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Be Prepared: The Rising Cost of Living Doesn't Have to Be a Crisis | Beyonk Blog
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To help combat the negative impact from this cost of living crisis, we’re encouraging experience providers to take a look at their current operations and make some necessary adjustments.
With the lowest consumer confidence since records began and surging inflation rates, many economists expect a recession to come our way. Industry reports already show a pull back in consumer spending on food and retail products, which is expected to have a greater impact on discretionary spending. The Leisure and Tourism industry will likely suffer as a result of households making cutbacks on their expenses as a result of increasing cost pressures on food and energy.
To help combat the negative impact from this cost of living crisis, we’re encouraging experience providers to take a look at their current operations and make some necessary adjustments to encourage bookings during this trying time. Don’t worry though, where there is change, there is opportunity, and the tips below will help to make sure you’re positioned to maximise success.
Focus on the local market
We’ve all seen how petrol prices have shot up in recent months and have caused many people across the country to look for alternative ways of travelling, or staying close to home to minimise fuel waste.
This is why refocusing your marketing efforts towards the local market, who are within a shorter driving radius, could be a game changer.
Nobody wants to go back to a full-on lockdown, so while travelling may be reduced to a minimum, people are still looking for experiences they can enjoy out of the house. Often, we don’t know what’s right on our doorstep, therefore changing your marketing campaigns towards people in your local area could make a huge difference. Think partnerships with local establishments, affiliate codes, flyers and local community groups and Facebook groups as a great way to further engage the local market.
Focus on price sensitivity
You may need to consider reassessing your pricing model. Discounts will of course always work well, be they last minute or group, and can be targeted at your local market to reinforce the point above.
Further to this though, you may also want to look at your current pricing, particularly those that are over £50 a ticket. Depending on the software you use, booking fees can become expensive for your customers when purchasing high-priced tickets. This might be the time to see where you can make some reductions or changes so your customers have a more cost-effective trip, or utilise ‘decoy pricing’ to change customer’s perception of the value proposition of your tickets (more details on the guide below).
Another proven strategy is the practice of charm pricing. Instead of promoting an event or activity as £10 a ticket, change it to £9.99 or £9.95. Whilst logically we know the price difference is mere pennies, to consumers this has proven to be an effective pricing strategy and have often encouraged users to make a purchase.
For more pricing options, check out our guide below…
Reassess your product offering
It can be a big commitment to invest in multi-day experiences, particularly for families who have children or pets. Or it could simply come down to a lack of funds for hotels and travel expenses that makes short day trips more desirable to consumers.
Alongside tweaking your product offering to be more cost-conscious, consider the art of storytelling to understand how you can better connect with your audience and promote your business in the right way. As businesses start to compete harder for a shrinking pot of leisure spending, it’s important to engage emotionally with your prospective customers, and in the process potentially broadening your target market too.
Work with local agents and marketplaces
Look to expand your audience reach by partnering with like minded tourism businesses. If you’re a Beyonk customer, you’ll have access to share all your tours and activities across local Destination Marketing Organisations (DMOs) who share your tickets to millions of website visitors.
Ensure you’re set up to maximise your revenue
Utilise your booking system to its fullest potential by including add-ons, gift vouchers and any promotional discounts to help maximise your revenue opportunities. Your ticketing software is one of the best tools at your disposal, so make sure your system has the features you need to be a successful business.
Want some expert tips on changing your business's pricing? Read our guide on Pricing Strategy to learn more…
