Amusement and Theme Park Costs
Amusement Parks are one of the most mature industries in the U.S.A. With low growth, an unstable economy, high labor costs (18.4%) and high fixed costs the average operating profit margin is only 8%. This profit margin is about 4% lower than the profit margins in most industries.
Other factors that have a significant influence on amusement and theme park profitability include but are not limited to:
- Maintenance and repairs (5.5%). Downtime on attractions lead to a negative park visitor experience).
- Public Liability Insurance (part of other costs). This costs has skyrocketed over the last 10 years.
- Utilities as a result of rising energy costs.
- Depreciation because of new rides and attractions.
- Capital expenditures for new rides and attractions.
From the chart above it is clear that amusement parks success is dependent on their ability to manage expenses in order to minimize the impact of park visitor fluctuations.
Why Amusement Park Asset and Maintenance Management is the Key to Profits
One solution for amusement parks to achieve a reasonable profit margin is to implement an EAM CMMS software solution. Implementing an EAMCMMS will provide amusement park asset managers with the tools and information necessary to:
- Ensure all preventive maintenance is being done with the help of automation and scheduling tools.
- Ensure that work orders are scheduled and hopefully completed during non-visitor hours to reduce attraction downtime.
- Optimize equipment energy efficiency with inspections and preventive maintenance as well-maintained assets require less energy to operate.
- Assign accountability for maintenance and repairs as track results. Having documented work history can lower liability claims from asset neglect.
- Lengthen the useful lifespan of assets which can help lower capital expenditures.
- Allow asset managers to manage assets from the planning stage through retirement/replacement. For example, a complete work history gives them the ability to determine when the cost of maintenance is no longer effective.
- Manage documents such as schematics, vendor information, photos and contracts. For example, photos of problems can accompany work requests and work orders.
When set-up and used properly an EAM CMMS software solution can help lower costs, increase safety, lower capital expenditures and most importantly give asset and maintenance managers confidence that the park is in great operating condition to provide the best visitor experience.