As fairs evolve in the 21st century, customer comfort, convienence and ease of use have become more important objectives. Midways are seeking to replicate a theme park experience, with many adopting a cashless system, with one of the leading vendors being Magic Money. Magic Money utilizes Radio-frequency identification (RFID) technology to create a single digital currency for fairgoers. Carnivals who have adopted this system praise the seamlessness of it, and say the patron experience indeed resembles theme parks.
But the latest trend in midway transactions is that fairs are now adopting the system. The North Texas Fair & Rodeo was one of the 2019 fairs that decided to go cashless with the Magic Money system. Not that this year the Magic Money card suddenly appeared – Talley Amusement’s midway has been using Magic Money for at least three years – so the fair had experience with the system and its benefits such as streamlining the settling process at the close of the fair.
This year, the fair used Magic Money for gate admission and food & beverage sales as well as other minor areas of the fair. “We were first introduced to the fair through Talley Amusements, they stuck our toe in the water,” said Glenn Carlton, Executive Director, North Texas Fair & Rodeo. “We saw the data they were collecting, and we saw the savings we could have if we expanded the system. We looked at other card systems and a token system, but Magic Money made the most sense.”
“It saves a lot of costs, no more weighing tickets and I can better use my workers instead of having them selling tickets,” said Mary Talley of Talley Amusements. “The customers love it, it’s so convenient for the fairgoer, especially how they can just auto-reload their cards from their phones. Once you start using it, you really love it and I believe more events will take the benefits Gate-to-Gate”
For the inaugural year, the North Texas Fair & Rodeo gives the system high marks, with savings of 10-20 percent, according to Carlton, mainly in labor costs, and other efficiencies. The fair didn’t go completely “gate-to-gate” – the term being used for fairs expanding cashlessness beyond the midway, but the Texas event used it for admissions and for all its food & beverage stands. “We used it for beer and food and anything consumed at the fair,” said Carlton.
Transactions also include admissions to paid attractions, such as rock climbing as well as a snack cup for the petting zoo, basically what wasn’t included were the merchandise vendors. “The commercial exhibitors, which range from leather goods and to cooking ware to big ticket items, like whirlpools,” said Carlton. “We didn’t require they use the Magic Money, also there was the impact on haggling.”
One factor in the switch was a change in the concession policy of the fair. The fair went from a “flat” lease contract with food & beverage vendors to a percentage arrangement, thus requiring more precise transaction record keeping. “There was apprehension,” admitted Carlton. “Some people don’t like change, so there was some pushback, but 90 percent went along right way.”
Smooth Transition
As Magic Money users agree, the data generated – where and when transactions occur – what they describe as “real time data” – is the most advantageous attribute. “I can look at each food vendor, just like I can look at each ride, in real time,” he said. “I can calculate the amount spent per guest, per hour, which is such a valuable tool to a manager.
You can make the fair more enjoyable for the guests and profitable.”
Using Magic Money at the admissions gate essentially automated the entrance. Instead of four ticket takers, there were 16 points of sale. “Everything was explained to the customers that there is one currency for the fair and that is the Magic Money card,” said Jim Paddack, Technical Director. “We do an all-inclusive admission for our rodeo and concerts, which makes it easier. It was slow at first, but that didn’t’ last. Typically, most people loaded up their ticket at the admission gate and then went to the carnival and reloaded it again.”
The fair sped up the entrance flow the next day merely by moving the a few more kiosks to the entrance area. “There were no more lines,” he said. “We doubled our capacity. I would say compared to the ticket entrances, we tripled our speed. The customers liked the quicker lines, it was a smooth flow once people got used to the system, and they adapted very easy. It’s completely self-service. “
The vendors also adapted to the system easily. “It was mobile so the vendors who moved around had no problem,” said Carlton. “We could calculate what the vendor was owed immediately, down to the penny, and we logged in the ACHS payments while they stood there with us. They loved getting paid that way.”
Already the fair is implementing changes to the 2020 North Texas Fair & Rodeo due to the data, mainly moving some vendors and relocating the Kiddie Land. “We have a wealth of data to make use of. We are looking to add activity elements to slow moving areas of the fair. We also save on ticket printing, and labor. I would estimate the savings to be between 10 to 15 percent, but we still have the wealth of data to make use of and that will probably mean additional systems.
Great Feedback
The 2019 Iowa State Fair was the third year of use of Magic Money for the annual celebration of everything Hawkeye State. Not yet gate-to-gate, the fair’s move to cashless coincided with its transition to an independent midway. “We appreciated the ease of use for consumers, the reporting, and the ability to use the same system for both rides and games,” said Gary Slater, CEO/Fair Manager. “Magic Money upgrades their systems to keep up with the technology changes each year and we benefit from those upgrades.”
The Iowa State Fair had a record attendance in 2019. In fact, with the exception of one Friday where attendance was essentially on par, every day of the 2019 fair had higher attendance than the previous year. The Magic Money system was able to expand capacity and handle the attendance and ridership jump without a hitch. For the average fairgoer, a more automated transaction capability, something not only available at theme parks, but so many other areas of life, from parking garages to banking.
“Customers adapted immediately and loved the system,” said Slater. “We had no complaints. We had only great feedback, that it was easy to use, easy to understand. We have a voucher to buy online and redeem at the Fair for a wristband. Once they have a wristband, they use the kiosks, customer service booths or mobile app to ride or play games and easily reload along the way.”
What has been the most positive outcome of going cashless? “The ease of use both internally and externally with sales and reporting,” Slater said.
