Thoughts on Wilderness Lodge Vacation Package Pricing
At the local community center the swim lanes are labelled: Slow, Medium and Fast.
The medium (average speed) lane is always the most full.
People are able to convince themselves they’re either a bit below average (but don’t belong in the slow lane), or a bit above-average (but don’t belong in the fast lane).
There are many people who belong in the slow lane but don’t want to face that reality. They get passed over and over by the true medium lane swimmers but don’t take the hint because their ego can’t handle it.
Conversely, the swimmers that have the ability to be in the fast lane but are too intimidated (and choose the medium lane instead), end up having their workouts wrecked by constantly being held up by slower swimmers. They also never reach the level that would be brought on by swimming with better swimmers.
I see wilderness lodges follow this same pattern.
No owner wants to acknowledge that what they’re offering should be priced at the bottom of the spectrum – so they try pricing themselves near the average. They end up constantly being passed up for true average quality offerings and thus suffer from low occupancy.
Be honest with yourself about the experience you’re offering.
If you do belong at the low end, charge and market accordingly (because there is a market for that). Your occupancy will go up and thus your revenue. If you want to move up the hierarchy, reinvest into your offering and then ratchet up your prices.
The true medium lane swimmers suffer the most. They get overcrowded and feel like there’s nowhere for them to go.
If stays at your lodge belong being priced near the average you’re forever going to be competing with many alternatives.
The answer is to find a differentiating factor that makes it the perfect place to go for the smallest viable guest niche. And then expand from there.
Don’t sell yourself short if you belong at the upper end of the price spectrum.
I understand you may have long-term loyal guests who you feel bad about constantly hiking prices on. What you actually owe them is to not sell yourself short. To stay in business and reinvest into the place that they love coming to visit.
No doubt you’ll lose some guests and might have to improve your marketing practices. If you do, you’ll fill your empty slots with better guests who pay you what the experience is worth.
Owners can choose to under charge for their vacation packages – But just like the swimmer who should be in the fast lane – you lose the right to complain. When it comes time to sell and buyers feel the annual revenue doesn’t justify the asking price (that you based on the “potential revenue”) that was your decision.
Two final things:
If you’re going to breast stroke you don’t belong in the fast lane. Meaning you’re going to need to improve your skills.
The fast lane is always the most empty.
This riff was inspired by the greatest marketing mind in modern times: Seth Godin. His books: This is Marketing, Purple Cow, Tribes and This is Strategy will benefit any business.
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