Evaluating pricing options at a museum by simulation

Abstract

Museums around the world make the cultural and historical artifacts available for public viewing and therefore are popular places for tourists. In this study, we present a project which was conducted for Topkapi Palace Museum (TPM) in Istanbul, Turkey. As part of the project, a simulation model is developed for evaluating alternative strategies for pricing the entrance ticket at the museum. TPM is visited by more than three million visitors annually and generate revenue. Due to its popularity and physical constraints at the site, it is common to observe long queues before the exhibition halls inside the museum. The simulation model is developed which considers physical layout of the museum including open space walking area and exhibition halls. By using the model, effects of creating a new ticket type, "exclusive ticket", are evaluated. The new ticket type costs more but has the advantage of gaining priority in waiting line queues. Based on the simulation results, we estimate that the new ticket type will increase the revenue and provide fast-track visiting option for tourists.