You are on page 1of 5

Make Way for the Alpha Dog

By: Michaela Horn

Pre-Lodge: An Escape to Island Paradise


On December 16th, 2008 Fitchburg, MA held the grand opening for Coco Key Water
Resort; with hopes the Key West inspired resort would redefine what it meant to travel to
Fitchburg (Butler, Brandon). Due to being one resort out of ten Coco Key Water Resorts located
throughout the country, and the third (and also the smallest) to be located in the New England
area, the Fitchburg location had high expectations to live up too. Previously operating as a Best
Western, the $40 million dollar water resort was built alongside a Courtyard by Marriott; the
citizens rejoiced. Hundreds of people flooded through the doors on the day of the grand
opening excited to see what all the
commotion was about. Coco Key Water
Resort was the hot topic of the area and
Sage Hospitality, the company who owned
and operated the water park, projected the
attraction would appeal to individuals from
communities located in Boston, southern
New Hampshire, Connecticut, and Rhode
Island (Butler, Brandon). The water park
offered numerous opportunities for
individuals and families who visited; a fourstory water slide tower equipped with
three major slides, a water playground with
a 160,000 gallon water bucket, climbing
ropes, and electronic gaming rooms were among the attractions offered (Butler, Brandon). Not
only did the resort act as a get-away for families near and far but as a destination for larger
group functions such as kids birthday parties, weddings, and conventions. Packages were also
developed to attract the areas long-time existing customers; people who ski at Wachusett
Mountain or attend the numerous seasonal festivals held throughout the surrounding
communities (Butler, Brandon). Coco Key had successfully established the roots to its empire.

The Fall of an Empire


After a year of operating the hype began to phase out; the water park maintained an
average, steady in-flow of guests and profits were as predicted. The peak times for Coco Key
matched that of local grade school calendars; winter break, February vacation, and summer
break were considered the busy times for the park within the first year. The fall and winter

seasons became the most profitable for the company because of the parks yearround temperature of 84 degrees. However, predictions changed drastically once
the parks second spring and summer seasons came about. As the temperature
outside increased the number of guest visits decreased. When the park first opened operations
ran seven days a week, and by mid-summer 2010 Sage Hospitality had cut down to five days a
week; eliminating Mondays and Tuesdays. Customers were no longer interested in staying
indoors during the summer months, especially with the re-opening of seasonal competitors
such as Six Flags New England, Water Country, and Canobie Lake Park. The only advantage Coco
Key had going for them during the spring and summer months was their availability to the open
public; families from local communities managed to keep the park running through their
consistent visits. The water park was no longer a destination for individuals and families; quickly
they became known as the Fitchburg public pool, an inexpensive place to bring your children
for the day.
Due to the lack of guest visits revenue struggled and Coco Key was forced to raise their
prices; diminishing the local business they were attracting. Customers quickly decided that the
price did not match what the park had to offer; the attractions grew old to guest near and far.
In the winter of 2010 the water park had reached its peak; just as quickly as it took off the Coco
Key Empire had fallen. By fall 2011 the park only operated three out of the seven days in a week
and staffing had been cut in half. Coco Key Water Resort managed to hold on for another year
and a half but no profits were made during that time. Finally, the resort was up for sale and bids
were being taken. On September 2nd, 2013 Coco Key Water Resort closed their doors after
being bought out by another company; make way for the alpha dog.

The Rise of a New Empire


Great Wolf Lodge New England
held their grand opening on June 5th, 2014.
Yet again, customers filled the parking lots
and halls as the new and improved water
park finally went into operation.
Fitchburgs location is the 13th lodge built
within the brand, spreading across the
United States and Canada; the only one
located within the New England region.
This $59 million dollar resort renovation is
jam packed with numerous attractions for
adults and children of all ages, including: a
six-story Howlin' Tornado funnel slide; a Slap Tail Pond wave pool; and Fort Mackenzie, which is
described as a multi-level interactive tree house, with a signature tipping bucket. Additionally,
the resort will house Great Wolf's first and only 16,000-square-foot indoor play area, with a
multi-level ropes course and indoor miniature golf, a kids' spa, mini bowling alley, several dining
options and food outlets, and 12,000 square feet of conference space. (Owen, Paula J.). Not

only does Great Wolf Lodge offer all of these wonderful attractions but the
property is twice the size of the original water park; 406 guest suits and 45 acres of
land to house it all (Owen, Paula J.). Through all of the grand expansions made to
the existing resort Great Wolf Lodge has certainly left their paw print for all to see.

The Start of a New Age


Many aspects help Great Wolf Lodge stand out amongst the crowd; especially when
compared to Coco Key Water Resort. To avoid becoming yet another Fitchburg public pool
the Lodges water park is completely exclusive to those who spend the night. Weve always
been a destination experience, said Kim Schaefer, chief executive of Great Wolf Resortsthe
water park is reserved exclusively for resort guests and that gives them a better family vacation
experience. (Luna, Taryn). But not all of what makes Great Wolf Lodge so successful lies on the
surface; their values as a company shine through the most. The Lodge prides themselves on
being a smaller, forest-themed version of Disney (Luna, Taryn) where guest satisfaction is the
key focal point to everything they do. Although it is still within the first year of operation, Great
Wolf Lodge has set the ground work of what can be a beneficial attraction to the New England
area.

Questions:
1. What could Coco Key have done differently in order to be more successful?
2. Do you think Six Flags New England, Water Country, and Canobie Lake Park played a
significant role in the downfall of Coco Key Water Resort? Do you think the two other
Coco Key Water Resorts in New England played a significant role in the downfall? Why?
3. Do you think Coco Key offered enough attractions for their guests to keep coming back?
What do you think would have happened if they expanded upon the water park once
things started taking a turn for the worst?
4. Do you think Great Wolf Lodge will follow in the footsteps of Coco Key Water Resort?
5. In order to maintain the interest of the guests, what expansions/attractions do you think
Great Wolf Lodge should add to their New England location?
6. Both resorts had approximately the same amount of sister resorts. Do you think Great
Wolf Lodge being the only one of its kind in the New England area places a role in the
companys success? Why?

References:
Butler, Brandon. Making a Splash: Indoor Water Park Opens in Fitchburg. Sentinel &
Enterprise. 17 December 2008. Web. <http://bit.ly/1zOfC9M>.
Owen, Paula J.. Great Wolf Ready to Create State-of-the-Art Water Park in Fitchburg.
Telegram.com. 7 October 2013. Web. <http://bit.ly/1yHRZk5>.
Luna, Taryn. Great Wolf Lodge to Open in Fitchburg. The Boston Globe. 22 May 2014. Web.
<http://bit.ly/1woEc3n>.

Teaching Notes:
Abstract:
This case looks at the transition made between two companies in the same industry; how the
differences between both made one company more successful than the other. The focus of this
case is on Coco Key Water Resort and their downfalls; how the company ended up getting
bought out by Great Wolf Lodge. It further looks at the expansions and differences Great Wolf
Lodge has made and whether or not these aspects will make them more successful in the longrun.
The Teaching Objectives and Strategy of the Case:
This case can be used in a capstone hospitality course or a strategic management course.
Objectives would be1. Corporate management
2. Strategy and goals of a company
3. Transition from one company to another
Target Audience for the Case:
Undergraduate students in a Hospitality Management program
Students taking a Strategic Management course
Recommended Teaching Approach:
1. This case may be assigned as a class reading
2. This case may be used for class discussion

Suggested Answers to Discussion Questions:


1. Coco Key could have generated more ways to bring guests back every year through
functions. They could have expanded the park in different ways each year to make the
water park more interesting; management needed to put more into the water park.
They could have focused more on guest satisfaction and listened to what they wanted
to see come out of the resort.
2. Yes, Six Flags, Water Country and Canobie Lake Park did play a significant role in the
downfall of Coco Key. These parks had more to offer guests; they were also located
outside in the sun whereas Coco Key was only indoors.
Yes, the other two Coco Key Water Resorts played a significant role in the downfall
because of how close they were. The other resorts were also larger than the Fitchburg
location.
3. No, I do not think they offered enough attractions to keep their guests returning;
especially not when they raised the prices.
If Coco Key had expanded I believe they would have stayed open longer but would have
gotten bought out eventually.
4. No, I do not think Great Wolf will follow in Coco Keys footsteps. Great Wolf seems to be
more focused on expanding and complying with the wants of their guests; two things
Coco Key didnt do.
5. Great Wolf should add more adult friendly activities like live entertainment or an
exclusive bar; they are mainly focused on children.
6. Yes, I believe its location plays a role in the companys success because it attracts more
people from farther areas. Coco Key had too many within the same relative area; people
wouldnt be willing to travel for the same experience.

You might also like