Seven Flags
Practice this intermediate profitability case interview question in the Retail sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
ProHub Comment
This is a quantitative-heavy case requiring candidates to build a pricing model, analyze cannibalization effects, and calculate payback period against a specific management constraint. The case tests both analytical rigor and business judgment, as the recommendation hinges on several assumptions—particularly the 50% cannibalization rate—which creates meaningful downside risk.
Estimated Time
26 minutes
Difficulty
Medium
Source
Darden
10
/ 100
Our client is a mid-size amusement park chain, with 10 parks around the U.S. serving over 10 million visitors each year. In their Richmond, VA park, it operates both a traditional thrill-ride section, as well as an animal experience. (Show park map.) Currently, the two sections are covered under one entry ticket price. However, management is considering offering a separate ticket for only the animal experience section. They have come to us to determine if this is a good idea.
Clarifying Information
- Financial goal: Management wants a payback period less than 10 years. (If the candidate asks, payback period = investment / on-going profit.)
- Current price: Tickets are currently $20 and provide visitors full access to the park
- Park attendance: The Richmond, VA park is an average sized park within the client’s portfolio
- Business model: The park is a typical amusement park (think Six Flags or Busch Gardens). Visitors buy a ticket for entrance (assume same price for adults and children), and all rides / amusements are accessible under the one ticket price. The park also sells merchandise and food / drinks separately.