As the largest activity software in the world, FareHarbor has billions of anonymized data points surrounding booking activities online.
Telescope applies Artificial Intelligence (AI) to this data, ultimately learning from your customers’ booking behavior over time. Once your bookings start flowing through FareHarbor, Telescope will compare time to book, conversion rates, industry trends, price and other factors to establish an optimal price point.
Can you give me an example?
ABC Activity Company charges $50 for a specific activity, receives 9,700 visitors per month, and makes $485k in revenue. A few weeks into partnering with FareHarbor, Telescope has collected enough data to compare the bookings they’ve received. Through machine learning, Telescope believes a price of $54 will maximize revenue. ABC Activity Company changes their pricing for next season to $54, and receives 9,685 bookings for a total of $523k in revenue and an extra $38k/month.
Is this “Dynamic Pricing”?
No. Dynamic pricing does not work for Tours & Activities like it does for lodging and airfare. (Dynamic pricing is adjusting the price based on demand and time — ex. drop the price on the day of the activity to sell more spots). Foremost, the majority of bookings for tours and activities are made within 72 hours of the activity date (63%!), with almost 40% of those bookings made on the same day. Many of your customers are already in-destination while they’re deciding what activities to fill their days with. While pricing is a component of their decision, a last minute discount isn’t the motivating factor for making a purchase. Airlines and hotels, on the other hand, are the first piece of travel to be booked. Customers will price shop different options and dates before making a purchase.
Takeaway: Don’t “dynamically” price your inventory and offer same day discounts. You’ll be discounting a good portion of your bookings. Instead, use Telescope to find the appropriate price for your activity during different times of the year.
As an integrated part of our system, Telescope starts learning the moment you begin taking online bookings. After just a few weeks of partnering with FareHarbor, you can request a consultation with our Support team to get your personalized pricing report from Telescope.
Not a FareHarbor user yet? Get in touch to learn more about what we can do together.
Working with over 5,000 activity companies, we hear it again and again: changing a price point is one of the scariest things a business owner can do. What if it was the wrong move? What if business suffers? Finally, Telescope can leverage the latest technology and Artificial Intelligence to take the fear out of pricing changes.