Hello. This is Realworld, a playable content platform. Last March, we shared news about the opening of 'Immersive Fort Tokyo,' the world's first immersive theme park. While we were skeptical about whether a theme park composed entirely of immersive content could succeed, it appears to have been operating successfully for the past year.
However, starting this March, 'Immersive Fort Tokyo' has undergone a major renovation. The most notable change is the elimination of the all-day pass concept and the shift to selling individual tickets for each experience. While unlimited passes are typically the standard for theme parks, let's explore why they're attempting this change.
Why Theme Parks Sell Unlimited Passes
Before diving in, let's briefly examine the typical pricing policies of conventional theme parks. Theme parks are also a massive industry that operates on economic principles. In the past, you could find pricing systems that charged separate admission and attraction fees (two-part pricing) or bundled popular attractions like 'Big 3' or 'Big 5' packages, but at some point, they shifted to selling fixed-price unlimited passes.
To understand this reasoning, I referenced an article titled 'Why do amusement parks only charge a fixed admission fee?' published in the economics journal 'Economics Letters.'
Theme park operators cannot know customer information precisely. Some customers ride many attractions, while others ride fewer. You might think, 'Wouldn't it be more rational to charge separately for each attraction?' However, in situations with information asymmetry, giving customers choice is said to be efficient. Even with slightly higher prices, charging the same admission fee means only customers who place high value on attractions will pay the entrance fee and visit.
Additionally, since most attractions are large mechanical devices with low operating costs (marginal costs), charging additional fees for extra use isn't essential. The fact that they can maintain profits with just fixed admission fees must also be considered.
However, there's a prerequisite for this approach: customers must experience significant enjoyment from riding attractions. This relates to what's commonly called the 'law of diminishing marginal utility' - the satisfaction from the first glass of water when thirsty differs from subsequent glasses. As the additional utility gained from each unit of a good gradually decreases, customer enjoyment must slowly decline after riding attractions for attraction utilization rates to increase and demand for unlimited passes to be maintained.
'Immersive Fort Tokyo' - Confidence in Content
Tsuyoshi Morioka, CEO of 'Katana,' the company operating 'Immersive Fort Tokyo,' is a legendary figure in the theme park industry, having improved Universal Studios Japan's performance by introducing 'The Wizarding World of Harry Potter' during the park's financial difficulties. As someone more expert than anyone in theme park pricing policies, why is he introducing a pricing policy that contradicts economic models?
As we learned earlier, theme park customers prefer unlimited passes because they want to use many attractions. Conversely, if interest wanes after riding a few attractions, they wouldn't purchase unlimited passes. Does 'Immersive Fort Tokyo' think customers' marginal utility diminishes rapidly (enjoyment after using attractions decreases sharply)? It doesn't seem so. Rather, CEO Tsuyoshi Morioka's moves reveal confidence in 'Immersive Fort Tokyo's' content.
According to related data, 'The Sherlock - The Baker Street Serial Murders Case,' based on detective Sherlock Holmes stories, attracted 150,000 visitors over one year. 'Edo Oiran Ghost Tales,' which recreated the unique world of Edo period pleasure quarters, achieved a 97% ticket sell-out rate despite its high price of 14,800 yen (approximately 145,000 won). Furthermore, 'Tokyo Revengers Immersive Escape,' based on a popular manga, showed 99% customer satisfaction, demonstrating the popularity of 'Immersive Fort Tokyo's' content.
Regarding this, CEO Tsuyoshi Morioka responded in an interview with 'Nikkei Trend':
'In the first year, we prepared various performances from light to deep experiences. We thought it would take some time for people to understand deep immersive experiences, so we prepared most of our programs as light experiences. However, when we opened, over 70% of people flocked to the deep experiences.'
Despite being able to enjoy free attractions after paying admission, 70% of customers paid additional fees to experience premium content. This suggests not just that only enthusiasts visited, but that consumers recognized and paid for the value of high-level experiences. In other words, consumers prefer higher-level experiences even if more expensive, rather than cheaper, lighter experiences.
The different industry structure from existing theme parks is also a factor in this change. Unlike traditional theme park businesses that generate profits by minimizing operating costs and maximizing operations, 'Immersive Fort Tokyo's' main resource is performing cast members. Therefore, selling cheap unlimited passes raises questions about long-term sustainability. Thus, this pricing policy change can be seen as a move to develop immersive entertainment into a high-value-added industry.
What's Next for 'Immersive Fort Tokyo'?
Previously, you could purchase unlimited pass-style tickets to enjoy free attractions or pay additional fees for premium attractions. Now, while free attractions accessible with unlimited passes have disappeared, premium attractions that previously required additional fees have actually become cheaper. Additionally, eliminating unlimited passes enables smoother evening operations, potentially attracting customers like office workers and students who utilize weekday evening hours.
A premium strategy is also emerging. 'Immersive Fort Tokyo' is reportedly preparing high-priced content exceeding 20,000 yen (approximately 200,000 won) per person by April 2025. They promise to provide unforgettable memories through immersive content enjoyed while dining - truly an ambitious plan.
'Immersive Fort Tokyo,' the world's first immersive theme park, continues new challenges without being bound by the past due to its unprecedented nature. We hope this theme park composed entirely of immersive content doesn't remain just an experiment but becomes a foundation for developing the immersive content industry. We'll continue watching 'Immersive Fort Tokyo's' challenges. Thank you.