Professional Documents
Culture Documents
TPC2 Lesson Proper For Week 7
TPC2 Lesson Proper For Week 7
Tour brochures.
Describes a destination, hotel, service or tour with the intention of promotion. You can use them as
mailings to prospective customers, include them in brochure racks and have them available at your office or
business location. As travelers often collect brochures and other literature when planning a holiday,
brochures can be very effective marketing tools. You must, however, be sure to include all the necessary
information and plan your inclusions carefully.
A Good Cover.
This is the first thing that people will see and it should immediately answer three questions:
Geographic Information.
List the address, contact details and a map to help people find you. If you are located in a place that is
difficult to get to, include comprehensive directions. Include your website address if you have one.
Pictures.
Travel is a very visual product category. People want to see where they are going and only high quality
professional images can achieve this. Include several photos that best showcases your product. Be careful,
however, not to mislead people by using old phots or pictures that misrepresent your offerings.
Pricing Strategies
Price setting for tour operators requires a strong mix of marketing strategy and financial analysis. The
people, accommodation and components that make up the experience/holiday you provide can be
incredibly diverse and pricing strategies often evolve as a tour operator develops its brand and market
share.
What To Consider When Setting Your Pricing Strategy
How unique is your business? The more unique your product the more flexibility you will have to decide
your pricing.
What value added services do you provide that enhance the perceived value of your offering? Some
examples include free parking, a purchase incentive such as champagne on arrival or discounted tickets to
a particular attraction or eatery.
What market do you want to attract and what position in that market do you want to establish? Research
your target market in relation to product needs, price sensitivity, length of stay etc.
What are your operating costs? Calculate your break-even point and therefore what your minimum pricing
should be for profit goals (estimates of revenue, occupancy rates etc will be needed).
What do competitors with similar products and services charge within your market? Competitors’ prices do
influence the maximum rate at which your product can be sold but you must be aware of your own
financial position (debt levels, cash flow etc) before you can decide whether you should compete on price.
When launching it may be necessary to set prices lower than your longer term pricing expectations in order
to attract volume, credibility and establish your brand. As you become more established with regular
bookings you can consider increasing prices.What is your overall marketing strategy? If you cater for the
luxury traveler pricing may not fluctuate much at all but if you are targeting the budget traveler you will
rely on volume of bookings.
Mark Up Pricing Strategy. Set the prices of your holidays, tours and activities to ensure that you make a
profit on each sale. Identify all of the costs associated with running your business which includes the time
spent developing and promoting a holiday or experience.