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Several threads and opinion polls briefly mentioned the parks charging parking fees as guests enter the park(ing lot). While most of us, if not ALL, here more than likely disagree with this move by park management, lets ponder a couple of (potential) theories I have recently researched for an upcoming project I am working on.

 

**First, I would state for the record that I personally do NOT believe management should be charging parking fees, no matter the price. This really is a just another creative way management has devised a way to actually perform a "cover-charge" to its guests even BEFORE they reach the front gate. Not only does this not make any sense, but think of the view if we all get to the front gate and find out that some, if not most, of our favorite attractions are: CLOSED FOR THE DAY!. DOGH! What a kick in the A**! What is YOUR opinion/theory?

Cover-charging customers have been popping up at your local nite-club and entertainment venues for the past 10yrs or so. It is a creative way for management to cover the cost of goods/services if the assumption that a consumer WON'T spend any more on food, drinks, special service.

 

Now, from a management/park operations perspective, let us ponder a real theory for this common occurance now.

1. Some parks now have Union-employees/vendors working for the operators (aka-Disney). As old contracts expire, Union reps/members are increasing their stake/share in gaining increased benefits packages and salaries (retirement/health insurance/bonuses, etc). It is commonplace among the national level ranging from the airline industry, amusement parks, to manufacuring and factories.

 

2. In order to remain competitive and to acquire the best-qualified employees, parks (even non-union) are upping-the-ante to beat out the competition. Have you looked at the salaries for the park CEO's!??? Park management is starting to struggle with increasing demands within ANY market as cost of goods and services are on the rise. This is also a reason why companies (such as Dell/HP/Ford, etc) are subletting their customer services to overseas markets/vendors. When was the last time you spoke to customer care and the "person" actually had an ENGLISH accent?

 

In order to offset some of the (increasing) operational costs, park operators, or any business for that matter, are devising creative ways to help pass the cost(s) onto its consumers. Hence, the advent of parking fees. If a park can generate $1-5 million in sales from parking fees, this helps the bottom line in controlling its operational budget.

 

While I am not underlying or defending union employees, it IS a fact that the very fabric of our society is driving up the cost of goods, services as employee demands for higher standards of living increase. We are not even factoring the cost-of-living increases, but that does play a role in benefit/salary increases. Meanwhile, CEO/Executive management continue to (GENEROUSLY) increase their pay/bonuses by an average of 4-7% annually. There is little room for performanced-based management salaries anymore, it is now a monopoly of the board members to pay top level management no matter the parks revenue, profits or losses.

 

***

Lets just propose a simple scenario on the affects of this move. Assume a park (peak season) charges just $10.00 parking fees and the average attendance per day is 15,000. Add in this scenario for an average of 3 months (peak summer months) and what is the total cost $$?

**Let us assume that 31 days for the time period for the 3 months**

 

 

What is YOUR opinion/Theory?! (State specifics).

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OK - here are my opinions based heavily upon facts, something that I didn't seem to get a good vibe of from your post. I'm not even looking into the theme park side of this, it just caught my attention simply because it has to do with finance and it ended up being even more than I had bargained for...

 

1. Parking fees, as a whole (not just for theme parks), are neccessary. One way or the other, you will pay for it, whether included in admisison or seperate. Why are they neccessary? It costs an average of $12,000 per space in a parking deck and $6,000 per space in a parking lot. Tack on a $1,000 per year average upkeep cost per space and you NEED to charge for parking. Free parking doesnt exist simply because it would be stupid to (unless of course you count a grass and gravel field, a la Lake Winnie or Knoebels, as a parking lot). As it is, it generally takes 20-30 years to even come close to paying off a parking lot.

 

2. This is more of a rant against current developments in the economy (outsource in specific, dont even know why that came up, as well as corporate management) and has little to do with theme parks in the context described above. Heck, I'd move this to the "Random" forum where it belongs IMO.

 

3. Parking is minimally self-sufficient as it is.

 

That is all.

 

- Joe

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I really don't like it that much when people complain about parking. People talk about places with free parking and think that Six Flags parks, or other big name chains shouldn't charge for parking, but the places with free parking have you park in a field. Now, there is nothing wrong with that at all, but that is the only way they can even think about free parking. What it really comes down to is what was just said. Do you have any idea what it costs to blacktop and maintain a parking lot/deck? Once again, as mentioned, it is a great deal of money. My father just redid a patch of about 20x120 at the bowling alley and it cost about $6000. Imagine doing that for acres and acres of property. It could take a while just to make back what it cost to prepare and maintain that space. They aren't necessarily making money off of people for a while. The parking lot is a huge expense and they are just trying to cut their way into what it cost(s).

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Sigh. Let me address some of the issues that you have...

 

**First, I would state for the record that I personally do NOT believe management should be charging parking fees, no matter the price. This really is a just another creative way management has devised a way to actually perform a "cover-charge" to its guests even BEFORE they reach the front gate. Not only does this not make any sense, but think of the view if we all get to the front gate and find out that some, if not most, of our favorite attractions are: CLOSED FOR THE DAY!. DOGH! What a kick in the A**! What is YOUR opinion/theory?

No. It is not a "cover charge" - it is a "Parking Fee". These types of fees are charged by almost every major theme park around the world, sporting events, parking garages in major cites, hotels, fairs, state parks, the list goes on and on. This fee is used to pay partially for the cost of the land (as opposed to using it for some other profitable function), to maintain the land, and provide security and more. If you get to the gate and find out what you came for is closed (hopefully you will have called or checked the internet first as well) then ASK FOR A REFUND! Folks do it all the time! No biggie! Or - ask the person taking the money if the attraction is open!

 

Cover-charging customers have been popping up at your local nite-club and entertainment venues for the past 10yrs or so. It is a creative way for management to cover the cost of goods/services if the assumption that a consumer WON'T spend any more on food, drinks, special service.

Huh? I really think you are comparing two VASTLY diferent things. Also - cover charges have been in place at nightclubs for much longer than 10 years. I remember reading about the cover charges in NYC niteclubs in the 50's.

 

In order to offset some of the (increasing) operational costs, park operators, or any business for that matter, are devising creative ways to help pass the cost(s) onto its consumers. Hence, the advent of parking fees. If a park can generate $1-5 million in sales from parking fees, this helps the bottom line in controlling its operational budget.

 

You make this seem as if this is a new thing - Theme parks have been charging for parking since they started! So have things like baseball games, theaters, etc. That put aside - it is the goal of a company to make a profit - why is that a bad thing?

 

Lets just propose a simple scenario on the affects of this move. Assume a park (peak season) charges just $10.00 parking fees and the average attendance per day is 15,000. Add in this scenario for an average of 3 months (peak summer months) and what is the total cost $$?

**Let us assume that 31 days for the time period for the 3 months**

 

 

What is YOUR opinion/Theory?! (State specifics).

 

 

My opinion - you are going after something that *will not change*. It is also not really even an issue. I recently paid $14 a day to park at a hotel near Disneyland - Disneyland only charges $10 a day to park and has services such as trams, security, etc. Should I be mad at the hotel for wanting to make a profit?!?! I also have recently paid $30 to park at a football game, $50 to park to see a broadway show in Manhattan, etc. Why is $7-15 to park a big deal?

 

Lets see what you get when you pay to park -

1) Cost of the land - The land has probably been paid off many times over, but don't forget that it could be used for other purposes (some of which might be more valuable) or sold to another company that would love to have their product right near a park. In order to justify keeping it a parking lot they have to make a small profit (and it is a *small* profit)

2) Employees in the parking lot - People collecting money aside you also have tram drivers, security, maintenance on the trams, etc. Don't forget you also have to pay them benefits such as health insurance which ads up as well.

3) Trams - they are not cheap to purchase nor upkeep. Don't forget the cost of fuel!

4) Electricity - Lighting in the parking lot is nice - but you also need to maintain the lights as well!

5) Paving the lot - VERY expensive!

6) Signage in the parking lot - these will need to be updated and maintained as well.

7) Insurance - don't forget that accidents will happen in the lot and those will need to be covered by a policy taken out by the theme park.

 

Wow! As you can see - the parking lot is not where the money is made in a theme park. It scrapes by to justify its existence but it is not particularly profitable.

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