Hollywood Bowl strikes it lucky with families and dynamic pricing
Hollywood Bowl has reported a surge in revenues, reaching a record high, as the leisure operator expanded its footprint and leveraged dynamic pricing strategies.
The ten-pin bowling giant, which now boasts 77 centres across the UK and 15 in Canada, saw its revenues climb by nearly 9 per cent to ยฃ250.7 million for the year ending September.
This growth was primarily fuelled by the opening of five new UK sites and two in Canada.
Stripping out these new additions, like-for-like sales still registered a 1.3 per cent increase at constant currencies.
Further bolstering its income, the company implemented dynamic pricing, a strategy that adjusts costs in real-time based on demand.
Despite these revenue gains, pre-tax profits for the group experienced an 8.6 per cent decline year-on-year, settling at ยฃ46 million.
Hollywood Bowl continues to position itself as an attractive option for families seeking affordable days out.
โWhilst the cost of living remains high, consumers continue to prioritise their spending on experiences as opposed to purchases,โ the firm told investors.
Hollywood Bowl said it appeals to all age groups compared with newer competitors in the leisure space which are predominantly adult-focused and city centre based.
Its centres are typically in out-of-town locations like retail parks, and combine bowling alleys with amusements and food and drink.
A family of four can have a game of bowling for under ยฃ26 at peak times, with price rises kept below UK inflation, according to the business.
But it revealed that the average spend per game rose by nearly a 10th, with people splurging more on food, drink and amusements.
This came despite a 7.5 per cent decline in the volume of games played this year compared with last year, which the company said was due to the hot summer affecting the indoor leisure sector as well as weaker consumer confidence this year.
Hollywood Bowl is targeting more new openings and said its plans to have 95 centres in the UK by 2035 were on track.
It also revealed that it was expecting its tax and wage bill to rise next year.
The company said that a revaluation of business rates will โwipe outโ a reduction to the tax multiplier for hospitality and leisure businesses, and โtherefore we will see an increase in business ratesโ in the next financial year.
Shares in Hollywood Bowl were rising by more than 3 per cent on Tuesday morning.
