Pricetag and dynamic pricing success at Leolandia
The September 2017 edition of IAAPA magazine Funworld contains a great success story about dynamic pricing at Leolandia. Massimiliano Freddi is interviewed and highlights the positive impact of dynamic pricing at Leolandia.
Dynamic pricing is another strategy that has paid off. Traditionally associated with the travel industry, it sets prices according to demand: As demand increases or decreases, prices rise or fall. In 2013, Freddi was concerned about the market’s reliance on special offers: “If you discount all the time, you won’t make more money, and you educate the market to look for special offers. I felt we should put the product first. People needed to feel the urgency to come to Leolandia.”
After meeting with dynamic-pricing specialist Pricetag, Freddi was convinced: “We cut 100 percent of our special offers and put the right prices at the right time on our website. We shifted from selling open-date tickets to fixed-date tickets, which was the first time it had been done in Italy.”
Not that it was all clear sailing. The first three months of the 2013 season were marred by rain. “We had a very poor start. We’d just introduced dynamic pricing, and I had the whole staff saying, ‘You killed the park!’” recalls Freddi. “But then the sun came out in June and the numbers not only recovered, they grew. And the per cap grew. And the in-park guest satisfaction grew because people who had bought tickets online were better prepared. Before, they would just show up at the gate and improvise. From that point, our real growth started. Our numbers are growing through quality, not discounts.”
