Value-Driven Promotions and Pricing Strategies for Tourism During Economic Challenges

Value-driven promotions and pricing strategies for tourism during economic challenges focus on enhancing perceived value while maintaining profitability and brand integrity. Key approaches include creating special offers, bundling services, and using strategic pricing tools that appeal to cost-conscious travellers without eroding long-term pricing power.

During economic slowdowns, travellers prioritise price and value more heavily, often opting for off-season travel, affordable accommodations, and self-catering options. To attract these travellers, tourism businesses can:

• Develop special packages and promotions such as including breakfast or food and beverage offers, or providing extra nights for longer stays to increase perceived value without directly discounting rates.
• Use opaque rate channels carefully to sell excess inventory at lower prices without damaging brand image or price integrity.
• Maintain rate integrity by avoiding drastic price cuts that are hard to reverse post-recession, instead focusing on competitive pricing aligned with market conditions and competitor actions.
• Adapt marketing strategies to emphasise value and satisfaction, targeting travellers’ concerns about price inflation and personal finances.
• Engage stakeholders including local governments and private sector partners to coordinate marketing efforts and develop flexible, resilient tourism products.

Additionally, tourism operators should focus on cost control by reducing non-profitable expenditures while sustaining marketing efforts to retain market share. Governments and destination managers can support these efforts by fostering collaboration, providing financial support, and promoting diversified, sustainable tourism offerings to build resilience against economic shocks.

In summary, value-driven promotions during economic challenges combine strategic pricing, bundled offers, and targeted marketing to meet travellers’ heightened price sensitivity while protecting brand value and ensuring long-term sustainability.