Posted
Great Wolf Resorts reported its third quarter revenue, up 7.1% on a "same store" basis per available room. Expansion of new and existing properties is fueling growth for the company.
Read the press release on PR Newswire.
I'd wondered if the Traverse City property was having the same difficulties as the Sandusky one.
Chuck
Realistically, the rates are probably where they need to be to keep the capacity of their resorts in line....lower the rates too much, the resorts get over-full, then everyone's experience suffers....
That's the theory, anyway.... ;)
And, it is of course possible to stay there for considerably less, even in high-demand times. I've got a room booked at Castaway Bay on a Saturday in December for $129 plus tax, which frankly is a steal.
So, they're not charging $400 a night, and they are not doomed. From everything I am reading, all three Sandusky waterpark resorts are quite profitable.
If you look at the report for Quarter 3, 2006 - it lists (company-wide) the occupancy was running 73.4% at an ADR of $242.67.
In layman's terms - From July through September of this year they sold 73.4% of all their available rooms and at an average rate of $242.67 per night.
I still think that in general (with a few exceptions), these forums underestimate the ability and willingness of the public to spend money for something they want or want to do.
While I agree *in principle* that those rates seem exorbitant, they DO follow the "Gonch-approved business model" of fewer, higher-margin transactions.....
You're a believer...admit it. :)
Realistically, the rates are probably where they need to be to keep the capacity of their resorts in line....lower the rates too much, the resorts get over-full, then everyone's experience suffers....
Ohhh, gotta disagree (in a big way) with that. You're talking hotels and I know hotels.
It makes no sense to build a hotel with X number of rooms and the set pricing to limit the sales of those rooms. Trust me, they'd like to sell 100% of those rooms every night...every hotel/resort would. In fact many hotels have employee incentives of some kind in place to push a 'prefect sell' :)
With that said you can't just give away rooms. Hotel success is a balancing act. Two main qualifiers of success are ADR and occupancy. They key is to balance the two to achieve maximum profitability. Sure, 100% occupancy looks good, but if your ADR is $10 - well, you sucked the big one. Rates need to come up. Flip it and it's the same thing. $1000 ADR is great, but if your occupancy was 1% - well, you still sucked the big one. Rate needs to come down. Hotels more than anything I can think off offhand play to what the maket will bear. The whole key to running a successful hotel is find that balance between filling the hotel and selling the hotel.
Ideally, you do both. But nothing in life is perfect.
But that really only applies to GAdv...*every* other big park I've been to save SFMM (this includes, but is not nec. limited to: PCW, SFoT, SFGAm, WDW, DLR, PKI, SFoG, CP) seems to handle "big crowds" fairly well....EVEN Schlitterbahn... :)
Again, on the reverse-reverse side (how many heads and tails ARE there on this coin, LOL), waterparks ARE very limited capacity-wise...when they build these things, are they thinking in terms of occupancy vs. capacity? I'd have to assume so....or would I? :~P
Having never stayed in a GW Lodge or similar setting, I still find it hard to conceive of a long line for a slide at one of those places....need more feedback from those who HAVE...."indulged"... I'm virtually relentless in my need for more data to analyze....;)
I would imagine that the waterpark capacity is planned to ensure that, even if the place is full, it doesn't generate significant waits at any but the premiere attraction(s).
This is Cincinnati. Class says at the Hyatte regency or cincinnatian and special interest go to the Wildwood Inn for 110 a night
Stay at the HI express up the street and visit the Beach or PKI at full price and your still saving 200 bucks.
Chuck, who never sees PKI's being 50 percent full. Too much competition and not enough $$$ Why don't we have a NHL or NBA team? because people here won't pay 35 bucks for a cheap seat.
You must be logged in to post