Theme parks are the latest industry to adopt a form of surge pricing. Merlin Entertainments, the company that owns Legoland and Madame Tussauds, plans to introduce “dynamic pricing” at its top attractions. This move follows a similar, albeit controversial, announcement by Wendy’s, which quickly retracted its statement about exploring dynamic pricing.
What Does This Mean for Merlin Visitors?
If you’re planning a visit to Legoland, the cost of your trip could depend on how busy the park is expected to be. Visitors to certain Legoland locations will soon start experiencing surge pricing, or “dynamic pricing,” as the CEO of Merlin Entertainments prefers to call it, based on fluctuating demand. The company plans to implement this system for its top 20 global attractions before the end of the year, and extend it to other Legoland locations in the US next year.
The new system would charge visitors more during peak times, such as sunny summer weekends that draw higher attendance, than it would for rainy weekdays in the offseason. According to Merlin CEO Scott O’Neil, this approach not only helps manage demand but also enhances the guest experience by reducing overcrowding and long wait times.
How Will Dynamic Pricing Work?
While the specifics of the pricing swings under the new model have not been disclosed, O’Neil suggested that guests attending on off-peak days could potentially see a 10% discount, or even “a bit more.” On days with less foot traffic, the park could lower the price of admission to attract those looking for a bargain.
Merlin properties already reduce entry fees during off-peak periods, but the dynamic pricing model takes this a step further, incorporating more data to better drive demand and adjust prices more quickly. This change aligns Merlin with competitors and the broader holiday industry that have similar pricing structures, benefiting guests who choose to book off-peak.
Despite the potential for higher prices during peak times, O’Neil believes that the flexible entry fees are “more important than anything.” He sees this as an opportunity for more people to experience the parks during less busy times.
Surge Pricing in Other Industries
Surge pricing has become more popular in recent years, thanks in part to ride-share apps like Uber. While industries like hotels and airlines have used it for decades, other businesses like restaurants and movie theaters are increasingly following suit. However, it’s not always well-received, as evidenced by the backlash Wendy’s faced after announcing its plans to experiment with dynamic pricing.
