Rezgo Brings Airline Style Dynamic Pricing Control to Tours & Activities Market
The tour and activity industry is entering the jet age. Airlines and hotels have used dynamic pricing to improve revenues and increase yields for years, now tour and activity businesses can create dynamic prices for their things to do.
Vancouver, Canada, November 5, 2014 (Newswire.com) - 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, tour and activity operators powered by Rezgo can adjust their pricing based on a variety of factors in order to fill more seats, increase profits, and even offer their 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 bad for operators because it doesn't allow operators to predict capacity or allocate resources like buses and guides. For travellers, it also means that tickets for tours and excursions are the same price regardless of demand.
With Rezgo, tour, activity, and excursion operators can now adjust their 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 to hundreds of businesses Worldwide on October 1st.
When it comes to travel, consumers are used to seeing pricing based on seasonality or demand. When you purchase tickets early, it's expected that you'll pay less than if you wait to buy your ticket.
"When it comes to travel, consumers are used to seeing pricing based on seasonality or demand. When you purchase tickets early, it's expected that you'll pay less than if you wait to buy your ticket." explains Stephen Joyce, CEO of Rezgo "Now with Rezgo, operators can incentivise their customers to book earlier in the travel sales funnel instead of waiting until the last minute. This means more predictable revenue for businesses and better pricing for consumers."
But offering a dynamic pricing engine is only part of the solution for tour operators. The way in which the feature is presented and used by operators is also critical. The enhanced rules engine presents dynamic pricing options in a very simple and straightforward manner, giving even the most non-technical of business owners the ability to create and manage sophisticated dynamic pricing rules.
"Providing technology is one thing, providing technology that is easy to use and makes a tangible difference to a business is something else completely." adds Mr. Joyce "The enhanced dynamic pricing engine means that even the smallest of tourism operators can create rules that adjust pricing dynamically. The pricing then carries through their online bookings, point of sale, and even partner bookings. No other tour operator booking system on the market can provide that level of pricing control."
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 tour, activity, and excursion operators to even out their revenues over the season and drive more direct advanced bookings. These advanced bookings will help operators allocate the required resources like buses, equipment, or staff.
Since the introduction of the dynamic pricing engine, tour operators 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.