Quote:
Originally Posted by daud
This scenario really doesn't apply if you are adding substantially to your fixed costs to access the same market segment and pool. There are times when you can create 2 different brands for essentially the same product or service, but this is an advantage only when you are achieving significant cost savings sharing a single set of costs. I don't see how a second waterpark owned by Proslide will achieve those savings. Each location has its own high set of fixed costs-infrastructure, land etc..
It makes little business sense from my point of view to have 2 waterparks owned by one company in the same market. The only reason to do so might be a temporary measure to force out the competition or if they plan to close Mont Cascades and eventually run with a single site. The waterpark market is constrained enough by the short season, operating 3 parks in a market-I can't see the profitability in that over the long term. So, for one company to open 2 locations-there has to be other objectives than profit in the near term.
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It's not just two waterparks. His plan for Mont Cascades is an all season resort with all season attractions. The Barrhaven project will be a seasonal attraction but more than just a waterpark and the added benefit is that it will also serve as a marketing tool to expand his global Proslide company. Opinions will change once the plans for Alottawata are made public. In the Meantime, Valcartier ( Calypso ) are also adjusting their plans for their future growth. These projects are a step in the right direction for a Capital Region known for it's lack of fun attractions. For Mr. Hunter this is a long term profit plan that makes perfect business sense.
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