I read this about Universal, but not about Disney. Did you see this on the news recently?
Universal gambles on free tickets
In a bid to boost attendance, a mail offer targets Floridians.
Scott Powers | Sentinel Staff Writer
Posted April 13, 2006
Universal Orlando is inviting perhaps thousands of Floridians to come in for a free day at Universal Studios and Islands of Adventure -- and to bring along a few paying family members and friends.
In what the company describes as an experiment, Universal mailed free tickets to both parks this month to certain Florida homes. The direct promotional mailing also offers a coupon that gets up to six other people in at a discount price of $35 apiece.
Universal will not say how many of the free tickets went out in the mail.
The giveaway -- the standard price of a two-park pass to Universal is $63 for Florida residents -- is unique and astonishing, said industry observers.
But it also makes sense, especially since Universal is trying to overcome an 11 percent drop in attendance last year and faces the scary prospect of a summer with $3 per gallon gas prices, said Dennis Speigel, president of Cincinnati-based International Theme Park Services.
"It's a direct promotion to increase attendance," Speigel said.
It's also the second free-ticket deal Universal has offered this year. In January the parks started a deal that allows children ages 9 and under to get in for free, and that deal continues.
"Parks [nationally] are experimenting with a lot of different promotions right now," Speigel said. "I haven't seen one like this."
Among other deals: SeaWorld is allowing Florida residents to buy a $62 one-day ticket and use it for free admission the rest of the year. Cedar Point dropped ticket prices this year. And one of the Six Flags parks is allowing big groups to come in for free, if they buy a catered lunch.
"They're gambling they're going to spend more money inside the park once they arrive," Speigel said. "I'm seeing that at the majority of the parks, with the exception of Disney."
Universal's new direct mail promotion is one of several ticket initiatives the company is trying, said spokesman Tom Schroder.
"Basically it's a marketing test," Schroder said. "If you go to our Web site sometimes you'll see we've got different price points we're trying out for Florida residents. Similar situation: Let's pick some people, send them a ticket and see how many of them come. It tells us who's watching. And chances are, someone who brings a ticket and uses it is not going to come by themselves."
And that's how Universal can make money on the deal, said Addy Milman, a theme parks business professor at the Rosen College of Hospitality Management at the University of Central Florida. Almost no one -- about 1 percent in his research -- goes to a theme park alone, he said.
"The theme-park experience is a social experience," Milman said. "Obviously, even $35 to get in is increasing the revenue. And I think they're trying any type of trick, in terms of sales promotions that would increase their attendance. I think this is pretty good."
And people might upgrade, maybe to a season pass, or buy Universal Express plan, Milman suggested. And they'll also probably buy food, drinks and merchandise.
The free tickets and discount tickets come with no restrictions or blackout dates, though they expire after June 26.
Milman called the no-strings promotion astonishing, but said locals are unlikely to try to come this week, during the big Easter week crush, because they know better. So they'll probably come during "softer" times in late April and May when Universal can absorb a few extra people, he said.
. And I am sure the grocery stores were hit too. I have always gone to the store-now I might be changing the whole way I vacation.
