04/12/2024
04/12/2024: Ohio's Travel Industry and Current Travel Research
TIMING AND POTENTIAL CHANGES IN DEMAND ARE KEY TO PRICING STUDIES
Key findings from Colleen Dilenschneider, published April 10:
- Understanding the price elasticity of demand is crucial to determine the right pricing strategy that the market will bear for your unique experience.
- Admission is just one method of audience access, and cultural organizations should develop targeted, affordable access to serve their audiences.
- Different pricing strategies include static pricing, differentiated pricing, variable pricing, and dynamic pricing.
- Timing is crucial when rolling out a price increase, and the best time to conduct a pricing study is in the year's second quarter.
- Organizations should not rely on just comparative/competitive price precedents, but should consider visitor research and consider the impact on membership when altering admission pricing.
- A data-informed method for carrying out a pricing study includes engaging an expert resource that values clinical, data-informed analyses, understands the total market and what their audiences value beyond price, and uses virtual modeling to save organizations from costly mistakes.
YOUNGER GENERATIONS FEEL THEY WILL LIKELY BE BETTER OFF FINANCIALLY COMPARED TO ONE YEAR AGO. TRAVEL BUDGETS AMOUNG GEN Z AVERAGES HIGH, WITH MANY PLANNING TRIPS 11 WEEKS OUT.
Key findings from Future Partners, fielded March 2024:
- 1 in 3 American travelers feel their household finances are better off now than one year ago, with younger generational cohorts likely to be in the "better off" camp.
- Younger travelers are more optimistic that their future finances will continue to improve.
- About 60% of travelers across all generations say travel will be a high priority in the next three months.
- Gen Zers report the highest maximum travel spending budget for the next 12 months, averaging $5,571.
- A one-week domestic leisure trip's average travel-planning window is 11.3 weeks.
- Spending time with loved ones tops the list of travel experiences travelers will prioritize in the next 12 months.
- More than one in three American travelers plan to travel outside the U.S. for leisure in the next 12 months.
- Family travelers skew Millennials and have an average annual household income of $107,000.
- Family travelers are showing very strong enthusiasm for traveling this year and are international-oriented travelers.