Optimizing Site Pricing: Enhancing Value and Revenue
When pricing your sites, most parks realize that backs in sites, pull thru sites, etc. should be priced differently and they do so accordingly.
What many parks do not take into account are the nuances between like kind sites. Thus they price all back in sites the same, or all pull through sites the same, though there are nuances between the same site class that would allow for differentiation in pricing.
This week I am out west and visiting new clients along the Pacific Coast. As I walk the parks, it is clear that the pricing structures need to change. For instance, one park has all back in sites priced the same. Yet-four of the sites have stunning, and I mean stunning, Ocean Views. Looking at the occupancy, these sites are in high demand. They should NOT be sold at the same price as the regular back in sites.
Another park has back in sites on the interior, but near the pond. Again-as we say at AOS-"There is waterfront and there is everything else." Thus, waterfront or water view should never be the same price as other sites.
This seems simple, right? All waterfront or water view should be higher, but there are other circumstances that are not as evident. Even if parks up-charge for premium views, they often fail to charge for desired locations. Some desired spots are near pools, playgrounds, or cul-de-sacs. Others might have sites close to bath houses or amenities that cause guests to covet those sites above others. Look at the guests behavior and their requested sites and you will quickly see where are few more dollars added to the ADR can mean tens of thousands of dollars added to your bottom line.