Waterpark Business Model
SUMMARY 1. Waterpark concept 2. User expectations in a waterpark 3. Keys from an investors perspective 4. Financial approach 5. Steps in project development
1. Waterpark Concept This presentation intend to show a global vision on the Waterpark Business Model. It s focused to leisure related investors who wants to extend their portfolio in related products as well as other kind of invertors who wants to diversify their portfolio. What a waterpark is: closed leisure facility which offers water attractions, mainly: Slides for adults with reception pools or other landing areas Relax and/or hydrotherapy pools Dry area for adults (desk chairs, bars, etc) Activity pools for kids Slides and/or games for kids Why a waterpark: It is a profitable and tested business worldwide With an efficient design and proper management, it offers high ROIs Low TOC (total cost of ownership) due to the durability of its installations (fiberglass, steel, low tech components ) Low entry barriers for new projects: Funds Land plot and water supply Local permissions Hard requirement for success, very difficult to imitate: Effective design Waterpark location Refurbishment & expansion planning Customer loyalty
2. User expectations in a waterpark Waterpark success is based on customer satisfaction as follows: Optimum location: Waterpark location Access by private and public transport Ad-hoc services inside the waterpark: Parking lots Access to the waterpark without queues Lockers, First Aid and security Catering services Waterpark Design: Offering services that let the users enjoy inside more than 4 hours Cost efficient: users spend from 3 to 8 hours inside, design will determine the visiting time, their satisfactions and the entrance fee. It s necessary to develop something that allows to identify the waterpark as a whole, not just like a group of slides: Themeing Attraction Design: Attractions shall be designed for different attendances: from soft attractions (i.e. splash pools) to hard ones (i.e. The Crest or Kamikazes) All the areas should be linked to allow families to control all their members Attractions must be easy to use (accesses), effective paths and minimum queues
3. Keys from an investors perspectivep In order to obtain the success in a waterpark project, the following elements shall be taken in account: Right project sizing: size will be determined by the attendance, not by land, resources, etc. The design shall minimize the cost for a fixed size: Attractions and themeing: just the necessary, not oversized Future expansion vectors shall be foreseen in the design stages Focused on operation: the project shall be designed thinking in the fuuture operators, helping them in: Maximum security level with the minimum employees Easy to maintain Comfort for the use of warehouses, technical rooms, etc. Focused on the user. Attractions, themeing, services and paths must achive: Users enjoy their visit, feeling comfortable end secured independent of their age. Operators must obtain that in the first visit, visitors feels the needs to return again. Deadlines are critical, it s a seasonal business and one month delay can produce one season looses, to avoid that investors must consider: Fix the opening date for the waterpark: May/June Backwards all the deadlines for the different stages must be determined, fixed and fulfilled
4. Financial Approach According to Action Park experience, the figures to be taken in account are: Start Up cost are around 1,8 million Euros by hectare with a minimum of 1 Ha, although from 5Ha the cost decreases more than proportionally. The previous cost are distributed between 50% for civil works and 50% for slides, structures and hydraulics. Those costs are not country-sensitive. Total surface 1Ha 3Ha 5Ha 10Ha Civil Works 1.500.000 2.700.000 3.500.000 5.000.000 Waterpark supplies 1.500.000 2.700.000 3.250.000 4.200.000 Total 3.000.000 5.400.000 6.750.000 9.200.000 Euros Once the waterpark is built, monthly cost of operation may vary according to the seasonal months (when the waterpark is running) or non-operational months (waterpark closed doing just maintenance tasks). Due to the cost of manpower it s possible to observe different cost for countries.
4. Financial Approach With the standard cost structure and according to the attendance and total investment, ROI sensibility are: ROI Attendance 5,0MIO 6,0MIO 7,0MIO 8,0MIO 50.000 11,42 13,71 15,99 18,28 75.000 5,59 6,70 7,82 8,94 100.000000 370 3,70 444 4,44 518 5,18 592 5,92 125.000 2,76 3,32 3,87 4,42 150.000 2,21 2,65 3,09 3,52 175.000 1,84 2,20 2,57 2,94 200.000 1,57 1,89 2,20 2,51 225.000 1,37 1,65 1,92 2,20 250.000 1,22 1,46 1,71 1,95 It s easy to observe that attendance, size and investment are critical for success, this is the reason to choose the right partner to all the stages in a waterpark business development. That s the reason to choose Action Park.
5. Steps in project development. Design Preliminary Design Size analysis Client approval WATERPARK LAY OUT Execution Budget Feasilility Study Client presentation
5. Steps in project development. Execution After presentation Is Project feasible? NO Reduce proposal and/or scope YES Signature of Contract & downpayment Detemine Expected Finish Date Start Engineering Works Meeting with Partners on site ASK Help with the tender? YES Budget Revision after Engineering Review of Engineering with client (on site) Tender Advisoring Bank L/C Start production, supply & installation On AP facilities Managers Training Start Up Project End