Category Archives for Pricing and Revenue Management

How to Set Price Objectives

ONE  Way to accelerate your Tourism Marketing and create a successful brand is: 

Don’t let pricing boss you around in your tourism business. 

In order to set pricing for  your tourism product or service, it involves objective pricing instead of emotional pricing.

This is one of the big problems in the tourism industry

Let’s face it –   We all have our own views and perspectives about what we think about money. It often comes from how we were brought up. 

And these views affect what we charge for our products or services. 

Sometimes we set prices for our services too low or too high for emotional reasons: 

  •   It could be because of the time and effort we put into it,
  • What we feel it's worth or what we feel we are worth
  • We feel pressured by how our competitor has priced theirs or 
  • Generally we’re worried that a guest will complain because that has happened to us before. 

- It may often feel that everyone is looking for and asking for the best deal, but chances are you haven’t given them enough VALUE to base their decision on anything other than price.   

Value is a perception, not a calculation   - Simon Sinek

 How you get your guests to see the value in your offering (beyond price) is to build a strong brand over time, -- a brand that they are inspired by. Because of your purpose, what you stand for, how you do business your strong customer service, your reviews. -- > and because of all this;  trust emerges 

To set price, it is most effective when you go through a list of steps

  1. It starts with writing down what your strategy in words based on the guest you want to attract to your business, who you are as a brand) and how you are seen/perceived in your industry. 
  2. Then, following steps to look at all the factors (like all your costs, your commissions) will allow you to think of your pricing more objectively instead of emotionally. 
  3. The last step is the communication part – because we want our guests to see the value they are getti in our room, or tour or attraction, not just a price point. 

This is where well-crafted – persuasive communication focuses on their needs. 

And getting feedback on why someone in your target market didn’t buy is a helpful way to gauge whether pricing is an issue or if you haven’t given them enough in your brand to support your price and value. 

The same process applies to promotions and discounting – by following a list of steps and creating price objectives in a smart and purposeful way, instead of an emotional way. 

When you can set your pricing in a more systematic and informed way, it gives you more confidence in it, and in general, it makes setting price less daunting. 

If you found this video helpful Join our Community at the bottom of this blog post and enjoy our many free marketing resources for tourism brands like yours. 

For more marketing tips and how to set objective pricing in the tourism industry you can find them all here. 

Continue reading

The Causes Of A Wasted Advertising Budget

One problem I see all the time with our tourism clients is that they waste their advertising budget before they fully understand their target guest or their own brand.

Have you ever seen an advertisement online and you quickly DELETE the ad because it is not at all relevant or of interest to you?

This brand just interrupted you, and there wasn’t enough interest from you to click and learn more. Unfortunately, this company that sent you the ad, is wasting money. This happens with travel and tourism companies all the time,

Companies often miss 2 Important steps before ADS should even be considered.    

The tourism brand in this example wasn’t clear on who they were trying to talk to.  They didn’t understand who their ideal guest was – who they are, what are their needs, their problems and what are the things that are important to them.
This tourism brand may not have even understood their own brand well enough. I’m not sure if they knew what they stand for and how they can help their guests with their travel needs.

Marketing is all about meeting needs and solving problems, then persuading potential guests effectively. So why waste dollars on Facebook ads and Google ad campaigns or even those new pamphlets and posters advertising your business, Until you are clear on the needs of your guest, and how your brand can help them.

Of course there are other reasons for a wasted advertising budget - but these points are often missed. 

​If this problem resonates with you, we’ve created a community of tourism owners, operators and managers in hotel, tour, transportation and event and attraction businesses that want to discuss and solve tourism marketing problems like this and many more. We would love you to join us, its completely free – it’s a place we can all learn something new.

And you can do so here or just click on the link here.    What about you? - What is your experience with your advertising budget, provide a comment below.

Curious about other tourism marketing problems?   You can find more videos here!  

girl with a wasted advertising budget

Continue reading

Pricing Mistakes In The Tourism Industry

Pricing your tourism products or services is not an easy task, and often  pricing mistakes in the tourism industry can result (i.e. Pricing too low or too high)

Watch this video below to find out the problem that I see all the time with hotels, tours, transport companies, attractions, event owners and operators

Do tourism brands need to resort to price discounting their products and services or matching their competitor’s price points on a regular basis? 

It doesn’t have to be that way. 

Setting prices for tourism services can feel uncomfortable.  And sometimes our own personal beliefs about money can impact whether we set prices emotionally or set prices objectively.

Some tourism businesses believe that low prices are the only thing that guests seem to care about or pricing lower than your competition is the only way to bring guests in the door.

This is not true. 

Maybe these businesses haven’t given guests anything else to think about other than their price.

Pricing is all about perception. It requires looking at your ideal guests and several factors beyond what your competition is doing.

In fact, you'd be surprised to know that if you price the same as your competitor but you seem a bit better than them (in your marketing, and in their overall first impression) often this leaves an impression in their minds whether you are a trustworthy brand and these potential guests wonder what they are missiing.  Again pricing is a perception - and in this case you just left money on the table

To avoid pricing mistakes look at all factors when setting a pricing strategy.

Are you setting your price emotionally (based on your view of money) or objectively by looking at all the quantitative factors? Factors such as:

  • Your fixed and variable costs?
  • Your sales and profit goals?
  • Your commissions from all of your partners and OTA's (even your transport commissions)
  • Seasonality for high and how season and the rates your OTA's change on their websites to account for the seasons.
  • The demand for your product or service
  • Your competitors pricing strategies (not to meet it, but to understand it)
  • What is your guest is willing to pay?
  • It also includes the  value you can put into your offering that your guests see as important (of value) to them.

As you can see there is alot that goes into pricing that needs to be thought through and considered instead of matching or dropping your price.

So are you looking at all the pricing factors in your business instead of just dropping price?

If this problem resonates with you, we have a community of tourism business owners, operators, and managers that want to discuss and solve tourism marketing problems like this and many more. 

We would love you to join us  by using this link here.

Here are more common problems in the tourism industry that might be affecting your business.

The causes of a wasted advertising budget  

For more tourism marketing resources click here

Guy realizing he has made big pricing mistakes

Continue reading