Impact Pricing Pricing Strategies for Your Travel Business with Neil Fitzgerald
Neil Fitzgerald is an experienced, driven, and accomplished pricing and revenue professional, with a wealth of experience while working for leading, high-profile companies. Proven in exceeding all bottom-line expectations. Experienced in cruise, hotel and vacation rental industries.
In this episode, Neil shares the crucial role of pricing in the travel industry and its impact on the bottom line success. He emphasizes that achieving pricing goals is not solely reliant on AI, highlighting the importance of collaboration and building relationships with other stakeholders in the company.
Why you have to check out today’s podcast:
- Explore effective pricing strategies for one-time opportunities in the travel industry to optimize revenue
- Learn to strike a balance between short-term gains and long-term profitability, ensuring your pricing decisions don't compromise future success
- Discover the importance of guiding customers on a journey, expediting their consideration of revenue and pricing management
"Don't assume that everyone else in your business understands what you're doing. So, take the time to listen to other people, and take the time to communicate and collaborate with the other people in your teams and the other stakeholders in your business, and take them on the journey."
- Neil Fitzgerald
Topics Covered:
01:20 - How Neil get into pricing
03:02 - How does pricing for travel differ from any other pricing?
04:51 - The challenge that comes with pricing the travel industry
07:37 - Pricing strategies in other industries that can work best in the travel industry
09:53 - Neil's thoughts on Mark's suggested limited time pricing offer for a cruise ship basing it from Chipotle's food pricing
11:59 - Discussion about one pricing strategy that Disney implemented and had to be discontinued
13:42 - Pricing insights from crowded airport lounges nowadays gleaned from Mark's experience
16:11 - How does he get people sold to the idea of revenue management
18:35 - Talking about AI and pricing algorithms
20:50 - Neil's best pricing advice
Key Takeaways:
"It is interesting in travel, when you do try and do those one-off opportunities to get a higher price point, you've got to be careful that it really, really is exclusive and it isn't so broad because then you can create too much demand." - Neil Fitzgerald
"It's an interesting business case for pricing managers about how Disney built out this fantastic product for the Star Wars hotel, charged thousands of dollars a night, and then has had to close it in a very short time period because they couldn't get the revenues that they were expecting." - Neil Fitzgerald
"I always think when it comes to pricing, even when you're more on the revenue management side and you are looking at your supply and demand patterns, you do have to have an awareness of the overall cost basis as well, because it can be quite easy if you're not careful to overprice." - Neil Fitzgerald
"It's going to be an interesting case about how airlines effectively raise, find ways of charging guests more so that they're reducing the demand without upsetting the most low guests." - Neil Fitzgerald
"We can't produce demand out of thin air and we can't produce higher margins out of thin air. We have to take people on the journey." - Neil Fitzgerald
People/Resources Mentioned:
- Chipotle: https://www.chipotle.com/home
- Virgin Voyages: https://www.virginvoyages.com
- Green Bay Packers: https://www.packers.com
Connect with Neil Fitzgerald:
- LinkedIn: https://www.linkedin.com/in/neil-fitzgerald-55122591/
- Email: neilf@expeditions.com
Connect with Mark Stiving:
- LinkedIn: https://www.linkedin.com/in/stiving/
- Email: mark@impactpricing.com