Hollywood Bowl calls on dynamic pricing as heatwaves hit sales

The Hollywood Bowl has called upon its dynamic pricing system to counter the decline in ten-pin bowling demand caused by the intense heatwaves experienced during the summer. The UK's largest ten-pin bowling operator disclosed that the prolonged, dry weather had "heavily impacted" its trading, with like-for-like sales in the UK falling by 2.6 percent in the second half of the year.

Despite this, CEO Stephen Burns stated that demand remained resilient during the extended period of record heat, with support from the company's cost and pricing model, as well as operational initiatives to attract more visitors.

The London-listed group managed a 4.3 percent increase in like-for-like sales for the year ending September, driven by a 9.5 percent surge in the first half of the year. Burns stated that Hollywood Bowl's affordable, inclusive proposition has maintained its strong position in a market where consumers are vigilant about their spending.

The dynamic pricing system, enabling price adjustments of up to a pound based on venue footfall, allows the group to offer competitive rates for time-rich but money-poor customers and premium prices for those willing to pay for more convenient time slots.

Investors welcomed Hollywood Bowl's ability to navigate the unseasonably hot weather, with shares jumping six percent in early trading to 260p. Analyst Ross Broadfoot from RBC Capital Markets commended the company's "impressive update given the unhelpful weather endured by the group" and suggested that, under more "normal" weather conditions and with effective cost management and dynamic pricing, the stock would likely have delivered better results for the year.

This summer, Hollywood Bowl added four new UK sites, bringing its total to 95, and operates an additional 13 locations in Canada under its Splitsville brand.