The International Association of Trampoline Parks IATP 2nd Annual Conference Trade Show

The International Association of Trampoline Parks (IATP) second annual Conference & Trade Show took place Oct.14-16 in Scottsdale, AZ. Attendance counts totaled 235 comprised of 165 trampoline park owners, managers and affiliates, and 70 exhibitor attendees from 36 companies. Several well-known coin-op and FEC suppliers exhibited: AMOA, Bay Tek, Betson, Center Edge, Creative Works, Northeast Insurance Center, Embed, Party Center Software, Quik n' Crispy, Rhode Island Novelty, Sureshot Redemption, TrainerTainment, Tricorp Amusements, and Zone Laser Tag. Well known FEC presenters (non-exhibiting) included Jerry Merola (Amusement Entertainment Management), Shery Bendelglass (SherylGolf), Wayne Pierce (Pierce Law Firm), and Frank Seninsky (Amusement Entertainment Management). I presented two seminars: 'Enhancing Revenue through Added Attractions' and 'Games & Redemption'. I also attended 10 of the 51 seminars and learned a lot more about trampoline parks.

There are approximately 200 trampoline parks in the U.S. and another 100 worldwide. Another 100 are planned over the next year. The TP model has many similarities to the FEC model and some important differences. Many of the original TP's are paying very high per sq. ft. rates but quickly learned that 15% of revenues is more in line. The time of stay is 1 hr. to 1-1/2 hrs. and the average per capita is around $14, but does not include non-jumpers. Birthday parties and groups are a big part of the business. Most do not focus on food but do sell beverages and ice cream products. Some have games but do not focus on them. The per capita spending of spectators (like parents and grandparents) is almost non-existent. Size ranges from 20,000 sq. ft. to 40,000 sq. ft. The children, teens and young adults actually jump for about 20 minutes of each hour. The main competitive focus for the future is to come up with different jumping attractions just as FEC's look to change-out or upgrade their attractions.

FEC time of stay is longer (2 hrs. to 2-1/2 hrs) and the per capita spending is slightly higher but also includes revenues from all visitors. FEC's have multiple attractions and food and game revenue is a big part of the business. Birthday parties and groups are very important.

What this could mean. The trampoline park industry, began a slow growth period with the first park opening in 2004 until about 2010, when the industry exploded and is now seeing parks open at a rate of 5-6 per month. Most of the industry is driven by young entrepreneurs who are not aware of the ups and downs of the FEC industry over the past 30 years. They are not aware of the fate of single attraction facilities such as bowling and laser tag that had to add attractions in order to survive after the shine wore off. They are franchise driven and there are more than a dozen suppliers (4 main ones).

My financial analysis shows that each park is giving up as much as 50% of their potential revenues by not also including a full games zone, full snack bar, and other smaller footprint attractions and encouraging their customers to stay longer, spend additional money, and increase their frequency of visitation . All of the facilities have high ceilings and there is a great opportunity to fully utilize the existing overhead space. Many of these facilities could be designed properly to take advantage of these revenue opportunities currently and in the future. There are a few that can be considered as stage 1 trampoline-anchored FEC's and I commend them.

Insurance costs are 2-3 times higher for TP's than for traditional FEC's and this is a major industry concern. However, the IATP is aggressively and proactively focusing on this issue. My research shows that insurance companies will soon offer a blended rate where food, games, and FEC attractions revenue will not be rated the same as the trampoline attractions revenue, but at much lower rates. The same will hopefully apply to FEC's that add a trampoline attraction, rather than rating all of the FEC revenues at the higher trampoline rate.

There are already several market areas that have multiple trampoline parks and this saturating trend will continue until feasibility studies are taken more seriously. Some trampoline parks will close and others will see this and quickly transform. I predict that within 3 years, the majority of the trampoline park facilities will begin to focus on capturing the additional revenue that is required for long term profitability. In the meantime, the exhibitors and FEC consultants will continue to educate the IATP members (now about 110 facility members) and the franchisors to avoid failures and be successful. After all, we are all in the same leisure entertainment industry.

For more information about the Indoor Trampoline Park Association, visit indoortrampolineparks.org.

--------------------------------------------------------------------------------
Copyright 2015 The Redemption and FEC Report. Content published on this page is provided by "The Redemption and FEC Report" (TTR) and its editor, Frank Seninksy. It has been posted as part of a special archival section ofVendingTimes.comwith the express permission of TRR, but cannot otherwise be republished. Vending Times Inc. andVendingTimes.commake no warranties or representations in connection therewith. TTR states that "while based on information from sources considered reliable, TTR's accuracy and completeness cannot be guaranteed. Any opinions expressed reflect our judgment at this date and are subject to change without notice."Click hereto subscribe to "The Redemption and FEC Report"