Differential Campsite Pricing: An Experiment

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Abstract
An experiment involving differential campsite fees was conducted in 14 Vermont state parks. Differential fees were based on historical campsite occupancy rates and ranged from $1 to $5. Campsite choice behavior was closely monitored. Differential fees were found to both shift campsite occupancy and raise campground revenues. Using least squares regression, over half the variation in both the campsite occupancy shift index and prime campsite demand was explained by the size of the price differential. Revenue increases ranged from 4% to 22%. Several indications were found that differential fees may have some discriminatory effects based on income. Based on the demand curves and price responsiveness relationships found in this study, it is recommended that new outdoor recreation pricing policies should proceed cautiously and only with appropriate research and monitoring.