Village Road Show Theme Parks - Essay Example

The Decline of International Patronage al Affiliation Executive summary The report will evaluate the trend in which the Village roadShow Theme Parks, have registered a decline in international patronage. The factors affecting the themes revenue collections are related to competitors investing in Asia and hence reducing the number of tourist visiting the park. A survey done by Australian (2014) indicates the efforts in which the theme park has invested heavily locally while ignoring the external factors. The recommendations will be because of the Asian market has proven to the turning point. Investments should be done keeping in mind that less that 65 percent of Australian tourist are locals hence the market needs to be invested in and promotions carried to promote international customers. Table of contents 1.1 Introduction 2.1Current conditions 2.1.1 The Australian market 2.1.2 The Asian market venture 3.1 Declining International Patronage 3.1.1 Competitors 3.1.2 Innovation and promotional failures 3.1.3 Government and international policies 4.1 Recommendation 5.1 Conclusion Reference The Decline of International Patronage 1.1 Introduction A market share is a contributing factor towards any business achieving certain revenue. The report was design to determine the reason as to why Village Road show Theme Parks have been registering a decline in revenue from international customers. There exist models in which the theme parks should design and adapt tin order to keep their revenue flow at bay. The reports will analyse on the nature at which these models would prove effective. The base of the changing trend will be the year 2003. The negative effects of reduced international customers would be used as a means of innovating marketing strategies to increase the local customers and use the increased number to compensate the amount of revenue lost as a result of reduced number of international clients. There exist emerging trends in the Theme Parks in that the demand for services offered has led to competitors appreciating the market and investing. 2.1Current conditions 2.1.1 The Australian market Village Road show Theme Parks are designed to offer a range of diversified services. The theme benefits from the economies of scale due to its diverse nature. The theme parks operate on the basis that both the local and international tourist would enjoy services provide in the parks. Revenue collected range differently in every theme park under the Village Road show Theme Parks brand name. The park boast of various parks and according to Australasian (2014), the launch of wet and wild Sydney Park, saw the theme park register a 6 million profit within week one of its inauguration. The revenue increased as compared to 2009. The year indicated higher number of local tourist as compared to international tourist, 2.1.2 The Asian market venture The management decision to venture into the Asian market was a positive move. According to March (2003), Australia was the preferred destination for many of the Asian tourist. Over the years, the trend has experienced changes hence preference change among the Asian visitors. At that time, there was increase international customer related revenue. In 2009, the Village Road show Theme Parks in Australia indicated an increase in revenue, which more than 80% of the revenue collected, was from local tourist (Village Road show Limited, 2010). The Asian market has managed to attract multinationals. The introduction of theme parks in Asia has had its contributions towards reduced international patronage. Any organisation should formulate measures to counter any competition in order to remain relevant to the market (Heffernam, 2014). The venture into the Asian has done less to change the situation as many of the visitors according to Village Road Show Limited (2013) the local market contributed a large share of revenue indicating a reduced number of revenue collected from international customers. 3.1 Declining International Patronage Changes in government policies and introduction of competitor from the emerging nations, has proved to the major contributor of declining international Patronage among the Australian visitors. The market remains complex ones tourists are exposed to alternatives and convenient destination (Tourism research Australia, 2013). The reliance on local tourist to satisfy the available supply may not be efficient and may affect the overall revenue collection. There are other factors contributing to the decline in international patronage. 3.1.1 Competitors The market dominance of the theme parks both internationally and locally, has been brought to a halt by new ventures into the market. The Asian market, which was once the leading tourist importer has been affected by multinationals offering these, services locally for the Asians. The reduction in cost has prompted the Asian tourist to develop their own services and enjoy them at a much lower cost (Tourism research Australia, 2013). The competitors hence have managed to shift the customers’ loyalty on these theme parks to services offered by the competitors. The once reliable Asian market has then become less reliable in matters revenue collection. The local market only produces less than a half of the revenue collected by the theme parks. The competitors have managed to ensure that potential customers seek cheaper alternatives. 3.1.2 Innovation and promotional failures A competitive market requires innovation of new products to suit the current trends. A company that fails to offer innovation services would end up outdates and hence a shift in the market shares. The international market has been overtaken due to the theme parks’ failure to educate and offer promotional services to the international customers, has led to the customers having to seek alternatives because a customer requires updates and constant notification (Dupeyras & MacCallum, 2013).. 3.1.3 Government and international policies The period taken to acquire documents needed to visit Australia in most of the Asian countries is long. A travelling tourist may opt to either skip the tour and seek cheaper alternatives. The governments, failure to advertise and promote theme park tourist has led to most tourist offering to visit much publicised wildlife tourism (Shanahan &Treuren , 2003). Theme parks are then left to carryout promotional campaigns, which in most cases are considered expensive. The operational cost then tends to raise hence increased charges (Bramwell & Lane, 2003). After the decline in international customers, the local customers then have to fill up the vacuum. With the cost of services, being high, many of the local tourists may opt to keep of the Theme parks. 4.1 Recommendation The theme parks need to keep themselves relevant in the market by carrying out promotional campaign in sensitizing locals about the importance of domestic tourism. The park also needs to acknowledge the fact that changing trends are positive as they give room for more products to be designed. Village Road show Theme Parks needs to diversify and venture into the Asian market while at the same time market the current country with an effort of increasing customer market share. The park also needs to invent cheaper models that will ensure local customers are motivated. Affordable services will ensure that more local customers appreciates the theme parks and return ensures a steady flow of income.. The Theme Parks should consider bring products closer to the international customers. This will entail the parks investing in the countries of the tourists’ origin. The approach will ensure that the parks dominate the international market and still maintain quality. The best way to ensure an increased number of international patronages is to use government incentive and campaigns in carrying out promotions. Assurance from the government would play a major role in ensuring the parks register an increased level of income 5.1 Conclusion The decline in the revenue collected by the theme parks from the international customer is less unlikely to change. Tourism Australia (2014) indicates plans to encourage local tourist and increase their number form 65% to a higher number. The change in destinations for most of the tourist was the driving point at which the theme parks management decided to venture into the Asian market. This was enhanced further by the size of the market in the region. The move has had to face major challenges, which include new entries into the market. The international market has proved to the most difficult and costly n terms of operation. The local domination of the park has been the major contributor towards the theme park decision to invest in the local market. Maximization of the local market would create a complex market where new entries would find it difficult to penetrate. Reference Australasian. (2014). “Village Roadshow Advances Plans for Asian Theme and water park . Leisure management.” Retrieved from http://www.ausleisure.com.au/news/village-roadshow-advances-plans-for-asian-theme-and-water-parks/  Bramwell, B. & Lane, B.(2003). Tourism Collaboration and Partnerships: Politics, Practice and Sustainability. Sydney: Channel View Publications. Dupeyras, A. & N. MacCallum (2013). “Indicators for Measuring Competitiveness in Tourism: A Guidance Document”, OECD Tourism Papers,2013/02. OECD Publishing. Retrieved from http://dx.doi.org/10.1787/5k47t9q2t923-en Heffernam, M. (2014, august 6). Village Roadshow welcomes looming Hoyts float. The Sydney Morning herald. Retrieved from http://www.smh.com.au/business/media-and-marketing/village-roadshow-welcomes-looming-hoyts-float-20140822-106n0h.html March, D. (2003). Australia’s Booming Asian Tourism Markets. Retrieved from http://www.inboundtourism.com.au/article_five.html Shanahan, M. &Treuren G. (2003).Globalisation: Australian Regional Perspectives. Sydney: Wakefiled press Tourism Australia. (2014). “New research to help Australian tourism reach its potential.” Retrieved from http://www.tourism.australia.com/news/news-2713.aspx Tourism research Australia. (2013). Understanding Dispersal Of Asian Visitors. Sydney: Australian government. Village RoadShow Limited. ( 2010). “Annual report 2010”. Retrieved from http://villageroadshow.com.au/upload/Document/Searchable%20VRL%20AR09%20Full.pdf Village RoadShow Limited. ( 2014). “Annual report 2014”. Retrieved from http://www.villageroadshow.com.au/Annual-Report-2014.htm Read More