By Taz Bareham — 25 Mar 2014
There’s an easy way to make people pick you over your competition – how you package your tourism products!
Countless psychological studies have found that the way a product is put together has a direct (although at times subconscious) influence on purchasing decisions.
Here are 3 simple ways to alter the way your tourism product is priced, so that people perceive your tour or activity product as the one that offers the most value for money.
You can maintain your margins for regular sales, but get extra income by selling to other customers at a discount.
It’s a smart idea to apply a discount your products on low season to help with yield management. During a particular time period, your customers can get more for less. The value they receive goes up, and it’s more tempting to book it in. You can distribute this via daily deal sites for quick results.
You can offer special pricing to customers who are part of your loyalty program, or perhaps an affiliate organisation. Rewarding customer loyalty is a great way to encourage an ongoing stream of bookings and get more revenue per customer.
This makes sense – if someone’s prepared to book in 20 seats, you’ll give them a bit of a discount compared to someone who’s only booking in 2 seats.
Consider offering a discount for instant online payment instead of cash on the day.
This is part of your loyalty program – give customers something for free when they spend over a certain amount with you (eg. a free tour with a friend).
Small things can be added to your product that will give it a lot of perceived value, without much hassle. For example, offer a free drink, or work with a local attraction and offer tickets for entry along with your tour.
Working with other tour operators in your region is a great idea, because you can create an experience that encompasses all of the activities they can experience there. They won’t have to book and pay 5 times because it’s all bundled together.
Finally, the way you display your pricing can definitely have an affect on whether or not your customers will book with you.
So if you a bunch elements together that you include in your tour to add value (from step 2), you will likely get a discount from all the people you’re working with (for meals and entry fees for example).
By displaying just one overall price, it disguises how much each element cost you. You should have at least 3 elements before you disguise pricing.
What if all the elements you can think of to include are a bit too pricey? In that case, show them the cost of each element in your tour, and let them mix and match what they want. They can then stick to their budget and customise the experience for themselves.
Here’s your homework.
Research what you think customers are prepared to pay. Look at competitors – how is yours different & how much are customers willing to pay for this difference?
Think of ways to vary your tour products through applying discounts, adding value, and packaging your pricing.
All of this strategy won’t work if you fall short when it comes to execution. While you’ll be more competitive, it will also create administrative work that limits you to your desk. Poor booking management can result in unsatisfied customers and bad reviews.
Do you have online booking software to automate the booking process? If so, can it apply discounted pricing? How about extras?
If you want something with this capability, take a free trial of Rezdy. It’s obligation-free and our customers love it.