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  #1  
Old 07-16-2008, 01:08 PM
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Gate Versus Food Price

I am working on a paper for my economic issues course. I am going to write about profit-maximizing an amusement park: Gate Versus Food Price. Some questions I need to answer: Why can the park charge outrageously high prices and not lose business? How would the profit-maximizing price of an admission ticket change if the park were to raise or lower the price of food? Would the amusement park gain by charging a higher or a lower price for food? Is it better to include cost of parking or drinks with the admission ticket/

I would greatly appreciate it if anybody has some info for me to use or can help me in any way. I am thinking about comparing a large park to a smaller one (CP & HW probably). So some specifics I need would be attendance numbers and prices of food and drinks. Are there any parks that you can think of that have a unique pricing system (ie free unlimited soft drinks, free admission to park, etc)?

Thanks for any and all help.
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  #2  
Old 07-16-2008, 01:31 PM
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If I recall correctly, Holiday World has an Unlimited soft drink system.
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  #3  
Old 07-16-2008, 02:35 PM
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Correct. They offer free parking, free drinks and free sun block!

And as far as why, because they can.

Most parks are not really within walking distance to other restaurants, so people will just stay and eat in the park, rather than going outside.
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Old 07-16-2008, 03:22 PM
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Ehh.
If they included parking in the ticket, getting in would be a rip for anyone being dropped off.
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  #5  
Old 07-16-2008, 03:27 PM
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If this is for economics sake, compare like size parks....CP vs Holiday World is not realistic as CP has more maintenance, employees, and structures which affects prices.
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  #6  
Old 07-16-2008, 03:34 PM
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But isn't it interesting that CP's ticket prices are only $3 more than HW even though they have 13 more coasters? However, Holiday World’s admission includes several perks: admission to Splashin’ Safari water park, free sunscreen, and free parking. Which park is the better value?
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  #7  
Old 07-16-2008, 04:43 PM
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yet food at CP is not cheap, I spent more on food there than I did at Disney plus parking is not free at CP. You can not put a dollar value on CP having more coasters as not everyone cares about the rides. Compare like size parks like CP to Magic Mountain and Holiday World to say Kennywood or Dollywood.
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Old 07-16-2008, 06:12 PM
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Do you know the exact prices of some of the food items at Cedar Point or other parks? That would be helpful. I can't find them on the park's website.
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  #9  
Old 07-16-2008, 06:26 PM
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Food prices usually aren't listed on the websites. It's best to go to one of these parks and see; or ask someone that is going to get some general ideas for you.

I think including parking in the ticket price is a bad idea for any park.
What happens to the people that get dropped off or take public transit to the park?
They're paying for an option they won't even use.
As for including an all you can eat option, I think that's a good idea. Don't force it on people, but let them add the option on if they choose.

You also can't just limit this to parks though. Stadiums, movie theaters, zoos, etc all do this too. I think its fair that parks can charge what they charge for food. I mean, they have to pay for maintenance of the park and the rides, employees, new rides, etc. If you want a safe, clean, open park that can add some good (sometimes major) rides and additions to the park every season or two, you're going to have to pay for it. If they lowered the price of food then people would have to wait longer between new rides (which people usually start to complain about if it gets too long).
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  #10  
Old 07-16-2008, 06:31 PM
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Carowinds has already started the All-You-Can-Eat program which is optional and well as a yearly parking pass.

Basically as stated before they can charge high prices cause the know people can't leave the park to eat. The can but the won't.
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  #11  
Old 07-16-2008, 06:41 PM
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Parks do not in any way make any money off of me. I have season passes, I have parking passes, I usually bring my own food, I usually have a cooler or get a refill bottle. I rarely buy souveneers anymore. So no wonder they're all going down in stock.
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  #12  
Old 07-16-2008, 06:48 PM
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Many parks charge very high food prices simply because once your in the park, often times you're too lazy to leave and get other food or because it turns out to be cheaper. For example, if I left SFNE to get food and then return, I would have to pay their ridiculous $15 parking fee again.

I don't know if you care, but SFNE's food prices are as follows if I remember correctly.

Chicken Strips: $8.99
Hamburger: $8.99
Cheeseburger: $9.99
Fries: $2.99
Fried Dough: $5.45
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  #13  
Old 07-16-2008, 09:03 PM
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You have to re-pay for parking if you leave?? That sucks. Does all Six Flags Parks do that? If so i think their the only company.
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  #14  
Old 07-16-2008, 10:08 PM
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^ I haven't experienced it first hand, but my neighbor did.

I'm confused about that though since don't you get a parking ticket for that day? I wouldn't know since my dad still drives me to the park.
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  #15  
Old 07-16-2008, 10:45 PM
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Yeah, in my experience, I've only had to pay once for parking, even with re-entry. I had to leave Fiesta Texas to go get something from the hotel, and I was allowed back in. The only thing I lost was time to ride and my close parking spot.
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