KaizenPrice – Global Village
Revolutionizing Revenue with KaizenPrice: A 31% Revenue Uplift Story at Global Village
Background:
Operating within the ever-dynamic and fast-paced amusement and theme parks industry, Global Village, a subsidiary of Dubai Holding Entertainment (DHE), aspired to optimize its admissions products. The global attraction had already embraced variable pricing, but searched for a more refined model to maximize revenue. Amid the need for a strategic pricing model, Global Village turned to the smart pricing tool, KaizenPrice. Alongside Global Village, other DHE subsidiaries including Roxy Cinemas, Dubai Parks and Resorts, and Green Planet also collaborated with KaizenPrice.
Solution:
Addressing the unique needs of Global Village, the KaizenPrice team worked with internal stakeholders to introduce pricing by Weekpart (Weekday vs. Weekend). This strategy was expected to reflect the differences in the customer profiles and willingness to pay between weekday and weekend visitors, and enhance Global Village’s market positioning and product offering in the UAE’s competitive entertainment marketplace.
Business:
Within the amusement and theme parks industry, the implementation of data-driven pricing strategies and accurate demand forecasting are integral to business success. Tackling common challenges such as underpricing, overpricing, and erratic demand fluctuations requires a holistic understanding of the market trends and customer behaviors. By intelligently adjusting prices according to Weekpart, businesses can tap into peak periods, maximizing profitability and customer satisfaction.
Experience:
The KaizenPrice team, beyond simply providing a cutting-edge tool, served as invaluable pricing consultants, building trust with the client, performing ad hoc pricing scenarios based on client feedback, speeding up the implementation process, and aiding in the integration of client data and resources. Central to the experience was the intuitive KaizenPrice dashboard, including demand and revenue forecasts, summary views, benchmarks to past performance, and scenario planning capabilities.
Technology:
KaizenPrice is a pricing recommendation tool that leverages advanced analytics and machine learning, eliminating guesswork from pricing strategies. Hosted on a secure cloud platform, KaizenPrice harnesses the power of artificial intelligence to Forecast Demands, calculate Price Elasticities, and optimize prices. By integrating data from multiple sources such as customer transactions, location details, and external factors like weather and holidays, KaizenPrice analyzes the key drivers of your business, and offers daily or even hourly sales forecasts, enabling strategic pricing decisions that enhance profitability.
Results:
The partnership between Global Village and KaizenPrice yielded remarkable results. With visitor numbers soaring to new heights and admission revenues beating DHE’s initial expectations by over 30%. The accuracy of the KaizenPrice forecast was stellar, scoring over 97% for Gate products and close to 100% for all products across the majority of the season. This level of accuracy is rare in the pricing space and testament to the power of KaizenPrice. The impact of KaizenPrice is clearly demonstrated in Global Village’s successful season, manifesting the true potential of informed pricing decisions.
