Know your numbers
June 28, 2018
Tyre Distributor
Tyre Merchants
June 29, 2018
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Tourism

CLIENT

The client was originally conceived as a major tourism attraction business able to leverage the major growth in Melbourne’s domestic and international tourism. The business is located in the Docklands area of Melbourne during the redevelopment phase of the area.

The business operates 12 hours per day, seven days per week and requires high year-round visitation to be profitable. International experience shows that visitor spend increases significantly with the duration of stay at the attraction.

Similar businesses overseas have been successful when located in city precincts with very high passing foot traffic of 5-6 million p.a.

INDUSTRY CATEGORY

Tourism

EXECUTIVE SUMMARY

Initial trading strongly suggested that the location of the business in Docklands presented significant barriers to high volume tourist visitation.

Subsequent market research also indicated that short stay international tourists did not have a high likelihood of visiting entertainment attractions ahead of natural or historical attractions.

The key issue was building high visitation levels under these limitations.

SOLUTION

Our solution was multi-faceted

  • Re-engineer the product to convert it from a 30-minute ride, to a 60-minute end-to-end experience
  • Reposition the product to increase its tourist appeal
  • Broaden the appeal to the widest possible potential market, especially local residential market segments
  • Develop new ways to monetise the experience to increase overall visitor spend e.g. food and beverage, day-night combo tickets, yearly tickets, electronic guide hire

OUTCOME

In the most recent financial year, nearly 68% of visitation was from local Melbourne residents. International tourist visitation has lifted with increased levels from China, India and Singapore. And domestic tourist visitation has improved by nearly 30,000 p.a.

In same period, average length of stay increased from 42 minutes, to 55 minutes and repeat visitation increased from 1.0 to 1.15

Most importantly, average visitor-spend per ticket increased by 7.8%

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