The text ‘trouble in paradise’ is about a theme park that has troubles making profit and is considering changing the concept of the park to make profit again.
The idea behind Paradise Park was to create a place where families could come together for a day to forget about their problems, a place where they could enjoy their shared humanity in an environment where everybody is equal. This went well till the 1980s when business slowed down. Paradise Park incurred losses for two years after two decades of successive growth. This problem was due to the fact that labor costs, insurance costs and capital costs of building new rides skyrocketed in the late 1990s.
A way to solve this loss in profit was to upgrade the shops and restaurants and to raise the ticket price. Another option is to introduce the ‘preferred guest card’, a card especially designed for people who are willing to pay something extra for not standing in long lines anymore. The problem of the last idea is that this will change the idea of the park (the feeling that everybody is having a fun day far away from their problems and the fact that everybody is equal) and that the founder of the theme park was absolutely against these kinds of ‘advantages’.
There are only three ways for theme parks to earn more revenue: increase visits per customer, increase average spending per visit or attract new customers. Unless Paradise Park could pull in people from a broader geographic area, attracting more customers would require that the company create new value propositions. The guest card will attract new customers (time starved, high-income professionals) and in this way, this could solve the problem of the decrease in profit.
They are still considering the options so there is not yet a decision made.