Ripoff At Water Park In Central Bang Na, Bangkok

[frimu]

Dear all,

On top of Central Bang Na in Bangkok there is a small water park.

As my girlfriend and I found out, the entry fee for Thai adults is 90 Baht, whereas a foreigner adult has to pay 250 Baht.

As a result I will boycott this place and recommend you the same.

What I wonder, is, how often these kinds of ripoffs occur in Thailand? I don't mind if foreigners have to pay 20/30% more, but 2.5 times more. That's just respectless.

What do you think?

[StreetCowboy]

If you're happy with the price you're asked to pay, who cares what others pay?

[dantilley]

Most places that do this will allow someone who can show a work permit or driving license to go in for the Thai price. Is this water park the same?

[SunnyBkk]

Think this way: Tourism in Thailand is a major source of the country income. Many places has reduced prices for Thai citizen to have a chance to visit some of these exotic places. Without that price reduction, you won't see many thai people in these places.

Think as a special discount for Thai people, not increased price for foreigners.

Cheers

[dantilley]

OK, good analogy, but how is that relevant to a water park on the roof of a shopping mall in suburban Bangkok?

[StreetCowboy]

OK, good analogy, but how is that relevant to a water park on the roof of a shopping mall in suburban Bangkok?

They try to gauge their price precisely to what people think they will pay. But rather than leaving it to the discretion of the staff at the door, they have split the population into two: Thais and 'Foreigners'. That way they can maximise their over-all revenue, and best cover their costs.

Perhaps a more complex pricing model would have been fairer, but difficult to implement.

SC

[Bangkokhatter]

You should do what i have done on numerous occassions at that water park, let your gf pay the Thai price for 2 adults and just walk through to the changing area .

Your not missing much by the way.

[TheWalkingMan]

I think that sometimes we over analyze the reasons for the dual pricing. I doubt if each place has done research to find the what price maximizes their revenue. I suspect that it is more of a, let's charge the Thai person X and the non-Thai X plus whatever we feel. I believe that is in the majority of cases of dual pricing.

If someone here knows of a place which has dual pricing and knows of their numerical data determining how/why they commit to dual pricing - please post.

[frimu]

Thank you for all these opinions. Maybe I'll go there once with the girlfriend pays double trick.

And good point to see it as a reduction for Thai people.

[brit1984]

From my experience, such discounts for locals are very rare. In fact, the aquarium in Paragon is the only place I have seen it.

I really can't understand why people get upset about it. It happens in every country (e.g. UK universities) and the economic rationale is the same as discounts for other groups (e.g. students) as Thais have lower average spending power than tourists.

Price discrimination allows for higher overall revenue and greater access to the product / service / attraction for poorer people. The price paid by other people is irrelevant to your purchase decision.

Sent from iPhone; please forgive any typos or violations of forum rules

[brit1984]

I think that sometimes we over analyze the reasons for the dual pricing. I doubt if each place has done research to find the what price maximizes their revenue. I suspect that it is more of a, let's charge the Thai person X and the non-Thai X plus whatever we feel. I believe that is in the majority of cases of dual pricing.

If someone here knows of a place which has dual pricing and knows of their numerical data determining how/why they commit to dual pricing - please post.

As such discounts are so rare it is very unlikely any owners of such businesses are reading this thread.

Even if they are, I doubt they would post the details of proprietary market research on a public internet forum.

Sent from iPhone; please forgive any typos or violations of forum rules

[StreetCowboy]

Compared to other similar attractions elsewhere in the world that cost ten times as much, at 250 baht its not particularly good value. But given that you don't need to fly half way round the world, its one of the best water parks in the South East of Bangkok, and you may well want to go there at least once. For many of us, 250 baht won't break the bank and we can make up our own minds

SC

[brit1984]

OK, good analogy, but how is that relevant to a water park on the roof of a shopping mall in suburban Bangkok?

They try to gauge their price precisely to what people think they will pay. But rather than leaving it to the discretion of the staff at the door, they have split the population into two: Thais and 'Foreigners'. That way they can maximise their over-all revenue, and best cover their costs.

Perhaps a more complex pricing model would have been fairer, but difficult to implement.

SC

Indeed, the rationale behind the economic concept of price discrimination is very clear. In theory, the optimal solution is for every customer to agree a unique price on a bilateral basis depending on their willingness and ability to pay.

In practice however, as a thorough examination of wealth, income and propensity to spend is generally not possible for all customers, a more crude of categorising customers into groups is generally the closest the business can get to the theoretically optimal solution.

Moreover, many businesses don't bother.

Sent from iPhone; please forgive any typos or violations of forum rules

[StreetCowboy]

OK, good analogy, but how is that relevant to a water park on the roof of a shopping mall in suburban Bangkok?

They try to gauge their price precisely to what people think they will pay. But rather than leaving it to the discretion of the staff at the door, they have split the population into two: Thais and 'Foreigners'. That way they can maximise their over-all revenue, and best cover their costs.

Perhaps a more complex pricing model would have been fairer, but difficult to implement.

SC

Indeed, the rationale behind the economic concept of price discrimination is very clear. In theory, the optimal solution is for every customer to agree a unique price on a bilateral basis depending on their willingness and ability to pay.

In practice however, as a thorough examination of wealth, income and propensity to spend is generally not possible for all customers, a more crude of categorising customers into groups is generally the closest the business can get to the theoretically optimal solution.

Moreover, many businesses don't bother.

Sent from iPhone; please forgive any typos or violations of forum rules

It depends on how diverse your market is, and how expensive is the cost of negotiation. And also how wide are your margins over avoidable direct costs. To be honest, I struggle to see how a marked price can be considered a rip-off. I don't think the park in question is particularly good value for THB 250, though I suppose in comparison with the Aquarium at Siam Paragon its not too bad.

Perhaps someone would like to propose other, more effective, criteria for price discrimination...

SC

[brit1984]

OK, good analogy, but how is that relevant to a water park on the roof of a shopping mall in suburban Bangkok?

They try to gauge their price precisely to what people think they will pay. But rather than leaving it to the discretion of the staff at the door, they have split the population into two: Thais and 'Foreigners'. That way they can maximise their over-all revenue, and best cover their costs.

Perhaps a more complex pricing model would have been fairer, but difficult to implement.

SC

Indeed, the rationale behind the economic concept of price discrimination is very clear. In theory, the optimal solution is for every customer to agree a unique price on a bilateral basis depending on their willingness and ability to pay.

In practice however, as a thorough examination of wealth, income and propensity to spend is generally not possible for all customers, a more crude of categorising customers into groups is generally the closest the business can get to the theoretically optimal solution.

Moreover, many businesses don't bother.

Sent from iPhone; please forgive any typos or violations of forum rules

It depends on how diverse your market is, and how expensive is the cost of negotiation. And also how wide are your margins over avoidable direct costs. To be honest, I struggle to see how a marked price can be considered a rip-off. I don't think the park in question is particularly good value for THB 250, though I suppose in comparison with the Aquarium at Siam Paragon its not too bad.

Perhaps someone would like to propose other, more effective, criteria for price discrimination...

SC

...maybe a lie detector device could be used... cashier could ask "are you willing to pay 1000 baht?", "are you willing to pay 900 baht?", etc... until the customer gives an honest "yes" or a dishonest "no"

Sent from iPhone; please forgive any typos or violations of forum rules

[krisb]

Happens all the time. If you talk to em in Thai maybe they will charge local prices. Ive seen a sign at bus station saying thai this much, falang this much and if you can read the sign same price as thais.

[mogandave]

I think for a sawbuck I'd a gone ahead and taken my gal swimming.

[StreetCowboy]

I suppose I owe a vote of thanks to the OP - its about five years since I was there last, and I should go back again, it being so convenient

SC