Beyond Ticket Pricing
Most P&RM leaders have already recognized the need to move beyond using price to optimize the value captured from sales. They are looking to maximize the value delivered to individual customers based on an enhanced understanding of their needs. These companies are testing individualized product design, ancillaries, and bundles as well as post-booking activities. Their goal is to recognize revenue potential throughout the booked voyage and ultimately to shift from a paradigm of pricing individual purchases to maximizing customer lifetime value (CLV). While few have made significant progress toward this goal, leaders are focusing on five outcomes.
Personalization. Our research has found that brands that create personalized experiences by integrating advanced digital technologies and proprietary data are seeing revenue increases of 6% to 10%. Personalization is about delivering additional value to customers, not simply setting a unique price for…