Why Trevi Fountain’s pricing plan will fail
Danilo Zatta, PhD, MBA
Helping companies grow revenues and profits I TopLine, Pricing & Revenue Models Advisor
Dear Friends,
A couple of newsletters ago we dealt with the topic of pricing as means to stop overtourism reviewing the case of Venice, namely a complete failure. Now a similar approach is planned for Rome's Trevi Fountain. I am convinced: it it will fail! See below for a deep dive.
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Why Trevi Fountain’s pricing plan will fail
A short walk from the Pantheon, squeezed between narrow streets and period buildings, you find one of Rome's most precious gems. The Trevi Fountain. It attracts about 10,000 visitors daily with peaks of up to 18,000. Reaching it wandering through the narrow streets of the city's highest hill may soon be nothing more than a romantic memory. In fact, just in these hours the possibility of introducing a closed number is being discussed to regulate the entrances with an access ticket.
Tourism Councilor Alessandro Onorato had already made this proposal in the summer of 2023 following the bathing in the fountain of some tourists: “We want to make the visit to the Trevi Fountain really an experience and not a chaotic shoving from one tourist to another to look for the best angle of the selfie,” Onorato explained. Mayor Roberto Gualtieri has already approved the idea, although there is no definite plan yet. Also Tourism Minister Daniela Santanchè has come out in favor of the idea.
The hypothesis is a ticket costing 2 € lasting 30 minutes; admission for residents would remain free. If the model proves efficient, it could also be adopted for the management of other monuments.
The introduction of access tickets is one of the tactics adopted to manage overtourism: the tourist overcrowding concentrated at certain times of the year and in iconic places that, in addition to being harmful to the environment and the places visited, generates inconvenience for residents. In Italy, at the moment, there is an ongoing trial of a ticket to enter the city of Venice. The measure, introduced at the end of April and active, on specific days, until July, to date has brought more money to the municipality but has not effectively limited the arrival of day tourists. Indeed it was a clear failure: overtourism was not stopped. This is why from 5€ it should go up to 10€.
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Overtourism and the choices made elsewhere
The management of overtourism is an issue all over the world. Protests have been going on in Spain since July. From Barcelona to Palma de Mallorca, Spanish citizens are complaining about too much tourism making cities unlivable for those who live in them. The reasons behind residents' anger range from rising prices in the housing market to water rationing in the drought period to the transformation of urban commerce centered on souvenirs. In Greece, the government has made a new app, MyCoast (currently available only in Greek), to display free beaches and bathing establishments. Through the app one can also report illegal activities or overcrowded situations.
Possible solutions are not one-size-fits-all: in Pomfret, Vermont, for example, authorities have decided to close the streets to nonresidents from September 23 to October 25, the time when it is usually overrun by tourists and influencers. The small U.S. town is world-famous for its fall foliage, which is why it has become a destination for hundreds and hundreds of tourists. The Sleepy Hollow location, which allows visitors to admire the myriad colors of the tree canopies, has gone viral in recent years. Managing such a large influx of people in such a small period is impossible for a small town of about 900 inhabitants, hence the decision for the roadblock.
In the autonomous province of Bolzano, on the other hand, a maximum number of possible overnight stays for the season of 34 million was introduced as early as last summer. To open a hotel or bed&breakfast, a permit must be obtained from the municipality, which cannot grant new permits. The provincial regulations have flexibility points to encourage new businesses, particularly those started by young people, as long as they meet established sustainability, environmental and social criteria.
But let’s go back to Rome.
Will 2€ reduce overtourism? No!
I have a clear view: 2€ is completely useless as a deterrent for overtourism at the Trevi Fountain. It is still too low. What should be done differently and which alternatives exist? Here what I already mentioned in the past related to Venice:
1)?Charge a higher price
Clearly 2€ is not a hurdle to visit this major attraction. For such a world-renowned sight many travelers from around the world will not be deterred from visiting it. 2€ is simply too low.
The city managers should conduct an elasticity study identifying the price point that would have reduced access. The most likely outcome will be a much higher price point.
2)?Introduce dynamic pricing
Why not introducing dynamic pricing to regulate demand of the Trevi Fountain? Dynamic pricing is more and more mainstream and you find it everywhere. It became popular in the airline industry and is spreading over industries to travel and entertainment to retail and food and even to manufacturing where revenue management is applied in process industries. Latest examples are the introduction of dynamic pricing at the amusement parks of LEGOLAND, Madame Tussauds and Sealife. So why not also in Rome?
3)?Propose more articulated pricing
A third way could be to propose different fee structures — from higher fees, to sliding scales, to fees charged on more days — and the possibility of raising funds to help offset the cost of spikes in visitors, rather than charge a low fee only to cover the administrative costs of the program.
2€ are not the solution – I hope the mayor of Rome will also get this Price Point newsletter and change mind.
What is your view on this?
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You are most welcome to share your views, feedbacks and own pricing experiences. Thanks a lot for your interest and support!
Pricing | Retail | Product Portfolio | Commercial Strategy | IKEA | ESADE MBA
1 个月A hot topic for the municipalities for the next spring-summer tourist season! My take is why invent the wheel too much? Colleseum charges much higher amount. Not very far, Barcelona charges an entry fee to the Park Guell. That's also a major tourist attraction, and is a park, also not closed from all around as Sagrada Familia. The price is 25 euros. Why not do that, if Trevi fountain is such an icon?! And may be bundle it with Spanish steps and the terrace for the experience As for Venice, there are so many museums that charge very little entry fee but hardly any tourists in them as they throng the streets, canals and the palace and squares. Why not charge 30 euros as an entry free to the city and offer a bouquet of the interesting museums as free complimentary bundle ! 30 euros because, someone paying 10 euros for ride in ferry or a lot more to stay not in the city, will pay that amount as a bargain with value!
CEO - President- Senior Advisor - Executive Coach - Mentor - Board Member - Roma - Barcelona
1 个月Dear Danilo, I completely sign Your analysis and prescriptions. Our approach is consistent with a pragmatic view that wants to create value and sustainability through pricing. Politics is only interested in demagogy and populism, this is a severe pathology and it has nothing to see with outcomes and results. There’s nothing behind, no thoughts, no rational, no understanding, no intelligence. Waste of breath. Cheers F
Strategy | People Leadership | Problem-Solving | Results Driving | Innovative | Curious | Adaptable
1 个月It feels like there may be a deeper discussion that thus far society has not been willing to engage in. What "rights" do people (and which people) have to view/experience "attractions"? Implicit in fees, the answer is no. Even US National Parks often charge a minimum entry fee to help cover costs of operations as government funding is insufficient. Theaters, amusement parks, etc. The solution is "easy". Raise prices and/or build more to get to that wonderful point of equilibrium. Natural wonders and historical attractions basically have finite supply with ever growing demand as population grows. Pricing to control over tourism at some point becomes transactional - if you have the means, you get the experience. If you don't, too bad. If it weren't that areas where such attractions are found now depend on tourism fees, it might make sense to limit access to "local" citizens whether local means city, country or continent would have to be figured out. If there really is a "right" to experience something somewhere else, than implicitly it should be equally available to all and not have sufficient fees to curb demand. As the post suggests, there needs to be flexibility. A fountain is not the same as a city (Venice).
Pricing & Compliance Automotive, Packaging, Electrical Steels - ArcelorMittal
1 个月I think the pricing of 2 EUR could work if there are additional conditions to get the ticket : imagine the pass is being provided in a separate single office 200m from the site. this will discourage more people knowing that they will have to queue twice. Frankly speaking, I am sure, as it is also the case in Venice, that these fees are existing more for the purpose of fueling the local taxes rather than to reduce drastically the number of visitors.