In the last article we explained how to best manage credit card transaction costs. Interestingly, we received a lot of feedback and questions about the suggestion to rethink the way tourism businesses approach pricing their products.
You should not compete on price alone. Pricing is not simply about setting your rates. Think of it as shaping demand, communicating value, optimizing revenue, and staying assertively competitive in a travel market driven by flexibility and choice.
Accommodation providers and activity/experience suppliers should examine and draw from pricing strategies used in other industries. The best examples are irregular pricing and demand-based pricing used in retail. These are simple, practical tools that are value-focused and unlock higher yields while creating better guest experiences.
Irregular pricing refers to intentionally varying prices based on the day of the week, the season, or — for activities — even the time of day. Unlike traditional peak/off-peak models, irregular pricing can be more granular: charging premium rates for Friday or Saturday nights, offering midweek discounts, pricing tour start times that have lower demand, or setting promotional pricing for long weekends and school breaks.
This approach works particularly well for experiences and short-stay accommodations, allowing suppliers to stimulate demand during slow periods, encourage advance bookings with early-bird rates, and provide locals or midweek visitors with added incentives.
An attraction offering discounted midweek rates, or a walking tour that is cheaper on Monday mornings, are examples of irregular pricing used to smooth demand and increase overall occupancy or ticket sales.
Demand-based pricing — also called dynamic pricing — is a strategy where prices fluctuate in response to real-time factors such as booking patterns, competitor pricing, seasonality, and special events.
Think of a wildlife cruise raising prices in line with a local festival weekend, or a glamping provider adjusting rates based on lead time and remaining availability. Traditionally used by airlines and large hotels, demand-based pricing is now accessible to smaller operators thanks to booking systems and distribution platforms like Tourism Exchange USA (TXUSA).
The simple tactic of setting odd and specific price points implies that you have carefully squeezed your rates as low as they can go. Try it as a test. It is one way to recover small costs — like card transaction fees — and stay competitive across OTAs and direct channels. For example, rather than setting your rates in round numbers ($XX0 or $X50), try using $XX3 or $X57.50. This signals that you are trying to price everything to its minimum.
You do not need complex software or data science expertise.
Destination marketing organizations (DMOs) and local visitor centers also have a role to play in their marketing activity. Coordinated campaigns like “Stay Longer, Save More” or “Midweek Adventures” — and similar value-oriented offers — can unify suppliers in a destination around a consistent pricing theme, helping drive broader regional impact and showcasing local value.
In need of a booking system? We offer TXLoad to tourism suppliers complimentary; no set up or subscription costs. For more information about how Tourism Exchange USA can help you implement smarter distribution and pricing strategies, reach out to us at sales@tourismexchangeusa.com.