You probably agree that we are entering a period of global business cooling and recession, and questions arise: what impact will this have on my trampoline park business, how to prepare for a given situation, how to take appropriate action for the future, ... We have collected some key information on this topic.
The recession associated with the war in Ukraine and some other factors has greatly changed the operations of many companies globally, and in the future it will also have a lasting impact on the needs and behavior of customers. However, on the other hand, the recession will also create new opportunities for growth, which varies greatly by industry. And you're probably wondering what the forecast is for trampoline parks?
How are price increases affecting the trampoline park industry?
The trampoline park (leisure) industry has historically been strongly linked to the economy. Typically, during bad economic times, people spent less on vacations and other activities that were not as important.
Interestingly, current research suggests that visits to trampoline parks will not decrease in the future. Although people will reduce their spending on active living and vacations due to the fall in living standards, it is expected that the visit to trampoline parks will still increase because it is an expense that will be within the average monthly budget.
What does the recession mean for trampoline parks and new investments?
Therefore, for trampoline parks, recession can also mean an excellent opportunity for expansion, technological upgrading and new investments. In order to attract guests, it is crucial that the trampoline park maintains its attractiveness even during the recession.
That is why investing in new technology and attractions or modules is always a smart decision. it is worth mentioning that many trampoline parks already decide to invest in modules and elements that enable family fun throughout the day. This attracts families, and the capacity of guests increases significantly.
The recession will certainly also force the owners of trampoline parks to be much more disciplined in terms of spending money, and also to monitor their business much more closely.
Opportunities and weaknesses
We know very well that every crisis brings with it opportunities and weaknesses, but also a choice. Therefore, even the recession for trampoline parks brings certain disadvantages on the one hand, but on the other hand, opportunities for new and innovative ideas.
Weaknesses
Since it is a period when the economy is unstable, as a trampoline park owner during a recession you may face financing problems. On the one hand, this is a small number of investors, but on the other hand, financing costs can be higher than otherwise. You may also face operating cost and supply issues.
Opportunities
In difficult times, people still want to relax and forget about everyday worries. And since visiting a trampoline park is still within their financial means, many such parks have seen an increase in attendance.
The period of recession is also characterized by a booming market for job seekers. If you need highly qualified workers, this can be the right opportunity to find professional and talented staff. So think carefully if you need new workforce in your trampoline park.
A recession can also be an excellent opportunity for new initiatives and innovative ideas that would help to make business more efficient. From this point of view,
- you become even more aware of the importance of optimizing the park's operations and improve it with help of new techologies,
- you can improve the reservation system for an optimal guest experience and
- design carefully selected pricing schemes that suit different budgets (for example, buying a year-round meal ticket).
How to prepare for a recession?
The best way to avoid the consequences of a recession is to prepare for it as well as possible. Make sure that your business runs smoothly even during the recession. Above all, pay attention to your presence on social media, which has become a key medium for all those brands that want to reach potential visitors.
Since it is a time when most companies are trying to save money in various ways, you as a trampoline park owner are forced to make many wise decisions that can only benefit the park.
How to take advantage of the recession in the trampoline park?
Of course, seeing the opportunities that arise from a crisis is not the same as being able to take advantage of them. Therefore, even at this time, it is important to focus on maintaining business continuity, with many decisions to consider.
Above all, as a trampoline park owner, you should be aware that you can also use the recession to your advantage, and it depends on you how successful you will be. Here are some tips on how to best do this:
1. Encouraging productivity
Focus your investments on increasing park capacity, which means choosing interactive games and modules that are easy to fit into parks and at the same time attract a larger number of guests.
2. Better efficiency of investments
In times of recession, it is crucial that you know exactly what you want to achieve with your investment. This means that you have to analyze and optimize the performance and costs of your park and invest in modules and those elements that will generate more visits for you. You can achieve this in the simplest way by using new technologies and systems such as Smart Park Solution, with which you can manage and control your park directly via your smartphone.
3. Innovations and an attractive offer
If you are among those trampoline parks that still swear by only classic trampolines, then now is the time to upgrade your trampoline park with digital innovations and interactive games that will attract a wider audience. Turn your trampoline park into an unforgettable experience that visitors will remember fondly and return to again and again.
4. Better control and optimization of the operation of the trampoline park
In a recession, you'll want to know where your money is going and where it's coming from all the more. Therefore, it is crucial to improve control in the trampoline park and optimize its performance. Let the Smart Park Solution help you with its smart sensor system, which is unique in this industry and gives you a precise insight into what is happening in the park:
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That way, you gain total control over park occupancy, occupancy of each module, use of games, room temperature or lights.
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Consequently, you can rank park modules by interest, measure the profitability of individual elements and act accordingly.
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What is more, the collected data enables immediate detection and troubleshooting and quick reaction time in case of game errors.
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It also helps you better plan to replace parts or park modules due to wear and tear or overloads, with no operational delays.
5. Reduction of operating costs
You can save a lot on operating costs, but only after you know exactly who your biggest spenders are, where you are losing, where you can gain. In this case, too, the Smart Park Solution application comes in handy, with the help of it you will be able to:
- Reduce electricity costs due to light and temperature regulation and optimization of individual park elements.
- Easier planning of maintenance work, which means less downtime, more operating hours and cheaper maintenance.
- Faster repairs of individual work modules, which means less downtime, more operating hours.
- Easier and faster detection and elimination of errors.
- Easier and faster communication with the supplier.
Financing during the recession
During a recession, you can usually choose between the two most common financing methods.
- Banks are usually willing to give better financing terms and more competitive interest rates for good projects. This means that you will be able to get a loan for your trampoline park at a favorable interest rate more easily if you have a good business plan that shows that your project is good and you are thinking long term.
- Another way is finding investors. When the economy is in decline, many investors are also looking for new opportunities. That is why many choose to invest in tangible companies and industries that are predicted to grow. And trampoline parke are.
How can we help you?
As we have already mentioned, in order to secure financing from banks or other investors, a good business plan is crucial.
Akrobat can help you with this by advising on the preparation of data for the part that concerns:
- the value of equipment of the trampoline park,
- the planned capacities of the park,
- the marketing of the park (Price range of selling tickets, merchandising, birthday parties ...).
If you have any questions regarding this topic, don't hesitate. Contact us or simply book a meeting.
What if you could manage and control your trampoline park direct from your smartphone or other devices? Download our FREE e-Book now and find out the Smart Park Solution for your Trampoline park.
