Encouraged by the success of other MHM-led pricing research, Te Nukuao Wellington Zoo came to MHM looking for insight into how the market perceived their existing pricing and how different price points might impact revenue and audience size.
Leveraging our price modelling experience, MHM conducted a comprehensive study of the Wellington market. A range of ticket price points were evaluated – using data-driven pricing modelling – to estimate projected market size at different price levels.
Key findings
Our analysis revealed that the optimal price for adult tickets – where revenue is maximised – was lower than anticipated, indicating that raising the adult price could lead to decreased visitation and revenue. On the other hand, there was more elasticity potential with children’s ticket pricing. Thanks to our thorough, insightful analysis, the Zoo had a robust foundation from which to present a position to its board.
Acting on the data
With a commitment to data-driven decision-making, the Zoo bravely opted to lower adult prices to increase revenue. They were able to have confidence in their decision-making due to MHM’s reliable data, recognising benefits for the business and the community it serves.
Visitation targets were increased in preparation for the pricing changes, and during the six months following the new structure, a record number of onsite visitors were welcomed. While pricing was not the sole factor, it was a notable contributor to the visitation uplift.
MHM’s reporting served as a valuable tool for us, facilitating complex discussions with the board. The work provided a solid foundation to advocate for a new pricing strategy and played a pivotal role in our decision-making.
D. Warsaw, Chief Operating Officer