There is a bustling season and a slow one, and as a travel or hospitality business, you are certain to be familiar with both. Perhaps you are an out-of-town resort that has to deal with empty parking lots on the weekdays. Or perhaps you are an adventure trip organiser that sees low business in the winter months.
Dynamic pricing is a method used by travel operators and hoteliers to maintain profitability during seasonality.
A recent article in The Guardian describes dynamic pricing as –
(…) Dynamic pricing: when the cost of goods or services ebbs and flows in response to the slightest shifts in supply and demand (…)
Your booking engine must have a dynamic pricing feature built in so that you can offer flexible rates to the travellers. This way, you can take advantage of the peak periods and the slack seasons as well.
A dynamic pricing feature will allow you to set different rates in the system depending on the month of the year, day of the week or even the time of the day. When customers visit your website, depending on the dates they choose (or even the time), the system automatically displays rates in accordance with your pricing scheme.
READ MORE: A better way to communicate tour prices
You can offer discounts to those who book early while charging a premium from those who book at the last minute. This strategy is a common one employed by airlines and can be extended to hotels as well as tour bookings. An efficient booking engine should let you add extra charges as well based on the dates and time of booking.
If your hotel booking system does not have this inbuilt feature, you run the risk of miscommunication with your prospects, to the extent that you may even lose their business. To avoid this you can mention additional charges, like for latecomers in your tour terms and conditions or the overview. This way customers are informed about extra charges. A booking engine, on the other hand, will let you set these charges and display them at the time of booking as well.
With a flexible pricing scheme set up at the backend of your tour booking engine or hotel booking system, you will be able to track data, like who’s buying. These insights can help you forecast the future demand and adjust prices accordingly.
Now that you know the facts, don’t let a slack season rob you of profits! Invest in a comprehensive booking engine like Vacation Labs. It’s designed by travel technology experts, keeping in mind the seasonality of the travel business. Call us today, to schedule a demo and see how the booking engine can assist your seasonal pricing.