Pricing Strategy For Luxury Tourism Operation

Setting pricing for Luxury tourism operation is a strong amalgamation of financial analysis and marketing strategy. Can there be any formula for developing pricing for luxury tourism businesses?

The answer is - Not really. Luxury tourism products are rarely identical, often because of location, but also because of the clients and the components that constitute the experience you provide to the traveler.  This can be extremely diverse and pricing strategies should evolve as a tourism business develops their brand and market share. The usual star ratings for accommodation just gives a general guide for travelers on what the pricing could be – they are not the only set criteria.

Pricing Strategy

So the purpose of this write up is not about helping you with a readymade formula to devise the pricing, but more of an outline of the things that should be considered, pricing strategy, components of your different pricing types including the ways to stimulate demand.

Points To Consider While Setting The Pricing Strategy

  • Is your business unique?  The more unique your tourism product is, the more flexibility you will eventually have to decide your pricing.
  • Do you also provide value added services inclusive of the experience?
  • Which markets do you want to attract?
  • What are your operating costs margins?
  • Invariability, for the most luxury tourism businesses setting the prices will be more market based – i.e., what are the pricing strategy for your competitors with similar products and services?  Remember that, ideally being competitive is not cost driven, it’s always product driven. 

Where To Start

If you are aware of your break-even point, you are good to go, but on launch of a new luxury tourism business it may be a situation that pricing is deliberately set below than your eventual longer term pricing prospect in order to attract greater volume, with overall target of enhancing credibility and establishing your brand. 

Pricing Components

The pricing strategy could be made up of the following components:

Rack Rates

All luxury tourism businesses must have a rack rate – i.e., the  “base rate” before any discounts or concessions are applied and normally is what is passed on to wholesalers and published on brochures for the upcoming season.  Obviously for the partners offering activity and attraction teh full rate is more than likely to be charged all the time without potential discounting; In case of accommodation travel companies  – especially those in the middle of the market will be having dynamic  pricing almost daily for the month or possibly two months ahead to fill the profit gaps.

Seasonal Pricing

This is a usual practice in luxury travel business to have a mix of pricing throughout the year to envelop low, high, and shoulder seasons. This is to cater to businesses for differing levels of demand based on particular time of year.  Normally the price cycle will repeat every year and may also apply for school holiday dates and for certain local events where the dates might vary each year.

Commissions

Most of the bookings will come via third party who will charge you a commission. Many Luxury tourism operators are tempted to include the value of the commission on to the pricing itself for these providers but instead this should actually be considered in the setting of the rack rates itself– if you have variable pricing across various distribution channels it just confuses both travelers and can even jeopardize the relationships. Therefore keep it as simple as possible.

 

4 Reasons To Get A Luxury Car Rental In Miami

Miami is one of the most popular cities in the world. It’s known for it’s warm weather, nightlife, beaches and so much more. If you ever plan on going there, make sure to rent luxury cars in Miami. Here are a few reasons why you should look into getting a luxury car rental in Miami.

It’s All About Looking Good- People come to Miami to show themselves off because it is a city where you do not hide yourself. People are always trying to make a great impression when they are in Miami. This is evident when you walk down the street and see how people are dressed, at the beaches and almost anywhere else you go.

If you want to make a strong impression everywhere you go in Miami, then you need the right type of vehicle. A luxury car is the right vehicle for those who want to look good. People won’t be able to help themselves but to think you are successful because of the car you’re driving.

They Drive Great- Imagine arriving in Miami and you rent any old car you come across. The chances are you’ll be in for an alright ride, but why settle for that when you can enjoy a much smoother ride and travel in complete comfort?

When you rent a Bentley in Miami, you will notice and feel how easy it handles and how comfortable it is to be seated in it for long periods of time, and let’s not forget about the pure power you’ll feel. There’s nothing like driving a powerful super-car or luxury car down the streets of Miami.

Be Safe- When you rent an average car, you might not be as safe as you think. Let’s face it, luxury cars are far superior to regular cars in many ways, and one of those ways is regards to safety.

A luxury car will get you to your destination without a high risk of breaking down on you, and you will have peace of mind knowing the car will be equipped with a number of safety features. If safety is a priority for you, then rent a luxury car when you get to Miami.

It Is Affordable- Buying a luxury vehicle is probably not realistic, especially since the top ones easily go for six-figures. However, renting one is definitely doable for many people, regardless of their budget size. You might be surprised at how affordable it is to rent a Porsche in Miami, or even a high-end super-car like a Ferrari.

Not only is renting a luxury car affordable, it’s easy. You can even reserve the car you want when you find a company that has what you’re looking for. The entire booking process will go smoothly.

Do you want to experience the above benefits and the ones that weren’t mentioned? If so, then look into getting a luxury car rental in Miami, but do book a car in advance. Luxury cars are popular in Miami, so the sooner you rent one, the better off you’ll be.…

Mistakes To Avoid When Planning A Luxury Vacation

There is nothing like throwing caution to the wind and going on a trip. The idea of heading to another country and taking in the sights is enough to make some people squeal with joy. Planning a luxury vacation takes a bit more than the average trip, but this advice will help you prepare well.

Failing To Hire A Travel Agent

With the Internet becoming more popular by the second, it should come as no surprise that travel agents are not as sought after as they used to be. In fact, many people have forgotten about this concept altogether.

The problem with this lies in the fact that travel agents are sometimes privy to deals that are not readily available to the general public.

Even though you are willing to spend more to have a great time, this does not mean that you should dish out more than you have to.

Forgetting About Reward Miles

Many people have credit cards that offer rewards when they make purchases. The sad thing is that many of these miles go unused since consumers often forget that they exist.

This is unfortunate since this means that you forfeit the opportunity to make the trip as luxurious as ever. For example, if you were going to fly coach in order to book a more expensive hotel, using miles could have a afforded you a first class seat.

Heading To International Chain Hotels

There is something inherently wrong when you are heading abroad and you plan to stay at the same hotel chain you use when you are in the states. Since companies tend to offer the same type of experience worldwide in order to be consistent, it will not be surprising or unique in any way.

Every country has a different concept of what true luxury is. Your best bet is to find a local hotel that offers a more authentic experience. There is no use heading all the way around the world to have the same kind of trip you could have if you stayed in the US.

Booking Travel Too Late

You were probably always told that booking at the last minute is a good idea since it means you may have once in a lifetime deals thrown your way. This happens on occasion, but do not fool yourself into believing that this is typical. In most cases, waiting too long means that you may miss out on the trip that you always wanted. You can sit around and take a chance on things plummeting, but you would be better off looking for a better way to get a discount on your vacation.

Traveling abroad is an exciting experience that most should try at least once in a lifetime. If you are looking to have a luxury experience and you want to decrease the chances that you will be unsatisfied, make it a point to avoid all of the mistakes that were mentioned to you here.…

How Can Dating-Travel Be Made More Enjoyable With A Luxury Car Rental?

Do you want to experience the best road-trip? Well, then you should rely on luxury car rental. Those luxurious cars that cannot be purchased easily for higher cost can be now easily hired at quite a peanut price. You can now fulfill your desire of long-hour road-trip with the hire of luxurious cars.

How To Enjoy Your Date Thoroughly?

If you want to please the love of your life, then you should try out the scheme of luxury car rental. Great dinner and wonderful companionship are not enough for celebrating an enjoyable date rather some more additions are needed. These additions can be fulfilled effectively by luxury-car hire.

These luxurious-cars are being equipped with a great variety of amenities. These amenities can multiply your dating enjoyment to several folds. A completely excellent feel can be now easily experienced with these luxury-cars. Classic music of these cars can be treated as one of the leading sources of entertainment.

These cars can be hired at any place, and you just need to hire them from the best car-hire agency of your place so that you can receive your desirable car at reasonable terms. Enough space available in luxury-cars can enhance your relaxation level while going for a date.