RESPONDING TO INCREASING CUSTOMER EXPECTATIONS IN THE UK ATTRACTIONS SECTOR - JUNE 2017 UK ATTRACTIONS SECTOR / AMANDA JAKES, PWC
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June 2017
UK attractions sector / Amanda Jakes, PwC
Responding to
increasing customer
expectations in the UK
attractions sector
www.pwc.com
2 UK Attractions Sector 2017
2017 UK Attractions Sector 3
How is the UK attractions sector
responding to more informed
consumers with ever increasing
expectations?
A recent PwC survey on
consumer sentiment1
indicates that whilst 25% of
British consumers expect to
be better off in 2017, some
26% expect to be worse off.
Embracing
Consumers are becoming technology
more demanding and as
household budgetary
pressures grow on leisure
spend, they are becoming Responding to
more selective as to where
ever increasing
they spend their cash. Heading
customer
Across the attractions sector, there are expectations
signs that customers increasingly want by...
innovative, immersive and interactive
experiences which provide value for
money. In addition, they are more Broadening Evolving
tech-savvy and with instant access to the appeal the offer
vast swathes of information at their
fingertips, their expectations are rising.
These are interesting times for attraction
owners and operators. How are they
responding to these trends in order to
drive admissions and create sustainable
business models? Are they embracing
technology? How are they proactively
identifying and targeting new customer
bases? How are they evolving the We see three key inter-linking themes and through this short article, will explore
visitor experience? each a bit further.
1 http://pwc.blogs.com/press_room/2017/01/consumer-sentiment-remains-positive-but-pressured-families-are-starting-to-feel-the-pinch.html
4 UK Attractions Sector 2017
How are attractions
embracing technology?
Technology also has a key role to play in
Technology permeates enhancing the experience during a visit.
throughout all aspects Large theme park groups have adopted
of our everyday lives and wearable technology and cashless
increasingly we take this systems (e.g. Disney MagicBand which
for granted. encompasses entry ticket, fast pass, ride
Only
29%
scheduling, dining, retail, hotel key and
However, one of the main challenges for even parking). Others are using it to
attractions owners is deciding how best manage queues (e.g. Universal’s new
to embrace technology and ensure any Tapu Tapu wristband for Volcano Bay
investment is fit for purpose in a fast of visitor attractions have which allows you to join a virtual queue).
A number of attractions provide apps for
evolving sector. Latest research by Visit online booking facility
England (2015 data) indicates that guests to download and use throughout
around 93% of visitor attractions have Meeting expectations on customer their visit (e.g. Tate Britain) or podcasts
websites but on average, only 29% have experience is a key focus for any attraction to supplement the experience (Bletchley
an online booking facility. This masks a and technology’s role is increasing. Park). The most recent Theme Park
range of take up rates across different Before a visit, guests are now spending Barometer research by Omnico
types and sizes of attractions but even more time online researching, planning highlights future trends such as use of
for larger, more commercial attractions and booking trips and ONS statistics robots as assistants and guides, electronic
such as theme parks, some three out of indicate around 3 out of 4 adults access tattoos replacing tickets and smart
ten websites don’t offer online booking. the internet ‘on the go’ (and 70% of this mobility scooters.
is done via mobile phones). The speed of Of course, the visitor experience doesn’t
page loading and number of pages also finish when people physically leave the
significantly influences bookings (retail venue. Postings on social media are
research by Eventbrite suggests some again part of everyday life for certain
40% of shoppers abandon a transaction age groups with around 90% of all
if the page takes longer than 3 seconds adults under 35 and over 50% of adults
to load). aged 35-64 using social media on a
93%
regular basis.
of visitor attractions
have websites
90%
of adults under 35 use social
media on a regular basis
2017 UK Attractions Sector 5
Another aspect is how technology is Finally, technology has a role to play However, it also brings challenges such
being incorporated into content, rides from a business/corporate viewpoint as cost (initial implementation, staff
and experiences within attractions. with PwC identifying the ‘Essential training, on-going maintenance),
For example, The National Trust has Eight’ emerging technologies for UK consistency (e.g. confidence that the
partnered with Panasonic to create firms to focus on4. Almost regardless right platforms and technologies in
more immersive experiences by bringing of the scale and nature of a business, place e.g. does mobile site look as good
things to life through touch screens in technology has the ability to drive cost as tablet or laptop?), risk of things going
some of its properties. ‘Ride’ technology efficiencies throughout the business. It wrong (e.g. all or key elements of an
has been prevalent in blockbuster roller could even change the business model. attraction breaking down) and security
coasters for years but we are also now It also offers valuable insight into (risk of cyber fraud etc.).
seeing new adaptations across a range of existing customer preferences and
other attractions, e.g. new Forbidden habits, enabling the operator to tailor
Forest at Warner Bros Studio Tour London and personalise experiences and target
and smaller attractions where technology specific groups.
is used to personalise an experience.
Future trends may include using robots The essential eight technologies
as entertainers and for shows or stunts.
One of the key trends is the introduction Internet of things
of virtual reality, which Merlin
Entertainments has recently introduced
at Thorpe Park with Derren Brown’s Augmented reality
Robots
Ghost Train and also at Madame Tussauds
in New York. Industry research by Onmico
revealed that globally, over 65% of guests
want or expect virtual or augmented
reality in theme parks within the next
three years. These types of technology 2020
as well as variations such as mixed reality outlook
and extended reality, offer opportunities Drones Virtual reality
to create new experiences for guests
and seek to develop new or existing
partnerships in different ways (e.g.
Universal and Nintendo). Indeed, we are
already seeing virtual reality being
more widely introduced across a number
3D printing Blockchain
of more diverse sectors including
healthcare, education and even retail.2
Furthermore, PwC forecasts consumer Artificial intelligence
spend on the UK virtual reality sector
As ever though, there is a constant challenge between needing to invest in the product
will exceed £800m by 2021 reflecting
to drive admissions and investing in customer experience technology which is ever
annual growth of 76% over the five year
evolving and moving quickly. Prioritising spend and striking a balance between
period.3
quantitative elements (footfall) and qualitative elements (guest satisfaction) is
very important
2 http://pwc.blogs.com/industry_perspectives/2017/04/will-virtual-reality-mean-virtual-retail.html
3 PwC’s 2017 UK Entertainment & Media Outlook
4 https://atpwc.co.uk/#/story/uk-leaders-increasing-investment-in-digital
6 UK Attractions Sector 2017
How are attractions
broadening their appeal?
.As existing attractions look Use of IP New partnerships
to develop their offering,
understanding project
economics is key. How much The majority of the larger theme and In terms of broadening the appeal of
will it cost to build or leisure parks across the UK now have an attraction, or tapping into new
implement? How will this be license agreements or partnership markets, there are a number of
funded? As visitor numbers arrangements with IP providers (e.g. interesting initiatives. The National Trust
Paultons Park/Peppa Pig, Drayton has partnered with Sport England to
grow or new markets are
Manor/Thomas the Tank Engine, promote physical activity in open spaces;
penetrated, how does the
Blackpool Pleasure Beach/Nickelodeon, this can take the form of formalised
operating model change? Alton Towers/CBeebies Land, Thorpe activities such as water sports or more
Park/Angry Birds (games)/Saw (film)/ informal, such as park runs. The 30th
Successful attractions need to keep
Celebrity Get me Out of Here! (TV), Go Ape in the UK opened at Chessington
reinvesting to stay relevant. In addition,
Merlin midway attractions/Shrek and World of Adventures last summer and a
they need to encourage repeat visitors
more recently, Chessington/The Gruffalo). number of attractions are reaching new
and broaden their offering to tap into
Aardman Animations (the creators behind audiences through TV documentaries
new markets in order to grow the
Shaun the Sheep, Wallace and Gromit (e.g. Chester Zoo). More immersive and
customer base. Against a backdrop of
and Morph) have publicly stated their personalised experiences are being
a more discerning guest who is looking
ambition to further expand their IP into developed too. Both Portsmouth and
for a memorable outing, many have
more theme parks and the BBC are Chatham Dockyards have introduced
chosen to address this by offering more
opening a themed attraction in China ‘Escape Room’ experiences where guests
immersive experiences whereas others
using BBC Earth and Top Gear IPs. have to solve problems within fixed time
are creating new partnerships which
In November last year, Universal and periods before being ‘locked in’.
bring something different.
Nintendo announced an arrangement At London Zoo, as well as a chance to
In many cases, attraction operators and that will see the characters, action and sleep next to lions, there is an interactive
owners are turning to the Creative adventure of Nintendo video games adventure with guests helping forest
Industries5 as part of their supply chain. brought to life within highly themed, rangers deal with a ‘lion-emergency’
This sector is estimated to be worth innovative environments across and lend a hand to the veterinary team
nearly £88bn to the UK economy and Universal resorts. who come to the rescue.
includes, amongst other things,
So, attractions are broadening their
intellectual property (IP) from film,
appeal by directly investing in the product
TV and gaming, as well as actors
(i.e. incurring capital expenditure) but
and performers.
also through initiatives and partnerships
which can be less capital intensive and
easier to adapt to take advantage of
changing trends.
5 http://www.pwc.co.uk/industries/entertainment-media/insights/imagi-nation.html
2017 UK Attractions Sector 7
8 UK Attractions Sector 2017
How are attractions
evolving their offer?
Competitive pressures
One of the key competitors for
m outside the
attractions is in-home digital
sure fro sect
entertainment including res or
P
al, gami
gaming. This sector has seen Digit ng
rapid growth in recent years
with 80% of UK adults
watching an online TV/film
service in 2015 and the video
games market expected to see
digital console game revenues New Products
E x i sti n g p
(including online micro- New themes
transactions) grow at 11% to Segmentation
overtake the digital PC game
ts
sector in 20196.
an
lay
tr
As people spend more time on their
er
en
digital devices, they seem to feel more
s
w
closely connected to the content and Ne
ironically crave more live interaction
and experiences. Over recent years this P re r
ssu r c to
has supported wider trends in the music e f ro m w i t h i n t h e s e
industry such as the major revival of
tours and festivals, and video gaming/
e-sports – competitive computer gaming
staged in front of live audiences – which However, significant opportunities The concept is a multi-activity centre
as a sector is forecast to generate more exist for attractions to offer authentic encompassing zip wires, climbing walls
than £1bn in global revenue and double and unique experiences that can’t be and trampolines. Another experienced
its audience to 600 million by 2020 replicated elsewhere. As a result, existing operator, Merlin Entertainments, has
according to the BBC7. attractions are facing increasing also recently submitted plans in
Of course, we’ve also seen evidence in competition from within the sector as Birmingham for a brand new addition to
the attractions sector with global theme well as from new entrants. its midway portfolio, currently referred
park attendance rising by more than 5% A number of veteran attractions owners to as Project Thor. Both an indoor and
in 20158. and operators with years of sector outdoor attraction, it will incorporate
So, attractions face a number of challenges experience under their belts are skydiving and high ropes.
relating to technology, a continued need introducing new products into the Commercial attractions also face increasing
to reinvest in enhancing the visitor market; these are aimed at complementing competition from the ‘not for profit/
experience and competition from a their existing products but also offering museums’ sector who over recent years
greater choice of in-home entertainment. something new or different. David Lloyd have had to become more commercially
recently announced plans for a series of focused as public sector funding reduces.
‘Adventure Parks’ across the UK, with Many of these now offer ticketed
the first of 20 due to open later this year. temporary exhibitions and events, again
increasing the choice for the consumer.
6 http://www.pwc.co.uk/industries/entertainment-media/insights/entertainment-media-outlook.html
7 http://www.bbc.co.uk/sport/39119995
8 http://www.teaconnect.org/images/files/TEA_160_611852_160525.pdf2017 UK Attractions Sector 9 Unsurprisingly there are a range of new The sector is also becoming more These include, for example, the Bombay entrants too, typically distinguished segmented by age with a more defined Sapphire Distillery in Hampshire (an either by theme or by segmenting the spectrum on offer. At one end of the attraction as opposed to just gin tasting) target market. One new theme we are spectrum, new experiences such as which won Gold in the VisitEngland starting to see is ‘Retailtainment’ which Kidzania are targeting the younger Visitor Attraction Awards for Excellence is the blending of mainstream retail and generations. The family market sits 2016 and the rapid expansion of horror entertainment experiences. Whilst firmly in the middle and is actively based pop up attractions around common in the USA (e.g. Mall of America being targeted by a new breed of indoor Halloween, many of which have which has multiple rides and attractions active entertainment centres; trampoline age restrictions. alongside shops), this concept is relatively parks are one of the fastest growing So, there are many issues, new embryonic in the UK. However, that leisure sub-sectors in the UK – they are technologies and competitive pressures might be about to change given the already morphing into broader family facing the attractions sector. However, recent joint initiative between Disney entertainment centres with ninja there are also real opportunities for those and Westfield with plans for themed courses and laser tag which provides who can offer innovative, immersive attractions within shopping centres as new competition for some of the larger and interactive experiences which are well as a Star Wars fashion campaign. established indoor activity centres unique and which provide value for And there are other examples too of historically offering ski slopes, climbing money. It will be interesting to see how retail IP and attractions combining – and other high adrenaline activities. individual attractions respond to more of course LEGO has been doing this for At the other end of the spectrum, there demanding consumers and how the years but new entrants are now emerging are more attractions focussing purely on sector evolves in the process. such as the Mattel Play! centre in Liverpool the adult market. which opened last year.
Contacts
If you would like to discuss this article and wider trends in the
market, or if you have something that you’d like to explore further
with PwC, please contact Julie Clark or Amanda Jakes who will be
happy to help.
Julie Clark Amanda Jakes
Head of Sport & Leisure amanda.a.jakes@pwc.com
julie.d.clark@pwc.com 020 7213 8280
020 7213 4170
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