According to a new study by Arival, in partnership with TourIQ, BlackDog Advertising, Aloja, and Walkway, nearly seven out of ten operators of visits, activities, and attractions continue to practice fixed pricing throughout the season. The study, titled Arival Guide to Modern Pricing in Experiences, found that 69% of operators apply a single tariff, regardless of the day, schedule, or demand level.
Operators’ reluctance to adopt variable pricing is not justified, as the study suggests that travelers are more willing to accept variable pricing than industry professionals think. Only 6% of operators have adopted dynamic pricing, using software that can automatically adjust prices based on reservations, remaining capacity, or demand fluctuations. 25% of businesses use variable pricing, defining their prices in advance according to the season, day of the week, or departure time.
The use of fixed pricing has declined significantly since Arival’s first measurement in 2019, when over 90% of operators still applied this model. Large enterprises are at the forefront of this evolution, with 44% of operators accommodating more than 50,000 visitors per year using variable or dynamic pricing, compared to 27% for smaller structures. They are leading the way in adopting more flexible pricing models.
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The adoption of these models also varies by region, with the Middle East leading the way, where 43% of operators use variable or dynamic pricing. North America and Europe follow, with 33% each. In contrast, Australia and New Zealand lag behind, with 77% of operators still applying fixed prices. This variation in pricing strategies highlights the differences in the tourism industry across regions.
Despite the limited adoption of more flexible pricing models, a quarter of businesses offering on-site tourist experiences indicate that improving their pricing strategy is a strategic priority this year. Bruce Rosard, co-founder of Arival, believes that operators are missing revenue opportunities by not adjusting their prices according to demand. Rosard said, “Most still charge the same price for a sunset cruise on a crowded Saturday as for a half-empty Tuesday morning outing, and they’re leaving money on the table in both cases.”