Revenue management and customer forecasts: a bridge too far for the UK visitor attractions sector?

Research output: Contribution to journalArticle

Abstract

Recent research pertaining to the UK and Scottish visitor attraction sector has suggested that more sophisticated approaches to issues of pricing, revenue and yield per visitor may be forthcoming. This paper suggests that such optimism related to attraction management is erroneous and far from the reality of current practice. Furthermore, the sector has seen significant growth at a time when demand has been at best static and has faced increasing competition from the wider leisure, retail and fastmoving consumer goods sectors. In many cases, UK attractions operate a reactive management model which fails to anticipate market movements and flounders in the face of competitors. Quantitative analysis is limited in this sector, making data-driven management techniques difficult to utilise. Accordingly, many new attraction developments have been predicated on little more than ‘forecast optimism’ and unrealistic business plans based on limited quantitative data. This paper will examine the recent growth of one sector of the UK visitor attraction market, ‘science and environment centres’, in order to demonstrate that limited management information systems, naïve forecasting and poor business planning have provided the foundation for ill-conceived growth.
Original languageEnglish
Pages (from-to)338-352
Number of pages15
JournalJournal of Revenue and Pricing Management
Volume2
Issue number4
DOIs
Publication statusPublished - Jan 2004

Fingerprint

Attraction
Revenue management
Optimism
Business planning
Leisure
Quantitative analysis
Pricing
Business plan
Management techniques
Management model
Retail
Management information systems
Revenue
Competitors

Keywords

  • visitor attractions
  • science and environment centres
  • revenue management
  • new attraction development

Cite this

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title = "Revenue management and customer forecasts: a bridge too far for the UK visitor attractions sector?",
abstract = "Recent research pertaining to the UK and Scottish visitor attraction sector has suggested that more sophisticated approaches to issues of pricing, revenue and yield per visitor may be forthcoming. This paper suggests that such optimism related to attraction management is erroneous and far from the reality of current practice. Furthermore, the sector has seen significant growth at a time when demand has been at best static and has faced increasing competition from the wider leisure, retail and fastmoving consumer goods sectors. In many cases, UK attractions operate a reactive management model which fails to anticipate market movements and flounders in the face of competitors. Quantitative analysis is limited in this sector, making data-driven management techniques difficult to utilise. Accordingly, many new attraction developments have been predicated on little more than ‘forecast optimism’ and unrealistic business plans based on limited quantitative data. This paper will examine the recent growth of one sector of the UK visitor attraction market, ‘science and environment centres’, in order to demonstrate that limited management information systems, na{\"i}ve forecasting and poor business planning have provided the foundation for ill-conceived growth.",
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