Dynamic pricing is not a new concept and the airlines and hotels industries have been using it for many years. Find out how watersport and boat tour operators can utilize this pricing strategy in this episode. Stop leaving money on the table and start making profits using existing tours and rentals.
Hey everyone and welcome to episode 16 of the Weekly Wave podcast presented by WaveRez. I’m your host Greg Fisher, and today we’ll be talking about why watersport operators should adopt dynamic pricing for their business.
This episode is released in conjunction with WaveRez’s announcement of its new dynamic pricing feature, which allows operators to automatically increase their price as demand increases for their tours and rentals. You can get a free demo today at WaveRez.com to see how this feature can greatly maximize your profits.
So the question that most operators ask themselves is whether dynamic pricing is right for their business. Dynamic pricing is not a new concept, and many operators are already doing this to some degree. By charging more for different times of the day or week, or having peak and non-peak pricing is an example of dynamic pricing. It’s also common to see airlines and hotels use this same model where only some rooms or tickets are available at certain prices, and they increase in line with demand. But why is it so important for watersport operators to implement automated dynamic pricing? If it’s not already obvious, automated dynamic pricing allows you to maximize profits on your equipment without the need of manual intervention. Most operators are working 12 plus hours each day during peak season, and although they might see an opportunity to increase prices, it’s very difficult to make changes without assistance. Don’t sweat it though, every operator has a different situation, and on today’s show we’ll discuss why you should be using some form of dynamic pricing in your business to maximize your profits.
As mentioned previously, the easiest form of dynamic pricing is adjusting your prices for busier times of the day and week. It is very common for rental and tour operators to be slower early in the morning and busier later in the day. Look through booking data and see if there is an opportunity to provide more value earlier in the morning to fill empty seats, and if there is, make the necessary changes in the price to boost sales. Early morning rentals and tours are much more likely to book online since business traffic doesn’t pick up until after 10:00 a.m., so having an attractive morning price will entice the online shopper. There are also times of the day that are more popular than others, such as sunset trips. It’s not uncommon for boat tour operators to sell out for their sunset trips before any other trip of the day. This is a great opportunity to charge more as demand dictates.
Since many operators run seasonal businesses, making the most money in peak season is paramount. In any moment, equipment can go down with serious repairs, or a bad storm can take away critical days of a season, which leaves operators trying to squeeze more out of whatever equipment or days they have left. Increasing prices on a regular basis might scare customers, but there are a few things operators can do to ease the pain felt by customers. The first thing to do is to remove all static pricing. Operators that list pricing on their website cannot guarantee those prices if they are changing on a regular basis. Instead, it might be best to add “starting from” price, and promote a “book early” call to action. Staff will need to be aware of this when quoting prices as well. The entire company will have to adopt this concept for it to be successful.
Bottom line, if you want to make more money on your rentals and tours, implement some form of dynamic pricing in your operation. Whether it be manual or automatic, you’ll improve your bottom line and capitalize on high demand periods.
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