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How to Respond to the Cost of Living Crisis | Beyonk Blog
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What exactly can organisations, small or large, do in the short term to ensure their business doesn’t suffer because of this economic crisis? Keep reading to find out…
For the past few months, we’ve all been preparing for the rising cost of living. When it comes to experience providers, most of their focus has been on looking for ways to combat the negative impact it will have on the tourism and leisure industries.
So, what exactly can organisations, small or large, do in the short term to ensure their business doesn’t suffer because of this economic crisis? Keep reading to find out…
Increase prices
Whilst this may sound counterintuitive, raising your prices has been proven to have a positive impact on businesses. The extra cost for a ticket is often overlooked by consumers unless you’ve raised your prices extraordinarily high that it becomes glaringly obvious.
Often, a raise in price can simply mean customers will be getting something a little extra during their visit than they would have previously. For example, rather than purchasing a ticket for a beginner’s surfing lesson, the rise in ticket price could mean your customers will also receive a 20 minute yoga session beforehand to ensure they’ve warmed up properly.
If done correctly, your increased ticket price will not only benefit the customer, but increase business revenue and set you apart from competitors. Even a small addition to your current activities or events will create more of an experience for your customers, therefore allowing you to command more of a price.
Reduce your costs
Research has shown that 95% of tourism and leisure businesses charge a booking fee to customers and there's been no measurable impact on conversion rate. It depends on the booking system you’re using but for Beyonk Group clients, our 4% booking fee can be passed onto your customers with the click of a button in your account.
Our clients don’t have to worry about paying booking fees for every transaction and for experiences that are above average cost, we cap our fee at £5+VAT, so neither you or your customers will be paying extraordinary fees on top of ticket price.
Improve cash flow
Easier said than done, but there are a few ways you can improve cash flow with minimal effort.
Gift vouchers
Selling gift vouchers is an easy and effective way to increase revenue for your business. Research shows that Beyonk clients earn 9% more annual revenue from gift vouchers alone. That’s a significant amount of income for very little effort.
If you are a Beyonk customer or might be considering making a change to your booking system provider in the near future, selling gift vouchers could not be easier - literally. All you have to do is turn the gift voucher toggle on in your Beyonk account and our system will automatically handle receipt and online distribution.
Membership schemes
Membership schemes are the ideal way to turn customers into regular visitors, particularly if your membership provides them with benefits that are otherwise not available. For example, discounts on visits or access to special members-only events. This helps you to build a more loyal community and encourages businesses to think more creatively about how to ensure customers are getting what they pay for.
Add-ons
It may surprise you to know that you could increase your annual revenue by 10% simply by selling add-ons during the checkout journey. We’ve all seen it before, you hit ‘Continue to checkout’ and are suddenly recommended extra items you can’t help but add to your basket.
You can create a similar journey utilising your online booking system. Whether you’re selling extra equipment for your activities or company branded merchandise, including add-ons is a highly effective way to increase revenue.
Use an online booking system
Having an online booking system allows you to do much more than just automate the booking journey for customers. It can also allow you to see insights on your experience and predict when you’re likely to see a demand for tickets. This not only helps you see your most profitable days, weeks and months but allows you to better prepare for such demand by ensuring you have the right number of staff available onsite. For Beyonk clients, this is easily done with our staff scheduling and capacity management tool.
Looking for an online booking solution that will allow you to set your business up for success during these challenging times? Book a free online demonstration with one of our experts to see how Beyonk Group can support you.
