�Ǹ�Թ�

The world of campsite reservations is increasingly cutthroat, so why are so many campers not showing up? CU �Ǹ�Թ� economist Jon Hughes applies numerical modeling to understand campground no-shows

Throughout the United States, and especially here in the West, snagging a preferred public-land campsite has become a take-no-prisoners battle royale with little room for weakness or sleep or mercy.

If your friends seem especially haunted and jittery these days, it’s possibly because they’ve been up for hours, hitting refresh every 30 seconds on every computer, tablet and smartphone in the house, trying to reserve a summer campsite the millisecond it becomes available online—six months to the day in advance and at midnight for Colorado state parks and 8 a.m. MST for federal lands.

With so much summer enjoyment on the line, then, and reservations more precious than gold, it’s a central mystery of outdoor recreation why park managers and users report high summer campground vacancy rates due to no-shows.

Jon Hughes, a CU �Ǹ�Թ� associate professor of economics and Renewable and Sustainable Energy Institute fellow, found through numerical modeling that that increasing fees, either overnight fees or no-show fees, decreases campsite no-shows.

“I think we’ve all probably had this experience,” says Jon Hughes, a �Ǹ�Թ� associate professor of economics and Renewable and Sustainable Energy Institute fellow. “You show up and the campground is half empty, and you think, ‘How is this possible? It was so hard to get this reservation.’

“I think part of it is it’s hard to know what our schedule’s going to look like in six months, so we make these reservations and optimistically tell ourselves we’ll be able to go camping—even up to the last minute.”

Based on his experiences as an outdoor recreator seeing no-shows firsthand and as an economics researcher who has long studied transportation and climate issues, Hughes wondered: How do park pricing policies contribute to no-shows—and the associated inefficiencies—and can policy changes correct these inefficiencies while meeting park managers’ goals of adequate revenue and improved access?

In in the Journal of Environmental Economics and Management, Hughes aimed to answer these questions via numerical modeling, simulating pricing policies at a hypothetical but representative national park. He found, among other results, that increasing fees, either overnight fees or no-show fees, decreases no-shows, which on one hand is a positive outcome but doesn’t address the perennial issue of equitable access to public lands.

“One of the things park managers are always really worried about is equity,” Hughes says. “This is all of our land—this isn’t only for rich people. If you want to design a system where every site is used and sites go to people who most want to camp, you could just auction (reservations) off. In economic terms, that would be very efficient, but if you think your desire to camp is maybe positively correlated with income or wealth, it might create a system where certain folks are able to camp and others aren’t.”

The economics of no-shows

In part because of his own experiences trying to get a summertime campground reservation, and based on his previous research studying access to and use of public lands, Hughes began considering how to understand the economic impact of campground no-shows: “We have finite capacity (on these lands), so how we best use these resources I think is a really interesting question.”

He consulted with Montana State University Professor Will Rice, a former park ranger, whose research on management of public lands inspired Hughes to call him—a conversation that highlighted the growing problem of no-shows.

“I got off the phone with him and wrote down a simple, intermediate microeconomics model for how consumers would think about this decision (to cancel or no-show),” Hughes says. “There’s some desire to go camping, some understood utility you’d get from having a campground reservation and you pay some monetary fee to take that reservation, but then there’s some uncertainty.

“If you don’t go, you might have to pay a fee or you might have to pay with your time if you decide to cancel. If you can’t go, you think about, ‘How do I minimize the cost?’ That lends itself to a really simple economic model that generates some interesting predictions: If you make it more costly to cancel, people aren’t going to cancel and you’ll have more no-shows. If you charge a fee when people don’t show up, they’re less likely to no-show. The theory model predicts that raising (reservation) fees will discourage no-shows, but it actually leads to another effect where if you increase fees, that just makes it more expensive for everyone, whether they camp or no-show.”

��

“When I decide to no-show, I’m robbing you of the benefit of camping. My decision negatively impacts you, so how do we ensure that people who want to enjoy public lands are able to?” says CU �Ǹ�Թ� economist Jon Hughes. (Photo: Dave Hoefler/Unsplash)

Through numerical modeling, Hughes found that cancellation fees can increase or decrease no-shows when campground capacity constraints are not binding, but they strictly increase no-shows when capacity constraints are binding. Further, he found that increasing trip prices strictly decreases no-shows and that increasing no-show fees strictly decreases no-shows.

Simulating a $40 increase in reservation fees or no-show fees, he found that higher reservation prices could increase park revenue by as much as 56% but reduce consumer surplus. However, a $40 no-show fee might modestly increase park revenue but increase consumer surplus by as much as 12%.

Further, he notes in the paper, a $40 increase in reservation price increases the mean income of reservation holders by $2,900, or 2%, while a $40 increase in no-show fee causes little change in income. This could mean that no-show fees wouldn’t push access to public lands further out of reach for those in less wealthy income brackets.

He also estimated outcomes under an optimal no-show fee of $150—equal to the marginal external cost of a no-show, or the lost consumer surplus of a user denied a reservation—which eliminates no-shows and increases consumer surplus by 14%. But even the more modest $40 fee captures nearly all of the benefit of the optimal fee, Hughes found.

Enjoying public lands

All of this, of course, leads to the question of how to collect no-show fees.

“Your doctor is going to charge you if don’t show up, your car mechanic will charge you if don’t show up, my barber will charge me if I don’t show up,” Hughes says. “Logistically, charging a no-show fee is one of the challenges in managing public lands. The only places where it’s currently possible are staffed campgrounds, because hosts are there seeing who hasn’t shown up, but oftentimes a host doesn’t want to cause problems.

“I think technology can save us here. Recreation.gov has implemented an app with the added benefit of your phone knowing where it is all the time, or there are some areas now where you use geofencing. If you want to do the Wave at Coyote Buttes in Arizona, you can get a permit a day or two before your trip, but you have to be within a certain geographic area to get it. It might be possible to do the same with no-shows: You reserved this site, you go, your phone knows if you were there. This is a problem that’s solvable with technology.”

These findings, which Hughes will present to a group of economists with the U.S. Department of the Interior next month, solve two problems, he says: how to best optimize the limited capacity of America’s public lands, which are increasingly in demand, and how to address a “negative externality.”

“When I decide to no-show, I’m robbing you of the benefit of camping,” Hughes explains. “My decision negatively impacts you, so how do we ensure that people who want to enjoy public lands are able to?”

Did you enjoy this article?����Passionate about economics?��Show your support.

��