Post-COVID pricing requires balancing a number of factors - some that suggest higher prices, other, lower. There's a way of dealing with the complexity.
One of the most prevalent responses to COVID-19 in the attractions world is the requirement that guests must now make advance reservations to visit on a specific date at a specific time, along with the enforcement of strict capacity constraints on attendance during each time period. These are sensible changes that have allowed many attractions to start serving their communities again while safeguarding the health of guests and staff by maintaining social distancing and minimizing contact.
In addition, an attraction’s pricing strategy can also play a key role in supporting a successful re-opening but is often over-looked or under-appreciated. Determining the right price has always been challenging, but it is particularly complex in a rapidly-changing environment like we are experiencing now. For example, the table below highlights just a few of the additional factors that must be evaluated to determine the optimal price during this unprecedented time. And the relative weight of these factors will vary by time-of-day, day-of-week and from week-to-week, further complicating the task:
So how do you pick a single optimal price point in this situation? The truth is—you can’t. The best approach is to implement a range of price points (by day and even by time-of-day) that better reflect the supply-demand balance and to re-evaluate those prices regularly as conditions change over time—in other words, dynamic pricing.
How can your organization combine dynamic pricing and COVID-19 responses like ticketing and capacity management? Here are 3 of the FAQs:
Even some attraction pricing "experts" suffer from misconceptions about dynamic pricing. Learn four of the most common myths about dynamic pricing.
Everett Rogers predicted it in 1962. Conditions needed for the spread of innovation are all coming to pass at once in 2020.