Why you need an international pricing structure

You’re probably thinking to yourselves, why do I need to have a different pricing structure? One room shouldn’t need to be priced differently.

Well, you would think so, but international and domestic travellers are different.

In this blog we will explain why it is beneficial and necessary to implement an international pricing structure for clients, such as those from TravelEssence, who are coming to visit you from the other side of the world.

International travellers explained

International travellers are not bound to travelling just at the weekends, they can arrive any night of the week during a particular season. International travellers are usually in the country for a few weeks and these travellers know they will have to pay the tourist rates.

There is far more marketing and manpower involved to get that client from Europe to the sunny beaches of Australia, or hiking in the forest in New Zealand, and as there are other pieces and people in the chain, it is better to keep your rates simple.

Domestic travellers explained

On the other hand, domestic travellers are, typically, looking for that long weekend break or a place to go during the school holidays. The domestic traveller also wouldn’t pay the same price as the international traveller because as a ‘local’ they are not as inclined to pay the same.

The domestic traveller has a different investment in the destination, as opposed to the international traveller. The domestic traveller also has different wants when in Australia or New Zealand than the local Aussie or kiwi.

Overall the main differences are price, demand and seasonality.

Price

The price needs to be simple, because the international traveller needs to contend with prices for flights, multiple other accommodation and activities.

Demand

There are different lead times because the international traveller is planning 9-12 months in advance.

Seasonality

Those going on their once in a lifetime holiday are likely to want to travel in the right season to see and do everything they want.

How to price yourself right

We can guide you to create the optimal pricing structure.