5 and $7 per guest.

Attractions Popularity Ranking

Definition

Attractions popularity ranking is a KPI metric that helps theme park owners and operators understand the popularity of their park's attractions among their visitors.

Use Case

This KPI is important for determining the success of a theme park's rides and attractions. Additionally, it is used to determine which attractions need improvement and which ones should be promoted.

How To Calculate KPI

The formula for calculating attractions popularity ranking is as follows:

Calculation Example

If a theme park receives 500,000 visitors in a year, and one of its attractions is ridden by 150,000 people during that same year, the attraction popularity ranking would be:

KPI Advantages

• Helps park owners and operators understand which attractions are popular among visitors
• Can help in making data-driven decisions related to the promotion, expansion, and improvement of attractions
• Can provide insights into visitor trends and preferences

KPI Disadvantages

• Does not provide information about visitor satisfaction, only about the popularity of an attraction
• May not take into account external factors that can impact attraction popularity, such as ride maintenance or poor weather conditions
• Does not provide a comprehensive view of park performance

KPI Industry Benchmarks

According to industry benchmarks, a good attraction popularity ranking falls between 20 and 40%. However, it is important to note that this figure can vary depending on factors such as the type and size of the theme park.

Partnerships and Promotional Collaborations Effectiveness

Definition

Partnerships and promotional collaborations involve teaming up with other businesses or brands to promote and market your products or services. The effectiveness of these collaborations can be measured by tracking the KPIs related to the partnership.

Use Case

Theme parks use partnerships and promotional collaborations to increase brand awareness, attract new customers, and drive revenue. This can include promotions with other businesses, sponsorships, and collaborations with social media influencers.

How to Calculate KPI

To calculate partnerships and promotional collaborations effectiveness, use the following formula:

Calculation Example

If a theme park generated 500 leads in a month, and 100 of those leads were generated through partnerships and collaborations, the KPI would be:

KPI Advantages

• Allows for collaboration with non-competing businesses, expanding reach and increasing brand awareness.
• Can generate new leads and increase revenue.
• Provides an opportunity to create unique promotions and experiences that can make the theme park stand out.

KPI Disadvantages

• Partnerships and collaborations can be time-consuming to negotiate and implement.
• There is a risk of partnering with a brand that has a negative reputation or values that do not align with your own.
• The effectiveness of partnerships and collaborations can be difficult to measure accurately.

KPI Industry Benchmarks

According to industry benchmarks, a good partnerships and promotional collaborations effectiveness KPI is between 15-25%.

The world of theme parks is a magical place that brings fun and excitement to people of all ages. As a theme park owner or operator, it's crucial to measure the right key performance indicators (KPIs) to track progress and identify areas for improvement. In this article, we have explored the top seven KPI metrics that every owner and operator should be tracking to ensure sustained growth and success.

The first three KPIs are the most essential metrics to measure the popularity and success of your theme park. The number of visitors provides insights into the park's popularity and helps to forecast future growth trends. Measuring customer satisfaction helps identify areas for improvement, which can lead to increased revenue. The percentage of repeat visitors is a strong indicator that your park is creating a memorable experience worth revisiting.

Along with these three KPIs, other metrics like revenue per visitor, average spending on food and beverages, attractions popularity ranking, and partnerships and promotional collaborations effectiveness, contribute to the park's overall success and drive growth. Dynamic operators recognize the importance of tracking these metrics to make data-driven decisions that can make their theme park a success.

As the theme park industry continues to grow, it's becoming increasingly important to measure these KPIs to stay ahead of the competition. By tracking your park's performance using these essential metrics, you'll be accurately seeing how your park performs, helping you to identify areas of development or growth where needed. In conclusion, harnessing the power of KPIs is a critical step towards achieving sustained growth and success in the world of theme parks.