Pricing Model and Strategy for a Water Park Using Revenue Management Tactics

Abstract

At present, a multitude of industries benefit from the application of analytics data. This data and its use takes a variety of forms, and is used in a variety of disciplines across industries. The discipline known as revenue management utilizes data to anticipate consumer behavior, specifically consumer demand, and adjust pricing models and plans accordingly in order to maximize revenue. In the tourism industry revenue management is a widespread practice, but in some areas of tourism it has not been adopted as efficiently as possible. One area of the tourism industry which may be currently under-utilizing revenue management is the water park sector.

Through the course of academic research a central hypothesis relating to the performance of water parks was explored. The purpose of said research was to determine if a water park can utilize revenue management tactics and techniques to improve performance, increase revenue, and improve business outcomes.

Data was compiled through the course of this research-based theoretical exploration. The compiled data indicated that performance improvements, increased revenue, and improved business outcomes can, indeed, result from the successful application of the aforementioned techniques. This data was utilized to develop plans and strategies for a specific case study referred to as Company X. Further, the gathered data and resultant revenue management plans and strategies indicated that specific techniques which can be utilized by Company X, based upon Company X’s current situation, competitive position, and present or attainable resources, will likely result in increased revenue. As an industry, taking actionable steps toward implementing a revenue management approach will result in a greater chance of reaping the benefits associated with said actions. These benefits may include, but are not limited to: higher revenue, competitive advantage, and creation of new market segments.