2. Commercial Delivery Plan
Contents
Building your Activity & Attraction Business
2. Commercial Delivery Plan
2.1 Budget/P&L - monthly/seasonality etc
Budgets for revenue, costs and profit form the core of a business’s success, and without a good infrastructure of short, medium and long term planning, then the business is doomed to failure. This will have already been formulated as part of the business plan prior to project startup, and constant review, adding in detail as the project progressing, and the relationship between budgeting and forecasting should be at the heart of the leadership of the operation.
2.2 Revenue streams
Budgeting for Revenue in an attraction – Footfall & Average Spend.
A scientific approach to budgeting revenue should be adopted when budgeting/forecasting in an attraction. An example of how the revenue can be forecasted using Average Spend
Budgeting/Forecasting revenue using Forecast Visitor Numbers & Average Spend
The above example shows how an annual budget may be built up using average spend in 4 key areas of an attraction, Admission ticket spend, Food, Beverage & merchandise spend.
2.3 Footfall/SPH/Conversion rates/Ancillary revenue
The Average spend and conversion rates (i.e. how much a single person is likely to spend on ancillaries – F&B/Merchandise), can be forecast using data and benchmarking against other attractions, and provides an insight into the likely revenue streams and total based on the forecasted visitor numbers. This element is built into the project plan as it is a vital start point to have conversations and plan the revenue required to make the attraction sustainable commercially.