THE JAPANESE THEME PARK BAROMETER

THE JAPANESE THEME PARK BAROMETER

an established, agile and innovative omni-channel software and services company SURVEY RESPONDENTS 501 INTRODUCTION 02 PRE-BOOKING GUEST EXPERIENCES 03 THE FUTURE OF MOBILE APPS 04 THE IMPORTANCE OF QUEUE-JUMPING 05 VISITOR TECHNOLOGY OF THE FUTURE 06 JAPANESE THEME PARK MARKET 07 INTRODUCTION THE JAPANESE THEME PARK BAROMETER: GUEST EXPERIENCES THAT MATTER Visitors to theme parks and resorts across Japan want a single, connected and personalised experience across all the parks, hotels, shops, restaurants and entertainment spaces within a destination or resort. No longer do guests want to queue for rides, wait for a table or food orders, or pay for merchandise with cash. They want to pre-book everything via digital channels and pay using quick, cashless devices. But to truly understand this single resort experience, operators need to hear the opinion, frustrations and expectations of today s visitors. Omnico commissioned The Japanese Theme Park Barometer to question visitors experiences of attending Japanese resorts in the previous two years, asking their opinions on the types of experiences and technologies they would like to have and use in the future. This research has revealed that visitors to parks in Japan understand the particular technologies that will truly benefit their overall experience, providing them greater convenience and speed. From buying fast-track passes to be first on the rides, to using mobile apps to gain park entry and pre-ordering food and beverage while queuing for a ride - these visitors know what they want. The goal for theme park operators in Japan is to identify which visitor experiences should be added to their resort mix to create additional value, and ultimately improve footfall, revenue and competitiveness in this market. PRE-BOOKING GUEST EXPERIENCES Overall, the ability to pre-book activities and tickets is a must for visitors in Japan, allowing them more time to enjoy the overall experience. With a large and diverse choice of theme parks across Japan and record number of attendees, the need to be first in the queue is paramount. According to Themed Entertainment Association (TEA), Japanese parks hold the third, fourth and fifth positions out of the top five of the 25 most visited amusement parks globally 1. So it s little surprise that 86% of respondents are very likely, or likely, to pre-book their fast-track ride passes and timeslots. The following percentages show those who are very likely, or likely, to use technology to pre-book future theme park and resort experiences. 86% 83% FAST-TRACK RIDE PASSES AND TIMESLOTS HOTEL STAY TICKETS TO SHOWS 75% / VIP EXPERIENCES 61% 73% DINING PACKAGES FOR MEALS AND DRINKS 71% 64% SPA EXPERIENCES AND LEISURE ACTIVITIES PERSONALISED RETAIL MERCHANDISE CASHLESS SOLUTION SUCH AS INTERACTIVE WRISTBANDS Interestingly, while overall 61% of respondents would pre-book their cashless solution, only 53% of 16-24 year olds would, compared as well to 62% of 35-44 year olds. 1 http://www.consultancy.uk/news/12519/the-25-biggest-theme-parks-and-water-parks-in-the-world 03

THE FUTURE OF MOBILE APPS THE IMPORTANCE OF QUEUE-JUMPING These percentages show those who are very likely, or likely, to use a mobile app to do the following activities. 87% 81% 74% WOULD BUY THEIR ENTRANCE TICKET AND GAIN ENTRY TO THE PARK VIA MOBILE APP WOULD CHOOSE A DINING OUTLET BY LOOKING AT THE LOWEST WAIT TIMES WOULD BOOK SEATS AT A DINING OUTLET 72% 63% WOULD JOIN A VIRTUAL QUEUE FOR A RESTAURANT AND BE NOTIFIED WHEN THEIR TABLE IS READY WANT TO RECEIVE PERSONALISED DEALS AND VOUCHERS, SENT DIRECTLY TO THEM ON THE APP Long queues and wait times are an ongoing issue for theme park operators, with technological innovation playing a central role in solving the issues; from digital displays notifying visitors of wait times, to the more personalised methods of geo-targeted notifications via mobile apps of the closest rides and food outlets with the shortest queues. 91% of respondents said they are very likely, or likely, to purchase a fast-track pass to jump the queue while standing in one, representing a clear revenue boosting opportunity for operators. This further emphasises the need for theme park operators to invest in queue-prevention technology, allowing visitors the additional time to enjoy all of the attractions and experiences the park has to offer. The following percentages show those who are very likely, or likely to use a mobile app in a long queue for a ride to do the following activities. Mobile devices have long been the platform of choice to provide targeted and personalised content, and their use by park operators today is seeing integration with wearable technology, such as RFID wristbands, to create a seamless resort experience. More and more options are being added to park apps and visitors today want to embrace this, purchasing their entrance tickets and even using the device itself as their ticket. Interestingly, visitors in Japan would also like to use an app to choose where to eat, particularly to choose an outlet with a lower wait time, ensuring more time to enjoy the other attractions. However, while many would use a mobile app to choose dining venues, only 53% would use an app to pre-order their meals and dining options. This is even lower for the 16-24-year-old age bracket with 47% doing so, compared with 57% of 25-34 year olds. In addition, only 62% of 16-24 year olds would book their seats at a dining outlet, compared again to the older age group with 79% of 25-34 year olds. This reveals that when marketing mobile apps to visitors, theme park operators must pay particular attention to their demographics, offering perhaps additional and tailored incentives to encourage the other age groups to also use the opportunities their park app affords. 59% OF MEN ARE VERY LIKELY TO, OR LIKELY, TO PRE-ORDER THEIR MEALS AND DINING OPTIONS THROUGH THE APP, COMPARED WITH ONLY 46% OF WOMEN 65% OF 25-34 YEAR OLDS WOULD DEFINITELY LIKE TO RECEIVE PERSONALISED RECOMMENDATIONS, DEALS AND DISCOUNTS VIA A MOBILE APP, BASED ON THEIR LOCATION, PREFERENCES AND ACTIVITIES, COMPARED WITH 59% AVERAGE 91% 83% 79% 75% 74% WOULD PURCHASE A FAST-TRACK PASS TO JUMP THE QUEUE WOULD ORDER FOOD AND BEVERAGES TO PICK UP AT A SPECIFIC TIME WOULD CHOOSE THEIR MEAL OPTIONS FOR LATER THAT EVENING WOULD ORDER FOOD AND BEVERAGES TO BE DELIVERED TO THEM IN THE QUEUE TO ENJOY WHILE THEY WAIT WOULD BROWSE THE DIGITAL RETAIL CATALOGUE 04 05

VISITOR TECHNOLOGY OF THE FUTURE Virtual reality (VR) is a hot topic for theme park visitors and operators alike, with the most progressive attractions embracing the technology to create a truly immersive experience. However, the VR application goes beyond the thrill-seeking and also has value in the services it can provide. With parks and resorts often stretching for vast kilometres encompassing attractions, beaches, golf courses, hotels, shopping malls and dining outlets, the ability to guide visitors around seamlessly is a priority. This is reflected in the results of The Japanese Theme Park Barometer with 53% of respondents saying they would like to see virtual reality experiences and guides in theme parks in the next three years. Interestingly, men would like to have robots as personal assistants (29%), compared to women (19%), whereas more women would prefer to have temporary tattoo tickets to replace electronic wristbands (31%), compared with men (26%). However, it is clear that demand for these options is still relatively low. Japanese respondents expectations of future technology were surprisingly low when compared with countries Omnico has previously questioned (please visit www.omnicogroup.com/insights). However, technology innovation across Japan is widespread. For example, Huis Ten Bosch resort in Sasebo Japan, has created a robot kingdom, featuring over 200 robots as part of a long-term strategy to revolutionise Japan s service sector. It first launched the Henn na Hotel in July 2015 with some 80,000 guests being served by multilingual receptionist and porter robots. Since then androids have now joined the restaurants with robots preparing okonomiyaki (savoury pancakes) and reminding guests 10 minutes before their hour long buffet is up. This is all part of a government funded project designed to examine kitchen and food processes, understanding which can be automated and which should be left to humans. The country s prime minister Shinzo Abe envisages Japan growing the size of its domestic market for robots in the non-manufacturing sector to Y1.2tn ($US10.6bn) in 2020, from Y60bn now 2. Given this rapid growth in robot use, again it is surprising that only 24% of respondents expect to see robots as personal assistants in theme parks and resorts in the next three years. The following percentages reveal which new technologies visitors expect to see at theme parks in the next three years 53% 34% 29% 25% 24% JAPANESE THEME PARK MARKET Major park openings and rising investment will continue to drive the theme park and resort market in Asia-Pacific over the next five years. The theme park market is expected to grow in Asia-Pacific at a 6.7 percent compound annual growth rate (CAGR) to $540 million in 2019. Asia-Pacific passed North America in 2014 to become the largest region in terms of attendance, but not in spending suggesting there are revenue boosting lessons to be learnt from the established US parks. By 2019, Asia-Pacific will account for 45 percent of global attendance, up from 41 percent in 2014 and 34 percent in 2009 3. While there is already a diverse range of theme parks across Japan, including Tokyo DisneySea, Universal Studios, Tokyo Disneyland and Nagashima Spa Land, to name a few, further investment in new attractions and resorts continues. Universal has announced plans to debut a first-ever Nintendo-themed land in 2020, and more recently announced the launch of a new Despicable Me-related Minion Park in April this year. More unusually, the world s first spathemed amusement park is also expected to open this summer in Japan s Beppu City a concept that will see towel-clad visitors jump into cable cars and carousels filled with water! 22% VIRTUAL REALITY EXPERIENCES & GUIDES AUGMENTED REALITY GAMES TEMPORARY TATTOO TICKETS TO REPLACE ELECTRONIC WRISTBANDS VOICE ACTIVATED MOBILE APPS ROBOTS AS PERSONAL ASSISTANTS AUGMENTED RETAIL EXPERIENCES HOLOGRAPHIC ASSISTANTS WEARABLE TECHNOLOGY 3D PRINTED PERSONALISED MERCHANDISE 2 FT.com: Japan s robot chefs aim to show how far automation can go. 06 07

WHY CHOOSE OMNICO? Omnico has conducted research across the globe, in countries including the UK, US, China and Malaysia, and written various Theme Park Barometers. To read and compare the global research, please visit www.omnicogroup.com/insights It s important to note that implementing the guest experiences and technologies required to create an integrated and seamlessly joined-up resort, does not necessarily require investment in a completely new solution, nor a rip-and-replace of every legacy system. To discuss the ways in which Omnico can help you to meet these visitor expectations and with our innovative technology solutions, please visit our website, www.omnicogroup.com, or contact us at enquiries@omnicogroup.com to talk to one of our experienced sales team. www.omnicogroup.com enquiries@omnicogroup.com