Determining Appropriate Prices for Recreation on Public Lands
Keywords:Price, willingness to pay, public land recreation
AbstractPrice is regarded by some to be the most important element of a service provider’s marketing mix. In the context of leisure services, which often provide intangible experiences, price is often used by participants and visitors as an indicator of service quality. For many public leisure services, however, price has been a distant concern. In particular, the recent implementation of the Fee Demonstration Program by public land management agencies has highlighted the inexperience of these service providers in implementing pricing strategies. Confounding the issue of setting prices for public land recreation are a variety of normative issues that touch upon the holistic value of public land and social welfare concerns of visitors’ ability to pay. The purpose of this study was to demonstrate a method of formulating a pricing program for public land recreation that attempts to balance the opposing objectives of maintaining access and generating revenue.Data were collected from the Mono Basin Scenic Area (MBSA), California, in the Summer of 1998. Following Richer and Christensen’s (1999) survey design, respondents were asked to report an estimate of both what they would be willing to pay (WTP), at maximum, and an appropriate price (AP) for an individual week-long pass to MBSA. A $2 entrance fee had been in place at two sites within MBSA since 1997. Results showed that the maximum amount visitors were willing to pay was greater than the price they considered appropriate for about two-thirds of the respondents.The data shows that while estimated revenues would be maximized with a substantial price increase, the cost of such a change would be a substantial drop in visitation. Smaller price increases would yield nearly as much revenue with smaller impacts on rates of participation.These results illustrate the utility of using the appropriate price criteria to determine how much to charge for public land recreation. Given the dual and often opposing objectives of generating revenue and maintaining public access, managers of public lands face a difficult pricing decision. While analyzing maximum willingness to pay enables one to model the tradeoff between revenue and access, it stops short of suggesting a specific fee level; one that would satisfy both management objectives. Broadening the focus of pricing decisions to include normative concerns improves the likelihood that the fee levels chosen for public recreation will be considered appropriate in the eyes of the recreating public, while still generating substantial revenue to support the management efforts of public recreation agencies.
Sagamore Publishing LLC (hereinafter the “Copyright Owner”)
Journal Publishing Copyright Agreement for Authors
PLEASE REVIEW OUR POLICIES AND THE PUBLISHING AGREEMENT, AND INDICATE YOUR ACCEPTANCE OF THE TERMS BY CHECKING THE ‘AGREE TO THE TERMS OF THIS COPYRIGHT NOTICE’ CHECKBOX BELOW.
I understand that by submitting an article to Journal of Park and Recreation Administration, I am granting the copyright to the article submitted for consideration for publication in Journal of Park and Recreation Administration to the Copyright Owner. If after consideration of the Editor of the Journal of Park and Recreation Administration, the article is not accepted for publication, all copyright covered under this agreement will be automatically returned to the Author(s).
THE PUBLISHING AGREEMENT
Assignment of Copyright
I hereby assign to the Copyright Owner the copyright in the manuscript I am submitting in this online procedure and any tables, illustrations or other material submitted for publication as part of the manuscript in all forms and media (whether now known or later developed), throughout the world, in all languages, for the full term of copyright, effective when the article is accepted for publication.
Reversion of Rights
Articles may sometimes be accepted for publication but later be rejected in the publication process, even in some cases after public posting in “Articles in Press” form, in which case all rights will revert to the Author.
Retention of Rights for Scholarly Purposes
I understand that I retain or am hereby granted the Retained Rights. The Retained Rights include the right to use the Preprint, Accepted Manuscript, and the Published Journal Article for Personal Use and Internal Institutional Use.
All journal material is under a 12 month embargo. Authors who would like to have their articles available as open access should contact Sagamore-Venture for further information.
In the case of the Accepted Manuscript and the Published Journal Article, the Retained Rights exclude Commercial Use, other than use by the author in a subsequent compilation of the author’s works or to extend the Article to book length form or re-use by the author of portions or excerpts in other works.
Published Journal Article: the author may share a link to the formal publication through the relevant DOI.
- The Article I have submitted to the journal for review is original, has been written by the stated author(s) and has not been published elsewhere.
- The Article was not submitted for review to another journal while under review by this journal and will not be submitted to any other journal.
- The Article contains no libelous or other unlawful statements and does not contain any materials that violate any personal or proprietary rights of any other person or entity.
- I have obtained written permission from copyright owners for any excerpts from copyrighted works that are included and have credited the sources in the Article.
- If the Article was prepared jointly with other authors, I have informed the co-author(s) of the terms of this Journal Publishing Agreement and that I am signing on their behalf as their agent, and I am authorized to do so.