A dynamic pricing strategy has the potential to radically transform nearly every ticketed attraction and resorts business that is looking to increase revenue and guest satisfaction.
This particular pricing model is a revenue management tool used by many types of leisure and tourism companies that continuously adjusts prices for admission based on demand, season, day, time of entry, and – most importantly – when customers buy. When implemented correctly, it improves online sales efficiency and boosts revenue while building consumer confidence and trust.
Any ticketed attraction that sells admission for a particular day or specific time slots can benefit from dynamic pricing. Just some examples of the businesses that benefit from dynamic pricing include theme parks, water parks, ski resorts, museums, zoos, golf courses, ziplines, go-karts, and any other type of ticketed attraction businesses that offer indoor or outdoor activities.
Yes, it’s true that these businesses are unique and distinct in many ways including location (from mountain tops to the deep sea), price point (from a couple of dollars or euros to hundreds), visitor numbers (from a few coveted spots per day to thousands), and more. Despite their many differences, each of these ticketing businesses can achieve greater success using dynamic pricing.
Among the multiple benefits, dynamic pricing…
- Maximizes revenue growth
- Drives advanced purchase commitment
- Improves online sales efficiency
- Increases repeat visits
- Boosts customer confidence
- Streamlines operational planning
Below, we look at how three distinct ticketing businesses that are selling different kinds of experiences in different countries all found success with Catalate:
Chicopee Ski & Summer Resort, Ontario, Canada
Chicopee Ski & Summer Resort sold tubing tickets solely at the window based on a static pricing strategy. Their early bird special increased morning sales so much that it strained operations and affected guests’ experience. Ticket prices remained static throughout the rest of the day which resulted in empty afternoons and idle staff.
Chicopee implemented Catalate’s Cloud Store e-commerce platform as well as its PaaS (pricing as a service). By pricing time slots according to demand, ticket sales became more evenly distributed throughout the day which maximized revenue, smoothed visitation trends, streamlined staffing, and improved the guest experience.
Average yield also increased: The average price of an adult tubing ticket is now 29% higher than before working with Catalate.
“There is no turning back for us,” says Mandy Dittmann, Chicopee’s Facility Manager. “I kind of regret that we didn’t work with Catalate sooner. It has 100% helped our business and customers are much happier. This was definitely one positive thing that came out of COVID.”
Gulf Islands Waterpark, Gulfport, Mississippi
Gulf Islands’ sales were significantly impacted through the 2020 season due to reduced capacity and social distancing regulations, which prompted the park’s management to set the ambitious goal of making 2021 its best year for online ticketing sales.
Gulf Islands’ overall business grew as a result of increased online sales powered by Catalate in 2021. Online sales of all products (excluding season passes) grew 38% over 2020 and 172% over 2019. Online tickets represented 55% of total admission ticket sales in 2021 — a substantial increase from the 25% of total admission ticket sales that they represented in Gulf Islands’ first year of partnership with Catalate.
Throughout the park’s four-year relationship with Catalate, online ticket sales increased 3.5x – in part thanks to the online buying experience of Catalate’s Cloud Store.
“What Catalate’s Cloud Store gets right is it takes the customer from the decision to purchase straight to buy now. It doesn’t put barriers in the way,” says Gulf Islands General Manager Mark Moore. “My advice to other operators considering changes to their online strategy is not to overlook the value of a properly designed e-commerce system.”
By integrating the e-commerce experience of Cloud Store, Gulf Islands increased online cabana sales to $125K which represented 50% of total cabana sales for the season and $30K more than the prior season.
Arosa Lenzerheide, Graubünden, Switzerland
Arosa Lenzerheide initially partnered with Catalate to grow its online revenue starting in 2017 (which it did beyond expectations); however, the large Swiss ski resort discovered the real power of an experienced pricing team as well as real-time data during the 2020/2021 season.
During one of the ski industry’s toughest seasons, Catalate led Arosa through a strategic change in pricing strategy as well as supplied the real-time reports and data needed to optimize operational predictability and staffing.
Despite reduced capacity and social distancing requirements, Arosa hit its highest ever revenue with more than 73% of all tickets sold online during the 20/21 season. The resort actually saw online revenue increase 50% during the 20/21 season compared to the year before.
“Catalate’s system and team enabled us to make adjustments quickly as the situation evolved rapidly so we could reach our targets for the average price by skier day,” explains Christian Wyrsch, Head of Cash Office and Sales, Arosa Lenzerheide.
With Catalate, Arosa was able to streamline operations and maximize revenue in arguably one of the most challenging seasons in the history of skiing.
Catalate is a global pricing and e-commerce company empowering ski resorts, parks, and attractions to increase online revenue. As the only purpose-built ticketing platform for the industry, Catalate has developed successful strategies for hundreds of Partners across $1 billion in online sales. Get in touch today.