Portaventura Harvard Case Study
1. Assess general situation with Port Aventura's performance in 1995 and what are the prospects for 1996 – 2000.
2760000 visits (25 % repeating), 110000 more than the forecast.
Revenues had exceed the target by almost 2 billion pesetas, so, they didn’t lose 1.3 billion as it was expected
Income from ticket sales was less than expected (64%). But, in return, Incomes from purchases made inside exceeded the initial budget by 40%.
The prospects for 1996-200 were to overcome the champaign effect and capture the public from nearby provinces (Catalonia, Valencia, the Basque country and Madrid). The campaign was targeted to the medium and low class, overall the families.
2. How far is Port Aventura from being Break Even?
It stands at a 3700 visits per day, the total number of visits has to be, at least, 2.5 millon people to cover the costs.
3. Please, suggest key cost cutting measures that Port Aventura may undertake to improve performance
Cut the commission paid to the distribution channels, decrease the promotional offers of free tickets in conjunction with other consumer products, or negotiate with the margin of the distribution channels according to a minimum number of tickets sold.
Reduce costs by changing the personnel who is doing nothing to clean the park (and save the cleaning costs)
4. What are the other areas of improvement?
The main area of improvement was to achieve a regular attendance of the public in order to use the parks capacity at 100%. For this, I would:
Increase the number of open days to increase supply
Adapt the ticket price depending on seasonality (being cheaper in winter)
Avoid the promotions during the holiday’s months (June, July, August) and festive days.
Adapt the ticket depending on collective groups (the bigger the group of people, the bigger the discount) Increase the number and the price of season tickets.
When the customers buy a ticker, give another free ticket for another day with low demand.
Allocate tickets to the countries
2760000 visits (25 % repeating), 110000 more than the forecast.
Revenues had exceed the target by almost 2 billion pesetas, so, they didn’t lose 1.3 billion as it was expected
Income from ticket sales was less than expected (64%). But, in return, Incomes from purchases made inside exceeded the initial budget by 40%.
The prospects for 1996-200 were to overcome the champaign effect and capture the public from nearby provinces (Catalonia, Valencia, the Basque country and Madrid). The campaign was targeted to the medium and low class, overall the families.
2. How far is Port Aventura from being Break Even?
It stands at a 3700 visits per day, the total number of visits has to be, at least, 2.5 millon people to cover the costs.
3. Please, suggest key cost cutting measures that Port Aventura may undertake to improve performance
Cut the commission paid to the distribution channels, decrease the promotional offers of free tickets in conjunction with other consumer products, or negotiate with the margin of the distribution channels according to a minimum number of tickets sold.
Reduce costs by changing the personnel who is doing nothing to clean the park (and save the cleaning costs)
4. What are the other areas of improvement?
The main area of improvement was to achieve a regular attendance of the public in order to use the parks capacity at 100%. For this, I would:
Increase the number of open days to increase supply
Adapt the ticket price depending on seasonality (being cheaper in winter)
Avoid the promotions during the holiday’s months (June, July, August) and festive days.
Adapt the ticket depending on collective groups (the bigger the group of people, the bigger the discount) Increase the number and the price of season tickets.
When the customers buy a ticker, give another free ticket for another day with low demand.
Allocate tickets to the countries