Case Study- Columbus Zoo To be successful

Case Study– Columbus Zoo
To be successful, the Columbus Zoo must maintain its image as a high-quality place for its visitors to
spend their time. Its animal exhibits are clean and neat. The animals, birds, and reptiles look well
cared for. As resources become available for construction and continuing operations, the zoo keeps
adding new exhibits and activities. Efforts seem to be working, because attendance increased from
53,353 in 1999 to an all-time record of 133,762 in 2004.
Due to its northern climate, the zoo conducts its open season from mid-April until mid-October. It
reopens for 1 week at Halloween and for the month of December. Zoo attendance depends largely
on the weather. For example, attendance was down during the month of December 2005, which
established many local records for the coldest temperature and the most snow. Variations in weather
also affect crop yields and prices of fresh animal foods, thereby influencing the costs of animal
maintenance.
In normal circumstances, the zoo may be able to achieve its target goal and attract an annual
attendance equal to 14% of its community. Columbus has not grown appreciably during the past
decade. But the zoo became known as an innovative community resource, and as indicated in the
table, annual paid attendance has doubled. Approximately 35% of all visitors are adults. Children
accounted for one-half of the paid attendance. Group admissions remain a constant 15% of zoo
attendance.
The zoo does not have an advertising budget. To gain exposure in its market, then, the zoo depends
on public service announcements, the zoo’s public television series, and local press coverage of its
activities and social happenings. Many of these activities are but a few years old. They are a strong
reason that annual zoo attendance has increased. Although the zoo is a nonprofit organization, it
must ensure that its sources of income equal or exceed its operating and physical plant costs. Its
continued existence remains totally dependent on its ability to generate revenues and to reduce its
expenses.
Your task is to calculate the expected gate admittance figures and revenues for both 2009, 2010,
and 2011. Also, how reliable are your estimates? ADMISSION FEE PER PERSON ($)
YEAR ATTENDANCE ADULT CHILD GROUP 2008 117,874 4.00 2.50 1.50 2007 125,363 3.00 2.00 1.00 2006 126,853 3.00 2.00 1.50 2005 108,363 2.50 1.50 1.00 2004 133,762 2.50 1.50 1.00 2003 95,504 2.00 1.00 0.50 2002 63,034 1.50 0.75 0.50 2001 63,853 1.50 0.75 0.50 2000 61,417 1.50 0.75 0.50 1999 53,353 1.50 0.75 0.50