Be prepared: The rising cost of living doesn’t have to be a crisis

With the lowest consumer confidence since records began and surging inflation rates, many economists expect a recession to come our way. Industry reports already show a pull back in consumer spending on food and retail products, which is expected to have a greater impact on discretionary spending. The Leisure and Tourism industry will likely suffer as a result of households making cutbacks on their expenses as a result of increasing cost pressures on food and energy.

To help combat the negative impact from this cost of living crisis, we’re encouraging experience providers to take a look at their current operations and make some necessary adjustments to encourage bookings during this trying time. Don’t worry though, where there is change, there is opportunity, and the tips below will help to make sure you’re positioned to maximise success.

We’ve all seen how petrol prices have shot up in recent months and have caused many people across the country to look for alternative ways of travelling, or staying close to home to minimise fuel waste.

This is why refocusing your marketing efforts towards the local market, who are within a shorter driving radius, could be a game changer.

Nobody wants to go back to a full-on lockdown, so while travelling may be reduced to a minimum, people are still looking for experiences they can enjoy out of the house. Often, we don’t know what’s right on our doorstep, therefore changing your marketing campaigns towards people in your local area could make a huge difference. Think partnerships with local establishments, affiliate codes, flyers and local community groups and Facebook groups as a great way to further engage the local market.

You may need to consider reassessing your pricing model. Discounts will of course always work well, be they last minute or group, and can be targeted at your local market to reinforce the point above.

Further to this though, you may also want to look at your current pricing, particularly those that are over £50 a ticket. Depending on the software you use, booking fees can become expensive for your customers when purchasing high-priced tickets. This might be the time to see where you can make some reductions or changes so your customers have a more cost-effective trip, or utilise ‘decoy pricing’ to change customer’s perception of the value proposition of your tickets (more details on the guide below).

Another proven strategy is the practice of charm pricing. Instead of promoting an event or activity as £10 a ticket, change it to £9.99 or £9.95. Whilst logically we know the price difference is mere pennies, to consumers this has proven to be an effective pricing strategy and have often encouraged users to make a purchase.