Tour Operator Solutions: Dynamic Pricing with Hotelbeds

When pricing packages as a tour operator, you need to factor in fluctuating accommodation rates, demand, airline fares, taxes, currency shifts, and more.

A fixed pricing model doesn’t account for fluctuations, which means your prices can quickly become misaligned with real market conditions. As a result, you risk either eroding your margins or losing competitiveness.

Dynamic pricing helps you adopt a smarter strategy and adjust your rates based on demand, availability, and similar factors.

Why dynamic pricing is now essential

Dynamic pricing means your rates are adjusted based on real-time demand, availability, seasonality, and market conditions.

Here’s an example: let’s say you’re organising a culinary tour in Tuscany. With dynamic pricing in place, your tour will be priced lower off-season and higher when there are food festivals in the region. This allows you to:

Protect margins: You’re already aware of the challenges that come with the fluctuating costs in the industry, such as flight fares, hotel rates, and demand affecting your profitability. Dynamic pricing helps you factor in these variables in your pricing and maximise your revenue.
 

Respond to market changes: If an airline launches a new route to a destination you operate in and increases demand for your tour, dynamic pricing can automatically adjust your rates to reflect the market. Overall, you’ll be better prepared for factors outside your control, including weather conditions, competitor promotions, and local events.

Offer competitive pricing: Many airlines and hotels already use dynamic pricing to adjust their prices in real-time, based on demand. Scaling beyond static pricing means you’re more aligned with their rates and are charging according to demand.

Practical tips for implementing dynamic pricing

You don’t need to change all your strategy and systems overnight to get started with dynamic pricing. Instead, follow a structured approach, so the process is manageable. 

Here are some tips:

Understand the logic behind dynamic pricing

Start by identifying the products, tours, and destinations most exposed to volatility. For example, according to the European Commission, Croatia and Greece experience high tourism seasonality, meaning visitor numbers vary significantly throughout the year. 

Tour operators using dynamic pricing likely increase prices during peak travel periods and adjust them downward during slower seasons. Lower off-season pricing helps the destination’s economy during slower periods, generates revenue for the operators, and encourages sustainable travel, especially when overtourism remains a problem.

Other volatility signs could include:

• Event or festival travel, where demand increases around specific dates.
• Time or weather-dependent travel, such as seasonal wildlife migrations or Northern Lights.
• Tours which are dependent on airline connectivity.
• Destinations sensitive to geopolitical developments, economic changes, or travel advisories.
• Tours with short booking windows.
• Last-minute availability.

Use data insights to define pricing thresholds and triggers

Data can help you define clear pricing patterns for when to increase or decrease rates. For example, if a tour is underperforming and the departure date is approaching, you may choose to activate promotions to encourage some last-minute bookings. Look out for data related to:

• Occupancy levels.
• Booking pace.
• Lead times.
• Seasonal demand patterns.
• Cancellation trends.

• Align pricing strategies across teams.

   

Make sure all teams are aware of the pricing strategy and its core rules. For example, you may set rules for:

• Minimum price (the lowest level a product can be sold for without harming profitability).
• Maximum price (the upper limit, ensuring pricing remains competitive and aligned with market expectations).

Monitor performance regularly

Review performance regularly to assess what’s working and what isn’t. This way, you can refine pricing rules if needed, or adjust them based on data.

Reduce complexity and risk with trusted travel partners

Relying on spreadsheets or manual processes may work early on, but as your product range and distribution channels grow, it becomes more time-consuming. Use revenue management software, booking platforms, and data-driven systems to streamline your operations.

How Hotelbeds supports smarter pricing decisions

With its global travel distribution solutions, Hotelbeds can support your pricing strategy, including dynamic pricing.

Global portfolio with real-time rates

Tour operators working with Hotelbeds have access to a broad portfolio of 300,000+ hotels, 23,000+ experiences, and 150+ car rental companies around the world. All the rates you’ll see on the platform are updated in real-time, which makes it easier to create packages with competitive prices.

Data-driven insights

Hotelbeds partners have the potential to grow their annual booking value by up to 10x, with the help of our destination experts. Our partners have access to the following data, which is essential for dynamic pricing and smart operations:

• Competitor analysis.
• Destination and product performance.
• Personalised sales recommendations.
• Corridor optimisation.
• Products with optimal coverage.

A Powerful API suite

With our API solutions, you can streamline booking management and minimise manual processes, including updating prices on your website, CRM, and the various OTAs you work with. In other words, your prices will be updated in real-time across all sales channels.

Expert teams

Hotelbeds partners get a dedicated account manager and access to a team of destination experts. They’ll identify growth opportunities, share insights tailored to your business, and inform you about upcoming promotions you may benefit from.

A closer look at Hotelbeds’ tour operator solutions

Our B2B solutions for tour operators support your backend while you focus on creating unforgettable travel experiences for your clients. Working with over 60,000 travel distributors, our platform powers:

• A global portfolio in 170+ countries.
• Advanced technologies to support over 7 billion searches daily.
• An API suite with a response accuracy of at least 91%.
• Strong relationships with travel partners, including our Preferred Partner hotels, offering exclusive rates.
• Destination experts ready to help at all times.
• Personalised data and recommendations through Insights, our dedicated travel data tool.

Sign up to become our B2B travel partner

Our global tour operators access our full inventory, our data intelligence via Insights, and smart pricing strategies. We’re able to offer the best prices thanks to our destination experts, who negotiate exclusive contracts with various travel partners.

Sign up here to join us and grow your business with tailored, data-driven tour operator services.