Six Flags rolled out a loyalty program, and waterparks should take note.
The chain’s new Membership Rewards program allows guests to pay as little as $7.85 a month for unlimited access to the park. They can also earn points for certain activities, such as riding a roller coaster or taking in a show, which can be redeemed for food, merchandise and exclusive experiences.
In short, the more you visit, the more points you earn.
Membership Rewards come with a boatload of perks, depending on the level of membership. These could include unlimited soft drinks, preferred parking and front-of-the line passes.
Such a program could just as easily apply to a waterpark— and in fact does. Six Flags members also have access to the chain’s waterparks.
David Sangree, president of Hotel & Leisure Advisors, a Cleveland-based hospitality consulting firm, foresees the membership model catching on industrywide. A program like this makes a season pass more affordable by allowing customers to spread the cost across 12 months rather than a yearly fee.
He estimates passes account for 20% to 50% of revenue at most parks. A monthly subscription service could be a way to reel in more members.
But operators would have to make it worth guests’ while by offering perks beyond those already included in a typical season pass. Additional incentives might include discounts on cabana rentals, preferred seating or some sort of VIP experience. Six Flags members, for example, can have lunch with a park president and go on a VIP tour.
A rewards program would work especially well for waterpark chains if it gave members access to all of the properties, Sangree noted. It also could keep members engaged during the offseason by offering free admission to special events. In recent years, we’ve seen the industry tap into holiday celebrations by transforming waterparks into eerie haunts during Halloween and winter wonderlands during Christmas.
“You could make it work if you invested time and effort into those offseason events,” Sangree said.
The advantage for properties goes beyond customer retention. In a prospectus for potential investors, Ian Zaffino, an analyst with nationwide investment firm Oppenheimer, says members may be willing to pay more over time.
Zaffino notes: “Price increases are easier with members, and the company can migrate customers to ‘premium tiers,’” including Six Flags’ Diamond Elite plan for $18.95 a month.
