Individualised pricing policy in touroperating

A concept that get used more and more by tour operators are the customized products. This means that with online marketing, companies can collect data on consumers’ past purchases and shopping behaviour in remarkable detail, down to the seconds spent on specific internet pages. Therefore tour operators can adapt their products to their customers’ wants and needs. (Obermiller, Arnesen, & Cohen, 2012) (Chand, n.d.)

According to Ed Peelen (2013) individualised pricing is a distinct form of customized products. Each customer thinks and acts differently towards the products of a tour operator. Demand for the product depends upon the psychology of the consumers. Sensitivity to price change will vary from consumer to consumer. In a certain situation the behaviour of one consumer may be different from the other individual. The pricing decision depends on the flexibility of the price itself. Furthermore according to Destination NFW (2012) it is necessary for a company to ensure their consumers purchase the offered product and distributors promote it, the price must be consistent, accurate and competitive. (Destination NFW, 2012) (Chand, n.d.) (Peelen & Beltman, 2013)

How does individualised pricing policy actually work and is it important for tour operators to use this strategy?  According to the report Customized Pricing: Win-Win or End Run?’ (2012), the same data bases are used for the individualised pricing policy to customize ads or products will make it possible for tour operators to estimate what each individual consumer is willing to pay and to set a price based on that.

“Dependent on the time and the situation, even individual customers will not always have the same valuation for the proposition. None the less, a company deciding always to charge everyone the same average price implies that it is prepared to accept a lower level of profit. It would then seem that while individual customers experience the advantages of customer relationship management, the supplier does not quite dare to derive the maximum profit from it, and allows a price premium to be lost” (Peelen & Beltman, 2013).

In the theory of Peelen & Beltman (2013) there is an opposite side to this pricing policy which can conclude it is not always possible to use this strategy even though it is a very important tool in your customer relationship management. In most cases tour operators are working with customized advertisements and products for their clients. There is a certain type of individualised pricing policy available in most of those pricing strategies.

In brief, individual pricing policies are very important for tour operators to remain in the sight of the customer. Furthermore an individualised pricing policy will help to build a strong customer-supplier relationship.



Chand, S. (n.d.). Pricing Policies: Considerations, Objectives and Factors involved in Formulating the Pricing Policy.

Destination NFW. (2012). Chapter 3 – Pricing your tourism product. In Tourism Business Toolkit Vol 2 (p. 15). Sydney.

Obermiller, C., Arnesen, D., & Cohen, M. (2012). Customized Pricing: Win-Win or End Run? Seattle: Drake Management Review.

Peelen, E., & Beltman, R. (2013). Customer Relationship Management. In E. Peelen, & R. Beltman, Customer Relationship Management. Pearson Education Limited.


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