An Operational Checklist to Work Through the Pandemic
How have you cut expenses and scaled operations while not hurting the guest experience?
Urban Air has implemented a new labor management software, which CEO Michael Browning Jr. calls a “game changer.” The company also moved to a “camp counselor model” for additional labor savings. “Instead of having to staff every attraction, guests let us know what they want to play on,” he says. “We group them in groups of less than 10 and move them around from attraction to attraction in a particular order. They get to experience everything but in a more organized manner.” In addition, most customers now buy their tickets online and check in through their mobile devices, so Urban Air doesn’t need a ton of front desk staff.
Ocean Park Hong Kong imposed strict control of operating expenses and discretionary expenses, expanded on energy conservation, suspended nonurgent and nonessential hires, and enacted no-pay leave and salary cuts for staff members, says Timothy Ng, executive director of operations and entertainment. Ocean Park carried out all the park’s programs and events in an agile and fast-turnaround manner to allow flexible activation and budget management.
“Considering the low footfalls due to restricted attendance capacity, together with the uncertainty of the pandemic and government-imposed closures, the park decided not to hold its Halloween event in 2020 and suspended selected rides and attractions that were not the most in demand,” Ng adds. “These actions helped reduce operating expenses, while we kept the more popular experiences available for guests.”
How do you work with vendors and ask for discounts and special accommodations?
Lund Gruppen had similar conversations with every vendor on extending current terms, says owner Håkon Lund. It often went something like this: “How can we help you, and how can you help us? The big companies look out for us. We look out for the small companies.” Lund also says owners and operators should use this time to work with vendors to reengage and reinvest in their businesses.
Ocean Park Hong Kong successfully renegotiated contract terms with some suppliers, such as refuse collection, to charge the facility only when services are utilized, Ng says.
Urban Air also has received “amazing support” from vendors, says Browning, suggesting facilities work with companies to put payments at the back of the contract if possible. In addition, the trampoline and adventure park brand has brought more services and components in-house over the past year, such as its call center, printing, and pizza crust.
“We’re looking at every piece of the business and breaking it down to the smallest component,” he says. “We’re leaner and more efficient as a result. Coming out of the pandemic, we will be much more profitable at the park and corporate level.”
How are you preparing your business for the longer term?
The key is not only to survive but also to build and exercise resilience when the market recovers, Ng says. “This would require a well-formulated strategy with effective execution and phasing, such as focusing on the local market in the first 12 to 18 months, then extending to regional markets once circumstances or tourism bubbles permit. This recovery process will be long, but the industry will be able to make it through with vision, strategy, and execution.”
