Pricing Model

Project status
Project posted
3 Sep 2013 09:56
Project duration (approx.)
91.0 Days
Budget (approx.)
£15000 / day
Industry
Leisure, Travel & Tourism
Area of expertise
Analyst / Research
Consultant location
Off-site

Objectives and Key Deliverables













































Background:-

The Club has been around for over 100 years, trading
successfully and leading the way in Caravanning. Membership has grown over the
years with members peaking in 2009 - 2011. The last decade saw The Club
benefiting from the good times and also demonstrated a lag in our industry when
the recession started in late 2007 so this has really only been realised in the
last couple of years as we have started to see a decline both in our recruitment and in our retention figures. Trading is no longer as rosy as
it once was and The Club need to take a long hard look at everything that it
does to ensure we are continuing to meet our members needs and ride through the
triple dip recession as a stronger and better Club ready to tackle another 100
years

What we need to know:-

The Club has always assumed it knew all there was to know
about its members and the market until times became tough. The Club needs to
think more widely about what is happening in its external environment to help
understand how we can continue to serve our members – we can tweak and changes
products and services and pricing but this is highly risky without a greater
understanding of what is happening and what factors are at play in our market.

The scope:-

The Club requires support to help explore
the external environment including the UK and World economies and how this interplays
with our market (caravanning and tourism) – this is not just for now but how
this may change over 5, 10 and 20 years to assist us with our strategic
planning for The Club and its key products and services. We need a fuller
understanding on the size and scale of the market, consumer trends and some
direction on where we might need to be in the future.





















 

The Requirements

The purpose of the pricing model is to provide a solution
that allows the Club to model different pricing scenarios to optimise the
revenue that is generated on a site-by-site basis. This will support the
development of business case for investments per site as well as provide the flexibility
to allow the Club to dynamically set prices for the season or for a weekend.

In the process of developing the model, the research and
analysis needs to understand what influences customer behaviours have on the
booking of sites and occupancy e.g. price elasticity, elasticity of demand.
Other areas of consideration are expected to include:

·       
Influence of macro factors – weather and
economic

·       
Key influencing factors at a local and regional
level such as location

·       
Pricing of sites

·       
Inflation

·       
Fuel pricing

·       
Budgets of members

·       
Peaks and troughs of occupancy and the impact of
these variations

·       
Look at the causes of the occupancy trends, e.g.
specific correlations with key events such as Olympics, national air shows, etc.

·       
Historical trends and factors have affected
occupancy

·       
Impact of investments and development on sites

·       
Facilities available on site and locally

·       
Ranking the importance of the influencing
factors for individual sites

·       
Accounts for all types of Club services provided
outside of touring e.g. statics

·       
Identify any additional factors that would
require investment in time or cost that is too high for the value of the
information.





















Data Requirements

Internal Data:

The Club will provide as much data as it has from the
internal systems and will include:

·       
Occupancy by night

·       
Average durations – site nights

·       
Adult/children/party size split

·       
Site open dates (if there is a delay to opening
dates, this could impact the levels)

·       
Storage usage, Seasonal pitch allocations
(affects occupancy)

·       
Members data who stayed on site (their postcode)

·       
Local competition

·       
Site content including pitch types e.g. hard
standings, tent pitches

·       
Locational advantages e.g. local attractions

·       
Pricing – periodic in bands (historically going
back to 2005. Any further history may be available in print format)

·       
Occupancies on a daily basis if available

·       
Key events e.g. air shows

·       
Site Content changes i.e. developments to the
site

·       
Site facilities

Historical data provided through the new Business Analytics
tool should be available in October for data going back to 2009.  Further efforts will then be made to gather
data that is older, 2005 should be feasible, however the Club is targeting historical
data up to 10 years.

External Data

It is expected that there will be requirements for external
data sources and at the very least is expected to include Weather patterns and
macro economic data.

The Club will review the requirements for external data
sources on an as needed basis, taking into consideration wider requirements for
this type of data by other areas within the Club.







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