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Yielding Price Adjustments for Group Tours

Product Management avatar
Written by Product Management
Updated this week

Overview

Yielding price adjustments are an important feature as they allow commercial teams from Tour Operators and Travel Agents to be proactive (based on trends and performance analysis) in adjusting the overall price of trips and market these changes to improve sales performance.

Important: This feature is in the Beta version and needs to be enabled by Nezasa. Please contact our support team to enable the feature flag available at Distribution Channel > Nezasa-Only > Yield Price Adjustments.

Example use cases

Consider, for example, the ‘Highlights of Costa Rica’ group tour departing on December 1st with a target group size of 30, but by October, only two passengers had booked onto the tour. The group tour would potentially be cancelled because it would make a loss. However, a Commercial Manager detecting the underperforming tour could promote a price reduction, resulting in a consumer interest spike, more sales and a viable tour to the operator at a profit.

Another example would be a Commercial Manager who knows the ‘Grand Tour of Costa Rica’ performed very well in January 2023, consistently overbooked for January departures in previous years. With this information, all January departures in 2024 could get a bulk increase on the tour price by 300 EUR (more than their average year-on-year increase) and also add an early bird marketing special to save 100 EUR if booked before June 2023.

Specific terminology

To share a common basis on the topic and feature, it is important to familiarise yourself with some specific terms:

  • Yield Manager: Person responsible for yielding activities.

  • Yielding Conditions: setup of yielding conditions (e.g. cut-off) and values in Cockpit

  • Yield Price: adjusted price after yielding conditions are applied

  • Cut-off: Reduction amount added onto the sales price from Cockpit inventory.

  • Special Deal: Difference between the original price and the yield price where a reduction has been made.

Yield price adjustments

A yielding price adjustment as an overall sales price decrease (i.e. cut-off) is supported by TripBuilder and applicable to group tour departure dates (single or multiple dates). The cut-off conditions are set in the Cockpit Inventory for the template that supports the group tour.

In this use case, the cut-off value (i.e. special deal) appears on all customer-facing touchpoints: Discovery, Planner, Customer Care and Travel Docs. The displayed price display includes a reference to the original price and an indication of the savings made.

Yield price adjustments are also available via the booking API.

Note: Yield price adjustments generally comprise two scenarios: a price decrease (cut-off) and a price increase. For now, TripBuilder only supports yield price adjustment as a price decrease, which is the article's focus.

Cut-off adjustments

How to define a cut-off condition

  1. Go to TripBuilder Cockpit

  2. Click on Inventory

  3. Click on Itinerary Templates under Package Builder
    ​

    Screenshot 2023-09-19 at 12.48.11.png

  4. Select the intended Group Tour template

  5. If the template is not in Draft mode, click on the three dots at the top right of the screen and then select Checkout & Open
    ​

    Checkout and open.png

  6. Click on the Departure Dates tab. Here, you can check all defined departure dates for the group tour. A "Yield Price" column is presented if at least one departure date has a yielding condition attributed to it.

  7. Click on the Edit icon for the departure date you would like to apply a cut-off adjustment
    ​

    Departure Date Edit.png

  8. A popup is presented for the selected departure date (in this example Departure Dates 2023-12-20)
    ​

    Screenshot 2023-09-19 at 15.02.03.png

  9. Toggle ON the Yield Price Adjustment configuration.

  10. Select Cut-off as the yield price adjustment type and define the value for the price cut-off (e.g. 100 EUR).
    ​

    Screenshot 2023-09-19 at 15.09.09.png

    Note:

    A cut-off price adjustment always applies to the total value of the itinerary booking and cannot be defined per PAX. Consider a group tour departure date with a price of 1000 EUR and a 100 EUR cut-off condition:
    ​

    • For one PAX: Itinerary reduced to 900 EUR (100 EUR cut-off per PAX)

    • For two PAX: Itinerary reduced to 900 EUR (50 EUR cut-off per PAX)

    • For four PAX: Itinerary reduced to 900 EUR (25 EUR cut-off per PAX)


    It is important to highlight this distinction since TripBuilder consistently presents both the total itinerary price and the per PAX partial price.

  11. Click on the Save button.

  12. The template definition is presented again with the Departure Dates tab selected. Column Yield Price references the departure date as having a yield price adjustment configuration.
    ​

    Screenshot 2023-09-19 at 13.04.48.png

Updating from-prices for the template

Once a yield price adjustment is defined, updating the "from-price" information associated with the template is important, considering the "special deal" and keeping all pricing data consistent.

  1. Having selected the group tour template, while in Draft mode, click on the Miscellaneous tab.
    ​

    from prices.png

  2. Scroll down until you reach the From-Prices area. Click on the Regenerate button to update from-prices resulting from applying the yield adjustment to the itinerary price.
    ​
    ​Note: A from-price refresh action is a data and computation-intensive task. Running in the background, the results can take up to 10 minutes to be available.
    ​

  3. Once generated and available, the reference from-prices are presented in the Miscellaneous tab. The number of from-prices will match the number of categories defined in the group tour.
    ​

    Screenshot 2023-09-19 at 19.09.25.png


    ​Know more:

    Know more about the from-price refresh process (manual and automated) in the article Updates for From-Prices on Templates.
    ​

  4. Click the Save button at the top right of the screen.

  5. Click on the three-dot button at the top right of the screen and Publish the template.
    ​

    Pubçish action.png

Visibility on the cut-off adjustment

Once applied, the cut-off price adjustment is visible consistently throughout the entire booking funnel and later in Customer Care and travel documentation for the selected group tour departure date. Visually, the representation has the original price strikethrough and the final price calculated with the cut-off adjustment. This representation is made available in different TripBuilder areas:

  • Discovery Overview:

    • Vertical cards

    • Horizontal cards

  • Discovery Details

  • Planner (complete flow)

  • Checkout (complete flow)

  • Customer Care

  • Travel Documentation

Discovery overview (vertical cards)

Screenshot 2023-09-19 at 18.57.27.png

Discovery overview (horizontal cards)

Screenshot 2023-09-19 at 19.14.44.png

Discovery details

Screenshot 2023-09-19 at 19.12.21.png

Planner

Applying a cut-off for a Standard service level selection:
​

Screenshot 2023-09-19 at 19.22.35.png

Applying a cut-off for a Superior service level selection:
​

Screenshot 2023-09-19 at 19.23.43.png

Checkout (Additional Options)

Screenshot 2023-09-19 at 19.30.14.png

Checkout (Payment)

Booking Summary:
​

Screenshot 2023-09-19 at 19.34.00.png

Price Breakdown:

Screenshot 2023-09-19 at 19.36.06.png

Checkout (Booking Confirmed)

Screenshot 2023-09-19 at 19.37.10.png

Customer Care (Services & Price List section)

Yield price.png

Travel Documentation

Screenshot 2023-09-19 at 22.35.43.png
Related Articles
TripBuilder Group Tours
Group Tours - Template Pricing
Group Tours - Tour Leader Bookings
Group Base Services
Group Tours Visualisation in Customer Care
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