The single most important aspect of profitability is pricing. Your offerings must be priced consistently, accurately and competitively to be successful in the marketplace. With successful pricing, you cover the costs of your business, make a profit and secure the resources to develop your business. As the marketplace is continually changing, you should reassess prices regularly.
Pricing requires a clear understanding of each individual cost component and their impact on the total price of the offering.
First, watch the video giving an example on how to price a FIT product.
Next, try pricing yourself with the excel sheet.
The video and the excel sheet were originally created for Tourism ABC educational materials.
Task Write down notes on the factors affecting the pricing of your tourism product. Use this notes document. Download the file, delete the cues from the text boxes and fill in your notes.
Notice that pricing is a demanding process involving numerous aspects to consider. The topics give you an idea of its complexity, but it is not an exhaustive list.
Sources and further reading
Kulmat.fi 2015. Hinnoittelu. http://www.kulmat.fi/opi-lisaa/e-oppimiskokonaisuudet/hinnoittelu (no longer available)
Lapland UAS 2019. Four Success Factors Tourism ABC. https://blogi.eoppimispalvelut.fi/tourismabc/language/en/four-success-factors/.