Ocean Park Marketing Essay

ocean park HK

A rate fence is a barrier between target markets that ensures that different markets pay different prices. Landman (2010) notes that there are physical and non-physical rate fences. In the hotel industry, a physical rate fence might be the quality of the room -- the guests need to discern a difference in order to justify paying a higher price. A non-physical rate fence would be something service-oriented, for example.

The pricing structure at Ocean Park Hong Kong highlights a number of different rate fences. The basic prices are set out for adults, children and families receiving assistance from CSSA. Children under 3 and seniors enter free, as well as people with disabilities if they hold a "registered card for people with disabilities." These could be considered non-physical rate fences, but they are closer to just reflecting price discrimination that allows some people to enter free. These are typically forms of price discrimination that are accepted in our society.

An example of a non-physical rate fence at Ocean Park is the annual passes that are offered.These come at different levels -- Gold, Silver and Student, each with its own price point. The website for Ocean Park outlines some of the differences between the Gold and Silver passes. The FunPass is an annual pass that entitles cardholders to unlimited admission for the whole year. The Gold pass has no restrictions on this free admission, whereas the Silver pass can only be used on weekdays, and before noon on Saturdays. The Silver pass cannot be used on Sundays and holidays, which are the busiest days for Ocean Park. This rate fence comes at a cost of $220 for adults and $740 for children. As a further enticement over general admission, FunPass receives in-park benefits, and further benefits from network partners. These are an enticement over general admission, and all FunPass holders receive these benefits. There do not appear to be many physical rate fences -- Ocean Park itself does not change….....