Every operator faces the same dilemma: a few empty seats, a few unsold spots, and the temptation to “drop the price” at the last minute.

Dynamic pricing often gets reduced to that, discounting to fill space. But that misses the bigger picture entirely and can be a bit dangerous for your revenue.

The real power of dynamic pricing isn’t in reacting to demand. It’s in designing it.

The last minute Discount Trap

When operators hear “dynamic pricing,” many immediately think of slashing prices to attract last-minute buyers. Airlines and hotels have trained us to see it that way, but in the tours and activities space, a last minute discount can hurt your revenue. Travellers are most price-sensitive far in advance. Last minute, they have less time to shop as they’re already in destination. They’re booking from their phone where switching tabs to compare price is more difficult.

Pricing won’t necessarily impact the demand. I mean, some are just not interested in sailing tours (or whatever is the product you’re offering).

Last, travellers already in destination will value convenience and quality over savings. Is there a transfer included ? How far is this thing? What time do i need to wake up ? Those are the questions they’ll ask themselves.

Using a list minute discount, you may end-up discounting a product that people would have bought anyways. There are cohorts who respond to last minute deals, and you can segment them and target them, but I would suggest not to offer last-minute deals for everyone.

Real Dynamic Pricing Is Strategic

Now that we addressed the last minute discount trap and that we’re clear on definitions, let’s focus on true dynamic pricing.

True dynamic pricing isn’t about lowering your price, it’s about aligning it with real-world conditions:

• Demand: Increase or hold steady when your schedule fills up fast.

• Timing: Offer early-bird incentives for guests who commit in advance.

• Resources: Adjust when your costs change, for example, when you pay your guides extra for bank holidays.

The goal is balance: filling your calendar at the best price while increasing your margin.

Dynamic pricing, done right, will help you understand your market better, and increase your revenue.

How to define your dynamic pricing strategy

Software can automate dynamic pricing but you know your market better than anyone: do not let technology define your base price.

Here’s a simple way any tour operator can structure a dynamic pricing strategy:

1. Start with a Strong Base Price

Define a base price by product. This is your anchor. Every adjustment should be relative to this, not improvised day to day.

2. Let Availability Drive Price

As your departure fills up, price should gradually increase. Scarcity is the most reliable signal of real demand.

3. Reward Commitment, Not Hesitation

Early bookings should receive the best value. As the departure approaches, pricing should reflect increasing certainty and operational commitment.

4. Use the Calendar as a Pricing Signal

Weekends, holidays, peak season and event dates naturally command higher prices. Mid-week and shoulder periods require more competitive positioning.

5. Add Guardrails

Every pricing system needs limits:

• Maximum price increases

• Minimum acceptable margins

• Rules that prevent manual, emotional adjustments

When these rules are in place, pricing becomes predictable, fair, and scalable.

What’s next?

Dynamic pricing has been available to hotels for years, and experiences is far behind. The psychological bias is that we don’t want people on the same tour who paid a different price.

When I was running my sailing tour company in Greece, I implemented dynamic pricing as early as 2016. I had guest paying as little as 90€ per person, and some paying as high as 150€ per person. Same boat, same service. I never had an issue with this - the traveller understands the concept with airlines very intuitively.

Now that this fear is fading on the operator side, we can help you optimise revenue, without investing in something new. Just better pricing.

Stay tuned, i’ll dive into how to model this in CaptainBook soon!