Ticket Pricing and Spatial Heterogeneity of Scenic Spots in China: A Spatial Hedonic Pricing Approach

Abstract

ABSTRACT Ticket pricing and tourism revenue are crucial to scenic spots. In China, pricing strategies for scenic spots differ due to regional differences. This paper aims to identify the pricing mechanism and spatial effects of ticket pricing across regions from a macro perspective. We employ a spatial hedonic pricing approach, including the spatial lag model (SLM), the spatial error model (SEM) and geography weighted regressions (GWR) to investigate the spatial dependence and heterogeneity of ticket pricing by using data from national-level scenic spots in China. The empirical results based on the spatial hedonic model suggest that the pricing mechanism varies in space and is influenced by the combination of government-pay and user-pay. The semiparametric geographically weighted regressions further show the spatial heterogeneity of ticket prices, indicating regional differences in the pricing mechanism. Specifically, tourists would pay more for tourism resources in peripheral regions; scenic spots in less developed regions usually implement high ticket price strategies. Our study provides a new approach to exploring the spatial effects of ticket pricing. Knowledge about the differentiated pricing mechanism across regions not only sheds light on ticket revenues of tourist destinations in the Chinese context but also contributes insights to address similar issues better elsewhere in the world.