For a cruise liner, having to fix their rates can be a tightrope walk. The right pricing can make all the difference between the filling-up optimal number of seats or losing out to a competitor.
If you’re priced lower, you could end up losing your money and your guests would take that your product is actually less worth than its actual value. On the other hand, if you’re pricing your package at too high of a cost, it’ll repel away a significant portion of your guests.
With this in mind, the cruise lines should continually re-iterate towards finding the optimal price for their offering. The prices can also vary depending on various related factors such as the types of guests, product recommendations, guest types etc.
In this article, we’ll discuss the potential ways through which cruise liners can discover the best price for their product.
Discovering and fixing the optimal price
As we have already pointed out, the right price for a cruise liner is variable and depends on multiple factors. Having to weight these different factors and discovering the right pricing quotient can be a big challenge.
If you can get the pricing quotient right, it’ll help you fill-up the berths and drive-up the margins.
In order to discover the right pricing, you may need to consider a number of primary factors around your product.
1. Current market seasonability
2. Current demands
3. The value of the bookings or total number of berths
4. Any other promotions based on location or early bird incentives
With these different factors being subject to variability, you may struggle to find this right balance. In this situation, you need a more effective way to provide the best variable rate for your competitor. This would help you provide a better pricing for your product offerings.
With each customer inquiry being different, you also need to give out a custom quote for each package. This makes manually creating precise custom quotes into a difficult task.
Rate Card System to Manage Variable Rates
In a fluctuating market, you need a way to decide on the best variable price for your product.
This could be achieved through a rate card system.
By having a CRM-integrated card system, you can calculate the various factors that go into determining the pricing of a product. This could be then included to automatically creating the best available pricing for the product.
This allows you to automate zero-ing on the best variable price for each customer enquiry. In turn, this allows you to fill in all your accommodation spots under the best variable price.
In turn, a rate card system allows you to manage your cruise liner or any other accommodation services their best prices.
Gauging the Market Conditions
As the first step to pricing anything efficiently, you need to understand the current availability and trends of the marketplace. This could be achieved through a lead tracking system that simply tracks the number of inbound leads or enquiries.
By tracking the number of leads through OTA and travel portals, you can measure the demand. Consequently, this will be a critical factor at rating the pricings.
Managing the Total Packages
As a cruise line operator, having to achieve group bookings means that you’re able to fill-in more spots with significantly lesser amount of effort. For a variable rate system, the number of guests would be an acting factor at determining the total rates.
Based on the pre-set algorithm, you incorporate the number of guests as a factor at calculating the rates. This will help you derive the best possible rates, thereby essentially giving you a competitive advantage.
As a cruise line operator, the smart rate management can open doors to lucrative deals. At Kapture, we provide cruise management solution to help cruise liners manage their business from a unified dashboard.