Myths of Dynamic Pricing
Myth
I already offer daily specials or tickets via discount outlets, so dynamic pricing wouldn’t improve my profitability.
Response
Daily specials can be effective, but they often target small, specific subsets of your market, such as young children or seniors. Dynamic pricing is designed to offer tickets at current market rates to all market segments, yielding a larger market potential.
Myth
My Attraction is too small to benefit from dynamic pricing.
Response
Any park can benefit from dynamic pricing! From the largest tourist attraction to the smallest regional park, every asset experiences intra-week variability and is affected by weather. Many attractions already employ tiered pricing strategies for weekdays and weekends. However, these strategies insufficiently capture the complexities of market demand across the operating week.
Myth
The demographics of my market aren’t conducive to selling many tickets through ecommerce.
Response
Regardless of the demographic, every customer is looking for value. Dynamic pricing provides value to consumers while increasing revenue for the attraction. In addition, we provide an easy-to-use, interactive calendar that simplifies the purchase and learning process.
Myth
Lowering prices will decrease my revenue.
Response
Lowering prices can open your attraction to new market segments that are unwilling or unable to purchase tickets at your current price. Lower prices also increase attendance, generating additional in-park spending. At the same time, a dynamic pricing model allows managers to change prices in a specified range, providing tremendous flexibility for reaching new customers and learning about your market.
Myth
Implementing dynamic pricing will reduce my percap.
Response
While higher ticket prices generate higher percaps, percap alone is an inadequate measure of performance. Dynamic pricing is designed to learn how the market thinks about prices to increase profits, not percaps.
Myth
Dynamic pricing services are too expensive.
Response
Leverage Analytics is revolutionizing how dynamic pricing services are provided in the attractions industry. Our pricing sets Leverage Analytics apart from its competitors and keeps our services affordable.
