Funworld November 2009

Predicting the Future: A Vision for 2020

FUTURIST AND AUTHOR ADJIEDJ BAKAS kicked off “The Attractions Industry 2020” keynote session with a whirlwind tour of “megatrends.” Leading a company in hybrid economic times means acknowledging the “elephants in the room,” he said.

First, banks cannot be counted on to finance business, so companies must investigate alternative funding sources. With freshly minted banking licenses, will companies like Google and Microsoft become the new finance giants? Or could we see the resurgence of cooperative banking?

“There’s always an economic winter before the start of an age of technological innovations,” he continued. Advances could lead to queue-free payment for rides and retail, green skyscrapers, robotic helpers, and energy and water savings thanks to nano materials that never need laundering.

In changing times, consumers are adopting an ethical and spiritual stance. “People are asking, ‘Is it worth this?’” and companies should be prepared to answer their questions, said Bakas. Also, people are retreating into tribes: “A lot of people want to travel kid-free, for example. All tribes want their own entertainment, and often they don’t want to mix.”

An aging population will require different offerings from parks, according to BRC Imagination Arts’ Bob Rogers. Instead of building bigger, higher, and faster coasters, he said, “We may need to use illusion to create the sensation that the thrill is still there, because some older guests may not be able to tolerate the [physicality].”

As chains take a larger slice of the market, it’s important each park retains its own brand and responds to the local market, said Professor Salvador Anton Clavé, author of “The Global Theme Park Industry.” “Parks must not lose their heart,” said Michel den Dulk, designer at Europa-Park.

Climbing the Ladder: Emerging Leaders Learn from Top Industry Professionals

HOW WOULD YOU RUN YOUR OWN THEME PARK? That was the task faced by 32 young professionals taking part in the first Institute for Emerging Leaders program in Europe.

Teams jumped at the chance to draw up business plans for the fictional Kangaroo Park after three days of coaching. Mentors included Adrian Mahon, director of health, safety, and risk management at Merlin Entertainments Group; John Schoones, head of quality and maintenance at Efteling; Marcel Schonenberg, CEO of Beurs van Berlage; Wouter Dekkers, general manager at Movie Park Germany; Pieter Cornelis from NHTV University; consultant Tim Ruedy, and Mike Brown, group commercial director of Blackpool Pleasure Beach. They had both praise and advice for the students:

• It’s easiest to begin with the end [vision] in sight: Remember the big picture.
  
• Do market research.
  
• Deliver your vision with passion.
  
• Focus on safety at all levels and across all aspects of your operation. Keep reinforcing the message.
  
• Know the business value of managing risk. A safe workplace relies on documentation, training, and maintenance.
  
• Harness the marketing power of virals and e-mail blasts.
  
• Consider different pricing packages, but keep them simple.
  
• If you don’t ask for the sale, you won’t get the sale.

“The best thing has been the opportunity to meet people and share ideas across the industry,” said participant Fredrik Jonsson, human resources manager at Sweden’s Astrid Lindgrens Värld.

Solid Hands: The Future of Safety in the Industry

“WE HAVE TO HAVE AN EXCELLENT PRODUCT AND IT HAS TO BE SAFE.We cannot live on an island when it comes to safety,” said Europa-Park’s Michael Kreft von Byern, opening the EAS Future of Safety seminars.

Stefan Puttnam, managing director of leisure attractions, amusements, and parks at Jardine Lloyd Thompson, supplied a sobering overview of the “compensation culture” and the rise in fraudulent insurance claims. The arrival of no-win/no-fee companies has triggered a growth in claims because “there is no financial commitment on behalf of the claimant,” explained Puttnam. While the volume of claims involving parks and attractions may be small, the wins can be significant, he said.

Insurers are making some progress. In 2008, there were 107,000 detected fraudulent claims in the UK, resulting in a savings of EUR730 million (US$1.16 billion). Insurers estimate a 30 percent rise in detected fraudulent claims in 2009, with an estimated saving of EUR1 billion (US$1.6 billion). Yet an estimated 250,000 undetected fraudulent claims cost the UK EUR1.9 billion (US$3 billion).

So what can parks and attractions do? “Ensure health and safety compliance. Have your paperwork in place, give your insurer as much supporting documentation as you can, and defend claims vigorously,” Thompson said.

Also during these sessions, Gianni Chiari of the European Association Amusement Supplier Industry; chief executive of British Association of Leisure Parks, Piers, and Attractions (BALPPA) Colin Dawson; and IAAPA Europe Executive Director Andreas Veilstrup Andersen provided detailed updates on the different ride safety standards and legislation around Europe. Given the political and media interest in ride incidents, having accurate data is crucial. Dawson urged park operators to join the European Ride Safety Reporting System initiated by IAAPA and Europarks. BALPPA members are already committed to the program, which will be mandatory for European IAAPA members starting in 2010. Also, a revision of the European standard—EN13814—will begin next year.

Michael Withers, vice president of show/ride engineering at Walt Disney Imagineering, described IAAPA’s global standards harmonization program. He explained the steps that are being taken to incorporate international best practices into a “common blueprint” for amusement ride safety worldwide. Leonard Morrissey, director of technical committee operations at ASTM International, described the ASTM standards. He emphasized the approach being taken by Canada to adopt the ASTM F-24 standards and incorporate existing Canadian standards such as electrical codes.

Peter Leutenstorfer of TÜV (an international testing, inspection, and certification organization) summed up the challenges ahead: the behavior of guests, deciding what age to assume children’s responsibility, defining acceleration limits, and dealing with government pressure for more safety measures after accidents.

“At Disney, our focus is on containment, detection, and response,” said Withers. Going forward, the company is looking at solutions including imaging and recognition systems, radio frequency identification, smart vehicle technology, sensors that monitor guests’ heart rate and anxiety, biometrics that could clear a guest for a high-thrill experience, and robotic technology to remove guests and help people with disabilities.

Oscar Abbenhuis and Gertjan Burghouts from the Netherlands scientific research organization TNO closed the safety seminars with a futuristic preview of the ways in which pattern recognition software could work in parks. Unusual guest behavior including queue-jumping and entering restricted areas could be detected with such an early warning system.

Financial Times: Operators Discuss the Economy

The Themed Entertainment Association invited Economic Research Associates/AECOM Technology Corporation’s David Camp, Europa-Park’s Michael Kreft von Byern, Alain Trouvé (Grévin et Cie), and Jan Reuvers of Compagnie des Alpes’ (CDA) Walibi World to explore the opportunities stemming from the financial crisis.

After a cautious season start, the operators on the panel were optimistic about their results. “Everybody needs bread and play,” said Reuvers, although theme parks targeting the youth market had an easier time than attractions like CDA’s Dolfinarium, where mothers held the purse strings.

The panel had mixed views on the practice of discounting. Kreft von Byern was against it: “We don’t believe in discounts. We try to sell products for the real price because it’s important to invest in a time of crisis. We need to send a sign that we are attractive to people.”

According to Reuvers: “The Dolfinarium had a tough time, but we did a second promotion in September that did very well.” The schools market was another tough sell this year, so Reuvers turned his attention to cultivating new audiences, including local trade groups.

Changing guest behavior is one of the biggest challenges facing parks. “People are taking shorter times to decide to come to the park,” said Trouvé. “Promotions might have to be for that particular day.”

Flexible working arrangements are helping operators deal with the flux in visitors. At CDA’s Dolfinarium, for example, employee contracts specify a low number of hours, and staff can be called in for extra hours via text message if required. To keep staff loyal, Walibi World started an employment agency, which finds people work out of season and even generates a small profit.

Wages should not suffer in an economic crisis, said Kreft von Byern: “The level of salary is not high; that isn’t a place where you should go and chisel. If you treat your people well, they will treat your guests well.”