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Reply To: We have an accomodation business. We are looking at what will happen in the Christmas period. Do experts feel that price will become an issue ? And if so do you give discount or add on services ?

Hi there,
I am on the board of a tourism RTO and we are advising tourism operators to try to maintain price, but offer add-on’s or package up a deal with other operators.
If you need to offer a deal, don’t discount the upfront single price… perhaps 2 for 1 or kids go free…
It is a slippery slope and a race to the bottom if everyone take the knife to price in the first instance.
Also, there are many yield management techniques you may wish to follow – take a few discounted early-bird bookings and then build up price as your booking curve strengthens, and then offer targeted offers towards ‘last minute’ bookings nearer to Christmas if this strategy doesn’t work.
I’d be making sure you make the most of your social channels to to promote your business and secure early bookings… A lot will depend on Australia as I am a little concerned what the summer will bring as most kiwis are relatively habitual in choosing where they go.. so the trick will be enticing them to somewhere new over Christmas… also, targeting the right customers at different periods of summer… clearly family over Xmas and weeks after, but then what target groups would pick up the normal Feb/Mar/April international segment… likely boomers and retires for weekday and families / workers for weekend traffic