Knott’s Berry Farm is looking to boost business the old fashion way,by cutting prices.
As of March 1, the Buena Park theme park cut general admission to $39.95 from $45. Cotton candy is selling for a quarter.
Southern Californians can get in to Knott’s for $31.95. A promotion with Lake Forest-based Del Taco Inc. lowers that price to $24.95.
The hope: buck last year’s flat attendance.
In the shadow of the Disneyland Resort next door in Anaheim, Knott’s ranks among the top 20 theme parks nationwide by attendance.
But last year, the park saw a meager 1% rise to 3.6 million visitors, as rains early in the year and then Disneyland’s 50th anniversary diverted visitors.
Disneyland saw an 8.5% rise to 14 million visitors last year with a heavy marketing push to mark the 1955 opening of the park.
In some cases, Knott’s lower admission is half of what other theme parks charge.
“We’re always trying to be conscientious of reaching the average consumer,” said Gregg Picon, Knott’s general manager.
Jim Benedick, an executive with theme park consultancy Management Resources in Tustin, called the price cut “good from a public relations standpoint.”
“Price cuts have not been done much,” he said.
Knott’s, part of Ohio’s Cedar Fair LP, hasn’t made any major additions to the park in the past year.
In 2004, Knott’s expanded with the $15 million Silver Bullet, a suspended roller coaster with six loops, and the $3 million RipTide, a spinning ride. It also beefed up the tot-friendly Camp Snoopy section.
In this works this year is a water ride, Pacific Spin, at adjoining Soak City. At Knott’s Berry Farm, a restaurant from Aliso Viejo-based Johnny Rockets Group Inc. is in the works.
Pacific Spin has been a hit at Knott’s water parks in Chula Vista and Palm Springs, according to Picon.
The Johnny Rockets is set to be the largest yet for the 1940s diner chain. Servers are set to do live performances to juke box songs three times each hour.
But theme parks typically need more than a new restaurant to drive visitors.
Cedar Fair plans to spend $58 million at its 12 parks this year. But none is earmarked for big-ticket items at Knott’s.
The park only can count on a major new ride every two to three years, executives said.
In Cedar Fair’s year-end report in February, the company said it is targeting 2006 revenue growth of 3% to 5%, driven mainly by higher attendance and in-park spending by guests.
Analysts expect sales of $590 million at Cedar Fair this year.
Growing revenue while cutting prices may pose a test for Picon. 2005,his first as general manager,was a difficult one, he said.
Heavy rains forced the park to close some days early in the year. Later, Walt Disney Co.’s marketing machine overshadowed Knott’s.
Typically, when Disneyland does well, so does Knott’s. But last year, some visitors passed on Knott’s for more time at the Magic Kingdom.
More visitors are key to boosting spending inside the park.
The price cuts could pay for themselves by drawing more people who spend more while at Knott’s, consultant Benedick said.
“Cedar Fair is one of the best operators in the business,” he said. “They pay attention to (industry trends) and do out-of-the-box thinking.”
Besides the general admission cut, Knott’s is keeping prices for children under 12 and seniors 62 and older at $14.95.
“We’re making a plug for seniors as part of the trend toward grandparents traveling with grandchildren,” Picon said.
That includes a push for more group business, including family reunions, he said.
