A Study of Option Pricing Model for Amusement Park Dynamic Pricing

• Main Authors: Yu-Ting Tang, 湯毓庭
• Other Authors: Chih-Peng Chu
• Format: Others
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/25333294125167685274

碩士 === 國立東華大學 === 企業管理學系 === 101 === Looking back historically, weather changes not only affect the national economy but also affect businesses and people's livelihood. In tourism industry, amusement parks have high risk related to weather because their visitors visit the park in high density. Serious losses would occur in amusement parks if bad weather occurred that would cause a reduction in visitor willingness to visit amusement parks. In order to ease the uncertainty faced by companies due to weather changes, amusement park should actively develop merchandise adapted to the weather and thus to the ability to increase prospective business opportunities. In our research, we considered that the reason why amusement parks’ revenue changes drastically as a result of weather is that people make decisions based on weather conditions and weather forecasts. Because of different weather conditions, the utility of individual activities is rarely the same. To solve this problem, we combine concept of revenue management with dynamic pricing, and put weather factors into account to redesign an admission ticket for amusement park by using an option pricing model, because we found that the characteristics of options can meet this need.