Dreamworld's reputation 'irreparable' after fatal crash: expert

Dreamworld's reputation as a family-safe environment may be forever damaged because of how they responded to the deaths of four people in 2016, marketing experts say.

Signage is seen outside the Dreamworld Theme Park on the Gold Coast, Source: AAP

The deaths of four people on Dreamworld's Thunder River Rapids ride has caused "irreparable" damage to the theme park’s image, marketing and communications experts say. 

The fatal ride malfunction claimed the lives of Cindy Low, Kate Goodchild, her brother Luke Dorsett and his partner Roozi Araghi in 2016.

An inquest into the tragedy, still ongoing, has heard that the ride malfunctioned twice just hours before the incident, and that another operator had only received training on the same morning.

UTS marketing lecturer Nigel Bairstow told SBS News the fatal crash and the evidence presented at the inquest has "created irreparable damage to Dreamworld's brand reputation".

"It has for sure impacted Dreamworld’s reputation as a safe, fun family entertainment destination,” Dr Bairstow said.

“A brand is a personality and it communicates trust, customer loyalty and reliability over time. For Dreamworld, reputation also includes safety for customers.”

Ardent Leisure CEO Deborah Thomas visits Dreamworld on alongside Dreamworld CEO Craig Donaldson, Friday, Oct 28, 2016. Source: AAP

A Dreamworld spokesperson said the company would not provide comment during the coronial inquiry.

David Hawkins, managing director of Socom Strategic Outcomes which helps businesses manage crises, told SBS News a company's response can often cause more reputational damage than the incident itself.

“If we look at other situations, there have been deaths before, and it's not the deaths that do the damage to the reputation as much as how you respond," he said.

"Mistakes happen and usually, we’re prepared to accept the fact that mistakes happen, providing people take ownership of mistakes and do something to rectify it so it doesn’t happen again.”

A day after the tragic incident, Dreamworld owner Ardent Leisure Group’s share price plummeted 22 per cent.

However, as of Monday, it was trading on the ASX at $1.98, meaning it jumped up one per cent higher (or 0.51 per cent), giving the company a market capitalisation of $933.20 million at the end of the trade.

The inquest continues today.