TUI admits it is basing its latest pricing strategy on the oldest profession. And yes, this time I do mean prostitution.Â Managing Director Dermot Blastland has openly stated thatÂ he is impressed with the ability of flesh-floggers to charge what the market will â€˜bareâ€™. Second-hand knowledge only, Pumpkins â€“ he got it from a case study in biz book bestseller Superfreakonomics. (Itâ€™s super freaky, yeah!) One comely courtesan reported that she managed to increase her fees by 67% in just a couple of years by identifying clear traits in customers willing to pay more. (What is this? Harlots from Harvard?)
Dermot’sÂ definitely hooked onto something here.Â Not everyone, even in Canada, is so cheap theyâ€™ll spend eight hours surfing the net to save seven bucks â€“ a phenomenon also known as â€˜Book with Boyle.â€™ To test the theory, TUI took away all of its Internet discounts for two days. Yes Pumpkins, business plummeted â€“ by 50%! But the other 50% paid full price without blinking an eye.Â So, if you can hustle a full margin client without dropping your pants, makes you wonder whyÂ so many travel folks put outÂ for so little?
I just ask the questions, Pumpkinsâ€¦ I donâ€™t have theÂ answers.