Some questions that tour operators should ask themselves before setting up the pricing or markup for a target market:

• What market does your company want to goto and how to position in that market to establish?
• What research do I need to carry out in relation to correctness of the product, price sensitivity and risk of credits in that market?
• Do a detailed competitor study, try to be in the product range similar to them but innovate
• How big or small are your operating costs, what is your breakeven working and how to derive to a minimum pricing that can still sustain profits?

ETOS DMC24 helps tour operators and destination management companies to manage dynamic markup for different markets. It works on multimodal pricing and allows you to check your gross operating profits even at the stage of proposal making it more easy for your sales team to derive to correct margins. Pricing model includes markup and markdown pricing, rack rates and seasonal rates management, last minute and discount pricing management and defined package pricing.

With our tour operator software you can identify all your fixed and variable costs ascco. Identify all of the costs associated with running your business which includes the time spent developing and promoting a holiday or experience.

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.

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.

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.