recature of attactions costs

[Mickey is King]

o.k. so EE cost about 100 million to get it up and finished.
HOw does Disney know when they have recaptured the cost of a new attaction added to a park.

 

[RiversideBunny]

I don't think they can fine tune accounting enough to say that a particular attraction is paying for itself since all attractions are included in the park ticket price.
What they do is to try to keep attendance up overall, and get repeat guests, and they know that it takes new attractions to do that.

 

[Figment632]

o.k. so EE cost about 100 million to get it up and finished.
HOw does Disney know when they have recaptured the cost of a new attaction added to a park.

I would imagine it is a formula that combines merchandise sales and then the figure in how many guests come through EE and take a fraction of what they paid to enter....

DOes any of that that make sense????

 

[citizen85]

Purely speculation on my part it must be some advanced version of :

Total Riders (adjusted for repeat riders)
Divided by:
Total Visitors
Multiplied by:
Total Ticket Sales

Plus:
Merchandise
Possibly some combination of food sales and hotel rooms and parking that they believe are related to the ride

Minus:
Initial build cost
Debt service from initial construction
Cost for upkeep and operation
Other expenses incurred as a result of increased patronage

I think it really depends on how much they compartmentalize and co-mingle their funds.