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Is free admission a lifeline for scenic areas?

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2024-07-05


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Author | Tan Yinghui

Editor-in-chief | Yang Ming

Editor | Jing Xiangyuan

Source | Light Vacation Cultural Tourism Research Institute


In the past two years, "free cultural tourism projects" have become a means for many projects to seek breakthroughs in operation and extend product competitiveness, with a similar effect to the "internet celebrity" and "immersive" trends of recent years.


We have seen a large number of street projects achieve great success through free admission, such as the Xi'an Daming Palace and Yuanjia Village projects;


With the progress of the construction of a strong cultural nation and the pursuit of a spiritual world of cultural confidence, a large number of public museums have achieved good returns through free admission, such as the Sichuan Provincial Museum, Hubei Provincial Museum, and Henan Provincial Museum;


Some cultural tourism projects have adopted free admission for "specific times" and "specific groups" to meet the needs of seasons and festivals, such as free admission for Teachers' Day, free admission for the elderly on Double Ninth Festival, relaxed height and age requirements for children on Children's Day, or free admission for certain groups or all groups across the province (city) as instructed by government departments, free admission for large-scale city promotions, or free admission to paired-assistance cities in the past two years, free admission to paired-assistance cities in Xinjiang and Tibet, etc., under various names of free admission, or for various purposes.

Some scenic areas have also begun to experiment with various free admission policies, especially mountain scenic areas. They often waive the first entrance fee, and some even waive short-distance transportation within the scenic area.





Faced with dazzling free admission options, some consumers are overjoyed, while others feel cheated. It can be said that although all are free, the effects are completely different. Why are there such different effects? Today, we will answer this question through five conclusions:

Conclusion 1: Free or not is not an economic issue, but an issue of capability

Conclusion 2: Free admission should not mean simplified services, but enhanced services

Conclusion 3: Free admission is not about the price, but about the value

Conclusion 4: The decision of whether to offer free admission should be based on scientific decision-making, not blind guesswork

Conclusion 5: Free admission presents even greater challenges and a more difficult path than charging admission fees



Why is there such a strong call for free admission to scenic areas now?



A. The first reason: Official promotion
First, the trend of free and public admission to state-owned cultural tourism projects is clearly required in policy documents issued by the National Development and Reform Commission, the Ministry of Culture and Tourism, and other competent authorities. The government's intention is good, allowing state-owned cultural venues to undertake the role of improving the cultural literacy of the entire population, learning about cultural confidence, creating scenes for education, and providing the driving force for shaping the spiritual world. Many state-owned cultural projects are fully funded by the government, so free admission is appropriate;

Second, some local leaders visit various star cultural tourism projects, "knowing what it is but not why it is," only seeing the large number of people attracted by free admission, but selectively ignoring the local consumption environment, product and service configuration, profit logic, and stage of urban development, and after learning, they promote free admission for local cultural tourism projects, thinking that free admission will also attract crowds like the Daming Palace.

B. The second reason: Promotion by professional managers and design units
Many high-salary professional managers often have their employers offer free admission to projects to attract traffic and find a fig leaf for their careers: regardless of income level, at least the projects they operate have a large flow of people. Whether they make money or not is not important; what matters is proving their ability to attract people, so they can continue to earn their high salaries; many design units, when designing schemes for clients, often calculate the number of people, easily reaching three to five million, with per capita spending of one or two hundred yuan, resulting in an annual income of over ten billion yuan and profits of three to four billion yuan. With such calculations, an investment of one or two billion yuan can be quickly recovered, making it easy for them to earn their design fees. As for the final outcome, it is not within their plans.

C. The third reason: The "slow knife cutting meat" business model represented by mountain scenic areas makes ticket prices insignificant
Many second- and third-tier mountain natural scenic areas rely on various transportation traps (the distance from the remote visitor center to the entrance is very far, if you don't take the sightseeing bus, you haven't entered the scenic area yet, and you'll be exhausted), various glass bridges, elevators, cable cars, slides, amusement equipment, and experience equipment within the park. The per capita spending is not less than one or two hundred, or even three hundred yuan! Therefore, many mountain scenic areas are indifferent to whether there are tickets or not, which also promotes the important voice for free admission to scenic areas.

D. The fourth reason: The helplessness of treating a dead horse as a living horse

Many newly built projects, once their operations encounter problems, instead of conducting in-depth research on product and service updates, they try to take the "shortcut" of free admission. They hope that "free admission will cure all diseases," which is the helplessness of contemporary cultural tourism projects, investors, and professional managers.


Have you noticed a strange phenomenon: the voices of consumers who should most strongly advocate for free admission to scenic areas are not prominent in this process? Just as we rarely hear people shouting for refunds at the entrance of the Forbidden City, it is always those who cannot buy tickets who complain; at the entrance of Universal Studios and Disneyland, those who protest against high prices are instead full of memories and want to visit again.




What are the evaluation criteria for determining whether a cultural tourism project should be free or charged?



A. Value priority
We want to emphasize that only free admission for valuable projects is meaningful. For projects that are inherently valueless or have unclear value, free admission will not be meaningful. Just as we are used to the 60 yuan/person ticket price for the Forbidden City, if it were to become free, there would be a huge instantaneous boost (of course, the Forbidden City does not need free admission to attract visitors; its quality speaks for itself, even if the ticket price were 120 yuan, there would still be tens of thousands of visitors one day).

B. Supporting services

Once many projects become free, when faced with increased crowds, there are not enough toilets, cable car capacity is insufficient, leading to only being able to go up but not down, and the scale of catering supply is insufficient, resulting in a lack of hot food. This is almost an annual holiday problem in the cultural tourism industry that is often shown on television. If you are not prepared for supporting services, don't offer free admission, otherwise, the reputation after offering free admission will be disastrous.


C. Commercial products

We used to love saying "commercial facilities," but today, in the context of 'free,' we talk about commercial products: this means the project has no admission fee. Internal commercial products include, but are not limited to, must-visit accommodations, must-try food, must-buy cultural and creative products, and must-experience entertainment items. These must be designed, implemented, serviced, and operated as independent dimensions that constitute the product's attractiveness. This supports the monetization of commercial value when something is free.


D. Capability Support

More visitors due to free admission is a management challenge; if free admission doesn't attract visitors, what to do next becomes an even greater survival challenge. This requires a complete set of capabilities, including a series of management emergency plans, product emergency plans, brand promotion emergency plans, and negative incident management plans. Otherwise: for tourism and cultural projects with insufficient capabilities, not offering free admission means being paralyzed but still lingering; offering free admission means accelerating death like late-stage cancer.


E. Cognitive Assessment

Many owners, once they make their projects free, perceive visitors as owing them or taking huge advantage of them, which is a gravely absurd perception. You should think this way: these tourists have graced us with their presence, and while you might originally have smiled showing 8 teeth, now you should show 10 or 12. Only with double the quality service can 'free' become the most meaningful approach: converting a single visit into a second consumption and an Nth proactive brand co-creator! If enterprise managers don't have this understanding, then they shouldn't offer free admission, or the results will spiral out of control.





What are the core principles determining the success or failure of free admission for cultural and tourism projects?



A. Principle One: From the consumer's perspective, consumers don't want to take advantage, but rather want the feeling of taking advantage.
This feeling is supported by a 'sense of gain' rather than a 'sense of cheapness.' Therefore, the success or failure of our free strategy is ultimately not a price issue, but a value issue. It's not about making a 'shabby project, something to fool people' just because it's free; on the contrary, you must create better projects!

B. Principle Two: 'One must have the diamond drill to do the porcelain work.'

Typically, for cultural and tourism projects, especially scenic areas, admission fees often account for over 50%, even 80%, of revenue, with other secondary consumption making up the remainder. If you don't have sufficient product and service preparations, asking a business model that accounts for 20% of revenue to bear 100% of the income is almost as incredible as asking the bottom five students in a class to boost the entire class's ranking. Achieving this effect requires a more comprehensive improvement in capabilities.


C. Principle Three: Free admission is a double-edged sword.

Once a cultural and tourism project becomes free, it's very difficult to re-introduce fees. This means abandoning your 'price tool' in marketing. It means you might not attract a tsunami of individual visitors, and you might even lose your already limited group visitors. You also lose contact with online distribution platforms like OTAs and miss the opportunity to establish your own live streaming platform.


D. Principle Four: Instead of offering free admission, promise 'money back if not satisfied'.

Two days ago, I visited Xiaoshi Yizhuang Scenic Area in Benxi. The owner's promise there, 'If you consume at Xiaoshi Yizhuang and are not satisfied, you are free to get a refund without reason,' conveyed a stronger sense of 'unlimited confidence in quality service' than simply saying the place was free, and it was more likely to move consumers.


E. Principle Five: All trap-style free offers will backfire from the market.

Never trick customers with trap-style free offers, only for everything to be expensive and all secondary consumption to be charged once they arrive. Self-media will spread your negative reviews across the entire internet before the customer even leaves the park. Within half an hour to an hour, local public opinion and internet monitoring departments will capture and report it, and a seal might be placed in less than 2 hours.





In fact, the 'free cultural and tourism' trend, on one hand, reveals the industry's desperate anxiety: without popularity, where does wealth come from? But even with popularity, wealth is not guaranteed. In the past two years, some night tour projects generally had per-person consumption of 3 or 5 yuan, and even covering electricity, security, and cleaning costs was said to be a struggle for cost recovery.


Therefore, free admission is sometimes reasonable but not necessarily logical, while charging is sometimes illogical but very reasonable. Haven't you noticed that many ancient city and town projects remain empty even when free, while high-experience projects with hundreds of yuan in admission fees are still bustling with visitors? Thus, free admission is not a panacea to save cultural and tourism projects that inherently lack value. We must scientifically, comprehensively, and systematically choose the best scenic area development model based on our own capabilities.


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