How can you price tours with complex itineraries and multiple destinations?

1 Determine your cost structure

The first step to price your tours is to identify and estimate all the costs involved in delivering your services. This includes fixed costs, such as salaries, rent, insurance, and marketing, and variable costs, such as fuel, tickets, guides, and tips. You can use a spreadsheet or a software program to list and categorize your costs, and assign them to each tour component. For example, you can allocate a percentage of your fixed costs to each destination, based on the duration or popularity of the tour. You can also use historical data or industry benchmarks to estimate your variable costs per traveler.

2 Set your pricing strategy

The next step is to decide how much you want to charge for your tours, based on your business goals, target market, and competitive advantage. There are different pricing strategies you can use, such as cost-plus, value-based, or dynamic pricing. Cost-plus pricing means adding a markup to your total costs, usually expressed as a percentage or a fixed amount. Value-based pricing means setting your prices according to the perceived value and benefits of your tours to your customers. Dynamic pricing means adjusting your prices according to the demand and supply of your tours, using data and algorithms. You can choose one or combine several pricing strategies, depending on your tour type and market segment.

3 Use a pricing tool

The final step is to use a pricing tool to help you calculate and optimize your tour prices, taking into account your cost structure and pricing strategy. A pricing tool is a software application that automates and simplifies the pricing process, by integrating your costs, prices, and bookings in one platform. A pricing tool can also help you analyze your profitability, monitor your competitors, and optimize your prices according to the market conditions and customer behavior. Some examples of pricing tools for tours are Tourwriter, TourCMS, and Rezdy.

4 Test and evaluate your prices

Once you have set your tour prices, you need to test and evaluate them regularly, to ensure that they are effective and profitable. You can use different methods to test and evaluate your prices, such as market research, customer feedback, sales reports, and performance indicators. Market research means gathering and analyzing information about your customers, competitors, and industry trends, to identify the optimal price range and value proposition for your tours. Customer feedback means asking and listening to your customers' opinions and satisfaction levels, to understand how they perceive and respond to your prices. Sales reports mean tracking and comparing your sales volume, revenue, and profit margins, to measure the impact of your prices on your business performance. Performance indicators mean setting and monitoring your pricing goals and objectives, such as occupancy rate, average revenue per traveler, or conversion rate, to evaluate the effectiveness of your pricing strategy.

5 Adjust and optimize your prices

Based on the results of your testing and evaluation, you may need to adjust and optimize your prices, to improve your competitiveness and profitability. You can use different techniques to adjust and optimize your prices, such as bundling, discounting, or surcharging. Bundling means combining several tour components or products into one package, and offering a lower price than the sum of the individual prices. Discounting means reducing your prices temporarily or selectively, to attract more customers or stimulate demand. Surcharging means adding an extra fee or charge to your prices, to cover unexpected or additional costs, such as currency fluctuations, taxes, or peak season rates.

6 Communicate and promote your prices

The last tip to price your tours with complex itineraries and multiple destinations is to communicate and promote your prices effectively, to attract and retain your customers. You can use different channels and methods to communicate and promote your prices, such as your website, social media, email, brochure, or word-of-mouth. You should highlight the value and benefits of your tours, and explain how your prices reflect the quality and uniqueness of your services. You should also use clear and consistent pricing information, and avoid hidden or misleading fees or charges. You should also create and communicate a clear and fair cancellation and refund policy, to build trust and loyalty with your customers.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?