From the perspective of economic models for free tickets to scenic spots economic phenomena in China
EC 601 Microeconomics and Macroeconomics
Dr. Esin Cakan
Abstract: Since 2000, as part of the national scenic area to the right of the fare directly delegated to the local development of China's scenic fares began to wave after wave of price rise phenomenon. Ticket sales has been the main source of income in China scenic spot, fares and caused some of the phenomenon known as the “ticket industry economy”. In this paper, commonly used by tourist ...view middle of the document...
Gillette spent four years inventing a replaceable razor blade, in the first full year of sales, he only sold 51 shavers and 168 blade knives. But the next thing Gillette to do was creating a new business model. He sold millions of all his blade knives to the U.S. Army with an extremely low price and a discount, so that these soldiers became Gillette's loyal clients. He also managed to bundle sale the shaver and the blade together. Just over one year, he has sold 90,000 shavers and 12,400,000 knife blades.
Gillette`s commercial practices 100 years ago left an important legacy to future generations: offering free (or at least very cheap which almost free) products, and to get real abundant profits and revenues through consumables, supplies or services. This pattern can be seen everywhere in life: CMCC (China Mobile Communication Corporation) will send you a free phone, then the source of income is the mobile charges; Hewlett-Packard`s cheapest printer was 300 CNY, but the print cartridge is the main profit for the company with an annual revenues over billion dollar.
2.2 Free economy in modern society & the implement of free economy
This model is only a prelude over past 100 years, the real free economy era is now considered kicked off under the new free economic development; more and more things will become totally free. This economic model makes the products` cost very cheap, which is close to zero. Precisely, the marginal cost of providing free goods is close to zero.
A separate scenic cannot compose a complete travel process involves food, housing, tourism and other industries which can be seen as a sideline. Therefore, China's tourism industry can learn from this new model: with the aid of core industries, relying on sideline to make money, and then to exploit a new management and development path. Actually, the West Lake scenic area in China Hangzhou`s free tickets initiatives have demonstrated the feasibility of this model. Since the free charge attraction in 2002, the number of tourists and tourism revenue Hangzhou reception obtained showed a rising trend year by year, comparing 2006 and 2001 data, the total number of visitors increased by 12,720,800, an increase of nearly five times, and the domestic total tourism revenue, tourism foreign exchange revenue in that province also increased by 115.28% and 169.73%.
2. Tickets Price Comparison of Chinese and International Tourism Attractions
Tickets price of some Chinese tourism attractions in 2010
Chinese | Ticket price | Other Countries | Ticket price |
Zhangjiajie National Forest...