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More Proof that High Fidelity is the Winning Formula

Today the entertainment landscape is highly competitive and is only growing more so. Location-based entertainment venues (LBEs), including all types of family entertainment centers (FECs), are now competing for consumers’ discretionary dollars and leisure time with the expanding options of at-home and mobile digital entertainment as well as an increasing selection of other out-of-home entertainment experiences including retail-tainment and many free options. Both on this blog and in our Leisure eNewsletter we have featured a number of articles discussing that in order for LBEs to win today and into the future, they need to offer High Fidelity.

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When it comes to spending on fees and admissions for entertainment on trips and vacations, since 2004 we have seen a 20% decline in household participation and a 28% decline in average household spending (inflation-adjusted). That’s a tough market to compete in and one you would think would be very price sensitive.

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Well, just the opposite appears to be the case. The High Fidelity venues are winning and are even able to raise their prices faster than inflation.

There’s probably no Higher Fidelity entertainment experience than The Magic Kingdom at Disney World in Orlando, Florida. And it isn’t cheap when you consider not only the admission price, but also adding the cost of travel, hotels and meals for a family to go there.

Guess what? Despite a shrinking market for entertainment on trips and vacations, between 2006 and 2013, The Magic Kingdom grew its attendance by 13%, 2.5 times the rate of growth of the US population. That’s an 8% increase in their US market penetration rate. And most amazing, between 2006 and 2015, they raised their admission price from $63 to $105, 44% faster than inflation. If they had only grown their admission price by inflation, today it would only be $73, $32 less than what it currently is.
Magic Kingdom price increase & attendance 2006-2015This clearly demonstrates that in today’s increasingly competitive entertainment marketplace, High Fidelity plays an important role in the formula for success. Even with the mindful frugality of spending brought on by the Great Recession, if people are going to visit an LBE, they are opting for the High Fidelity choices and are more than willing to pay a premium price for the experience. It’s not about the price, but rather the value you get for what it costs. People no longer are willing to waste their precious leisure time for a mediocre experience. If they are going to leave the comfort of their homes and the convenience of their digital screens, it needs to be a really great, High Fidelity experience.

Additional reading:

To win today, it’s all about offering a High Fidelity experience

More High Fidelity proof

Proof that moving to a High Fidelity customer experience is a winning formula

More proof that High Fidelity wins

 

About Randy White

Randy White is CEO and co-founder of the White Hutchinson Leisure & Learning Group. The 30-year-old company, with offices in Kansas City, Missouri , has worked for over 550 clients in 36 countries in North and Latin America, Africa, Asia, Europe and the Middle East. Projects the company has produced have won seventeen 1st place awards. Randy is considered to be one of the world’s foremost authorities on feasibility, brand development, design and production of experience destinations including entertainment, eatertainment, edutainment, agritainment, play and leisure facilities. Randy was featured on the Food Network’s Unwrapped television show as an eatertainment expert, quoted as an entertainment/edutainment center expert in the Wall Street Journal, USA Today, New York Times and Time magazine and received recognition for family-friendly designs by Pizza Today magazine. One of the company’s projects was featured as an example of an edutainment project in the book The Experience Economy. Numerous national newspapers have interviewed him as an expert on shopping center and mall entertainment and retail-tainment. Randy is a graduate of New York University. Prior to repositioning the company in 1989 to work exclusively in the leisure and learning industry, White Hutchinson was active in the retail/commercial real estate industry as a real estate consultancy specializing in workouts/turnarounds of commercial projects. In the late 1960s to early 1980s, Randy managed a diversified real estate development company that developed, owned and managed over 2.0 million square feet of shopping centers and mixed-use projects and 2,000 acres of residential subdivisions. Randy has held the designations of CSM (Certified Shopping Center Manager) and Certified Retail Property Executive (CRX) from the International Council of Shopping Centers (ICSC). He has authored over 100 articles that have been published in leading entertainment/leisure and early childhood education industry magazines and journals and has been a featured speaker at conventions of over 20 different leisure trade groups. Randy is the editor of his company's Leisure eNewsletter, has a blog and posts on Twitter - https://twitter.com/whitehutchinson
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