Avoid These 5 Water Park Misunderstandings
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Many new operators venturing into the management of water parks often face various challenges that can impact their revenue and leave them feeling bewildered. They soon realise that running a water park is not as straightforward as they initially thought. However, observing other successful water park operations can be perplexing. Identifying business problems is crucial to finding the right solutions and overcoming crises.
Below is a brief analysis of several major misunderstandings that may be encountered in the operation of a water park project.
Misunderstanding 1: Lack of Necessary Market Research
Some investors, driven by a competitive mindset of “bigger is better,” believe that substantial capital investment will yield rich returns, neglecting the relationship between investment and market demand. Larger investments necessitate a higher number of tourists to sustain normal water park operations. In third- and fourth-tier cities, where population and economic capacity are limited, supporting an oversized water park is unfeasible. For instance, a location in Hunan planned to build the world’s largest water park, with a wave pool occupying an astonishing 200 acres.
In recent years, some investors have launched water park projects without considering local market development laws, leading to vicious competition and unnecessary waste of funds. For example, in 2017, five water parks opened or were about to open in Chengde, Hebei. In a third- and fourth-tier city like Chengde, what can support the simultaneous operation of five water parks?
Misunderstanding 2: Unreasonable Planning and Poor Tourist Flow
Some developers allocate large budgets for purchasing water amusement equipment but invest insufficiently in water park design, theme packaging, and management. This results in unreasonable visitor flow planning, poor tours, and a high complaint rate, especially during the summer under the scorching sun. For example, a water park in Zhejiang invested 400 to 500 million yuan in imported water amusement equipment, leading to indefinite investment recovery. Another example is a water park in Guizhou, where the lack of summer shading became the most complained issue after one year of operation.
Misunderstanding 3: High Ticket Prices and Low Revisit Rates
According to the “Water Park Consumption Survey Report” in the 2015 Bulletin of Jiangsu Province, 85% of water park tickets cost more than one hundred yuan, with high secondary consumption. Some developers aim to quickly recover costs through high ticket prices, but excessively high prices often exceed tourists’ psychological tolerance, deterring them from visiting the water park.
Misunderstanding 4: Lack of Themed Packaging and Limited Appeal
Although building water parks has been extremely popular in recent years, many lack distinctive themes and cultural creativity. Most water parks are merely collections of water amusement equipment, planned, constructed, and operated using real estate development techniques. This leads to serious homogeneity, insufficient overall attractiveness, and limited market appeal.
Misunderstanding 5: Single Product Portfolio and Seasonal Effect
One of the biggest characteristics of water parks is their strong seasonality and relatively short operating hours. During summer, tourists flock to the park, but in winter and spring, the park often closes. The operating time of water parks in various provinces is typically about 3-6 months. The single product attribute makes the water park distinct in winter and summer, with a pronounced seasonal effect.
For more insights on successful water park operations, visit Lanchao Water Park Equipment Manufacturer.
