Surge pricing is an unavoidable part of our modern world. Customers pay more when demand is high for everything from rideshares to concert tickets to airfare to grocery delivery.
This dynamic pricing model may soon be coming to the great outdoors. The Vermont Department of Forests, Parks and Recreation (VDFPR) is attempting to institute flexible pricing for its campgrounds and day-use fees to counteract rising operating costs.
The Proposal
From national parks to state parks to wilderness permits, recreational users typically pay a flat fee. To camp or backpack, state and federal agencies often charge X number of dollars per night, sometimes with an additional fee per person per night.
When it comes to entrance fees, visitors either purchase an annual pass or pay a standard day-use fee. The price may differ at state parks depending on whether someone is a state resident or not.
The VDFPR wants to introduce a more dynamic pricing model. “The Commissioner [of VDFPR] may consider the following in establishing rates and fees: characteristics of the area, the type of use, occupancy patterns, market rates and value, and recovery of the cost to the Department of providing such services, and any other factor,” the proposal explained.
Essentially, the agency can increase prices for in-demand areas or during peak seasons like summer and fall. The commissioner must give a 90-day notice on the agency’s website before changing prices.
This kind of pricing would apply to a variety of park fees and services: entry fees, cabin rentals, marina fees, campgrounds, reservations, sanitary dump stations, vehicle/equipment storage, boat and equipment rentals, pet fees, and firewood sales.
The Why
In a press release, the agency explained that visitor fees and services account for approximately 70% of its operational budget. It manages 55 parks and 39 campgrounds totaling approximately 60,000 acres. Vermont State Parks attract more than 1 million visitors per year, and the agency framed the pricing changes as necessary for upkeep and effective management.
“Updating fees and their rules will help cover costs without reducing service quality,” the department stated. “Flexible pricing will help parks stay competitive with others in the region while supporting long-term funding.”
In a 2023 modernization study, VDFPR identified funding as one of the “critical challenges” it faces moving forward. “With operational costs increasing by approximately 10-20% annually, the extended legislative rule-making process for price adjustments hampers the ability to respond promptly to real-time rising costs,” the report said.
Much of the parks’ infrastructure needs improvements, including ADA accessibility, stormwater and wastewater management, and restrooms. “Rising operational expenses, aging infrastructure, evolving visitor expectations, enhancing accessibility, and adapting to challenges posed by climate change and increased usage emphasize the importance of exploring new and reliable funding sources to better support VSP for the future,” the report explained. It suggested the dynamic pricing model that the agency is now attempting to institute.
A Larger Issue
Vermont is just one of many states struggling to financially support its outdoor parks and programs. In February, Oregon State Parks instituted a similar dynamic pricing model for campgrounds and cabins to address an $8 million budget shortfall.
In Washington state, recent budget cuts have forced the Department of Natural Resources to close several campgrounds and limit visitor services. In March, Indiana state officials had to abandon a plan to expand a popular state park on unused land due to a lack of funding. A recent report claimed that Michigan State Parks is facing a $748 million deferred-maintenance backlog.
Unlike the federal government, almost all states can’t run deficits and are constitutionally required to maintain a balanced budget. This means that during economic downturns, legislators have to make funding cuts, and parks and public lands programs often bear some of the brunt.
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