Imagine yourself as the CEO of an “Amusement Theme Park” which is newly opened near by the busiest and international city of a country. Despite the fact that the city is very famous and highly populated, it did not have a major theme or amusement park before. Therefore the new “Park” was able to obtain a monopoly in the area; the park is now the largest in the world!
Because the city was lacking a major park, the “Amusement Theme Park” attracted major publicity and was supported with significant media advertising. The primary communication focus was on the large size of the park and the selling of seasonal pass tickets.
The pricing strategy of the “Amusement Theme Park” was to sell seasonal passes rather than individual tickets. For example, a season pass cost 50 Euros as compared to a one-day visit ticket of 30 Euros. These passes became extremely popular and consumers were visiting multiple times per season. On several occasions, in the middle of summer, the “Amusement Theme Park” was at full capacity. That means that season pass holders, were unable to enter the park because it was full and the queues were quite long. It was an uncomfortable situation for the consumers to wait 1 to 1.5 hours under the summer heat.
As a new facility, the park was eager to get back their investment as fast as possible.
Explain which kind of pricing strategy the “Amusement Theme Park” has executed and argue to what extent you agree with their pricing strategy and explain if there could be a more appropriate approach to pricing.