If I’m willing to be flexible with my dates I can find a great deal on a flight, a hotel or a rental car. This is because all of those companies are actively maximizing their revenue by lowering prices for last-minute travelers or for those willing to travel during off-peak periods. If I wanted to find a great deal on an adventure travel tour I’d have a hard time even if my travel plans were super-flexible.

I’ve asked dozens of adventure travel tour operators about why they are hesitant to offer last-minute discounts or off-season promotions. Here are the most common responses to my queries (and my thoughts about their objections):

• Don’t want to become a commodity (a la airlines): It’s true. The airlines have turned themselves into a commodity, but I believe that is because no airline offers a clear differentiator. Adventure travel companies have enough opportunities to differentiate that commoditization shouldn’t be a real concern. You don’t see commoditization being a problem for boutique hotels, and they offer promotional pricing.
• Don’t want customers to feel slighted: I’ve talked to a few people who are concerned that a client will be upset when he finds out that other people on the trip paid less. I really don’t think this is a concern in today’s economy. Nobody pays the same for a flight, nobody pays the same for a hotel, why should everybody pay the same for adventure travel? Clients will understand that someone booking months in advance or at the last minute is entitled to a discount.
• Don’t have the technology/resources: Alright, there aren’t any great resources out there to offer last-minute promotions, but you can start gathering names for an e-mail newsletter that lists special packages. Call some of your past clients and let them know. List the deals on your website and run an adwords campaign. The resources are inexpensive, you just need to put in a little effort.

And now, my list of reasons that EVERY adventure travel company should be working on revenue management strategies:

• More revenue: If you’re filling a seat that would have been empty without that promotion, you’re increasing your revenue. If the incremental cost of taking one additional passenger is less than the price that passenger paid you’ve just improved your bottom line.
• Access to customers in a different price point: There are certain things I personally can’t afford unless they’re on sale. You can almost guarantee there are a few people out there who are interested in one of your trips, but simply can’t afford it at the standard price. You were never going to get these folks as customers without the promotional pricing.
• Build buzz: Often, running a special promotion exposes you to new customers who have never heard of your operation.  If these customers enjoy the trip they’re likely to talk about your business and may book future trips at the regular rate.

Airlines and hotels are using complex data models to maximize their revenue through discounting. While the smaller adventure travel operators probably aren’t going to be building a complex computer model here are some tips to understand your pricing strategy:

· Understand your fixed vs. variable costs: This is key, as you NEVER want to sell a trip for less than your variable cost per client.

· Keep booking records: If you’re not doing this yet, I would start immediately. It’s really valuable to be able to know exactly when your slow periods are. What trips are always full? Also, keep track of how far in advance people are booking. You’ll need to understand that number to time last-minute discounts.

· Start a newsletter: You need a way to stay in touch with clients, and an e-newsletter is an inexpensive and effective way to let clients know about special deals and other things going on with your business.

I did some searching online and couldn’t find any great resources regarding revenue management for adventure travel companies. This article has a couple of relevant points though. I’ll try to find the time to do a follow-up post in a couple of weeks. If I start feeling really geeky I’ll maybe make a basic revenue-management model in Excel that might be of value.