The pandemic has forced many small tourism business owners and managers to rethink how they package and sell their products and services, including pricing. The reduction in international tourists caused by the travel restrictions imposed due to the pandemic brought with it a much greater reliance on the domestic market, compelling businesses to adapt their products and pricing structures to attract these customers. The pandemic also brought with it a desire amongst tourists for smaller group sizes, often increasing the cost per person, a trend that is likely to persist. In addition, the implications of new safety measures and regulations, for example reduced numbers and timed entry, has caused extra costs and pushed prices up. This has all come at a time when tourists are more conscious than ever of the cost of their holiday, with a spiralling cost of living and recessionary environment potentially causing visitors to think twice about making an extra booking.
This has all made pricing considerations for small-business managers more complex and important, which is why we created a guide on pricing as part of our ‘Are You Ready for Recovery?’ toolkit. Here are a few top tips on pricing shared with us by Nicole Know at Trekksoft for that guide.
- Review your cancellation policies. If you do not already have one, it is time to write one. flexible refund policies have become commonplace during the pandemic. Consider whether a flexible, moderate or rigid cancellation policy is right for your business.
- Review the cancellation policies you have with third parties to ensure that it is consistent across your sales channels, including on your own website.
- Protect your profits and the long-term endurance of your business. for example, rather than issue a full refund, you could issue a voucher with an extended validity or reschedule the booking/tour to a different date.
- Adopt strategies to maintain your prices, instead of lowering them.
- Focus on existing customers who have not cancelled their trips. Consider ways to increase the value of the experience you offer to them.
- Create strategic partnerships with other local businesses to develop new products and differentiate your offer to make it more competitive.
For more guidance and tips on pricing, download our free ‘Are You Ready for Recovery?’ guidebook.
