Ever noticed how airline ticket prices change depending on when a ticket is booked? It’s because dynamic pricing has been used by airlines and hotels for many years. Most recently, ski resorts have begun offering dynamically priced lift tickets based on how early the skier makes the purchase. Now, you can adjust their pricing based on a variety of factors in order to fill more seats, increase profits, and even offer your customers incentives for early booking.
Today, almost all tickets sold by tour and activity operators are sold at a fixed price and most commonly on the day of the tour. Although this has been the status quo for decades in the excursions market, it’s not great for operators because it doesn’t allow you to predict capacity or allocate resources like buses and guides. For your customers, it also means that tickets for your tours or excursions are the same price regardless of demand.
With Rezgo, you can adjust your pricing on the fly based on demand, date, day of the week, group size, and more. The enhanced dynamic pricing engine which is part of the Rezgo 6 rules engine, was rolled out on October 1st. The enhanced rules engine presents dynamic pricing options in a very simple and straightforward manner, giving owners the ability to create and manage sophisticated dynamic pricing rules.
Most operators are at the whim of same day travellers sometimes often through expensive local sales channels like activity desks and concierges. Using dynamic pricing could help you to even out their revenues over the season and drive more direct advanced bookings. These advanced bookings should help you allocate the required resources like buses, equipment, or staff.
Since the introduction of the dynamic pricing engine, Rezgo members from around the World have created over thirty thousand dynamic pricing rules, proof positive that tour and activity operators are ready to embrace dynamic pricing.
Consumers are used to paying based on seasonality or demand in a number of travel and hospitality sectors. Finally, the third largest travel sector, the tour and activity sector, can join in the benefits of dynamic pricing and provide revenue benefits to operators and pricing incentives to consumers.