Matt Lederman
Published: Jul 14, 2021 | Updated: Mar 17, 2023
For many years the hospitality industry has boosted their bottom line by increasing prices during periods of large demand and decreasing prices to fill open capacity. This discipline, commonly referred to as Dynamic Pricing, has been honed and perfected by large hotels and airlines to drive incremental revenue and boost profits.
Inspired by the best practices of hospitality Revenue Management, RocketRez is thrilled to announce the release of Demand-Based Pricing in the RocketRez Web Engine.
Operators can now set custom rules within their RocketRez dashboard to modify pricing and capture additional revenue.
Key Benefits
- Fully controlled by operator
- Live pricing updates to all compatible channels
- Simplified to fit Tour and Attraction customer needs
- Easy to use and train staff
- Runs within RocketRez with no third party
Tours and Attractions have meaningful differences in customer behavior when compared to a hotel or airline. Demand swings due to seasonality are much more pronounced, and the nature of activity booking tends to be last-minute. Activity operators also run the risk of damaging their reputation with loyal repeat customers should a complex pricing algorithm take over and overreach on price increases.
Demand-Based pricing allows operators to maintain complete control of their pricing. Since any price change rules must be entered by a human, operators can use the demand data they have collected combined with their intuition and experience from years in the field. This ensures they're executing in a way that makes sense to their operation and their customers.
Demand-Based Pricing gives operators all the functionality they need while eliminating complexity that they don't need.
Currently, RocketRez supports two strategies for pricing rule implementation:
Capacity based batches
Example:
- The first 30 tickets sold on a tour are $30.
- The next 30 tickets are $40.
- The rest are $50.
Relative to start time
Example:
- 30 days before the tour, the price is $30.
- 10 days before the tour, the price is $40.
- 24 hours before the tour, the price is $50.
- 1 hour before the tour, the price is $20.
Article by
Matt Lederman
Matt Lederman is the Product Marketing Manager at RocketRez, where he leads go-to-market strategy, messaging, and product positioning. With a background in demand generation, lifecycle marketing, and content strategy, Matt has helped scale RocketRez’s growth through thoughtful storytelling, deep market insights, and customer-focused campaigns.
