The Indianapolis Zoo and Digonex were featured in the November 2015 issue of IAAPA’s Funworld magazine:
Prior to 2014, the Indianapolis Zoo offered static, seasonally adjusted admission prices. Visitors could receive a modest discount by going online and purchasing advance tickets that could be used for any future date.
Since implementing dynamic pricing, every day has its own price based on several factors, including projected attendance for the day. New data on sales patterns and numerous other variables is collected daily and fed into a customized pricing algorithm that produces and sends updated price recommendations to the zoo.
Digonex oversees all data collection and analytical work, and while this system minimizes the day-to-day burden on zoo staff, the organization’s leadership still retains control over the pricing strategy. The daily pricing recommendations are reviewed through an easy-to-use web portal and then accepted, rejected, or modified as management deems appropriate.
As ticket sales increase for a given day, the formula gradually increases the price of admission, moderating demand for admission on a specific day. Compared to the static prices of $10.95 per winter-season day and $17.95 per summer-season day offered prior to 2014, admission prices now typically range between $8.20 and $29.95 over the course of the year.
But how has it worked out for them?
The Indianapolis Zoo is now into the second year of its new pricing structure, and the results continue to be strong. “When we implemented dynamic pricing, all of our goals focused on meeting the needs of our visitors. Within that first year, we met every one of those goals,” says Crowther. “It looks like 2015 is going to be even better than 2014.”