Ticket redemption games are continuing to grow in popularity and are an essential element in the family entertainment experience. However, as Helen Fletcher discovers, operation can be challenging without the right support
Redemption games, whether instant or in ticket format, are continuing to make a name for themselves as a real money earner in locations.
The general public is looking towards family entertainment more and more with perceived value for money a must. The video arcades of the 90s, with their dark lighting and dingy feel, are being transformed into bright, inviting family entertainment centres offering an all-round entertainment experience that appeals to guests of all ages.
With this, the game mix is also changing - video and simulators still have a presence in these locations and of course one would not work without the other but the emphasis on redemption games is growing all the time. They represent a successful revenue generating tool and can also be a driver of increased income in areas such as parties and food and beverage sales.
Ticket redemption games in particular work very well in FECs and amusement arcades where there is space for a well-stocked redemption counter. The appeal of such games is obvious - the ability to save your tickets up for a bigger and better prize is good for the player but will also encourage them to return to the location to try and win more tickets. For younger children, watching the game spit out countless tickets is exciting and a clear sign of their success at the game.
There are, however, a number of obstacles operators of such machines must overcome to maximise their earnings potential including shrinkage, increased labour costs and the pricing/packaging limitations of traditional coin/token operation.
To overcome these obstacles a well-structured and efficient management system is required - whether it is to manage the prizes, tickets, payment for games or all three - and there are a number of solutions available to the operator.
Deltronic, based in the US, has been supplying one of the industry-leading ticket dispensers (DL_1275) for redemption games for a number of years as well as its Ticket Eater series of products (the DL-5000 series and interactive player versions TT-2000 and Dual TT-2000), which aim to refine the redemption process.
According to Deltronic’s Colin Horniak, the popularity of ticket redemption has remained constant in the US but globally is growing rapidly. "The focus is to streamline the process," he said. "As more operators learn to manage and refine the process, the experience is more enjoyable for the player. The more tickets a player wins the more enticing the game becomes, however, this also means the operator has to have a solution to refine the process.
"We have integrated our products with swipe card systems in order to speed up the process without the player losing the feel of what ticket redemption really is. Operating ticket redemption takes hard work and attention to detail. From payout percentages to prize selections to game rotation - of course focus on the overall customer experience is invaluable as well."
It could be argued that using tickets brings its own set of problems and some operators are leaning more and more towards the swipe card system. But for Mike Clokie of E-Service, one of the largest distributors of tickets for redemption machines in Europe, there is still a need for tickets and they can be used securely.
"The redemption ticket market has become a strong part of our spares business," he said. "More and more operators are choosing this style of equipment to incentivise players of all ages. One obstacle they have to deal with is stock holding particularly with customised tickets. The operator needs assurance of enough stock to cover their demands, without over-ordering - we are able to stock both customised and standard tickets in a high security area.
"We also work with local operators to ensure that redemption tickets are easily identifiable via colours and barcodes ensuring tickets are not redeemed on the wrong sites.
"The key to ticket redemption in my opinion is the correlation between the fun of the game and quality of prizes available - get this equation right and you will have a significant advantage compared to an instant redemption product."
For Denise Fabrizi of Cointech in the US, one of the main concerns about paper tickets used for redemption machines, is that it has always been difficult to control the games’ average payment or to control the number of tickets that a machine delivers to a player, but with Cointech’s Redemption System this can now be done with a couple of clicks.
"One of the main features is the tickets multiplier," said Fabrizi, "this allows the operator to increase the number of tickets given by a machine, promoting some or all redemption games and motivating the players even more."
As the interest in redemption games has increased so has the operator’s demand for a wider choice of high quality prizes and for Elmac’s Tiziano Tredese it is extremely important to provide such a service. He told InterGame: "We supply a large choice of prizes and update the catalogue via our website with an automatic transmission of all data (numbers, prices, points and so on) into the stock of the FEC."
With a wider range of prizes to choose from it is essential that operators have a tight hold on stock levels and know exactly what is coming in and going out.
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With this in mind Elmac developed its Galileo system, which consists of an automatic ticket eater and dedicated operational software - WinMit. Together, the two allow an improvement in speed, ease of use and most of all the security of all transactions.
"The Magniaticket Galileo counts 600 tickets per minute and gives the points in a receipt or gives the player the opportunity to accumulate them on a loyalty card," said Tiziano Tredese. "The receipts are quickly read and summarised by an optical barcode reader and the details are then stored on the computer avoiding any possibility of copying and fraud. The system also gives the stock inventory, customer database and all the information relating to prizes given."
Fabrizi agrees that issues surrounding prizes are a key area of focus, telling InterGame: "Our Redemption System delivers efficient solutions to fit every operator’s needs. One of the main solutions that it offers to operators is prize inventory. Wasted time in manual inventory processes becomes a thing of the past as our system supports digital packing lists from some of the leading redemption supply companies in the US including Sureshot, Fun Express, Redemption Plus and Rhode Island Novelty. Operators can create and print their own purchase orders and in case of low inventory the system will warn them by sending an email."
There are some operators, however, who although like the idea of ticket redemption games, find the whole ticket process more hard work than they care to take on, which is where the loyalty card system steps in.
Debit card specialist Sacoa, based in Argentina, has developed a redemption management system that can be used with traditional paper tickets or e-tickets or both if the operator should so wish.
The Redemption Wizard comprises two main modules - the Multi-session Counter Program, a front-end interface, which allows up to eight attendants to work at the same time on one single computer at the counter meaning up to 64 customers can be seen simultaneously and the Inventory Control System, a specialised back-end implementation of a standard, fully-fledged inventory control and management system designed to offer features such as multi-branch capability and multiple store rooms within each branch, a comprehensive reporting system including listing of purchases and returns for any branch and inter-store and inter-branch inventory movement.
For Sebastian Mochovsky of Sacoa the main issues for operators surrounding prizes include merchandise pilferage and theft from both customers and employees. "We provide operators with the necessary tools to be able to keep accurate real-time stock control, which is really simple to audit at any time and helps to identify these situations timely," he said.
"Fraud committed by employees when handling tickets is also reduced dramatically by the various different solutions our company provides for automated ticket counting and transfers to the customer’s card."
For Embed, which also specialises in debit card systems, the main focus for operators at present is maximising revenue and reducing operating costs. Its approach has always been to deliver solutions that focus on these two points and operators around the world have benefitted from its product line.
"Our approach is to deliver feature rich and cost effective systems to manage everything from a single aspect of a location to an entire entertainment venue," said the company’s Mark Easte.
The Embed Card System is a cashless payment system for ticket redemption machines and other style arcade games and attractions. The system affords operators a way to efficiently manage their game room while driving revenue through a variety of pricing, marketing and packaging options available within the system.
"The loyalty component and VIP programme abilities give operators a way to encourage repeat visits and reward frequent gusts," said Easte. "As an extension of the cashless payment system, we offer an optional electronic ticket mode whereby operators can eliminate the paper tickets from ticket redemption games. This approach delivers significant cost savings as the operator does not need to purchase ticket stock nor bear the labour costs associated with filling dispensers, clearing jams and so on."
Embed also offers a redemption counter service and management system. The Redemption Pro allows the operator to choose from various pricing options (among other functions) - they simply dial-in the price per play depending on the day and time (peak or off-peak). Further to this the operator is not locked into the token or coin increment and can price their games as they see fit which maximises revenue at the point of play.
"The system supports both value based pricing as well as a less tangible points-based structure," said Easte. "We often focus on operators on a one-card solution whereby the Embed cashless payment card becomes the primary in-house currency. This approach lets guests load their play card with any value they wish and use it throughout the location to pay for whatever they want. This simplified approach makes it easy for guests to spend within the location and keeps the focus on the fun."
As the interest in ticket redemption has grown new opportunities have developed and leading bowling manufacturer and operator QubicaAMF has developed a system which allows ticket redemption to be incorporated into the game of ten-pin bowling.
Recently presented at the 2009 Bowl Expo in Las Vegas this brand new concept offers the possibility to issue redemption tickets at bowling lanes. Consisting of a ticket dispenser (one per pair of lanes), which contains two ticket emitters the unit is stylish and compact in order to permit floor installation between the ball return and the bowler console and allowing easy access to customers without interference with the game.
According to QubicaAMF’s Emanuella Garbo, who is based at the Italian office, bowling centres and FECs featuring dedicated areas and redemption ticket based programmes have experienced great success through open play bowlers and youths, which is why QubicaAMF decided to provide a solution for redemption tickets at the actual bowling lanes. As a consequence there is an increase in overall tickets issued and the number of games played along with the frequency of customer visits.
"Redemption at bowling lanes is a brand new concept but we feel the combination of bowling, animations, overhead lane monitors, special games and redemption could offer consumers a more enjoyable, entertaining and complete experience," said Garbo. "Operators can make the most of the system when it is integrated with other centre network elements developed by QubicaAMF such as the Conqueror Pro management system, which allows flexibility of configuration, customisation based on the centre’s needs and business practices and most importantly total control of the business."
The QubicaAMF system allows tickets to be issued based on specific lane opening modes or time periods and can be enabled and disabled when opening and closing the lane. Full payout control is also possible thanks to the ability to set the equivalent value for tickets and through a series of reports and it is also possible to evaluate payout percentage versus revenue.
It is clear that there is still growth potential for ticket redemption machines and although instant redemption is also popular - the idea of collecting points/tickets and trading them in for a bigger and better prize at the end of it is what will continue to draw players in - of course the games need to look appealing and have good game play as well.
Ticket redemption is ingrained in the coin-op industry and will always be a driving force behind a strong performing game room. Operators are continually looking for ways to streamline their business while increasing value for the guest. It is essential, now more than ever, that operators are given the tools to manage their machines in the most cost-effective way possible while providing marketing opportunities and ways to drive revenue.
First published, November 2009
