Have you ever felt like your tours—whether it’s a city walk, wildlife safari, or kayaking trip—are missing out on bigger group bookings? Solo bookings are great, but larger groups have a lot of potential. Maybe you’ve even lost out on some because the pricing felt too complicated. Sound familiar?
If figuring out group pricing has been a challenge, you’re not alone. Setting a price that works can feel like a balancing act—too high and you risk scaring them away; too low and it eats into your profits.
But don’t worry, in this blog, we'll guide you through 5 different group pricing examples and models. By the end, you’ll know exactly which model to choose and how to implement it on your tours.
Why Group Pricing Matters for Your Tour Business
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You’re probably thinking, “Why all the fuss about group pricing?” Well, group pricing can make or break your tour business.
Offering a solid group discount can fill your tours faster and reduce your overall marketing effort. It’s like getting multiple bookings with just one pitch.
However, group pricing is more than just slapping on a discount. You need to consider your costs, value, and competitors' prices. It's not rocket science but it's possible as long as you understand how pricing models work.
So now let’s dive into these five group pricing models that will help you find that sweet spot between attracting larger groups and protecting your bottom line.
1. Tiered Pricing
Encourage Larger Groups with Volume Discounts
Let’s start with tiered pricing. Think of it like buying in bulk at a grocery store: the more you buy, the less you pay per item. Tiered pricing works the same way for group tours.
Example: Imagine you offer historical walking tours for $50 per person. For groups of 10-15 people, you might lower the price to $45 per person. For groups of 20+, it could drop to $40 per person. This way, you reward larger groups, but you’re still covering your costs.
Who This Is For: Tiered pricing is an ideal fit for operators who run walking tours, city tours, or bus tours. These tours often have flexible group sizes and can benefit from pricing that encourages larger bookings. It’s also perfect for operators running tours that are easy to scale up with additional participants, such as museum tours or nature hikes.
2. Flat Group Rate
Simplifying the Process for Everyone
Flat group rates are helpful when you want to make things easy—both for you and your customers. In this pricing model, the group pays one set price for a specific number of people, no matter how many are in the group.
Example: Let’s say you run paddle boarding tours. You might charge $500 for a group of 1-10 people. It doesn’t matter if 6 or 9 show up, the price stays the same.
Who This Is For: This model is ideal for tours with fixed capacities, like escape rooms, boat tours, or private event experiences. If you’re running a tour or activity with limited slots (e.g., wine tours with a max of 10 people), flat rates help you lock in a minimum revenue without worrying about exact numbers.
3. Per-Person Pricing with Group Discounts
A Fair, Flexible Option
This model is a good mix of flexibility and fairness. It works by charging each person in the group a discounted rate. This way, everyone pays their share, but the group still gets a discount for booking together.
Example: If you run wine-tasting tours, you might normally charge $50 per person. For groups of 10 or more, you could offer a 10% discount, meaning each person in the group would pay $45.
Who This Is For: Per-person pricing works well for operators who cater to small to medium-sized groups, such as bike tours, food tours, or outdoor adventure activities like ziplining. It’s perfect when you want to offer pricing flexibility while still encouraging group bookings.
4. Custom Group Packages
Adding Value Beyond Just a Discount
Sometimes, it’s not just about the price but about the experience. Custom group packages let you offer more value by bundling extras like meals, transport, or exclusive experiences. This model is suitable for operators who want to create memorable, all-inclusive experiences.
Example: You run a scuba diving tour and create a package for groups of 6-10 people. For $1,200, the group gets not just the dive, but also lunch, transportation, and a private tour guide. This is a better deal than booking everything separately.
Who This Is For: Custom group packages are ideal for premium or specialized tours, like wildlife safaris, private yacht trips, or destination tours that involve multiple activities. This model appeals to high-end clients looking for all-inclusive experiences.
If you offer corporate tours, check out Arival’s article where they share 4 effective ways to offer premium corporate group services without compromising your profits—it’s a must-read for operators.
5. Time-Based Group Pricing
Adjusting for Demand and Seasonality
This model adjusts prices based on demand or the season. During peak seasons, you charge more, while off-peak times may offer discounts. It’s a flexible approach that lets you capitalize on high demand while still filling tours during slower periods.
Example: For your wildlife safari tours, you might charge $50 per person during the busy summer season for groups of 10 or more. But during the off-peak season, you drop the rate to $30 to attract more bookings.
Who This Is For: Time-based pricing works well for seasonal tour operators—think ski resorts, whale-watching tours, or guided hiking expeditions. It’s also useful for operators in locations with distinct high and low tourist seasons.
For more advice on managing demand year-round, explore this resource on how to overcome tourism seasonality.
Wrapping Up: Which is the Right Group Pricing Model for Your Tours?
Now that you know the five group pricing examples and models, it’s time to pick the one that fits your business best. Whether you choose tiered pricing, flat rates, or custom packages, the key is to balance value with profitability.
Each of these models has its strengths, so consider what works best for your type of tour and the kind of customers you attract.
- Tiered Pricing
- Flat Group Rate
- Per-Person Pricing with Group Discounts
- Custom Group Packages
- Custom Group Packages
By implementing the right group pricing model, you’ll not only attract more group bookings, but you’ll also ensure your tours remain profitable. Why not try to experiment with these strategies and let's see how your group bookings take off?
Need Help Implementing Group Pricing on a Booking System?
If you’re unsure which group pricing model to use or how to set it up in your booking system, TicketingHub can help!
Book a free consultation with us, and we’ll walk you through how to price your tours on our booking system while saving you all the arduous work in booking management. Pick a time and date for your TicketingHub demo here.
FAQ: Group Pricing Examples and Strategies
1. What is the best group pricing strategy for my tour company?
The best group pricing strategy depends on your target market and the size of the groups you want to attract. Here are some options.
- Tiered Pricing: Offer discounts based on group size. Larger groups receive a bigger discount, encouraging them to book more spots.
- Flat Group Rate: Charge a fixed price for a price group, regardless of the number of people. This works well for tours with limited capacity.
- Per-Person Discounts: Based on group size, give each participant a slight discount. This keeps pricing flexible but rewards larger bookings.
Actionable Tip: Choose the model that fits your tour type and online business goals. Tiered pricing is ideal for larger, more scalable tours, while a flat group rate simplifies things for intimate tours with limited spots.
2. How do I balance offering discounts and maintaining profit margins?
Offering group discounts with profit margins is crucial. Here’s how to achieve this:
- Set a Minimum Group Size: Ensure that only price groups of a certain size qualify for discounts, protecting your revenue.
- Off-Peak Discounts: Offer lower rates during slow seasons to fill tours without reducing profitability during busy times.
- Add Value, Not Just Discounts: Make group packages more attractive by including extras like transportation or meals without sacrificing profits. Consider partnering with local businesses—think of cafes, bus tours, Airbnb hosts, or food tour operators. This approach not only makes your offer appear more cost-efficient but also creates mutually beneficial relationships with other operators. Here's how to make the most of travel partnerships.
Actionable Tip: Always calculate your costs, including administrative tasks and additional services, to determine the right discount that won’t harm your profit margins.
Take a look at Arival's article on helpful insights on balancing profit margins while adjusting your pricing strategy based on demand—it’s packed with valuable tips for tour operators.
3. Should I charge the same price for all group types, like students or loyalty members?
No. Providing different prices for different customer segments increases conversion rates and caters to various audience types. Consider:
- Student Discounts: Offer reduced rates to attract younger travelers during the weekdays or off-peak times.
- Loyalty Program: Create a loyalty program for repeat group bookings, rewarding frequent customers with special discounts or perks.
Actionable Tip: Segment your customers into groups such as wholesale customers, students, or corporate clients, and offer tailored group pricing based on their needs and booking frequency.
4. Can group pricing improve customer retention and repeat business?
Yes! Well-designed group pricing strategies can drive repeat business and build customer loyalty. Here’s how:
- Loyalty Group Discounts: Offer discounts to groups that book repeatedly as part of a loyalty program. These incentives encourage customers to return and bring larger groups in the future, increasing your bookings while fostering long-term customer relationships.
- Enhance Customer Experience: Offer additional services like exclusive tour perks or personalized attention to groups, making them feel valued and creating a more memorable experience. This not only improves customer satisfaction but also boosts customer loyalty and increases the likelihood of repeat business.
Actionable Tip: Implement a loyalty program that rewards repeat customers with ongoing discounts or bonuses. This creates long-term relationships and boosts your conversion rate over time.
